Electronic Data Processing Equipment Property Tax Credit

Conn. Gen. Stat. §12-217t

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Description and Applicable Taxes

A tax credit equal to 100% of the personal property tax owed and paid on electronic data processing (EDP) equipment during any income year may be applied against the taxes imposed under:

• Chapter 207  (Insurance Companies and Health Care Centers Taxes);
• Chapter 208   (Corporation Business Tax);
• Chapter 208a (Unrelated Business Income of Nonprofit Corporations Tax);
• Chapter 209   (Air Carriers Tax);
• Chapter 210   (Railroad Companies Tax);
• Chapter 211   (Community Antenna Television Systems and One-Way Satellite Transmission Business Tax); and
• Chapter 212   (Utility Companies Tax).

If the EDP equipment is leased, the lessee will be entitled to claim this tax credit if the lease by its terms or operation imposes on the lessee the cost of the personal property taxes on such equipment. However, the lessor and lessee may elect in writing that the lessor may claim the tax credit. The lessor will provide a copy of the written election upon the request of the Department of Revenue Services (DRS).

Definition

Electronic data processing equipment means computers, printers, peripheral computer equipment, bundled software, and any computer-based equipment acting as a computer, as defined under section 168 of the Internal Revenue Code of 1986, and any other equipment reported as Code 20 property on the Personal Property Declaration as prescribed by the Secretary of the Office of Policy and Management.

Tax Credit Amount

The amount allowed as a tax credit is 100% of the Connecticut personal property tax owed and paid in any income year on EDP equipment. Such amount shall not include any interest or penalty paid.

Carryforward and Carryback Limitations

It the amount of tax credit allowable in any income year exceeds the taxes imposed under Chapters 207, 208, 208a, 209, 210, 211, or 212 of the Connecticut General Statutes, then any unused tax credit balance may be carried forward to any of the five succeeding income years. No carryback is allowed.

Assignment and Transfer

Insurance Companies and Health Care Centers: This credit may be assigned by an insurance company or health care center to an affiliate, provided the affiliate may only apply the assigned credit against its tax liability under Chapter 207 (Insurance Companies and Health Care Centers Taxes).

How to Claim Tax Credit

Complete Form CT-1120 EDPC, Electronic Data Processing Equipment Property Tax Credit, and attach it to Form CT-1120K, Business Tax Credit Summary, and/or Form CT-207K, Insurance/Health Care Tax Credit Schedule.

Rules Relating to Ordering

Taxpayers shall be allowed this tax credit only after all other allowable tax credits have been applied. If the taxpayer uses this tax credit, the tax credit must first be used against the tax imposed under Chapter 208, and then against the taxes imposed under Chapters 207, 208a, 209, 210, 211, or 212 of the Connecticut General Statutes.  

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)

860-297-5962

Statutory and Regulatory References

Conn. Gen. Stat. §12-217t

Last updated January 25, 2017