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Connecticut Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Business
Extracted from PDF file 2023-connecticut-form-ct-1120-xch.pdf, last modified December 2023Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Business
For Income Year Beginning Company name 2023 Form CT-1120 XCH Department of Revenue Services State of Connecticut (Rev. 12/23) 1120XCH 1223W 01 9999 Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Business M M - D D - 2023 Y Y Y and Ending Y M M - D D - Y Y Y Y Connecticut Tax Registration Number Designated Taxable Member name (Form CT-1120CU filers only) Connecticut Tax Registration Number Part I - Eligibility Criteria 1. 2. 3. Does the company report no net income or pay the $250 minimum tax on Form CT‑1120, Schedule C, Line 1a, or on the credit claimant’s column on Form CT‑1120CU, Part II, Line 1? If Yes, the company may be eligible to obtain a tax credit to be issued in the form of a refund. Did the company engage in transactions with related persons during the 2023 income year? If Yes, identify the related persons, their gross incomes, their relationship to the company, and provide an organizational chart of related persons in which the company is a member. Also attach a separate schedule describing each of the company’s transactions with these related persons during the 2023 income year, the gross income of the company derived from each of these transactions, and the dates of these transactions. 1. Yes No 2. Yes No Enter the total gross income of the company for the previous income year from all sources, including the total gross income of the company derived from transactions with related persons, as noted above. The gross income of the company should be annualized if this application is for a short period. If the total gross income of the company for the previous income year exceeds $70 million, the company is not eligible for an exchange of tax credits. Do not check the applicable box on Form CT‑1120 3. or Form CT‑1120CU. 4. Does the company or its combined unitary group, on the date of this application, have any taxes due and unpaid to the State of Connecticut including interest, penalties, fees, and other related charges? If Yes, attach a schedule that describes the nature and amounts of any unpaid taxes. .00 4. Yes No Part II - Computation of Exchange Amount 1a. Enter the amount of 2023 Research and Experimental Expenditures Tax Credit from 2023 Form CT-1120RC, Part I, Line 4. 1a. .00 1b. Enter the amount of 2023 Research and Experimental Expenditures Tax Credit applied from 2023 Form CT‑1120RC, Part II, Line 16, Column D. 1b. .00 1. Enter the amount of 2023 Research and Experimental Expenditures Tax Credit available for exchange. Subtract Line 1b from Line 1a. 1. 2a. Enter the amount of 2023 Research and Development Tax Credit from 2023 Form CT-1120 RDC, Part II, Line 2. 2a. .00 2b. Enter the amount of 2023 Research and Development Tax Credit applied from 2023 Form CT-1120 RDC, Part III, Line 16, Column D. 2b. .00 2. Enter the amount of 2023 Research and Development Tax Credit available for exchange. Subtract Line 2b from Line 2a. 2. .00 3. Add Line 1 and Line 2. 3. 4. Total credit to be issued in the form of a refund requested: Multiply amount on Line 3 by 65% (.65). Do not exceed $1.5 million. 4. .00 .00 Visit us at portal.ct.gov/DRS for more information. .00 Form CT-1120 XCH Page 2 of 2 (Rev. 12/23) 1120XCH 1223W 02 9999 Part III - Required Attachments In addition to Form CT‑1120RC, Form CT‑1120 RDC, or both if applicable, attach detailed schedules supporting the claimed research expenditures. The detailed schedules must include: • A full and complete description of the nature of the research projects conducted by the company during the income year and the location(s) where the research is conducted; • A full and complete description of the methods used to obtain: (a) the amount spent directly on research and experimental expenditures conducted in Connecticut, in accordance with Conn. Gen. Stat. § 12-217j; and (b) the total expenditures and payments for research and experimentation, and basic research conducted in Connecticut, in accordance with Conn. Gen. Stat. § 12-217n; • A detailed description of each source of information used to compute the credit, including the methods and calculations of expense allocation, if any; and • The job title and detailed job description of each employee whose wages are included in the research expenditures. Contact Person Name Telephone number – – Title Address (number and street) PO Box City or town State Zip code General Information Complete this form in blue or black ink only. Do not use staples. Please note that each form is year specific. The correct year’s form must be used. Use Form CT‑1120 XCH to exchange with the State of Connecticut any tax credit under Conn. Gen. Stat. §§ 12‑217j or 12‑217n for a credit to be issued in the form of a refund equal to 65% of the value of the credit. A taxpayer may receive a credit to be issued in the form of a refund of not more than $1.5 million in any one income year. See Conn. Gen. Stat. § 12‑217ee. File Form CT‑1120 XCH separately from Form CT‑1120, Corporation Business Tax Return, or Form CT‑1120CU, Combined Unitary Corporation Business Tax Return. Attach Form CT‑1120RC, Research and Experimental Expenditures Tax Credit, or Form CT‑1120 RDC, Research and Development Expenditures Tax Credit, and all required supporting schedules