CT-1120 EDPC: Electronic Data Processing Equipment Property Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120 EDPC claims Connecticut’s Electronic Data Processing Equipment Property Tax Credit for personal property taxes paid on electronic data processing equipment to a Connecticut municipality. It calculates the credit, the amount applied to 2024 taxes, and unused credits c
Who files this form
Use Form CT-1120 EDPC to claim the credit for personal property taxes paid to a Connecticut municipality on electronic data processing equipment during the income year.
For leased equipment, the lessee is entitled to the credit if the lease, by its terms or operation, makes the lessee responsible for the property tax cost. However, the lessor and lessee may agree in writing that the lessor will claim the credit.
What you'll need
Have the following information available to complete the form:
- Corporation name, Connecticut Tax Registration Number, and income year beginning and ending dates.
- Personal property taxes paid or incurred by the corporation in 2024 on electronic data processing equipment from the October 1, 2023 grand list.
- Credit amounts from Part I of the 2019 through 2023 Forms CT-1120 EDPC, along with amounts already applied, to calculate carryforwards.
- Amounts of credit applied to 2024 taxes, including credits shared with and used by another combined-group member, if applicable.
If a lessor claims the credit under a written election with the lessee, the lessor must provide a copy of that election if DRS requests it.
How to file
Complete the 2024 form in blue or black ink. Do not use staples.
- Enter the corporation’s identifying information and income year dates.
- In Part I, enter the qualifying property taxes paid or incurred in 2024 from the October 1, 2023 grand list. Also enter this amount on Form CT-1120K, Part I-D, Column B, and/or Form CT-207K, Part 1C, Column B.
- Complete Part II using the credit amounts for each listed year. Line 7 totals the credit applied to 2024. Line 8 totals the credit carried forward to 2025.
- Report amounts applied to Corporation Business Tax on Form CT-1120K, Part I-D, Column D; amounts applied against Chapter 207 taxes on Form CT-207K, Part 1C, Column C; and amounts applied to other taxes on Form CT-1120K, Part I-D, Column F.
Common mistakes
- Using the wrong year’s form. Each form is year specific, and the correct year’s form must be used.
- Using ink other than blue or black, or stapling the form.
- Leaving out shared credits. Members included in the 2024 Form CT-1120CU must include in Part II, Column D, credits shared with and used by another member of the combined group.
Questions people ask
What counts as electronic data processing equipment?
The definition includes computers, printers, peripheral computer equipment, bundled software, computer-based equipment acting as a computer as defined in IRC § 168, and other equipment reported as Code 20 on the prescribed Personal Property Declaration.
Can unused credit be carried forward?
Yes. Any remaining credit balance that exceeds the credit applied may be carried forward to the five succeeding income years.
In what order is this credit applied?
This credit is allowed only after all other tax credits have been applied. It is applied first against Corporation Business Tax. It may then be applied against the listed taxes under Chapters 207, 208a, 209, 210, 211, and 212.
Where can I find more information?
The form points to the Guide to Connecticut Business Tax Credits on the DRS website at portal.ct.gov/DRS.