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Schedule C - Credit Computation

Column A

Column B

Column C

Instructions for the computation of tangible property and

wages, salaries, and other compensation are shown below.

Eligible Facility Approved by

Total Facilities Within Connecticut

DECD

(Including Eligible Facility)

For Line 1 and Line 2,

divide Column A

1a. Depreciable assets

by Column B.

Tangible

1b. Land

Property

Carry to six decimal

1c. Capitalized rent

places

Average monthly

1d. Other

net book value

1. Total

Wages, Salaries,

and Other

Total

Compensation

3. Total: Add Line 1 and Line 2 in Column C.

Facility

Credit

4. Facility ratio: Divide Line 3 by two.

Ratio

5. Tax: From Form CT-1120, Schedule C, Line 1, Total Tax

6. Balance: Multiply Line 5 by Line 4.

Tax Credit

7. Tax credit percentage: See instructions.

Calculation

Tax credit: Multiply Line 6 by Line 7. Enter here and on Form CT-1120K,

Part I-B, Column A.

Instructions

Schedule A

speciﬁ cally acquired for and installed at that site should be computed

by multiplying the gross rents payable by the taxpayer during the

Schedule A is used to determine if the manufacturing facility is located

income year by eight. Column B consists of the average monthly

in an area eligible to receive Enterprise Zone level beneﬁ ts. If the

net book value of all real property, machinery, and equipment held

facility does not meet the criteria for location, it is eligible only for the

and owned by the taxpayer in Connecticut plus the value of all

25% credit. Skip Schedule B and continue on to Schedule C.

real property, machinery, and equipment rented to the taxpayer in

Lines 1 and 2 - Check Yes if the manufacturing facility is located

Connecticut, computed by multiplying the combined gross rents

within one of the areas having Enterprise Zone level beneﬁ ts.

payable during the income year by eight. Gross rents means gross

rents as deﬁ ned in Conn. Gen. Stat. §12-218(c)(1).

Line 3 - Check Yes if the facility is engaged in biotechnology,

pharmaceutical, or photonics research, and is located in a municipality

Wages, Salaries, and Other Compensation: Column A consists

that has a major research university with programs in biotechnology,

of all wages, salaries, and other compensation paid during the

pharmaceuticals, or photonics, and that has an Enterprise Zone.

income year to employees of the taxpayer whose positions

are directly attributable to the eligible manufacturing facility.

Schedule B

Column B consists of the sum of wages, salaries, and other

compensation paid during the income year to all employees of the

Schedule B is used to determine if the facility employs enough

taxpayer in Connecticut.

workers who are residents of the Enterprise Zone or are residents of

the municipality and qualify for federal Job Training Partnership Act

An employee’s position is directly attributable to an eligible

beneﬁ ts. If the facility does not meet the criteria for employment of

manufacturing facility if the:

local workers, it is eligible only for the 25% credit.

•

Employee’s service is performed or base of operation is at the

Line 1 - Complete as indicated.

eligible manufacturing facility;

Line 2 - The initial hiring for the new facility is based on the start date

•

Position did not exist prior to the construction, renovation,

established with DECD.

expansion, or acquisition of the eligible manufacturing facility;

and

Line 3 - Subtract Line 2 from Line 1 and enter the result. If zero or

less, the company is eligible only for the 25% credit. Do not continue

•

Position would not have been created but for the construction,

on to Lines 5 through 7. Enter 25% on Schedule C, Line 7.

renovation, expansion, or acquisition of the eligible manufacturing

facility.

Line 4 - Multiply Line 3 by 30%.

Line 5 - Enter the tax from Form CT-1120, Schedule C, Line 1,

Total

Lines 5 through 7 - Complete as indicated.

Tax

Schedule C

Line 6 - Multiply Line 5 by Line 4.

Schedule C is used to determine the amount of the tax credit.

Line 7 - Enter the tax credit percentage. This percentage will be

Tangible Property: Column A includes the average monthly net book

either 25% or 50%, and is determined from Schedule A, Line 3, or

value of the eligible manufacturing facility including all machinery

Schedule B, Line 6 or Line 7.

and equipment speciﬁ cally acquired for and installed at that site,

Line 8 - Enter the tax credit. Multiply Line 6 by Line 7, enter here and

without reduction for any encumbrance. When rented, the value of

on Form CT-1120K, Part I-B, Column A.

the eligible manufacturing facility and all machinery and equipment

Form CT-1120 TIC/EZ Back (Rev. 12/14 )

Form Ct-1120 Tic/ez - Connecticut Manufacturing Facility Tax Credit For Facilities Located In A Targeted Investment Community/enterprise Zone Page 2

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