Instructions For Form Ct-1120cr - Combined Corporation Business Tax Return

Line 12 - Enter the amount of any available capital loss

Lines 25 and 27 - Net operating losses incurred by an

carryover not deducted in computing federal capital gain. This

included corporation in an income year prior to its inclusion

amount is limited to the amount of the capital gain reported on

in the combined return may be utilized to offset its separately

the federal return as described in Conn. Gen. Stat. §12-217.

calculated net income on Line 25. In general, net operating

losses incurred by the combined group in prior income years

Line 13 - Enter the value of any capital gain realized from the

may be utilized to offset combined net income on Line 27.

sale of any land, or interest in land, to the state, any political

subdivision of the state, or to any nonprofit land conservation

However, the provisions of Conn. Gen. Stat. §12-217 pertaining

to operating loss carryovers only apply to companies filing

organization where such land is to be permanently preserved

as protected open space or to a water company (as defined in

separate returns. There are specific regulations regarding the

Conn. Gen Stat. §25-32a), where such land is to be permanently

application of operating loss carryovers for companies filing

preserved as protected open space land or as Class I or Class

a combined return. See Conn. Agencies Regs. §12-223a-2,

II water company.

Combined Operating Loss.

Line 14 - Enter the federal bonus depreciation recovery amount

Part III - Computation of Combined Minimum Tax Base

from Form CT-1120 ATT, Schedule J, Line 13.

The combined minimum tax base is the sum of the separate

minimum tax base of each corporation included in the return,

Line 15 - Enter the amount of exceptions to interest add back

as reported on Form CT-1120AB, Part II A, Line 1.

but only to the extent the base is separately apportioned to

Connecticut in accordance with the provisions of Conn. Gen.

Line 16 - Enter the amount of exceptions to interest add back

Stat. §§12-219a or 12-244.

as reported on Form CT-1120AB, Part II A, Line 2.

If any income and expenses are eliminated in Part II, Line 20,

Line 17 - Enter the amount of exceptions to interest add back

the intangible property of the corporation eliminating the

as reported on Form CT-1120AB, Part II A, Line 3.

income shall not be taken into account in apportioning under

Line 18 - Enter the amount of exceptions to the add back of

the minimum tax base as provided by the provisions of Conn.

intangible expenses paid to a related member as reported on

Gen. Stat. §12-219a.

Form CT-1120AB, Part II B, Line 1.

Part IV - Computation of Amount Payable

Line 1 - Enter the total separate taxes from Part I, Line 51.

Line 20 - Enter any other income deduction. Attach an

explanation.

Line 2a - Enter the tax on combined net income from Part II,

Line 29, Combined Total column.

Enter the amount of contributions to a manufacturing

reinvestment account.

Line 2b - Enter the tax on combined minimum tax base from

Part III, Line 7, Combined Total column.

• Include the amount of income received from an

Line 2c - Enter the largest of Line 2a, Line 2b or $250.

included corporation attributable to intangible

expenses and costs that is eliminated pursuant to

Line 2d - Multiply the number of companies included in this

Conn. Gen. Stat. §12-223a(c)(1)(B).

combined return, less one (the parent or designated parent), by

$250. Each affiliate included in the combined return must pay

• Enter the amount received from a related member attributable

the minimum tax of $250.

to intangible expenses and costs (that is not already

Line 3 - To compute the surtax, multiply the amount on Line 2c

eliminated on this line) or to interest expenses and costs,

by 20%. If Line 2c is $250, enter “0.”

provided such income was:

• Included on Part II, Line 1 of this return;

Line 4 - Enter the total tax credits that must be recaptured. The

following tax credits are subject to recapture:

• Received from a related member who filed a Connecticut

• Historic Preservation

corporation business tax return for the same income year;

• Employer-Assisted Housing

and

• Fixed Capital Investment

• Required to be added back by the related member under

• New Jobs Creation

Conn. Gen. Stat. §§12-218c or 12-218d and was not

• Urban and Industrial Site Reinvestment

entitled to an exception of the add back.

In most cases, other than the Fixed Capital Investment tax

Line 22 - Subtract Line 21 from Line 10. Enter the result here.

credit, the corporation will have been advised by the agency

Line 23 - Enter the appropriate apportionment fraction from

administering the tax credit that recapture is required. A

Form CT-1120A, Schedule Q, Line 2; Schedule R, Line 6,

corporation is required to recapture the Fixed Capital Investment

Column C; or from the appropriate forms previously referenced.

tax credit when the fixed capital is not held and used in

The fraction must be expressed as a decimal and carried to six

Connecticut by the corporation for five full years following

places.

its acquisition. See Form CT-1120 FCIC, Fixed Capital

Line 24 - Enter the amount from Line 22 multiplied by Line 23,

Investment Tax Credit, to calculate the amount of tax credit that

or enter the amount from Line 22, if not entitled to apportion.

must be recaptured. See Informational Publication 2010(13),

Guide to Connecticut Business Tax Credits.

Form CT-1120CR Instructions (Rev. 01/13)

Page 5 of 7

Instructions For Form Ct-1120cr - Combined Corporation Business Tax Return - 2012 Page 5

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