Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2012 Page 16
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52Failure to fi le or failure to pay the proper amount of tax
However, this credit cannot be used against an employer’s
when due will result in penalty and interest charges. It is
withholding tax liability. Additionally, this credit does
to your advantage to fi le when your return is due whether or
not carry forward, is nonrefundable, and, if used against
not you are able to make full payment.
an income tax liability imposed under Chapter 229 of the
Connecticut General Statutes, is limited by the amount of the
Attach other required forms and schedules, including
tax. The tax credit is not available for a taxable year if the new
Supplemental Schedule CT-1040WH, to the back of your
employee was not employed by the employer at the close of
return or as directed on the form. You do not need to attach
that taxable year. The tax credit is administered by DECD.
a copy of your previously-fi led Form CT-1040 EXT.
Job Expansion Tax Credit
Rounding Off to Whole Dollars
Beginning on or after January 1, 2012, a taxpayer may be
You must round off cents to the nearest whole dollar on
allowed a credit for each new qualifying employee or veteran
your return and schedules. If you do not round, DRS will
employee hired on or after January 1, 2012, and prior to
disregard the cents. Round down to the next lowest dollar
January 1, 2014. The credit may be applied against the tax
all amounts that include 1 through 49 cents. Round up to
imposed under chapters 207, 208, 212, or 229, but not against
the next highest dollar all amounts that include 50 through
the withholding tax liability imposed under §12-707. The
99 cents. However, if you need to add two or more amounts
credit cannot exceed the amount of tax due.
to compute the amount to enter on a line, include cents and
The amount of the credit is:
round off only the total.
• $500 per month for each new employee; or
• $900 per month for each qualifying or veteran employee.
Example: Add two amounts ($1.29 + $3.21) to compute the
total ($4.50) to enter on a line. $4.50 is rounded to $5.00 and
If the taxpayer was issued a certifi cation letter by DECD,
entered on the line.
prior to January 1, 2013 to receive a qualifi ed small business
rehabilitation tax credit, the provisions of the qualifi ed small
DRS does not round when issuing refunds.
business rehabilitation tax credit will apply for the duration
of the certifi cation.
Income Tax Credits
See Special Notice 2012(6), 2012 Legislative Changes
The following credits are applicable against the income tax.
Affecting the Income Tax.
If you qualify you may claim the credits on Schedule CT-IT
Angel Investor Tax Credit
Credit, Income Tax Credit Summary.
This tax credit is available to angel investors making a cash
For more information about additional requirements and
investment of not less than $25,000 in the qualifi ed securities
limitations to these credits, see Special Notice 2010(3), 2010
of a Connecticut business. The credit is applicable to taxable
Legislative Changes Affecting the Income Tax; Special Notice
years beginning on or after January 1, 2010. However, tax
2012(6), 2012 Legislative Changes Affecting the Income
credits cannot be reserved for any investments made on or
Tax; or contact the Department of Economic Development
after July 1, 2014. The allowable credit is 25% of the cash
(DECD) or Connecticut Innovations Inc.
investment, cannot exceed $250,000, cannot exceed the
These tax credits may be claimed by the shareholders
amount of the income tax imposed under Chapter 229 of
or partners of an S corporation or an entity treated as a
the Connecticut General Statutes for the taxable year, and
partnership for federal income tax purposes. If the entity is a
cannot be used against the withholding tax liability imposed
single member limited liability company that is disregarded
by Conn. Gen. Stat. §12-707.
as an entity separate from its owner, the tax credit may be
The credit must be claimed in the taxable year in which the
claimed by the limited liability company owner provided the
investment is made. Any tax credit claimed but not applied
owner is a person subject to Connecticut income tax.
against the income tax liability may be carried forward for
Qualifi ed Small Business Job Creation Tax Credit
the fi ve immediately succeeding taxable years until the full
An employer with less than 50 employees in Connecticut
credit has been applied. The credit is not transferable. The
may earn a credit equal to $200 per month for hiring a new
tax credit is administered by Connecticut Innovations, Inc.
employee after May 6, 2010, who resides in Connecticut.
The new employee must be hired to fi ll a full time job during
the taxable years beginning on or after January 1, 2010, and
before January 1, 2013. The tax credit may be used against
the tax liability under Chapter 229 or against the tax liability
under Chapter 207 or 208 of the Connecticut General Statutes,
for the taxable year in which the new employee is hired, and
if eligible, the two immediately succeeding taxable years.
Page 16
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