CT-IRF: Insurance Reinvestment Fund Credit (2024)

Who files this form

Use Form CT-IRF to claim the original Insurance Reinvestment Fund Tax Credit for investments made through a fund manager in an insurance business under Connecticut General Statutes § 38a-88a(b). The fund must meet all requirements of § 38a-88a.

The form allows the credit to be claimed by an investor or an assignee and applied against:

• Insurance Premiums Tax or Health Care Centers Tax;
• Corporation Business Tax;
• Income Tax; or
• Surplus Lines Brokers Tax.

The Second Insurance Reinvestment Fund Tax Credit under § 38a-88a(c) is claimed on Form CT-SIRF, not Form CT-IRF.

What you'll need

Have the following information available to complete the form:

• The eligible taxpayer’s name, Connecticut Tax Registration Number or SSN, and income-year beginning and ending dates.
• The name of the insurance fund in which the investment was made.
• Whether the claimant is an investor or an assignee. An assignee must provide the assignor’s name and Connecticut taxpayer identification number, if available.
• The credit amount applied to the 2024 income year and the amounts used against the listed taxes.

For Part II’s carryforward calculation, the form refers to the credit from your 2019 Form CT-IRF, Part I, Line 4, and asks for amounts applied to 2019 and 2024.

For credits applied against the business taxes under Chapters 207 and 208, Form CT-IRF must be attached to Form CT-1120K and/or Form CT-207K.

How to file

Complete the form in blue or black ink. Enter the taxpayer and fund information, identify the claimant as an investor or assignee, and select the tax against which the credit is being applied.

In Part I, enter the total credit applied to the 2024 income year on Line 4. Use Line 5 for the amount applied against Surplus Lines Brokers Tax and Line 6 for the amount applied against the other listed taxes. Complete Part II for the carryforward calculation.

For business taxes under Chapters 207 and 208: Attach Form CT-IRF to Form CT-1120K, Business Tax Credit Summary, and/or Form CT-207K, Insurance/Health Care Tax Credit Schedule.

For income tax: Follow the credit-claiming instructions for your return:

• Form CT-1040 or Form CT-1040NR/PY: See Schedule CT-IT Credit, Income Tax Credit Summary.
• Form CT-1041: See the Form CT-1041 instructions.

The supplied form does not state a mailing address or an e-filing method.

Common mistakes

• Using the wrong year’s form: Each form is year specific. Use the correct year’s form.
• Using another ink color or staples: Complete the form in blue or black ink only. Do not use staples.
• Using CT-IRF for the second credit: The Second Insurance Reinvestment Fund Tax Credit requires Form CT-SIRF.
• Leaving out shared credits in Part II: Members included in the 2024 Form CT-1120CU must include in Column D credits shared to and used by another member of the combined group.

Questions people ask

How much credit is available?

The credit equals these percentages of qualifying investments:

• Investment year and the next two income years: 0%.
• Third full income year after the investment year and the next three income years: 10%.
• Seventh full income year after the investment year and the next two income years: 20%.

Can I carry forward unused credit?

Yes. Credit not used in the income year for which it is allowed may be carried forward for five succeeding income years until the full credit has been applied.

Can I assign the credit to someone else?

Yes. A taxpayer allowed a credit may assign it to another person as defined in Connecticut General Statutes § 12-1. The recipient may claim it only for a calendar year for which the assigning taxpayer would have been eligible to claim it.

Where can I find more information?

The form directs taxpayers to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.

Official sources

• https://portal.ct.gov/-/media/drs/forms/2024/corp/ct-irf_1224.pdf