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Human Capital Investment Tax Credit 

Conn. Gen. Stat. §12-217x

Description and Applicable Taxes

A tax credit may be applied against the tax imposed under Chapter 208 of the Connecticut General Statutes for expenditures made by a corporation for human capital investment.


Human capital investment means:

  • In-state job training of persons employed in Connecticut;
  • Work education programs in Connecticut;
  • Worker training and education of persons employed in Connecticut provided by Connecticut institutions of higher education;
  • Donations or capital contributions to institutions of higher education in Connecticut for improvements or advancement of technology, including physical plant improvements;
  • Planning, sit preparation, construction, renovation, or acquisition of facilities in Connecticut for the purpose of establishing a day care facility to be used primarily by the children of employees who are employed in Connecticut;
  • Child care subsidies paid to employees employed in Connecticut for child care provided in Connecticut; or
  • Contributions made to the Individual Development Account Reserve Fund administered by the Connecticut Department of Labor.

Training is the instruction, maintenance, or improvement of the skills required by the employer for the proper performance of the employee’s duties that are conducted in Connecticut.

Work education programs include but are not limited to programs in public high schools and work education-diversified occupation programs.

Expenditures associated with the “in-state job training of persons employed in Connecticut” include:

  • Training materials;
  • Direct expenses relating to training (e.g., the cost of a training instructor);
  • Course registration fees; and
  • Travel costs related to training, provided the travel is within Connecticut.
However, salaries, payroll taxes and fringe benefits earned by employees during training are not expenditures eligible for this tax credit.

Tax Credit Amount

The tax credit is equal to 5% of the amount paid or incurred by the corporation for a human capital investment. No corporation claiming this tax credit shall claim any other credit against any tax with respect to the same investment.

Carryforward and Carryback Limitations

Any tax credit not used during the income year may be carried forward to the next five succeeding income years until the entire credit is used. No carryback is allowed.

How to Claim the Tax Credit

Complete Form CT-1120 HCIC, Human Capital Investment Tax Credit, and attach it to Form CT-1120K, Business Tax Credit Summary, along with all required detailed schedules.

Where to Get Additional Information

Direct inquiries to:

Connecticut Department of Revenue Services

450 Columbus Boulevard

Hartford CT 06103

1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only), or

860-297-5962 (from anywhere)

Statutory and Regulatory References

Conn. Gen. Stat. §12-217x

Last updated March 1, 2012