Connecticut Service Facility Credit
Extracted from PDF file 2021-connecticut-form-ct-1120sf.pdf, last modified December 2021
Service Facility CreditDepartment of Revenue Services State of Connecticut 2021 Form CT-1120SF Service Facility Tax Credit (Rev. 12/21) For Income Year Beginning:________________________ , 2021 and Ending:_________________________ ,__________ . Corporation name Connecticut Tax Registration Number DECD Eligibility Certificate Number (If applicable) 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‑1120SF, to claim the credit allocable to a service facility located outside of an Enterprise Zone in a targeted investment community, as allowed under Conn. Gen. Stat. § 12‑217e against the Corporation Business Tax. A service facility located in an Enterprise Zone cannot qualify for this credit. This credit is administered by the Department of Economic and Community Development (DECD). To be eligible for this credit, a written application must have been submitted to and approved by the Commissioner of DECD. See Conn. Gen. Stat. § 32‑9r. Credit Percentages There are six different credit percentages as provided in the chart on Page 2 to be applied against the portion of the Connecticut Corporation Business Tax that is allocable to the service facility. The percentage varies depending on the number of new employees working at the service facility, as determined on Schedule A, Line 5. 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. If within the ten year period the facility ceases to qualify as a service facility or the taxpayer ceases to occupy the property, entitlement to the credit terminates and there is no pro rata application of the credit during the income year in which the entitlement or occupancy terminates. No carryforward or carryback is allowed. This credit is being sunset. You may not claim this credit unless your ten year credit period began prior to your 2018 income year. Schedule A - Employment Criteria 1. Enter the highest number of employees in Connecticut in the year preceding the formal application for certification with DECD. 1. 2. Enter the number of employees in Connecticut during 2021. 2. 3. Enter the number of new employees in Connecticut. Subtract Line 1 from Line 2. If zero or less the corporation is not eligible for this credit. 3. 4. Enter the number of employees working at the service facility during 2021. 4. 5. Number of new employees working at the service facility: Enter the lesser of Line 3 or Line 4. 5. Schedule B - Credit Computation See instructions for the computation of tangible property and wages, salaries, and other compensation on Page 2. Column A Eligible Facility Approved by DECD Column B Total Facilities Within Connecticut (Including Eligible Facility) Column C 1a. Depreciable assets Tangible Property Average monthly net book value Wages, Salaries, and Other Compensation Facility Credit Ratio Tax Credit Calculation 1b. Land 1c. Capitalized rent 1d. Other For Line 1 and Line 2, divide Column A by Column B. Carry to six decimal places. 1. Total 1. . 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 reported on Form CT‑1120CU, 5. Part I, Line 9. 6. Balance: Multiply Line 5 by Line 4. 6. 7. Tax credit percentage: See instructions. 7. 8. Tax credit: Multiply Line 6 by Line 7. Enter here and on Form CT-1120K, Part I-B, Column A. 8. Visit us at portal.ct.gov/DRS for more information. . Form CT-1120SF Instructions Credit Percentage Chart Number of New Employees Working at the Service Facility 300-599 600-899 900-1,199 1,200-1,499 1,500-1,999 2,000 or more Credit Percentage 15% 20% 25% 30% 40% 50% 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 service 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 service facility if the: 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. • Employee’s service is performed or base of operation is Schedule A • Position would not have been created but for the Schedule A is used to determine whether the service facility meets the employment criteria for the tax credit. The available percentage of the tax credit depends upon the number of new employees working at the facility. Complete Lines 1 through 5 as indicated. Schedule B Schedule B is used to determine the amount of the tax credit. Tangible Property: Column A includes the average monthly net book value of the eligible service 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 service facility and all machinery and equipment 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). at the eligible service facility; • Position did not exist prior to the construction, renovation, expansion, or acquisition of the eligible service facility; and construction, renovation, expansion, or acquisition of the eligible service facility. Schedule B - Line Instructions Lines 1 through 4 - Complete as indicated. 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 reported on Form CT‑1120CU, Part I, Line 9. Line 7 - Enter the tax credit percentage. This percentage is determined from the number of new employees working at the facility. See chart above. Line 8 - Enter the tax credit. Multiply Line 6 by Line 7, enter here and on Form CT‑1120K, Part I‑B, Column A. Form CT-1120SF (Rev. 12/21) Page 2 of 2 Visit us at portal.ct.gov/DRS for more information.
More about the Connecticut Form CT-1120SF Corporate Income Tax Tax Credit TY 2021
We last updated the Service Facility Credit in February 2022, so this is the latest version of Form CT-1120SF, fully updated for tax year 2021. You can download or print current or past-year PDFs of Form CT-1120SF directly from TaxFormFinder. You can print other Connecticut tax forms here.
Other Connecticut Corporate Income Tax Forms:
|Form Code||Form Name|
|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-1040BA||Nonresident Business Apportionment Schedule|
|Form CT-1120 A-LP||Corporation Business Tax Return Apportionment of Limited Partnership Interests|
|Form CT-1120||Corporation Business Tax Return|
Connecticut usually releases forms for the current tax year between January and April. We last updated Connecticut Form CT-1120SF from the Department of Revenue Services in February 2022.
Form CT-1120SF 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-1120SF
We have a total of ten past-year versions of Form CT-1120SF in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
CT-1120SF, 2016 Service Facility Tax Credit
CT-1120SF, 2015 Service Facility Tax Credit
CT-1120SF, 2014 Service Facility Tax Credit
CT-1120SF, 2013 Service Facility Tax Credit
CT-1120SF, 2012 Service Facility Tax Credit
CT-1120SF, 2011 Service Facililty Tax Credit
While we do our best to keep our list of Connecticut Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.