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Apprenticeship Training Tax Credit in Manufacturing, Plastics, Plastics-Related, or Construction Trades

Conn. Gen. Stat. §12-217g


Description and Applicable Taxes

Corporations subject to the Corporation Business Tax may earn a credit for employing apprentices in the manufacturing, plastics, plastics-related, or construction trades. Credits earned by these corporations may be applied against the taxes imposed under Chapter 208 (Corporation Business Tax).


S-Corporations, limited liability companies, limited liability partnerships and limited partnerships (“Pass-Through Entities”) may earn the tax credit for employing apprentices in manufacturing trades.  Credits earned by a Pass-Through Entity may be assigned and applied against the taxes imposed under Chapter 208 (Corporation Business Tax) for income years beginning on or after January 1, 2015.  For income years beginning on or after January 1, 2016, the tax credit may also be assigned and applied against the taxes imposed under Chapter 212 (Utility Companies Tax) and Chapter 227 (Petroleum Products Gross Earnings Tax).


Credit for Apprenticeship in:

May Be Earned By:

May Be Applied Against the Taxes Imposed Under:

Assignable?

Manufacturing Trades

Corporations and Pass-Through Entities

Chapter 208 (Corporation Business Tax)

Chapter 212 (Utility Companies Tax)

Chapter 227 (Petroleum Products Gross Earnings Tax)

Assignable if earned by a Pass-Through Entity

Plastic Trades

Corporations only

Chapter 208 (Corporation Business Tax)

No

Construction Trades

Corporations only

Chapter 208 (Corporation Business Tax)

No


Information in the chart applies to income years commencing on or after January 1, 2016



Manufacturing Trades

Corporations and Pass-Through Entities claiming this tax credit must have a qualified apprenticeship training program that is:

  • Certified in accordance with regulations adopted by the Connecticut Department of Labor (CTDOL); and
  • Registered with the Connecticut State Apprenticeship Council.
Examples of trades eligible for this tax credit include:
  • Machinist;
  • Toolmakers;
  • Tool and Diemaker;
  • Tool and Machine Setter; and
  • Machine Tool Repairer.
Plastics and Plastics-Related Trades

Corporations claiming this credit must have a qualified apprenticeship training program that is:

  • Certified in accordance with regulations adopted by CTDOL; and
  • Registered with the Connecticut State Apprenticeship Council.

Construction Trades

Corporations claiming this tax credit must have a qualified apprenticeship training program that is:

  • At least four years in duration;
  • Certified in accordance with regulations adopted by CTDOL; and
  • Registered with the Connecticut State Apprenticeship Council.


Definitions 

Apprentice means a person training under a written agreement which provides specific terms of apprenticeship and employment including but not limited to wage progression; specific hours of job training processes; hours and courses of school instruction which satisfactory completion thereof provides recognition as a qualified professional, technical, craft, or trade worker.


Qualified apprenticeship training program means a program that meets the following requirements:

  • The apprenticeship period must be at least 4,000 hours (two years) but not more than 8,000 hours (four years); and
  • Each apprentice must be employed on a full-time basis, which is defined as working a minimum of 120 hours per month.

Tax Credit Amount


Manufacturing Trades

The tax credit allowed per apprentice shall be the lesser of:

  • $6 per hour multiplied by the total number of:  1) hours worked by the apprentice during the first half of a two-year qualified apprenticeship training program, or 2) hours worked by the apprentice during the first three-quarters of a four-year qualified apprenticeship training program;
  • 50% of the total wages paid to the apprentice during the: 1) first half of a two-year qualified apprenticeship training program, or 2) first three-quarters of a four-year qualified apprenticeship training program; or
  • $7,500.
Plastics and Plastics-Related Trades

The tax credit allowed per apprentice shall be the lesser of:

  • $4 per hour multiplied by the total number of:  1) hours worked by the apprentice during the first half of a two-year qualified apprenticeship training program, or 2) hours worked by the apprentice during the first three-quarters of a four-year qualified apprenticeship training program;
  • 50% of the total wages paid to the apprentice during the: 1) first half of a two-year qualified apprenticeship training program, or 2) first three-quarters of a four-year qualified apprenticeship training program; or
  • $4,800.
Construction Trades
The tax credit allowed per apprentice shall be the lesser of:
  • $2 per hour multiplied by the total number of hours completed by the apprentice during the first four years of a  qualified apprenticeship training program;
  • 50% of the total wages paid to the apprentice during the first four years of a qualified apprenticeship training program; or
  • $4,000.

Carryforward and Carryback Limitations

No carryforward or carryback is allowed.


How to Apply

Contact CTDOL at 860-263-6085 or go to www.ctapprenticeship.com for information regarding the application process.


Assignment and Transfer

Credits earned by corporations subject to the Corporation Business Tax may not be assigned.

Credits earned by Pass-Through Entities may be sold, transferred or assigned, in whole or in part, no more than three times.  



How to Claim the Tax Credit

CTDOL will compute the tax credit and issue a Corporate Tax Credit Certification letter to the taxpayer. The amount listed on the Corporation Tax Credit Certification letter must be entered on Form CT-1120AT, Apprenticeship Training Tax Credit, and Form CT-1120K, Business Tax Credit Summary.


Where to Get Additional Information

Direct inquiries to:

Connecticut Department of Labor

Office of Apprenticeship Training

200 Folly Brook Blvd.

Wethersfield, CT 06109

860-263-6085

www.ctapprenticeship.com


Statutory and Regulatory References

Conn.Gen.Stat. §12-217g and Conn.Agencies Regs. §§ 12-217g-1 through 12-217g-10.


Last updated January 25, 2017