CT-1120 PE: Pass-Through Entity Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Connecticut Form CT-1120PE calculates the pass-through entity tax credit available to offset a corporate partner’s 2024 Corporation Business Tax liability. It reports the credit carried forward from 2023, the amount applied in 2024, and the remaining carryforward to 2025.
Who files this form
Corporate partners use Form CT-1120PE to calculate the pass-through entity (PE) tax credit available to offset their 2024 Corporation Business Tax liability. The form also calculates any unused credit that can be carried forward to later income years until fully used.
Form CT-1120CU filers: Do not complete this form.
What you'll need
Have these forms available to complete the calculation:
- 2023 Form CT-1120PE, Line 4: The carryforward amount to enter on Line 1 of the 2024 form.
- 2024 Form CT-1120, Schedule C, Lines 6 and 7: Line 7 provides the credit applied, and Line 6 sets the limit for the amount entered on Line 2.
You will also need your corporation name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
Common mistakes
- Using the wrong year's form: Each form is year specific. Submit the correct year's form to DRS to avoid processing delays.
- Completing this form as a CT-1120CU filer: The instructions say not to complete it.
- Entering too much credit on Line 2: Do not exceed the amount on Form CT-1120, Schedule C, Line 6.
- Using the wrong ink or adding staples: Complete the form in blue or black ink only. Do not use staples.
Questions people ask
Where does the amount on Line 1 come from?
Enter the PE credit carryforward from Line 4 of your 2023 Form CT-1120PE.
What do I enter on Line 2?
Enter the PE credit applied on your 2024 Form CT-1120, Schedule C, Line 7. Do not exceed the amount on Schedule C, Line 6.
How do I calculate the carryforward to 2025?
Subtract Line 2 from Line 1 and enter the result on Line 3.
What happens if my PE credit is more than the tax due?
Any PE credit that exceeds the balance of tax due after other tax credits are applied may be carried forward to succeeding income years until fully used.
Where can I find more guidance?
The form points to OCG-6, guidance on calculating the PE tax, and OCG-7, guidance on the PE tax credit. Both are available on the DRS website at portal.ct.gov/DRS.