and documentation to Form CT‑1120 XCH. At the same time as filing Form CT‑1120 or Form CT‑1120CU, mail the completed application and supporting information separately to: Department of Revenue Services PO Box 150420 Hartford CT 06115-0420 Check the box at the top of Form CT‑1120 or Form CT‑1120CU to indicate that you are exchanging research and development tax credits and enter the amount of credit to be issued in the form of a refund requested. Eligibility In order to be eligible for a credit to be issued in the form of a refund, a taxpayer must have no Corporation Business Tax liability. For purposes of this credit to be issued in the form of a refund, payment of a capital base tax under Conn. Gen. Stat. § 12‑219 in a year that the taxpayer reports no net income as defined in Conn. Gen. Stat. § 12‑213, or payment of the $250 minimum tax under Conn. Gen. Stat. § 12‑219, shall not be considered a liability. A company included in a combined group that files as part of Form CT‑1120CU must separately determine if it is eligible to exchange credits. This includes a separate determination as to whether the company claiming the credit to be issued in the form of a refund has no tax liability for purposes of the eligibility requirements of this credit exchange. If other requirements are satisfied, a company that files as part of a combined group is eligible to exchange credits if the group pays tax on the capital base and: • The company’s apportioned amount of the combined group’s net income is zero or negative, regardless of its portion of the capital base; or • The company’s portion of the capital base tax is equal to $250. Definitions Qualified Small Business for the purposes of the tax credit exchange means a company that has gross income for the previous income year that does not exceed $70 million and has not met this test through transactions with a related person. Gross Income means gross income as defined by the Internal Revenue Code including any interest or exempt interest dividends, but not including dividends received by a domestic United States corporation from a foreign corporation on account of foreign taxes deemed paid when the domestic corporation elects the foreign tax credit or dividends received directly or indirectly from a passive investment company. Related Person means a corporation, partnership, association, or trust controlled by the corporation; an individual, corporation, partnership, association, or trust that is in control of the corporation; a corporation, partnership, association, or trust controlled by an individual, corporation, partnership, association, or trust that is in control of the corporation; or a member of the same controlled group as the corporation. Additional Information See the Guide to Connecticut Business Tax Credits available on the Department of Revenue Services (DRS) website at portal.ct.gov/DRS. Visit us at portal.ct.gov/DRS for more information.
Form CT-1120 XCH
More about the Connecticut Form CT-1120 XCH Corporate Income Tax TY 2023
We last updated the Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Business in February 2024, so this is the latest version of Form CT-1120 XCH, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form CT-1120 XCH directly from TaxFormFinder. You can print other Connecticut tax forms here.
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File Now with TurboTaxRelated Connecticut Corporate Income Tax Forms:
TaxFormFinder has an additional 85 Connecticut income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Connecticut Form CT-1120 XCH.
| Form Code | Form Name |
|---|---|
| Form CT-1120 Instructions | Connecticut Corporation Business Tax Instructions |
| Form CT-1120 A-LP | Corporation Business Tax Return Apportionment of Limited Partnership Interests |
| Form CT-1120 EXT | Application for Extension of Time to File Connecticut Corporation Tax Return |
| Form CT-1120X | Amended Corporation Business Tax Return |
| Form CT-1120 | Corporation Business Tax Return |
| Form CT-1120 MEC | Machinery and Equipment Expenditure Credit |
| Form CT-1120 CC | Authorization and Consent to be Included in a Combined Return |
| Form CT-1120 EDPC | Electronic Data Processing Equipment Property Tax Credit |
| Form CT-1120 ES | Estimated Corporation Business Tax Payment Coupons |
| Form CT-1120 FCIC | Fixed Capital Investment Credit |
View all 86 Connecticut Income Tax Forms
Form Sources:
Connecticut usually releases forms for the current tax year between January and April. We last updated Connecticut Form CT-1120 XCH from the Department of Revenue Services in February 2024.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Connecticut Form CT-1120 XCH
We have a total of twelve past-year versions of Form CT-1120 XCH in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2016 Form CT-1120 XCH
CT-1120 XCH, 2016 Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Busi
2015 Form CT-1120 XCH
CT-1120 XCH, 2015 Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Busi
2014 Form CT-1120 XCH
CT-1120 XCH, 2014 Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Busi
2013 Form CT-1120 XCH
CT-1120 XCH, Application for Exchange of Research and Development or Research and Experimental Expenditures
2012 Form CT-1120 XCH
CT-1120 XCH, 2012 Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Busi
2011 Form CT-1120 XCH
CT-1120 XCH, Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Business
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