JobsCT Tax Credit
Conn. Gen. Stat. § 32-7t
JobsCT tax rebate program established
Under this program, qualified businesses that create jobs in this state may be allowed a tax rebate, which shall be treated as a credit against the tax imposed under Chapter 208 (Corporation Business Tax) or 228z (Pass-Through Entity Tax) or as an offset of the tax imposed under Chapter 207 (Insurance Companies and Health Care Centers Taxes) for reaching certain job creation targets. The rebate is based on the number of new full-time equivalent employees (FTEs) the business creates and maintains, the FTEs’ average wage, and the state income tax that would be paid on this average wage for a single filer. This rebate program is effective for income years beginning on or after January 1, 2023.
Amendment to “JobsCT” Tax Rebate Program
Legislation amends the “JobsCT” Tax Rebate Program so as to incentivize the hiring of persons with an intellectual disability. The legislation is effective January 1, 2024, and applicable to taxable years beginning on or after January 1, 2024.
Additional Amendment to “JobsCT” Tax Rebate Program
Legislation amends the “JobsCT” Tax Rebate Program so as to incentivize the hiring of persons who reside in a concentrated poverty census tract. The legislation is effective for taxable years beginning on or after January 1, 2025.
Description and Applicable Taxes
Qualified businesses that create jobs in this state may be allowed a tax rebate for reaching certain job creation targets. Businesses must employ at least 25 more FTEs in Connecticut, (or if at least one of the new FTEs is an individual with intellectual disability or at least three of the new FTEs are individuals who reside in a concentrated poverty census tract, 15 more FTEs in this state) by December 31 of the current calendar year, than it had employed on December 31 two years prior.
This tax rebate will be treated as a credit and is administered by the Department of Economic and Community Development (DECD).
This tax credit may be applied against the taxes imposed under:
- Chapter 208 (Corporation Business Tax); and
- Chapter 228z (Pass-Through Entity Tax).
This tax credit may be applied as an offset of the tax imposed under:
- Chapter 207 (Insurance Companies and Health Care Centers Taxes).
Definitions
Distressed municipality means, as of the date of the issuance of an eligibility certificate, any municipality in the state, according to the United States Department of Housing and Urban Development, that meets the necessary number of quantitative physical and economic distress thresholds which are then applicable for eligibility for the urban development action grant program under the Housing and Community Development Act of 1977, as amended, or any town within which is located an unconsolidated city or borough which meets such distress thresholds.
Full-time equivalent or FTE means the number of employees employed at a qualified business;
Intellectual disability means a significant limitation in intellectual functioning existing concurrently with deficits in adaptive behavior that originated during the developmental period before eighteen years of age;
New FTEs means the number of FTEs that:
- Did not exist in this state at the time of a qualified business' application to DECD for a rebate allocation notice for a job creation rebate;
- Are not the result of FTEs acquired due to a merger or acquisition;
- Are filled by a new employee;
- Are qualified FTEs; and
- Are not FTEs hired to replace FTEs that existed in the state after January 1, 2020.
Opportunity zone means a population census tract that is a low-income community that is designated as a "qualified opportunity zone" pursuant to the federal Tax Cuts and Jobs Act of 2017, P.L. 115-97, as amended from time to time; and
Qualified business means a person that is engaged in business in an industry related to finance, insurance, manufacturing, clean energy, bioscience, technology, digital media or any similar industry, and subject to taxation under chapter 207, 208 or 228z of the general statutes.
Tax Credit Amount
A qualified business may be allowed a rebate equal to:
- 50% of the income tax that would be paid on the average wage for new FTEs that were created or maintained in an opportunity zone or distressed municipality; or
- 25% of the income tax that would be paid on the average wage for new FTEs that were created or maintained in a location other than an opportunity zone or distressed municipality.
On and after January 1, 2025, an approved qualified business that employs at least one new FTE that is an individual who resides in a concentrated poverty census tract may be allowed an additional rebate equal to 50% of the income tax that would be paid on the wages paid to such individual during the calendar year immediately prior to the calendar year in which the rebate is being claimed. The rebate may be added to any other rebate allowed.
A rebate may be granted to an approved qualified business for not more than
seven successive calendar years. A rebate will not be granted until at least
24 months after DECD approves a qualified business' application.
How to Apply
Visit DECD’s website at www.ct.gov/DECD for more information regarding the application process.
Where to Get Additional Information
Direct inquiries to:
Connecticut Department of Economic and Community Development
450 Columbus Boulevard
Hartford CT 06103
860-500-2415
Statutory and Regulatory References
Conn. Gen. Stat. § 32-7t
Page Last Reviewed or Updated: August 21, 2024