CT-1120 HCIC: Human Capital Investment Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120 HCIC is used by corporations to claim Connecticut’s Human Capital Investment Tax Credit for 2024. It calculates the credit for specified training, education, child care, and other human capital investment expenditures and tracks credits applied and carried forward.
Who files this form
Corporations claiming the Human Capital Investment Tax Credit under Conn. Gen. Stat. § 12-217x use Form CT-1120 HCIC. This version is for an income year beginning in 2024.
The form computes credits for specified Connecticut training, education, and child care expenditures, certain donations or capital contributions, and contributions to the Individual Development Account Reserve Fund.
What you'll need
- A required detailed schedule identifying the dates, locations, and descriptions of training programs, plus the expenditures for each program.
- All other relevant schedules supporting the credit claim.
- For Part II, credit amounts from the 2019 through 2023 Forms CT-1120 HCIC, Part I, Line 9, and information about credits already applied.
You also need the corporation name, Connecticut Tax Registration Number, income-year beginning and ending dates, and expenditure amounts for the income year.
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, or using staples. The form allows only blue or black ink and says not to use staples.
- Leaving out supporting schedules. Attach the required detailed training-program schedule and all other relevant schedules supporting the claim.
- Using the same expenditures for another credit. Expenditures used for this credit cannot also be used to claim any other tax credit against any Connecticut tax.
- For members included in the 2024 Form CT-1120CU, omitting credits shared with and used by another combined-group member. Include those credits in Part II, Column D.
Questions people ask
How is the 2024 credit calculated?
Add Part I, Lines 1 through 5, and multiply the total by 10%. Then add Lines 8 through 10 and multiply that total by 25%. Add the two credit amounts on Line 13 and enter that total on Form CT-1120K, Part I-C, Column B.
Can unused credit be carried forward or back?
A remaining credit balance that exceeds the credit applied may be carried forward for five succeeding income years. No carryback is allowed.
What counts as training?
Training means instruction, maintenance, or improvement of skills required by the employer for employees to perform their duties properly. The training must be conducted in Connecticut.
Which income year's expenditures should be included?
The form defines expenditures as amounts paid or incurred for the income year.
Where can I find more information?
The form directs taxpayers to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.