CT-1120 FCIC: Fixed Capital Investment Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120 FCIC is used to claim Connecticut’s Fixed Capital Investment Tax Credit for the 2024 income year. It calculates the credit on qualifying fixed capital expenditures, tracks credit carryforwards, and computes any credit recapture.
Who files this form
Corporations use Form CT-1120 FCIC to claim Connecticut’s Fixed Capital Investment Tax Credit. The 2024 form covers fixed capital investment expenditures made during the 2024 income year.
To qualify, tangible personal property must:
- Have a class life of more than four years under IRC § 168(e).
- Be purchased from someone other than a related person.
- Not be acquired for leasing or leased to another person during the 12 months after acquisition.
- Be held and used in Connecticut in the corporation’s ordinary business for at least five full years after acquisition.
Inventory, land, buildings, structures, and mobile transportation property do not qualify.
What you'll need
Attach a detailed schedule identifying:
- The fixed capital acquired.
- Its acquisition date and cost.
- Its class life.
- Where it is used in Connecticut.
- From whom it was acquired.
The form also asks for the corporation’s name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
For Part II, use the credit amounts from the corresponding 2019 through 2024 Forms CT-1120 FCIC and the amounts already applied. If reporting recapture in Part III, attach detailed schedules for the amounts entered on Lines 1 and 3.
Common mistakes
- Using the wrong year’s form: Each form is year specific. Use the 2024 form for the 2024 income year.
- Using the wrong ink or stapling the form: Complete it in blue or black ink only. Do not use staples.
- Leaving out the required schedule: Attach the detailed fixed capital schedule.
- Claiming the same expenditures for multiple credits: Expenditures claimed for this credit cannot also be claimed for another Corporation Business Tax credit.
- Missing shared credits in Part II: Members included in the 2024 Form CT-1120CU must include in Column D credits shared to and used by another member of the combined group.
Questions people ask
How much is the credit?
Subtract expenditures applied against another Corporation Business Tax credit from the fixed capital investment expenditures entered on Part I, Line 1. Multiply the result by 5%. Enter the credit on Part I, Line 4, and Form CT-1120K, Part I-C, Column B.
Can the credit be carried forward?
Yes. The credit may be carried forward to five succeeding income years. Part II calculates the credit applied to 2024 and the carryforward to 2025.
Do vehicles and transportation equipment qualify?
No. Mobile transportation property is excluded. The form lists examples including trucks, buses, forklifts, snowplows, backhoes, bulldozers, cement mixers, and loaders.
When must a credit be recaptured?
The recapture instructions require 100% recapture if the fixed capital or its replacement is not held and used in Connecticut in the corporation’s ordinary business for three full years after acquisition. They require 50% recapture if it is held for at least three years but less than five years. Recapture is required in the income year following the year in which the applicable three-year or five-year period expires. A corporation may elect to recapture earlier.
Where is the recapture amount reported?
Calculate it in Part III. Enter the total from Line 4 on Form CT-1120, Schedule C, Line 1c, or Form CT-1120CU, Part I, Line 8.