Qualified Small Business Job Creation Tax Credit
Conn. Gen. Stat. §12-217nn
This tax credit will not be allowed for any new employee hired by a qualified small business in any income year commencing on or after January 1, 2013. For information on tax credits available for new jobs created on or after January 1, 2012 through December 31, 2013, please see the Job Expansion Credit section.
Description and Applicable Taxes
A tax credit is available for a qualified small business that hired a new employee during income years that began on or after January 1, 2010, and prior to January 1, 2013. The tax credit may be applied against the tax imposed under Chapters 207, 208, or 229, other than the liability imposed by §12-707, of the Connecticut General Statutes.
Qualified small business means an employer who employs less than 50 employees in
New employee means a person hired after May 6, 2010, by a qualified small business, but does not include a person who was employed in
Tax Credit Amount
The tax credit is equal to $200 per month for hiring a
No qualified small business may claim a tax credit for a new employee who is an owner, member, or partner in the business or who in not employed at the close of the income year of the qualified small business. No qualified small business may claim this tax credit and any other tax credit with respect to the same new employee.
Carryforward and Carryback Limitations
No carryforward or carryback is allowed.
How to Apply
A qualified small business shall apply to the Department of Economic and Community Development (DECD) and shall provide DECD with a list of its primary activities, its NAICS code, the number of employees on the date of its application, and any other information that DECD requires with the application. Within 30 days of receiving the application, DECD shall render a decision on the application and shall issue a certification letter if the qualified small business’ application is approved.
Flow-Through of the Tax Credit
If the qualified small business is an S corporation or an entity treated as a partnership for federal income tax purposes, then the tax credit may be claimed by the shareholders or partners. It the qualified small business is a single member limited liability company that is disregarded as an entity separate from its owner, then the tax credit may be claimed by its owner.
How to Claim the Tax Credit
Complete Form CT-1120 SBJ, Qualified Small Business Job Creation Tax Credit, and attach it to
To take this tax credit against the tax imposed by Chapter 229 of the Connecticut General Statutes, see the applicable income tax instruction booklet.
Where to Get Additional Information
Direct inquiries to:
Connecticut Department of Economic and Community Development
Office of Business & Industry Development
Attn: Patricia Paesani
Statutory and Regulatory References
Conn. Gen. Stat. §12-217nn
Last updated January 1, 2014