CT-1120 TIC-EZ: Manufacturing Facility Credit for Facilities Located in a Targeted Investment Community/Enterprise Zone (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120 TIC/EZ is used to claim Connecticut’s manufacturing facility tax credit against the Corporation Business Tax. It records facility location and employment information and calculates the credit using property values, wages, and the applicable credit percentage.
Who files this form
Corporations use Form CT-1120 TIC/EZ to claim the manufacturing facility tax credit against Connecticut Corporation Business Tax.
- 25% credit: May apply to a certified manufacturing facility in a Targeted Investment Community. Facilities in areas with Enterprise Zone level benefits that do not meet the employment criteria for the 50% credit qualify for the 25% credit.
- 50% credit: May apply to facilities meeting the location and employment criteria. Qualifying locations include Enterprise Zones and other areas with Enterprise Zone level benefits. Certain biotechnology, pharmaceutical, or photonics research businesses may also qualify.
Certification from the Department of Economic and Community Development (DECD) is required. For the 50% credit, the corporation must establish that at least 150 full-time employees or 30% of the full-time positions directly attributable to the facility were held by qualifying local residents, as described on the form.
This credit is being sunset. You cannot claim it unless your ten-year credit period began before your 2018 income year.
What you'll need
Have the following information available to complete the form:
- Corporation name, Connecticut Tax Registration Number, income-year beginning and ending dates, and DECD eligibility certificate number, if applicable.
- Facility location and business activity information for Schedule A.
- If completing Schedule B, the average number of full-time positions during the last quarter of the income year, the employee count before initial hiring, and the number of qualifying local employees. Initial hiring is based on the start date established with DECD.
- Average monthly net book values for property, machinery, and equipment, plus gross rents payable during the income year, for the eligible facility and all Connecticut facilities.
- Wages, salaries, and other compensation paid for positions directly attributable to the eligible facility and for all Connecticut employees.
- Total tax from Form CT-1120, Schedule C, Line 1, or the credit claimant’s total tax from the appropriate column of Form CT-1120CU, Part I, Line 9.
The calculated credit is entered on Form CT-1120K, Part I-B, Column A.
Common mistakes
- Using the wrong year’s form: Each form is year specific. Use the 2024 form for the 2024 income year.
- Ignoring preparation reminders: Complete the form in blue or black ink only. Do not use staples.
- Claiming the credit outside the allowed period: The credit is limited to ten years, and your credit period must have begun before your 2018 income year.
- Continuing Schedule B when the location criteria are not met: Skip Schedule B and continue to Schedule C using 25%.
- Continuing Schedule B, Lines 5 through 7, when Line 3 is zero or less: Stop and enter 25% on Schedule C, Line 7.
Questions people ask
How long does the credit last?
The credit period begins with the first full income year after the year the eligibility certificate is issued and continues for the following nine income years. The maximum is ten years. The period must have begun before your 2018 income year.
Is the credit percentage applied to all of the corporation’s Connecticut tax?
No. The 25% or 50% credit applies to the portion of Connecticut Corporation Business Tax allocable to the eligible facility. Schedule C calculates that portion using property and compensation ratios.
How is rented property valued for Schedule C?
Multiply the gross rents payable during the income year by eight. The form applies this rule to rented real property, machinery, and equipment.
What makes an employee’s position directly attributable to the facility?
All three conditions must apply: the employee performs services or has a base of operation at the facility; the position did not exist before the facility’s construction, renovation, expansion, or acquisition; and the position would not have been created without that work or acquisition.
Where do I report the calculated credit?
Enter the credit on Schedule C, Line 8, and on Form CT-1120K, Part I-B, Column A.