Connecticut Manufacturing Facility Tax Credit for Facilities Located in a Targeted Investment Community/Enterprise Zone

Manufacturing Facility Tax Credit for Facilities Located in a Targeted Investment Community/Enterprise Zone
Form CT-1120 TIC-EZ
Department of Revenue Services
State of Connecticut
(Rev. 12/23)

2023

Form CT-1120 TIC/EZ

Manufacturing Facility Tax Credit for Facilities Located
in a Targeted Investment Community/Enterprise Zone

For Income Year Beginning: ___________________________ , 2023 and Ending: ___________________________ , __________ .
Corporation name

Connecticut Tax Registration Number

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 TIC/EZ to claim the credit for manufacturing facilities
allowed under Conn. Gen. Stat. § 12-217e against the Corporation
Business Tax.

Eligibility
50% Credit - Taxpayers may qualify for a credit equal to 50% of that
portion of the Connecticut Corporation Business Tax that is allocable
to a manufacturing facility, that meets certain employment criteria
and is located within a designated Enterprise Zone or other area
designated as having Enterprise Zone level benefits. An Entertainment
District, Enterprise Corridor Zone, Railroad Depot Zone, Contiguous
Municipality Zone, Defense Plant Zone, Manufacturing Plant Zone,
Airport Development Zone, and Qualified Manufacturing Plant Zone
are areas having Enterprise Zone level benefits. A 50% credit is also
available to businesses engaged in biotechnology, pharmaceutical, or
photonics research, that are located in a municipality that has a major
research university with programs in biotechnology, pharmaceuticals,
or photonics, and that has an Enterprise Zone. To be eligible for
a 50% credit, the corporation must obtain certification from the
Department of Economic and Community Development (DECD) and
establish either that at least 150 full‑time employees or 30% of the
full-time positions directly attributable to the manufacturing facility
were held by employees that were: (1) residents of such zone or

DECD Eligibility Certificate Number (If applicable)

(2) residents of the municipality and eligible for training under the
federal Job Training Partnership Act or any successor program.
25% Credit - Taxpayers may qualify for a credit equal to 25% of
that portion of the Connecticut Corporation Business Tax that is
allocable to a manufacturing facility located in a Targeted Investment
Community. Taxpayers with manufacturing facilities located in areas
with Enterprise Zone level benefits that do not meet the employment
criteria for the 50% credit qualify for the 25% credit. To be eligible
for a 25% credit, the manufacturing facility must obtain certification
from DECD.
The credit period is ten years and begins with the first full income
year following the year of issuance of the eligibility certificate and
continues for the following nine income years. The credit may be
claimed for a maximum of ten years.
This credit is being sunset. You may not claim this credit unless
your ten year credit period began prior to your 2018 income year.

Additional Information
See the Guide to Connecticut Business Tax Credits available on the
Department of Revenue Services (DRS) website at portal.ct.gov/DRS,
or contact the Department of Economic and Community Development.

Schedule A - Location Criteria for 50% Tax Credit

	Yes	 No

	 1.	 Is the certified facility located within an area having Enterprise Zone level benefits?

If Yes, go to Schedule B.
If No, go to Question 2.

	 	 Is the certified facility an eligible entertainment related project or support business located within
	 2.	 a municipality with an approved entertainment district?

If Yes, go to Schedule B.
If No, go to Question 3.

	 	 Is the facility engaged in biotechnology, pharmaceutical, or photonics research and located in
	 3.	 a municipality that has a major research university with programs in biotechnology,
	 	 pharmaceuticals, or photonics, and that has an Enterprise Zone?

If Yes, go to Schedule B.
If No, the company is eligible
only for a 25% credit. Enter 25%
(.25) on Schedule C, Line 7.

Schedule B - Employment Criteria for 50% Tax Credit
	 1.	 Enter the average number of full-time employment positions at the manufacturing facility during 		
1.
		 the last quarter of the current income year.	
	 2.	 Enter the number of full-time employees prior to beginning the initial 		
2.
		 hiring for the facility. See instructions.	
	 3.	 Subtract Line 2 from Line 1 and enter the result. If zero or less, the company is
		 eligible only for the 25% credit. Enter 25% (.25) on Schedule C, Line 7.	

3.

	 4.	 Multiply Line 3 by 30% (.30).	

4.

	 	 Enter the number of full-time employees who are residents of the Enterprise Zone,
5. or are residents of the municipality or Enterprise Corridor Zone, and are 	
		
		 eligible for training under the federal Job Training Partnership Act.	

5.	

	 	 If Line 5 is less than 150 and is less than the amount on Line 4, the company is eligible
6.
		 only for the 25% credit. Enter 25% (.25) here and on Schedule C, Line 7.	

6.

	 	 If Line 5 is 150 or greater or is greater than the amount on Line 4, the company is eligible for
7.
		 the 50% credit. Enter 50% (.50) here and on Schedule C, Line 7.	

