CT-1120 HCIC: Human Capital Investment Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Form CT-1120 HCIC is used by corporations to claim Connecticut’s Human Capital Investment Tax Credit. It reports human capital investment expenditures, calculates the credit, and tracks credits applied and carried forward.
Who files this form
Corporations use Form CT-1120 HCIC to claim the Human Capital Investment Tax Credit under Conn. Gen. Stat. § 12-217x. This version is for an income year beginning in 2025.
The form covers specified Connecticut training and education expenses, contributions, and child care expenses.
What you'll need
- Required training schedule: Attach a detailed schedule showing the dates, locations, descriptions, and expenditures for each training program.
- Other supporting schedules: Attach all other pertinent schedules supporting your claim.
- Corporation information: Have your corporation name, Connecticut Tax Registration Number, and income-year beginning and ending dates ready.
- Carryforward information: Part II uses credits earned on the 2020 through 2025 Forms CT-1120 HCIC and the amounts already applied. Gather the relevant forms and credit-use information if completing that part.
Common mistakes
- Using the wrong year's form: Each form is year specific. Use the correct year's form.
- Using the wrong ink or stapling the form: Complete it in blue or black ink only. Do not use staples.
- Leaving out attachments: Include the required detailed training schedule and all other pertinent supporting schedules.
- Using the same expenses for another credit: A corporation may not use expenses claimed for this credit to claim any other tax credit against any Connecticut tax.
- Carrying the credit back: No carryback is allowed. Unused credit may be carried forward for five succeeding income years.
Questions people ask
How is the credit calculated?
Part I, Line 7 is 10% of the total expenditures on Lines 1 through 5. Line 12 is 25% of the total expenditures on Lines 8 through 10. Add those two credit amounts on Line 13 and enter the total on Form CT-1120K, Part I-C, Column B.
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 expenses count?
The form defines expenditures as amounts paid or incurred for the income year.
Can unused credit be used in a later year?
Yes. Any remaining credit balance that exceeds the credit applied may be carried forward for five succeeding income years. No carryback is allowed.
What should combined-group members include in Part II, Column D?
Members included in the 2025 Form CT-1120CU must include credits shared with and used by another member of the combined group.