§ 12-217g — Tax credits for apprenticeship training in manufacturing, construction and plastics-related trades.

Connecticut § 12-217g

• Jurisdiction: Connecticut
• Title 12: Taxation
• Ch. 208: Corporation Business Tax

Text

(a)(1) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter or chapter 228z, for any income or taxable year with respect to each apprenticeship in the manufacturing trades commenced by such taxpayer in such year under a qualified apprenticeship training program as described in subsection (d) of this section, certified in accordance with regulations adopted in accordance with the provisions of chapter 54 by the Labor Commissioner and registered with the Labor Department under section 31-22r, in an amount equal to six dollars per hour multiplied by the total number of hours worked during the income or taxable year by apprentices in the first half of a two-year term of apprenticeship and the first three-quarters of a four-year term of apprenticeship, provided the amount of credit allowed for any income or taxable year with respect to each such apprenticeship may not exceed seven thousand five hundred dollars or fifty per cent of actual wages paid in such year to an apprentice in the first half of a two-year term of apprenticeship or in the first three-quarters of a four-year term of apprenticeship, whichever is less. For income or taxable years commencing on or after January 1, 2015, for purposes of this subsection, “taxpayer” includes an affected business entity, as defined in section 12-284b. (2) (A) For taxable years commencing on or after January 1, 2015, but prior to January 1, 2022, any affected business entity allowed a credit under this subsection may sell, assign or otherwise transfer such credit, in whole or in part, to one or more taxpayers to offset any state tax due or otherwise payable by such taxpayers under this chapter, or, with respect to taxable years commencing on or after January 1, 2016, but prior to January 1, 2022, chapter 212 or 227, provided such credit may be sold, assigned or otherwise transferred, in whole or in part, not more than three times. (B) For taxable years commencing on or after January 1, 2022, with respect to an affected business entity claiming a credit under this subsection against the tax due under chapter 228z, the credit available to the members of such entity pursuant to subdivision (1) of subsection (f) of section 12-699 shall be based upon the amount of tax due under chapter 228z from such entity prior to the application of the credit granted under this subsection and any other payments made against such tax due. (b) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter for any income year with respect to each apprenticeship in plastics and plastics-related trades commenced by such taxpayer in such year under a qualified apprenticeship training program as described in subsection (d) of this section, certified in accordance with regulations adopted in accordance with the provisions of chapter 54 by the Labor Commissioner and registered with the Labor Department under section 31-22r , which apprenticeship exceeds the average number of such apprenticeships begun by such taxpayer during the five income years immediately preceding the income year with respect to which such credit is allowed, in an amount equal to four dollars per hour multiplied by the total number of hours worked during the income year by apprentices in the first half of a two-year term of apprenticeship and the first three-quarters of a four-year term of apprenticeship, provided the amount of credit allowed for any income year with respect to each such apprenticeship may not exceed four thousand eight hundred dollars or fifty per cent of actual wages paid in such income year to an apprentice in the first half of a two-year term of apprenticeship or in the first three-quarters of a four-year term of apprenticeship, whichever is less. (c) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter for any income year with respect to wages paid to apprentices in the construction trades by such taxpayer in such year that the apprentice and taxpayer participate in a qualified apprenticeship training program, as described in subsection (d) of this section, which (1) is at least four years in duration, (2) is certified in accordance with regulations adopted in accordance with the provisions of chapter 54 by the Labor Commissioner, and (3) is registered with the Labor Department under section 31-22r . The tax credit shall be (A) in an amount equal to two dollars per hour multiplied by the total number of hours completed by each apprentice toward completion of such program, and (B) awarded upon completion and notification of completion of such program in the income year in which such completion and notification occur, provided the amount of credit allowed for such income year with respect to each such apprentice may not exceed four thousand dollars or fifty per cent of actual wages paid over the first four income years for such apprenticeship, whichever is less. (d) For purposes of this section, a qualified apprenticeship training program shall require at least four thousand but not more than eight thousand hours of apprenticeship training for certification of such apprenticeship by the Labor Department. The amount of credit allowed any taxpayer under this section for any income or taxable year may not exceed the amount of tax due from such taxpayer under this chapter or chapter 228z with respect to such income or taxable year.

