This tax credit is allocable to a manufacturing or service facility that meets certain employment criteria. Tax credit percentages are dependent on the number of new employees working at the facility. The facility must be located in an Enterprise Zone or a Targeted Investment Community.
This tax credit was created by the State in order to help businesses recover costs incurred for expenditures in machinery and equipment by corporations that have no more than 800 full-time, permanent employees in Connecticut. The tax credit is equal to 5% of the cost of machinery and equipment for companies that have between 251 and 800 full-time, permanent employees and 10% for companies that have less than 251 full-time, permanent employees.
This program is aimed at helping CT-based manufacturers invest in their companies. Manufacturers with 150 or fewer employees may establish an MRA with a participating Connecticut financial institution. An MRA is an interest-bearing, tax-deferred account aimed to help small companies (classified as a manufacturer by their NAIC code) fund capital investments and workforce training.
Apprenticeship Training Tax Credit in Manufacturing, Plastics, Plastics-Related, or Construction Trades
Corporations that employ apprentices who are receiving training in the manufacturing, plastics, plastics-related, or construction trades. Credits earned by these corporations may be applied against the taxes owed.