Source: https://portal.ct.gov/DRS/Publications/Special-Notices/2011/SN-201119-2011-Legislation-Limiting-the-Application-of-Credits-Against-the-Insurance-Premiums-Tax
Timestamp: 2019-01-19 18:17:52
Document Index: 212655862

Matched Legal Cases: ['§75', '§48', '§54', '§12', '§12', '§38', '§12', '§12', '§12', '§12', '§12', 'art 1']

SN 201119 2011 Legislation Limiting the Application of Credits Against the Insurance Premiums Tax
Current: SN 2011(19), 2011 Legislation Limiting the Application of Credits Against the Insurance Premiums Tax
SN 2011(19)
2011 Legislation Limiting the Application
of Credits Against the Insurance Premiums Tax
Purpose: This Special Notice describes the provisions of 2011 Conn. Pub. Acts 6, §75, 2011 Conn. Pub. Acts 61, §48, and 2011 Conn. Pub. Acts 1, §54 (October Spec. Sess.) which establish the limits for the application of credits against the insurance premiums tax for calendar years 2011 and 2012.
Displaced worker credit under Conn. Gen. Stat. §12-217hh;
New jobs creation credit under Conn. Gen. Stat. §12-217ii;
Insurance Department assessment credit for 80% of the assessment paid under Conn. Gen. Stat. §38a-48 by a local domestic insurance company, as defined in Conn. Gen. Stat. §12-201, whose admitted assets do not exceed the thresholds established in Conn. Gen. Stat. §12-202;
Type 1 tax credit means the film production credit under Conn. Gen. Stat. §12-217jj; the film production infrastructure credit under Conn. Gen. Stat. §12-217kk; and the digital animation credit under Conn. Gen. Stat. §12-217ll.
Thirty percent (30%) threshold means the amount equal to 30% of the insurance premiums tax due (not 30% of the insurance premiums tax reported to be due) for the calendar year prior to the application of the credit or credits.
Fifty-five percent (55%) threshold means the amount equal to 55% of the insurance premiums tax due (not 55% of the insurance premiums tax reported to be due) for the calendar year prior to the application of the credit or credits.
Seventy percent (70%) threshold means the amount equal to 70% of the insurance premiums tax due (not 70% of the insurance premiums tax reported to be due) for the calendar year prior to the application of the credit or credits.
Average Monthly Net Employment Gain is computed as follows: For each month in the calendar year, the taxpayer shall subtract from the number of its employees in this state on the last day of such month the number of its employees in this state on the first day of the calendar year. The taxpayer shall total the differences for the 12 months in the calendar year and the total, when divided by 12, shall be the taxpayer's average monthly net employee gain for the calendar year. For purposes of this computation, only employees who are required to work at least 35 hours per week and only employees who were not employed in this state by a related person, as defined in section 12-217ii, within the 12 months prior to the first day of the calendar year may be taken into account in computing the number of employees.
New Form Required for Tax Credit Claimants: For calendar year 2011 and thereafter, an insurance company claiming a tax credit or credits against its insurance premiums tax liability is required to complete Form CT-207K, Insurance/Health Care Tax Credit Schedule, and attach the form to its insurance premiums tax return.
Tax Credit Cap, In General: For calendar years 2011 and 2012 only, the amount of tax credit or credits otherwise allowable against the insurance premiums tax for any calendar year may generally not exceed the 30% threshold. For purposes of the tax credit cap, general business tax credit or credits do not mean and include the guaranty association assessment offsets.
As stated above, if the only tax credit or credits being claimed are Type 3 tax credits, the amount of tax credits otherwise allowable against the insurance premiums tax for calendar year 2011 or 2012 may not exceed the 30% threshold.
If the tax credit or credits being claimed include either Type 1 tax credits, Type 2 tax credits, or both, the following rules apply for calendar years 2011 and 2012:
Tax Cap Expander: If the tax credit or credits eligible to be claimed by an insurance company exceed the 30%, 55%, or 70% threshold, whichever is applicable, and the insurance company has an average monthly net employment gain greater than zero, as computed on Form CT-1120 TCE, Tax Cap Expander, the insurance company will be eligible to claim tax credit or credits in excess of the threshold amounts on Part 1, Line 2 of Form CT-207K.
Revised Instructions for Estimated Insurance Premiums Tax Payment Coupons: To account for the tax credit cap, the Department of Revenue Services (DRS) has revised Schedule 1 on the back of the 2011 Forms 207 ESC and 207 ESD, and Schedule 1 on the back of the 2011 Forms 207F ESC and 207F ESD. The revised forms are posted on the DRS website.