CT-1120 HR: Historic Rehabilitation Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120HR is used to claim Connecticut’s Historic Rehabilitation Tax Credit for rehabilitating certified historic structures. It reports the credit amount listed on a voucher issued by the Department of Economic and Community Development (DECD), credits applied to 2024, and
Who files this form
Use Form CT-1120HR to claim Connecticut’s Historic Rehabilitation tax credit for owners rehabilitating certified historic structures. You may claim the credit only if the Department of Economic and Community Development (DECD) has issued a tax credit voucher.
The form identifies three types of claimants:
- An owner.
- An assignee.
- A taxpayer designated as a partner or member of an owner.
The credit may be applied against Connecticut taxes on insurance companies and health care centers, corporation business, air carriers, railroad companies, community antenna television systems, or utility companies.
What you'll need
- DECD tax credit voucher for the 2024 income year: Enter the credit amount from the voucher in Part I, Line 1, and on Form CT-1120K, Part I-C, Column B, or Form CT-207K, Part 1C, Column B.
- Taxpayer information: Provide the eligible taxpayer’s name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- Transfer information, if you are an assignee: Enter the assignor’s name and Connecticut Tax Registration Number, if available. Attach a copy of the written notice provided to DECD of the transfer.
- Prior-year credit information, if applicable: Part II calls for credit amounts from the 2019 through 2023 Forms CT-1120HR and the amounts applied in those years to calculate carryforwards.
Common mistakes
- Using the wrong year’s form: Each form is year-specific. Use the 2024 form for the 2024 income year.
- Using ink other than blue or black: Complete the form in blue or black ink only.
- Stapling the form: The form says not to use staples.
Questions people ask
How is the credit calculated?
The credit is the lesser of 25% of projected rehabilitation expenditures or 25% of actual rehabilitation expenditures. The rate is 30% instead if DECD certifies that the project creates qualified affordable housing units or is located in a federally designated Qualified Opportunity Zone. Before rehabilitation work begins, the owner must submit a rehabilitation plan and an estimate of qualified expenditures to DECD.
When can I claim the credit?
The credit may be claimed in the year the substantially rehabilitated certified historic structure is placed in service. For projects completed in phases, the credit may be prorated to the substantially rehabilitated identifiable portion of the building placed in service.
Can the credit be sold or assigned?
Yes. An owner allowed the credit may assign it to any individual or entity. The credit may be sold or assigned, in whole or in part, no more than three times. An assignee must claim it in the same year the assignor would have been eligible to claim it.
What happens if I do not use the full credit?
Any remaining credit balance that exceeds the credit applied may be carried forward for five income years. No carryback is allowed.