Connecticut State Department of Revenue Services

Upcoming CT DRS webinar: Select to register for the upcoming Withholding Forms W-2 and 1099 Annual Filing Webinar on Wednesday, December 4, 2024, at 10:00 a.m.

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

Conn. Gen. Stat. §§ 12-217g and 31-22n

This page is outdated and is provided for archive purposes only.  Archived on January 25, 2017.

Description and Applicable Taxes

A tax credit may be applied against the tax imposed under Chapter 208 of the Connecticut General Statutes by corporations that employ apprentices who are receiving training in the manufacturing, plastics, plastics-related, or construction trades. Wages of pre-apprentices are not eligible for this tax credit.

Manufacturing Trades

Corporations 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 (DOL); and

·        Registered with the Connecticut State Apprenticeship Council.

Examples of trades eligible for this tax credit include:

  • Mechanist;
  • 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 DOL; and

·        Registered with the Connecticut State Apprenticeship Council.

Most apprenticeship programs in the plastic and plastics-related trades qualify for the tax credit available for the manufacturing trades because there is some overlap between the two trades.

Construction Trades

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

·        At least four years in duration;

·        Certified in accordance with regulations adopted by DOL; 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.

Qualifying 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 minimum of 120 hours per month.

Tax Credit Amount

Manufacturing Trades

For income years beginning before January 1, 2015, 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 qualifying apprenticeship training program, or 2) hours worked by the apprentice during the first three-quarters of a four-year qualifying apprenticeship training program;
  • 50% of the total wages paid to the apprentice during the: 1) first half of a two-year qualifying apprenticeship training program, or 2) first three-quarters of a four-year qualifying apprenticeship training program; or
  • $4,800.

For income years beginning on or after January 1, 2015, 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 qualifying apprenticeship training program, or 2) hours worked by the apprentice during the first three-quarters of a four-year qualifying apprenticeship training program;
  • 50% of the total wages paid to the apprentice during the: 1) first half of a two-year qualifying apprenticeship training program, or 2) first three-quarters of a four-year qualifying 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 qualifying apprenticeship training program, or 2) hours worked by the apprentice during the first three-quarters of a four-year qualifying apprenticeship training program;
  • 50% of the total wages paid to the apprentice during the: 1) first half of a two-year qualifying apprenticeship training program, or 2) first three-quarters of a four-year qualifying 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 a four-year qualifying apprenticeship training program;
  • 50% of the total wages paid to the apprentice during a four-year qualifying apprenticeship training program; or
  • $4,000.

Carryforward and Carryback Limitations

No carryforward or carryback is allowed.

How to Apply

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

How to Claim the Tax Credit

DOL 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 should be entered on 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, as amended by 2013 Conn. Pub. Acts 265, §1; Conn. Gen. Stat. §31-22n; and Conn.Agencies Regs. §§ 12-217g-1 through 12-217g-10

Last updated January 1, 2014