CT-1120 HR: Historic Rehabilitation Tax Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
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 2025, and
Who files this form
Use Form CT-1120HR to claim Connecticut’s Historic Rehabilitation tax credit for rehabilitation of 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, corporations, air carriers, railroad companies, community antenna television systems, or utility companies.
What you'll need
- Your DECD tax credit voucher showing the credit for the 2025 income year.
- The eligible taxpayer’s name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- If you are an assignee, the assignor’s name and Connecticut Tax Registration Number, if available. Attach a copy of the written notice provided to DECD about the transfer.
- If you have carryforward credits, the credit amounts from your 2020 through 2024 Forms CT-1120HR and records of credits already applied, as needed to complete Part II.
How to file
Complete the 2025 form in blue or black ink. Do not use staples.
- Enter the taxpayer’s identifying information and income-year dates.
- Check the box showing whether the claimant is an owner, an assignee, or a taxpayer designated as a partner or member of an owner. Assignees must provide the requested assignor information and attach the transfer notice provided to DECD.
- In Part I, Line 1, enter the 2025 credit amount shown on the DECD voucher. Also enter it on Form CT-1120K, Part I-C, Column B, or Form CT-207K, Part 1C, Column B.
- Complete Part II with the credit amounts for each corresponding year. For Lines 2 through 5, Column E, subtract Column D from Column C. For Line 6, Column E, subtract Column D from Column A.
- Add Lines 1 through 6, Column D, for the total credit applied to 2025. Add Lines 2 through 6, Column E, for the total carryforward to 2026.
The supplied form does not state a mailing address or an e-filing method.
Common mistakes
- Using the wrong year’s form. The form is year-specific, and the correct year must be used.
- Using another ink color or staples. Complete the form in blue or black ink only, without staples.
- Claiming the credit without a voucher. DECD must have issued a tax credit voucher before the credit can be claimed.
- Leaving out an assignee’s attachment. An assignee must attach a copy of the written transfer notice provided to DECD.
- Omitting shared credits from Column D. Members included in the 2025 Form CT-1120CU must include credits shared to and used by another member of the combined group.
Questions people ask
How is the credit amount determined?
The credit is the lesser of 25% of projected rehabilitation expenditures or 25% of actual rehabilitation expenditures. The rate is 30% 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 the credit be claimed?
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 to unused credit?
Any remaining credit balance that exceeds the credit applied may be carried forward for five income years. No carryback is allowed.