CT-1120 EDPC: Electronic Data Processing Equipment Property Tax Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Form CT-1120 EDPC is used to claim Connecticut's Electronic Data Processing Equipment Property Tax Credit. It reports the credit for personal property taxes on electronic data processing equipment, credits applied to 2025 taxes, and unused credits carried forward to 2026.
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 the 2025 credit computation, the form asks for personal property taxes paid or incurred by the corporation in 2025 from the October 1, 2024 grand list.
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. The lessor and lessee may instead elect in writing to let the lessor claim the credit.
What you'll need
Have the following information available to complete the form:
- The corporation’s name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- The amount of personal property taxes paid or incurred on electronic data processing equipment in 2025 from the October 1, 2024 grand list.
- Credit amounts from Part I of Forms CT-1120 EDPC for 2020 through 2024, along with amounts already applied, to calculate carryforwards.
- Amounts of credit applied to 2025 taxes, reported on Form CT-1120K and/or Form CT-207K.
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.
Common mistakes
- Using the wrong year’s form. Each form is year specific, and the correct year’s form must be used.
- Completing the form in ink other than blue or black. Only blue or black ink is allowed.
- Using staples. The form says not to use staples.
- Leaving out credits shared within a combined group. Members included in the 2025 Form CT-1120CU must include in Part II, Column D credits shared to and used by another member of the group.
Questions people ask
What equipment qualifies 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 Personal Property Declaration prescribed by the Secretary of the Office of Policy and Management.
Can the credit be claimed for leased equipment?
Yes. The lessee is entitled to claim it if the lease makes the lessee responsible for the personal property tax cost. The lessor and lessee may elect in writing to let the lessor claim it instead.
When is this credit applied relative to other credits?
This credit is allowed only after all other tax credits have been applied. It is applied first against the Corporation Business Tax, then may be applied against the other taxes listed on the form, including Insurance Premiums Tax, Health Care Centers Tax, Unrelated Business Income Tax, Air Carriers Tax, Railroad Companies Tax, Community Antenna Television Systems and One-Way Satellite Transmission Businesses Tax, and Utility Companies Tax.
Can unused credit be carried forward?
Yes. Any remaining credit balance may be carried forward to the five succeeding income years. For the carryforward to 2026, Part II, Line 8 adds Lines 2 through 6 of Column E, excluding the 2020 credit on Line 1.