Instructions For Form Ct-1120 - Connecticut Corporation Business Tax

What’s New

Surtax for 2012 and 2013 Income Years

The Job Expansion Tax credit was enacted in 2011

and is available for income years beginning on or

For income years beginning on or after January 1,

after January 1, 2012 to taxpayers that hire new

employees to fill new jobs after January 1, 2012 and

2012 and prior to January 1, 2014, there is a 20%

surtax on the tax on net income and the tax on

before January 1, 2014. The amount of the tax credit

capital. However, any company whose gross income

is $500 per month for a new employee and $900

is less than $100 million is exempt from this surtax

per month for a veteran employee or a qualifying

unless it files as part of a Connecticut combined or

employee. See Informational Publication 2010(13),

unitary corporation business tax return. The surtax is

Guide to Connecticut Business Tax Credits, for more

calculated without regard to any credit that may be

information and how to apply for this tax credit.

applied against the corporation business tax.

Conn. Gen. Stat. §12-217pp, as amended by 2012

Conn. Pub. Acts, §198 (June 12 Spec. Sess.).

Conn. Gen. Stat. §§12-214(b)(7) and 12-219(b)(7).

Manufacturing Reinvestment Account

Green Buildings Tax Credit

For

income

years

beginning

after

The Green Buildings Tax credit was enacted in 2009

January 1, 2011, the manufacturing reinvestment

and is available for income years beginning on or after

account (MRA) program has been modified to

January 1, 2012 for eligible construction, renovation,

require an addition to gross income in the income

or rehabilitation projects. The eligible projects

year of a distribution or return of money from an

must use Energy Star equipment and appliances, if

MRA as follows:

applicable, and must have energy use that does not

•

50% of a distribution from an MRA to the extent

exceed:

it is used for a qualifying purchase;

•

70% of the energy use allowed by the state energy

code for new construction eligible projects; or

•

100% of a distribution from an MRA to the

extent it is used for a non-qualifying purchase;

•

80% of the energy use allowed by the state energy

and

code for renovation or rehabilitation eligible

•

100% of the money remaining in an MRA

projects.

account that is returned to its owner after the

See Informational Publication 2010(13), Guide

five year period.

to Connecticut Business Tax Credits, for more

information and how to apply for this tax credit.

This addition to gross income replaces the 3.5% tax

on the gross amount of distributions from an MRA.

Conn. Gen. Stat. §12-217mm.

Additionally, the subtraction from gross income for

Job Expansion Tax Credit

contributions to an MRA has been made applicable

to income years beginning on or after January 1,

For income years beginning on or after January 1,

2012, the definition of “qualifying employee” has been

2011. It previously had been applicable to income

years beginning on or after January 1, 2012.

expanded to include a new employee who, at the time

of hiring, is receiving employment services from the

Conn. Gen. Stat. §12-213, as amended by 2012 Conn.

Department of Mental Health and Addiction Services,

Pub. Acts, §195 (June 12 Spec. Sess.); Conn. Gen.

or is participating in employment opportunities and

Stat. §12-217, as amended by 2012 Conn. Pub. Acts,

day services, as defined in section 17a-226, operated or

§194 (June 12 Spec. Sess.); Conn. Gen. Stat. §32-9zz,

funded by the Department of Developmental Services.

as amended by 2012 Conn. Pub. Acts, §§192 and 193

(June 12 Spec. Sess.).

Page 4

Instructions For Form Ct-1120 - Connecticut Corporation Business Tax - 2012 Page 4

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