Connecticut Machinery and Equipment Expenditure Credit
Extracted from PDF file 2023-connecticut-form-ct-1120-mec.pdf, last modified November 2023
Machinery and Equipment Expenditure CreditDepartment of Revenue Services State of Connecticut (Rev. 12/23) 2023 Form CT-1120 MEC Machinery and Equipment Expenditures 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 MEC to claim the credit available under Conn. Gen. Stat. § 12‑217o for the incremental increase in the amount spent by a corporation on machinery and equipment. Expenditures claimed for this credit cannot be claimed in connection with any other Corporation Business Tax credit. Definitions Qualifying expenditures are any expenditures that fall within the definition of machinery and equipment acquired for and installed in a facility in Connecticut. Machinery is the basic machine itself, including all of its component parts such as belts, pulleys, shafts, moving parts, operating structures, replacement and repair parts, whether purchased separately or in conjunction with a complete machine and regardless of whether the machine or component parts are assembled by the taxpayer or another related party; and all equipment or devices used or required to control, regulate, or operate the machinery, including without limitation, computers and data processing equipment. Furniture and fixtures, automobiles, or other property used for transportation are not machinery. Full-time permanent employee is an employee whose wages, salaries or other compensation is paid in Connecticut and whose employment requires an average of 35 hours or more of service each week for at least eight consecutive weeks. Tax Credit Percentages In the case of a corporation that has not more than 250 full‑time permanent employees in Connecticut, the credit is equal to 10% of the amount spent on machinery and equipment acquired for and installed in a facility in Connecticut that exceeds the amount spent by the corporation during the preceding income year for such expenditures. In the case of a corporation that has between 251 and 800 full‑time permanent employees in Connecticut, the credit is equal to 5% of the amount spent by the corporation on machinery and equipment acquired for and installed in a facility in Connecticut that exceeds the amount spent by the corporation during the preceding income year for such expenditures. Additional Information See the Guide to Connecticut Business Tax Credits available on the Department of Revenue Services (DRS) website at portal.ct.gov/DRS. Equipment is a device separate from machinery but essential to the business. Repair and replacement parts for equipment also qualify for the credit under the same terms as provided for parts purchased for machinery. Furniture and fixtures, automobiles, construction equipment, or other property used for transportation are not equipment. Facility means any plant, building, or other real property improvement used by the corporation in its trade or business. Credit Computation 1. Enter the amount of Connecticut machinery and equipment expenditures incurred during the 2023 income year. Attach schedule. 1. 2. Enter the amount of Connecticut machinery and equipment expenditures incurred during the 2022 income year. Attach schedule. 2. 3. Balance: Subtract Line 2 from Line 1. If zero or less, the corporation is not eligible for this credit. 3. 4. Enter the number of full-time permanent employees for 2023. 4a. If Line 4 is 250 or fewer, enter 10% (.10) on Line 5. 4b. If Line 4 is at least 251, but not more than 800, enter 5% (.05) on Line 5. 5. Enter the applicable percentage (5% or 10%) from Line 4a or Line 4b. 5. 6. Tax credit: Multiply Line 3 by Line 5. Enter here and on Form CT-1120K, Part I-B, Column A. 6. 4. Visit us at portal.ct.gov/DRS for more information.
Form CT-1120 MEC
More about the Connecticut Form CT-1120 MEC Corporate Income Tax Tax Credit TY 2023
We last updated the Machinery and Equipment Expenditure Credit in February 2024, so this is the latest version of Form CT-1120 MEC, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form CT-1120 MEC directly from TaxFormFinder. You can print other Connecticut tax forms here.
Related Connecticut Corporate Income Tax Forms:
|Form CT-1120 A-LP
|Corporation Business Tax Return Apportionment of Limited Partnership Interests
|Amended Corporation Business Tax Return
|Form CT-1120 ES
|Estimated Corporation Business Tax Payment Coupons
|Corporation Business Tax Return
|Form CT-1120 CC
|Authorization and Consent to be Included in a Combined Return
|Form CT-1120 Instructions
|Connecticut Corporation Business Tax Instructions
|Form CT-1120 A-BMC
|Corporation Business Tax Return Apportionment Computation - Motor Bus and Motor Carrier Companies
|Form CT-1120 A-BPE
|Corporation Business Tax Return Apportionment Computation - Broadcasters and Production Entities
|Form CT-1120 A-CCA
|Corporation Business Tax Return Apportionment Computation of Income Credit Card Activities
|Form CT-1120 A-FS
|Corporation Business Tax Return Apportionment Computation of Income From Financial Service Company Activities
Connecticut usually releases forms for the current tax year between January and April. We last updated Connecticut Form CT-1120 MEC from the Department of Revenue Services in February 2024.
Form CT-1120 MEC 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 MEC
We have a total of twelve past-year versions of Form CT-1120 MEC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
CT-1120 MEC, 2016 Machinery and Equipment Expenditures Tax Credit
CT-1120 MEC, 2015 Machinery and Equipment Expenditures Tax Credit
CT-1120 MEC, 2014 Machinery Equipment Expenditures Tax Credit
CT-1120 MEC, 2013 Machinery and Equipement Expenditures Tax Credit
CT-1120 MEC, Machinery and Equipment Expenditures Tax Credit
CT-1120 MEC, Machinery and Equipment Expenditures Tax Credit
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