Connecticut § 12-217x - Tax credit for human capital investment.

§ 12-217x. Tax credit for human capital investment.

Sec. 12-217x. Tax credit for human capital investment. (a) For purposes of this section, “human capital investment” means the amount paid or incurred by a corporation on:

(1) Job training that occurs in this state for persons who are employed in this state;

(2) Work education programs in this state, including, but not limited to, programs in public high schools and work education-diversified occupations programs in this state;

(3) Worker training and education for persons who are employed in this state provided by institutions of higher education in this state;

(4) Donations or capital contributions to institutions of higher education in this state for improvements or advancements of technology, including physical plant improvements;

(5) Planning, site preparation, construction, renovation or acquisition of facilities in this state for the purpose of establishing a child care center, as described in section 19a-77, in this state to be used primarily by the children of employees who are employed in this state;

(6) Donations or capital contributions to an organization exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, for the planning, site preparation, construction, renovation or acquisition of facilities in this state for the purpose of establishing a child care center in this state to be used by children residing in the community, including the children of employees who are employed in this state; and

(7) Subsidies to employees who are employed in this state for child care to be provided in this state.

(b) There shall be allowed a credit for any corporation against the tax imposed under this chapter in an amount spent by such corporation, as a human capital investment as follows: (1) For any income year commencing on or after January 1, 1998, and prior to January 1, 1999, equal to three per cent of such amount paid or incurred by the corporation during such income year; (2) for any income year commencing on or after January 1, 1999, and prior to January 1, 2000, equal to four per cent of such amount paid or incurred by the corporation during such income year; (3) for any income year commencing on or after January 1, 2000, equal to five per cent of such amount paid or incurred by the corporation during such income year; and (4) for any income year commencing on or after January 1, 2024, (A) equal to ten per cent of the amount paid or incurred by the corporation during such income year for the purposes set forth in subdivisions (1) to (4), inclusive, and subdivision (8) of subsection (a) of this section, and (B) equal to twenty-five per cent of the amount paid or incurred by the corporation during such income year for the purposes set forth in subdivisions (5) to (7), inclusive, of subsection (a) of this section.

(c) The amount of credit allowed to any corporation under this section shall not exceed the amount of tax due from such corporation under this chapter with respect to such income year.

(d) No corporation claiming the credit under this section with respect to a human capital investment as defined in subsection (a) of this section shall claim a credit against any tax under any other provision of the general statutes against any tax with respect to the same investment.

(e) Any tax credit not used in the income year during which the investment was made may be carried forward for the five immediately succeeding income years until the full credit has been allowed.

(P.A. 97-295, S. 2, 25; P.A. 98-262, S. 14, 22; P.A. 00-192, S. 11, 102; P.A. 16-163, S. 29; P.A. 23-117, S. 6; 23-204, S. 350.)

History: P.A. 97-295, Sec. 2 effective July 8, 1997, and applicable to income years commencing on or after January 1, 1998; P.A. 98-262 revised effective date of P.A. 97-295, but without affecting this section; P.A. 00-192 added Subsec. (a)(7) re contributions to the Individual Development Account Reserve Fund, effective January 1, 2001, and applicable to income years commencing on or after that date; P.A. 16-163 amended Subsec. (a)(5) by replacing “day care facility” with “child care center, as described in section 19a-77”, effective June 9, 2016; P.A. 23-117 amended Subsec. (a) by deleting Subdiv. (7) re Individual Development Account Reserve fund, effective June 27, 2023; P.A. 23-204 amended Subsec. (a) by adding new Subdiv. (6) re donations or capital contributions to tax-exempt organizations for certain costs for the purpose of establishing a child care center in this state, redesignating existing Subdivs. (6) and (7) as Subdivs. (7) and (8), and making technical changes, and amended Subsec. (b) by adding Subdiv. designators (1) to (3) and adding Subdiv. (4) re amount of credit for certain purposes for any income year commencing on or after January 1, 2024, effective January 1, 2024.