Legislative History

(P.A. 79-475, S. 1, 2; May Sp. Sess. P.A. 94-4, S. 16, 85; P.A. 95-160, S. 64, 69; 95-284, S. 1, 2; P.A. 97-295, S. 16, 25; P.A. 98-262, S. 14, 22; P.A. 06-174, S. 1; P.A. 13-265, S. 1; P.A. 14-217, S. 251; Dec. Sp. Sess. P.A. 15-1, S. 28; P.A. 21-141, S. 2; P.A. 22-118, S. 425; P.A. 23-204, S. 363.) History: P.A. 79-475 effective June 12, 1979, and applicable to income years ending on or after January 1, 1979; May Sp. Sess. P.A. 94-4 increased the credit amount from $2.50 per hour to $4.00, increased the time period established for the program and increased the maximum total amount of the credit from $3,000 to $4,800, effective June 9, 1994, and applicable to taxable years commencing on or after January 1, 1994; P.A. 95-160, revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section; P.A. 95-284 designated existing provisions as Subsecs. (a) and (c) and added Subsec. (b) re tax credits for apprenticeships in plastics and plastics-related trades, effective July 1, 1995, and applicable to income years of corporations commencing on or after January 1, 1995; P.A. 97-295 amended Subsec. (a) to change machine tool and metal trades to manufacturing trades and deleted provision re average number of apprenticeships in five preceding income years, revised method of calculating amount of credit in Subsecs. (a) and (b), added new Subsec. (c) re construction trades and redesignated existing Subsec. (c) as Subsec. (d), effective July 8, 1997, and applicable to tax returns filed for income years of corporations commencing on or after January 1, 1997; P.A. 98-262 revised effective date of P.A. 97-295, but without affecting this section; P.A. 06-174 amended Subsec. (c) to delete reference to federal act, require qualified apprenticeship program to be at least four years in duration, limit credit to hours worked toward completion of program, provide for award of credit upon completion and notification of completion of program in income year in which completion and notification occur, provide for limitation of credit to $4,000 or 50% of wages paid over first four years of program and make technical changes, effective July 1, 2006; P.A. 13-265 amended Subsec. (a) to increase credit amount from $4 per hour to $6 per hour and increase the maximum total amount of the credit from $4,800 to $7,500, effective July 1, 2015, and applicable to income years commencing on or after January 1, 2015; P.A. 14-217 amended Subsec. (a) by designating existing provisions re tax credits for apprenticeship in manufacturing trades as Subdiv. (1) and adding Subdiv. (2) re use of credits by affected business entities, effective July 1, 2015; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (a)(2) by adding provision re use of credit allowed under subsection that is sold, assigned or otherwise transferred to one or more taxpayers, effective January 1, 2016, and applicable to taxable and income years commencing on or after January 1, 2016; P.A. 21-141 amended Subsecs. (a) to (c) to replace references to Connecticut State Apprenticeship Council and section 31-22n with references to Labor Department and section 31-22r, and amended Subsec. (d) to replace reference to Connecticut State Apprenticeship Council with reference to Labor Department, effective July 7, 2021; P.A. 22-118 amended Subsec. (a) by adding references to Ch. 228z, taxable years and Subsec. (d), adding Subdiv. (2)(A) making existing provisions applicable to taxable years commencing on or after January 1, 2015, but prior to January 1, 2022, adding Subdiv. (2)(B) re affected business entities claiming a credit for taxable years commencing on or after January 1, 2022, and making technical and conforming changes, amended Subsecs. (b) and (c) by adding references to Subsec. (d) and Ch. 54 and amended Subsec. (d) by adding references to taxable years and Ch. 228z, effective July 1, 2022, and applicable to income or taxable years commencing on or after January 1, 2022; P.A. 23-204 amended Subsec. (a)(2)(B) by replacing reference to Sec. 12-699(g)(1) with reference to Sec. 12-699(f)(1), effective January 1, 2024, and applicable to income years commencing on or after January 1, 2024.