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Connecticut Research and Experimental Expenditures Credit
Extracted from PDF file 2023-connecticut-form-ct-1120-rc.pdf, last modified November 2023Research and Experimental Expenditures Credit
Department of Revenue Services State of Connecticut (Rev. 12/23) Form CT-1120RC Research and Experimental Expenditures Tax Credit 2023 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‑1120RC to claim the credit available under Conn. Gen. Stat. § 12‑217j equal to 20% of the incremental increase in research and experimental expenditures that are conducted in Connecticut. Required Attachment This form must be accompanied by a detailed schedule that identifies the location in Connecticut where the research and experimentation was conducted and the amounts spent directly on research and experimentation in the current income year and in the previous income year. Definitions Connecticut research and experimental expenditures are those that may be deducted under § 174 of the Internal Revenue Code of 1986 and related regulations. Only amounts spent directly on such research and experimental expenditures will be allowed. Overhead and other expenses, including general and administrative expenses, which relate to a corporation’s activities as a whole and not specifically to the research and experimental effort will not qualify. Qualifying expenditures include but are not limited to: • Expenditures incurred in connection with the taxpayer’s trade or business that represent research and development costs in the experimental or laboratory sense; • All costs incurred in the development of an experimental or pilot model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned; and • Costs of obtaining a patent, such as attorney’s fees expended in making and perfecting a patent application. Credit Computation The credit is equal to 20% of the amount spent by the corporation directly on Connecticut research and experimental expenditures that exceeds the amount spent by that corporation on those expenditures during the previous income year. Carryforward Any remaining credit balance that exceeds the credit applied or exchanged may be carried forward for 15 income years. No carryback is allowed. Part I - Credit Computation Enter the amount of Connecticut research and experimental expenditures for the 2023 1. income year. Attach detailed schedule. 1. 00 Enter the amount of Connecticut research and experimental expenditures for the 2022 2. income year. Attach detailed schedule. 2. 00 Balance: Subtract Line 2 from Line 1. 3. If zero or less, the corporation is not eligible for this credit. 3. 00 Tax credit: Multiply Line 3 by 20% (.20). Enter here and on Form CT-1120K, 4. Part I-C, Column B. 4. 00 Exchange of Tax Credit A taxpayer whose gross income does not exceed $70 million and who cannot take the credit as a result of having no tax liability under the Corporation Business Tax may elect to carry 100% of the credit forward or may be eligible to exchange the credit with the state for a credit to be issued in the form of a refund equal to 65% of its value, subject to certain limitations. See Conn. Gen. Stat. § 12‑217ee. See Form CT‑1120 XCH, Application for Exchange of Research and Development or Research and Experimental Expenditures Tax Credits by a Qualified Small Business, for eligibility. Only tax credits earned in the current year and entitled to be claimed in the current year may be exchanged. Application Procedure for Exchange of Tax Credits File Form CT‑1120 XCH separately from Form CT‑1120, Corporation Business Tax Return, or Form CT‑1120CU, Combined Unitary Corporation Business Tax Return. At the same time as filing Form CT‑1120 or Form CT‑1120CU, mail the completed application and supporting information to: Department of Revenue Services Corporation and Pass-Through Audit Unit Attn: XCH 450 Columbus Blvd Ste 1 Hartford CT 06103-1837 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. Additional Information See the Guide to Connecticut Business Tax Credits available on the Department of Revenue Services (DRS) website at portal.ct.gov/DRS. 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. Visit us at portal.ct.gov/DRS for more information. Part II - Computation of Carryforward - See instructions below. A Total Credit Earned B Credit Applied 2008 Through 2022 C Carryforward to 2023. Subtract Column B from Column A. 1. 2008 Form CT-1120RC, Part I, Line 4 2. 2009 Form CT-1120RC, Part I, Line 4 3. 2010 Form CT-1120RC, Part I, Line 4 4. 2011 Form CT-1120RC, Part I, Line 4 5. 2012 Form CT-1120RC, Part I, Line 4 6. 2013 Form CT-1120RC, Part I, Line 4 7. 2014 Form CT-1120RC, Part I, Line 4 8. 2015 Form CT-1120RC, Part I, Line 4 9. 2016 Form CT-1120RC, Part I, Line 4 10. 2017 Form CT-1120RC, Part I, Line 4 11. 2018 Form CT-1120RC, Part I, Line 4 12. 2019 Form CT-1120RC, Part I, Line 4 13. 2020 Form CT-1120RC, Part I, Line 4 14. 2021 Form CT-1120RC, Part I, Line 4 15. 2022 Form CT-1120RC, Part I, Line 4 16. 2023 Form CT-1120RC, Part I, Line 4 17. Total Research and Experimental Expenditures tax credit applied to 2023: Add Lines 1 through 16, Column D. 18. Total Research and Experimental Expenditures tax credit carryforward to 2024: Add Lines 2 through 16, Column F. Computation of Carryforward Instructions: Lines 1 through 16, Columns A through D - Enter the amount for each corresponding year. Lines 1 through 15, Column E - Enter the full amount of credit that was exchanged before the 65% exchange rate was applied, for each corresponding year. Line 16, Column E - Enter the full amount of credit being exchanged before the 65% exchange rate was applied, from Form CT‑1120 XCH, Part II, Line 1. D Credit Applied to 2023 E Credit Exchanged F Carryforward to 2024 Lines 2 through 15, Column F - Subtract Column D and Column E from Column C. Line 16, Column F - Subtract Column D and Column E from 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. Form CT-1120RC Back (Rev. 12/23) Visit us at portal.ct.gov/DRS for more information.
Form CT-1120 RC
More about the Connecticut Form CT-1120 RC Corporate Income Tax Tax Credit TY 2023
We last updated the Research and Experimental Expenditures Credit in February 2024, so this is the latest version of Form CT-1120 RC, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form CT-1120 RC directly from TaxFormFinder. You can print other Connecticut tax forms here.
Related 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 RC.
| Form Code | Form Name |
|---|---|
| Form CT-1120 A-LP | Corporation Business Tax Return Apportionment of Limited Partnership Interests |
| Form CT-1120 Instructions | Connecticut Corporation Business Tax Instructions |
| 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 RC from the Department of Revenue Services in February 2024.
Form CT-1120 RC is a Connecticut Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
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 RC
We have a total of twelve past-year versions of Form CT-1120 RC 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 RC
CT-1120RC, 2016 Research and Experimental Expenditures Tax Credit
2015 Form CT-1120 RC
CT-1120RC, 2015 Research and Experimental Expenditures Tax Credit
2014 Form CT-1120 RC
CT-1120RC, 2014 Research and Experimental Expenditures Tax Credit
2013 Form CT-1120 RC
CT-1120RC, 2013 Research and Experimental Expenditures Credit
2012 Form CT-1120 RC
CT-1120RC, 2012 Research and Experimental Expenditures Tax Credit
2011 Form CT-1120 RC
CT-1120RC, 2011 Research and Experimental Expenditures Tax Credit
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