Displaced Worker Tax Credits
Conn. Gen. Stat. §§. 12-217bb and 12-217hh
Description and Applicable Taxes
There are two distinct tax credits available for displaced workers:
- Displaced Electric Worker Tax Credit
-
Displaced Worker Tax Credit
A tax credit against the tax imposed under sections 12-202 or 12-210 of Chapter 207, and Chapters 208 and 212 of the Connecticut General Statutes is available for each displaced worker hired by an employer.
Conn. Gen. Stat. §12-217hh
Definitions
An electric supplier means a facility that provides electric generation services as defined in Conn.Gen. Stat. §16-1.
A displaced electric worker means any Connecticut employee, other than an officer or a director, of an electric company, as defined in Conn.Gen. Stat. §16-1, or a generation entity or affiliate, who has been terminated as a direct result of the restructuring of the electric industry.
A displaced worker means any person employed in Connecticut whose position was terminated because of a business restructuring in which at least ten employees were terminated and whose new salary is at least 75% of his or her previous annual wages or salary. It does not include any person whose former employer is or was at the time of termination a “related person” with respect to the taxpayer.
Tax Credit Amount
Displaced Electric Worker Tax Credit
The tax credit amount available to each electric supplier is $1,500 for each displaced electric worker that is hired. The tax credit is allowed in the income year in which the displaced electric worker first completes six full months of full-time employment.
Electric suppliers can only claim tax credits once for each displaced worker that is hired.
Do not include employees for whom a credit is claimed under the Qualified Small Business Job Creation tax credit or the Vocational Rehabilitation Job Creation tax credit.
Displaced Worker Tax Credit
The tax credit amount available for each displaced worker hired by an employer on or after January 1, 2006, is $1,500. The tax credit is allowed for the income year during which the displaced worker first completes 12 full months of full-time employment.
The tax credit may only be taken once with respect to any displaced worker, and no taxpayer may claim this tax credit and the displaced electric worker tax credit for the same displaced worker.
Do not include employees for whom a credit is claimed under the Qualified Small Business Job Creation tax credit or the Vocational Rehabilitation Job Creation tax credit.
Carryforward and Carryback Limitations
No carryforward or carryback is allowed.
How to Claim the Tax Credit
Complete Form CT-1120 DWC, Displaced Worker Tax Credits, and attach it to Form CT-1120K, Business Tax Credit Summary, and/or Form CT-207K, Insurance/Health Care Tax Credit Schedule.
Where to Get Additional Information
Direct inquiries to:
Connecticut Department of Revenue Services
1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only), or 860-297-5962 (from anywhere)
860-297-5962
Statutory and Regulatory References
Conn. Gen. Stat. §§.12-217bb, 12-217hh, and 16-1
Last updated January 1, 2014