Connecticut Fixed Capital Investment Credit

Fixed Capital Investment Credit
Form CT-1120 FCIC
DRAFT 11-15-2023
2023

Department of Revenue Services
State of Connecticut
(Rev. 12/23)

Form CT-1120 FCIC

Fixed Capital Investment Tax Credit

For Income Year Beginning:________________________ , 2023 and Ending:_________________________ ,__________ .
Connecticut Tax Registration Number

Corporation name

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 FCIC to claim the credit allowed under
Conn. Gen. Stat. § 12‑217w.

Required Attachment
This form must be accompanied by a detailed schedule that
identifies the fixed capital acquired, date of acquisition, cost
of the fixed capital, class life, location where the fixed capital
is used in Connecticut, and from whom the fixed capital was
acquired.
Expenditures claimed for this credit cannot be claimed in
connection with any other Corporation Business Tax credit.
Definitions
Fixed capital is defined as tangible personal property that:
•	 Has a class life of more than four years, as described
under IRC § 168(e);
•	 Is purchased from a person other than a related person;
•	 Is not acquired to be leased, and is not leased to another
person during the 12 months following its acquisition; and
•	 Will be held and used in Connecticut by a corporation in
the ordinary course of the corporation’s trade or business
in Connecticut for not less than five full years following its
acquisition.
Fixed capital does not include inventory, land, buildings or
structures, or mobile transportation property.
Mobile transportation property is any transport equipment
designed to move or convey people or property from one
place to another, including but not limited to: trucks; buses;
forklifts; snowplows; or certain construction equipment such
as backhoes, bulldozers, cement mixers, and loaders.

Recapture Provision
•	 If the fixed capital on account of which a corporation
claimed the credit is not held and used in Connecticut in
the ordinary course of the corporation’s trade or business
in Connecticut for three full years following its acquisition,
the corporation must recapture 100% of the amount of
the credit allowed on its Corporation Business Tax return
required to be filed for the income year immediately
succeeding the income year during which the three-year
period expires.
•	 If the fixed capital on account of which a corporation
claimed the credit is not held and used in Connecticut in
the ordinary course of the corporation’s trade or business
in Connecticut for five full years following its acquisition,
the corporation must recapture 50% of the amount of
the credit allowed on its Corporation Business Tax return
required to be filed for the income year immediately
succeeding the income year during which the five-year
period expires.
•	 The recapture provisions do not apply if the property that
is the subject of the tax credit is replaced.
Additional Information
See the Guide to Connecticut Business Tax Credits available
on the Department of Revenue Services (DRS) website at
portal.ct.gov/DRS.

Part I - Credit Computation
1.

Enter fixed capital investment expenditures made during the 2023 income year.
Attach detailed schedule.

1.

2.

Enter fixed capital expenditures from Line 1 that were applied against any other
Corporation Business Tax credit.

2.

3. Subtract Line 2 from Line 1.
4.

3.

Tax credit: Multiply Line 3 by 5% (.05). Enter here and on Form CT‑1120K,
Part I‑C, Column B.

Visit us at portal.ct.gov/DRS for more information.

4.

DRAFT 11-15-2023

Part II - Computation of Carryforward - Credit may be carried forward to five succeeding income years. See instructions below.

A

Total
Credit
Earned

1.

2018 Form CT‑1120 FCIC,
Part I, Line 4

2.

2019 Form CT‑1120 FCIC,
Part I, Line 4

B

Credit
Applied 2018
Through 2022

C

Carryforward to 2023
Subtract Column B
from Column A.

D

Credit
Applied to
2023

E

Carryforward
to
2024

2020 Form CT-1120 FCIC,
3. Part I, Line 4
4.

2021 Form CT‑1120 FCIC,
Part I, Line 4

5.

2022 Form CT‑1120 FCIC,
Part I, Line 4

6.

2023 Form CT‑1120 FCIC,
Part I, Line 4

7.

Total Fixed Capital Investment tax credit applied to 2023:
Add Lines 1 through 6, Column D.

8. Total Fixed Capital Investment tax credit carryforward to 2024: Add Lines 2 through 6, Column E.

Computation of Carryforward Instructions
Lines 1 through 6, Columns A through D - Enter the amount for each corresponding year.
Lines 2 through 5, Column E - Subtract Column D from Column C.
Line 6, Column E - Subtract Line 6, Column D from Line 6, Column A.
Members included in 2023 Form CT‑1120CU, Combined Unitary Corporation Business Tax Return:
Include in Column D credits shared to and used by another member of the combined group.
Part III - Computation of Recapture - See instructions below.
1.

Enter the amount of Fixed Capital Investment tax credit to be recaptured at 50%.
Attach detailed schedule.

2. Multiply Line 1 by 50% (.50).

1.
2.

3.

Enter the amount of Fixed Capital Investment tax credit to be recaptured at 100%.
Attach detailed schedule.

3.

4.

Total recapture amount: Add Line 2 and Line 3. Enter total here and on Form CT‑1120,
Schedule C, Line 1c or Form CT‑1120CU, Part I, Line 8.

4.

Computation of Recapture Instructions
The corporation is required to recapture 50% of the credit allowed if the fixed capital for which the credit was applied or its
replacement is not held and used in Connecticut in the ordinary course of the corporation’s trade or business in Connecticut
for five full years following its acquisition.
The corporation is required to recapture 100% of the credit allowed if the fixed capital for which the credit was applied or its
replacement is not held and used in Connecticut in the ordinary course of the corporation’s trade or business in Connecticut
for three full years following its acquisition.
Recapture is required in the income year following the income year during which the three-year or five-year period expires.
A corporation may also elect to recapture earlier than is required.
The corporation should include the amount of the credit to be recaptured for capital held at least three years, but less than
five years in Line 1 and the amount of the credit to be recaptured for capital held for less than three years in Line 3.

Form CT-1120 FCIC Back (Rev. 12/23)

Visit us at portal.ct.gov/DRS for more information.