Connecticut General Statutes/Title 12/Chapter 208/Section 12-217zz

CGS § 12-217zz. Limit on credits under this chapter.

(a) Except as otherwise provided in subsection (b) of this section and sections 12-217aaa and 12-217bbb, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall be as follows:

(1) For any income year commencing on or after January 1, 2002, and prior to January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;

(2) For any income year commencing on or after January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed fifty and one one-hundredths per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;

(3) Notwithstanding the provisions of subdivision (2) of this subsection, any taxpayer that possesses excess credits may utilize the excess credits as follows:

(A) For income years commencing on or after January 1, 2016, and prior to January 1, 2017, the aggregate amount of tax credits and excess credits allowable shall not exceed fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;

(B) For income years commencing on or after January 1, 2017, and prior to January 1, 2018, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;

(C) For income years commencing on or after January 1, 2018, and prior to January 1, 2019, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;

(D) For purposes of this subdivision, “excess credits” means any remaining credits available under section 12-217j, 12-217n or 32-9t after tax credits are utilized in accordance with subdivision (2) of this subsection;

(4) Notwithstanding the provisions of subdivision (2) of this subsection, the aggregate amount allowable of tax credits and any remaining credits available under section 12-217j or 12-217n after tax credits are utilized in accordance with said subdivision shall not exceed (A) for income years commencing on or after January 1, 2022, and prior to January 1, 2023, sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits, and (B) for income years commencing on or after January 1, 2023, and prior to January 1, 2024, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits.

(5) Notwithstanding the provisions of subdivision (2) of this subsection, for income years commencing on or after January 1, 2024, the aggregate amount allowable of tax credits and any remaining credits available under section 12-217j or 12-217n or subparagraph (B) of subdivision (4) of subsection (b) of section 12-217x, after tax credits are utilized in accordance with subdivision (2) of this subsection shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits.

(b) The amount of the rebate computed under section 32-7t shall be treated as a credit and may exceed the amount specified in subsection (a) of this section. If the amount of the rebate allowed pursuant to section 32-7t exceeds the taxpayer's liability for the tax imposed under this chapter, the commissioner shall treat such excess as an overpayment and shall refund the amount of such excess, without interest, to the taxpayer.

Short History

(May 9 Sp. Sess. P.A. 02-1, S. 59; P.A. 11-6, S. 78; P.A. 15-244, S. 88; Dec. Sp. Sess. P.A. 15-1, S. 29; June Sp. Sess. P.A. 17-2, S. 703; P.A. 19-117, S. 349; June Sp. Sess. P.A. 21-2, S. 426; P.A. 22-118, S. 423; P.A. 23-204, S. 351; P.A. 24-151, S. 95.)

Long History

History: May 9 Sp. Sess. P.A. 02-1 effective July 1, 2002, and applicable to income years commencing on or after January 1, 2002; P.A. 11-6 designated existing provisions as Subsec. (a) and amended same to add exception re Subsec. (b) provisions, and added Subsec. (b) re allowable credit for average monthly net employee gain in income years 2011 and 2012, effective May 4, 2011, and applicable to income years commencing on or after January 1, 2011; P.A. 15-244 amended Subsec. (a) to designate 70 per cent limit as Subdiv. (1) and amend same to limit to income years commencing on or after January 1, 2002, and prior to January 1, 2015, and add Subdiv. (2) re 50.01 per cent limit for income years commencing on or after January 1, 2015, effective June 30, 2015; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (a) by adding Subdiv. (3) re use of excess credits by taxpayer possessing excess credits for income years commencing on or after January 1, 2016, January 1, 2017, January 1, 2018, and January 1, 2019, and adding Subdiv. (4) defining “excess credits”, effective December 29, 2015; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by adding reference to Secs. 12-217aaa and 12-217bbb, effective October 31, 2017; P.A. 19-117 amended Subsec. (a) by deleting Subdiv. (3)(D) re aggregate amount of tax credits for income years commencing on or after January 1, 2019, and made a technical change, effective June 26, 2019, and applicable to income years commencing on or after January 1, 2019; June Sp. Sess. P.A. 21-2 amended Subsec. (a) by deleting reference to notwithstanding any other provision of law, redesignating existing Subdiv. (4) as Subdiv. (3)(D), and adding new Subdiv. (4) re aggregate amount of tax credits for income years commencing on or after January 1, 2022, and made technical and conforming changes, effective June 23, 2021; P.A. 22-118 amended Subsec. (b) by deleting existing provisions and adding provisions re JobsCT tax rebates computed under Sec. 32-7t, effective July 1, 2022, and applicable to taxable years commencing on or after January 1, 2023; P.A. 23-204 amended Subsec. (a) by adding “and prior to January 1, 2024,” in Subdiv. (4) and adding Subdiv. (5) re aggregate amount of tax credits for income years commencing on or after January 1, 2024, effective January 1, 2024; P.A. 24-151 amended Subsec. (a)(5) by replacing “said subdivision” with “subdivision (2) of this subsection”.

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