CT-DTLD: Statement of Net Deferred Tax Liability Deduction (Revision 2024-12)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-DTLD reports the total Net Deferred Tax Liability Deduction a Connecticut combined unitary corporation business tax group intends to claim. It calculates the total deduction and the annual amount that may be claimed over thirty income years beginning with 2026.
Who files this form
Taxpayers required to file Form CT-1120CU, Combined Unitary Corporation Business Tax Return, should use Form CT-DTLD to report the total Net Deferred Tax Liability Deduction they intend to claim.
The deduction is available to eligible publicly traded companies and their affiliates to offset negative effects of combined unitary reporting on their deferred tax accounts. All members of the combined group must combine their deferred tax assets (DTAs) and deferred tax liabilities (DTLs) to determine eligibility.
A group is eligible if the combined unitary reporting legislation increases its net DTL, decreases its net DTA, or turns its net DTA into a net DTL. If Line 3 is zero or less, stop and do not file this statement.
When it's due
- 2024 edition filing deadline: July 1, 2025. The statement must be filed with the Commissioner of Revenue Services on or before this date.
- Missing this deadline results in loss of the deduction. No filing extensions will be granted.
- The deduction may be claimed annually over thirty income years beginning with income year 2026.
What you'll need
Have the designated taxable member’s name and Connecticut Tax Registration Number ready. Include these supporting items:
- Line 1 computation: The group’s net DTA or net DTL as of the close of business on December 31, 2015, excluding the impact of combined unitary reporting but reflecting other legislation enacted during the 2015 Connecticut legislative sessions.
- Line 2 computation: The group’s net DTA or net DTL on the same date, including all legislation enacted during the 2015 legislative sessions, including combined unitary reporting.
- Line 5 computation: The sum of each group member’s separate apportionment fraction, determined under combined unitary reporting rules and used to calculate the deferred tax accounts on Line 2.
- A list of all members of the 2016 combined group: Include each member’s Connecticut Tax Registration Number or, if it has none, its Federal Employer Identification Number.
How to file
Enter the designated taxable member’s name and Connecticut Tax Registration Number, then complete the calculation:
- Enter the group’s net deferred tax amounts on Lines 1 and 2. Report a net DTA as a negative number and a net DTL as a positive number.
- Subtract Line 1 from Line 2. If the result is zero or less, stop and do not file.
- Divide Line 3 by 7.5% (.075) and enter the result on Line 4.
- Enter the group net income apportionment fraction on Line 5.
- Divide Line 4 by Line 5 to find the total deduction on Line 6.
- Divide Line 6 by 30 to find the annual deduction on Line 7.
Mail the completed statement and all supporting documentation to:
Department of Revenue Services
Corporation Audit Unit - DTLD Group
450 Columbus Blvd Ste 1
Hartford CT 06103-1837
Common mistakes
- Missing the filing deadline or expecting an extension. Late filing results in loss of the deduction, and no extensions will be granted.
- Filing when Line 3 is zero or less. The form says to stop and not file in that case.
- Using the wrong sign. Report net DTAs as negative numbers and net DTLs as positive numbers.
- Using the wrong apportionment or sourcing method. The calculations should reflect single-sales factor apportionment, but should not reflect market-based sourcing.
- Leaving out required attachments. Attach computations for Lines 1, 2, and 5, plus the list of all 2016 combined group members and their required identification numbers.
Questions people ask
When can the deduction first be claimed?
The annual deduction may be claimed over thirty income years beginning with income year 2026.
How is the annual deduction calculated?
Divide the total Net Deferred Tax Liability Deduction on Line 6 by 30. Enter the result on Line 7.
What if Line 3 is zero or negative?
Stop and do not file the statement.
Can I get more time to file?
No. The form states that no extensions will be granted. Failure to file by July 1, 2025, results in loss of the deduction.
Which group members must be listed?
Attach a list of all members of the 2016 combined group. Include each member’s Connecticut Tax Registration Number or, if it has none, its Federal Employer Identification Number.