2023 Connecticut General Statutes › Title 12 - Taxation › Chapter 208 - Corporation Business Tax › Section 12-217zz. - Limit on credits under this chapter.

(a) Except as otherwise provided in subsection (b) of this section and sections 12-217aaa and 12-217bbb, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall be as follows:
(1) For any income year commencing on or after January 1, 2002, and prior to January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(2) For any income year commencing on or after January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed fifty and one one-hundredths per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(3) Notwithstanding the provisions of subdivision (2) of this subsection, any taxpayer that possesses excess credits may utilize the excess credits as follows:
(A) For income years commencing on or after January 1, 2016, and prior to January 1, 2017, the aggregate amount of tax credits and excess credits allowable shall not exceed fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(B) For income years commencing on or after January 1, 2017, and prior to January 1, 2018, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(C) For income years commencing on or after January 1, 2018, and prior to January 1, 2019, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(D) For purposes of this subdivision, “excess credits” means any remaining credits available under section 12-217j, 12-217n or 32-9t after tax credits are utilized in accordance with subdivision (2) of this subsection;
(4) Notwithstanding the provisions of subdivision (2) of this subsection, the aggregate amount allowable of tax credits and any remaining credits available under section 12-217j or 12-217n after tax credits are utilized in accordance with said subdivision shall not exceed (A) for income years commencing on or after January 1, 2022, and prior to January 1, 2023, sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits, and (B) for income years commencing on or after January 1, 2023, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits.
(b) (1) For an income year commencing on or after January 1, 2011, and prior to January 1, 2013, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year may exceed the amount specified in subsection (a) of this section only by the amount computed under subparagraph (A) of subdivision (2) of this subsection, provided in no event may the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year exceed one hundred per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.
(2) (A) The taxpayer's average monthly net employee gain for an income year shall be multiplied by six thousand dollars.
(B) The taxpayer's average monthly net employee gain for an income year shall be computed as follows: For each month in the taxpayer's income 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 its income year. The taxpayer shall total the differences for the twelve months in such income year, and such total, when divided by twelve, shall be the taxpayer's average monthly net employee gain for the income year. For purposes of this computation, only employees who are required to work at least thirty-five 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 twelve months prior to the first day of the income year may be taken into account in computing the number of employees.
(C) If the taxpayer's average monthly net employee gain is zero or less than zero, the taxpayer may not exceed the seventy per cent limit imposed under subsection (a) of this section.
(May 9 Sp. Sess. P.A. 02-1, S. 59; P.A. 11-6, S. 78; P.A. 15-244, S. 88; Dec. Sp. Sess. P.A. 15-1, S. 29; June Sp. Sess. P.A. 17-2, S. 703; P.A. 19-117, S. 349; June Sp. Sess. P.A. 21-2, S. 426.)
History: May 9 Sp. Sess. P.A. 02-1 effective July 1, 2002, and applicable to income years commencing on or after January 1, 2002; P.A. 11-6 designated existing provisions as Subsec. (a) and amended same to add exception re Subsec. (b) provisions, and added Subsec. (b) re allowable credit for average monthly net employee gain in income years 2011 and 2012, effective May 4, 2011, and applicable to income years commencing on or after January 1, 2011; P.A. 15-244 amended Subsec. (a) to designate 70 per cent limit as Subdiv. (1) and amend same to limit to income years commencing on or after January 1, 2002, and prior to January 1, 2015, and add Subdiv. (2) re 50.01 per cent limit for income years commencing on or after January 1, 2015, effective June 30, 2015; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (a) by adding Subdiv. (3) re use of excess credits by taxpayer possessing excess credits for income years commencing on or after January 1, 2016, January 1, 2017, January 1, 2018, and January 1, 2019, and adding Subdiv. (4) defining “excess credits”, effective December 29, 2015; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by adding reference to Secs. 12-217aaa and 12-217bbb, effective October 31, 2017; P.A. 19-117 amended Subsec. (a) by deleting Subdiv. (3)(D) re aggregate amount of tax credits for income years commencing on or after January 1, 2019, and made a technical change, effective June 26, 2019, and applicable to income years commencing on or after January 1, 2019; June Sp. Sess. P.A. 21-2 amended Subsec. (a) by deleting reference to notwithstanding any other provision of law, redesignating existing Subdiv. (4) as Subdiv. (3)(D), and adding new Subdiv. (4) re aggregate amount of tax credits for income years commencing on or after January 1, 2022, and made technical and conforming changes, effective June 23, 2021.