Form Ct-1120 Tic/ez - Manufacturing Facility Tax Credit For Facilities Located In A Targeted Investment Community/enterprise Zone Page 2
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1
2Schedule 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
1.
Wages, Salaries,
and Other
2.
2.
Total
Compensation
3.
Total: Add Line 1 and Line 2 in Column C.
3.
Facility
Credit
4.
Facility ratio: Divide Line 3 by two.
4.
Ratio
5.
Tax: From Form CT-1120, Schedule C, Line 1
5.
6.
6.
Balance: Multiply Line 5 by Line 4.
Tax Credit
7.
Tax credit percentage: See instructions.
7.
Calculation
8.
Tax credit: Multiply Line 6 by Line 7. Enter here and on Form CT-1120K,
8.
Part I-C, Column A.
Instructions
Schedule A
specifically acquired for and installed at that site should be computed
Schedule A is used to determine if the manufacturing facility is located
in an area eligible to receive Enterprise Zone level benefits. If the
by multiplying the gross rents payable by the taxpayer during the
income year by eight. Column B consists of the average monthly
facility does not meet the criteria for location, it is eligible only for the
net book value of all real property, machinery, and equipment held
25% credit. Skip Schedule B and continue on to Schedule C.
and owned by the taxpayer in Connecticut plus the value of all
Lines 1 and 2 - Check Yes if the manufacturing facility is located
real property, machinery, and equipment rented to the taxpayer in
within one of the areas having Enterprise Zone level benefits.
Connecticut, computed by multiplying the combined gross rents
Line 3 - Check Yes if the facility is engaged in biotechnology,
payable during the income year by eight. Gross rents means gross
rents as defined in Conn. Gen. Stat. §12-218(c)(1).
pharmaceutical, or photonics research, and is located in a municipality
that has a major research university with programs in biotechnology,
Wages, Salaries, and Other Compensation: Column A consists
pharmaceuticals, or photonics, and that has an Enterprise Zone.
of all wages, salaries, and other compensation paid during the
income year to employees of the taxpayer whose positions
Schedule B
are directly attributable to the eligible manufacturing facility.
Schedule B is used to determine if the facility employs enough
Column B consists of the sum of wages, salaries, and other
workers who are residents of the Enterprise Zone or are residents of
compensation paid during the income year to all employees of the
the municipality and qualify for federal Job Training Partnership Act
taxpayer in Connecticut.
benefits. If the facility does not meet the criteria for employment of
An employee’s position is directly attributable to an eligible
local workers, it is eligible only for the 25% credit.
manufacturing facility if the:
Line 1 - Complete as indicated.
•
Employee’s service is performed or base of operation is at the
Line 2 - The initial hiring for the new facility is based on the start date
eligible manufacturing facility;
established with DECD.
•
Position did not exist prior to the construction, renovation,
Line 3 - Subtract Line 2 from Line 1 and enter the result. If zero or
expansion, or acquisition of the eligible manufacturing facility;
less, the company is eligible only for the 25% credit. Do not continue
and
on to Lines 5 through 7. Enter 25% on Schedule C, Line 7.
•
Position would not have been created but for the construction,
Line 4 - Multiply Line 3 by 30%.
renovation, expansion, or acquisition of the eligible manufacturing
facility.
Lines 5 through 7 - Complete as indicated.
Line 5 - Enter the tax from Form CT-1120, Schedule C, Line 1.
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
and equipment specifically acquired for and installed at that site,
Schedule B, Line 6 or Line 7.
without reduction for any encumbrance. When rented, the value of
Line 8 - Enter the tax credit. Multiply Line 6 by Line 7, enter here and
the eligible manufacturing facility and all machinery and equipment
on Form CT-1120K, Part I-C, Column A.
Form CT-1120 TIC/EZ Back (Rev. 12/12)
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