7.

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

Schedule C - Credit Computation
	
Instructions for the computation of tangible property and
wages, salaries, and other compensation are shown below.

Tangible
Property

Column A	

Column B	

Eligible Facility Approved by
DECD

Total Facilities Within Connecticut
(Including Eligible Facility)

Column C
For Line 1 and Line 2,
divide Column A

	1a.	 Depreciable assets

by Column B.

	1b.	 Land

Carry to six decimal
places.

	1c.	 Capitalized rent
Average monthly
net book value

	1d.	 Other
	1.	Total

1.

Wages, Salaries,
and Other
Compensation

	2. Total
	

2.

	3.	Total: Add Line 1 and Line 2 in Column C.

3.

	4.	 Facility ratio: Divide Line 3 by two.

4.

	 5.	 Tax: From Form CT-1120, Schedule C, Line 1, Total Tax, or the credit claimant’s total
		 tax from the appropriate column on Form CT-1120CU, Part I, Line 9

5.

	6.	Balance: Multiply Line 5 by Line 4.

6.

	7.	 Tax credit percentage: See instructions.

7.

	 Tax credit: Multiply Line 6 by Line 7. Enter here and on Form CT-1120K,
	8.
		 Part I-B, Column A.

8.

Facility
Credit
Ratio

Tax Credit
Calculation

Instructions
Schedule A
Schedule A is used to determine if the manufacturing facility is located
in an area eligible to receive Enterprise Zone level benefits. If the
facility does not meet the criteria for location, it is eligible only for the
25% credit. Skip Schedule B and continue on to Schedule C.
Lines 1 and 2 - Check Yes if the manufacturing facility is located
within one of the areas having Enterprise Zone level benefits.
Line 3 - Check Yes if the facility is engaged in biotechnology,
pharmaceutical, or photonics research, and is located in a municipality
that has a major research university with programs in biotechnology,
pharmaceuticals, or photonics, and that has an Enterprise Zone.

Schedule B
Schedule B is used to determine if the facility employs enough
workers who are residents of the Enterprise Zone or are residents of
the municipality and qualify for federal Job Training Partnership Act
benefits. If the facility does not meet the criteria for employment of
local workers, it is eligible only for the 25% credit.
Line 1 - Complete as indicated.
Line 2 - The initial hiring for the new facility is based on the start date
established with DECD.

specifically acquired for and installed at that site should be computed
by multiplying the gross rents payable by the taxpayer during the
income year by eight. Column B consists of the average monthly
net book value of all real property, machinery, and equipment held
and owned by the taxpayer in Connecticut plus the value of all
real property, machinery, and equipment rented to the taxpayer in
Connecticut, computed by multiplying the combined gross rents
payable during the income year by eight. Gross rents means gross
rents as defined in Conn. Gen. Stat. § 12‑218(j)(3)(B).
Wages, Salaries, and Other Compensation: Column A consists of all
wages, salaries, and other compensation paid during the income year
to employees of the taxpayer whose positions are directly attributable
to the eligible manufacturing facility. Column B consists of the sum
of wages, salaries, and other compensation paid during the income
year to all employees of the taxpayer in Connecticut.
An employee’s position is directly attributable to an eligible
manufacturing facility if the:

•	 Employee’s service is performed or base of operation is at the
eligible manufacturing facility;

•	 Position did not exist prior to the construction, renovation,
expansion, or acquisition of the eligible manufacturing facility;
and

Line 3 - Subtract Line 2 from Line 1 and enter the result. If zero or
less, the company is eligible only for the 25% credit. Do not continue
on to Lines 5 through 7. Enter 25% on Schedule C, Line 7.

•	 Position would not have been created but for the construction,

Line 4 - Multiply Line 3 by 30%.

Line 5 - Enter the tax from Form CT‑1120, Schedule C, Line 1, Total
Tax, or the credit claimant’s total tax from the appropriate column on

Lines 5 through 7 - Complete as indicated.

Schedule C
Schedule C is used to determine the amount of the tax credit.
Tangible Property: Column A includes the average monthly net book
value of the eligible manufacturing facility including all machinery
and equipment specifically acquired for and installed at that site,
without reduction for any encumbrance. When rented, the value of
the eligible manufacturing facility and all machinery and equipment
Form CT-1120 TIC/EZ Back (Rev. 12/23)

renovation, expansion, or acquisition of the eligible manufacturing
facility.

Form CT‑1120CU, Part I, Line 9

Line 6 - Multiply Line 5 by Line 4.
Line 7 - Enter the tax credit percentage. This percentage will be
either 25% or 50%, and is determined from Schedule A, Line 3, or
Schedule B, Line 6 or Line 7.
Line 8 - Enter the tax credit. Multiply Line 6 by Line 7, enter here and
on Form CT‑1120K, Part I‑B, Column A.

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