General Assembly Raised Bill No. 5302
February Session, 2016 LCO No. 1512
*_____HB05302KID___030816____*
Referred to Committee on COMMITTEE ON CHILDREN
Introduced by:
(KID)
General Assembly
Raised Bill No. 5302
February Session, 2016
LCO No. 1512
*_____HB05302KID___030816____*
Referred to Committee on COMMITTEE ON CHILDREN
Introduced by:
(KID)
AN ACT CONCERNING A TAX CREDIT FOR EMPLOYERS OFFERING ON-SITE CHILD CARE.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective January 1, 2017, and applicable to income or taxable years commencing on or after said date) (a) For the purposes of this section:
(1) "Commissioner" means the Commissioner of Economic and Community Development;
(2) "Income year" means, with respect to entities subject to the insurance premiums tax under chapter 207 of the general statutes, the corporation business tax under chapter 208 of the general statutes, the utility companies tax under chapter 212 of the general statutes or the income tax under chapter 229 of the general statutes, the income or taxable year as determined under each of said chapters, as the case may be;
(3) "Taxpayer" means a person that (A) has been in business for at least twelve consecutive months prior to the date of the taxpayer's application to the commissioner for certification under this section for an on-site child care tax credit, and (B) is subject to tax under chapter 208 of the general statutes or chapter 207, 212 or 229 of the general statutes; and
(4) "Qualifying employee" means an employee that is required to work at least thirty-five hours per week for not less than forty-eight weeks in a calendar year and who has enrolled one or more of his or her minor dependents in a child care center licensed pursuant to section 19a-80 of the general statutes that is located at or adjacent to the employee's workplace and operated by the taxpayer for the exclusive use of the taxpayer's employees.
(b) There is established an on-site child care tax credit program under which a taxpayer may be allowed a credit against the tax imposed under chapter 208 of the general statutes or chapter 207, 212 or 229 of the general statutes, other than the liability imposed by section 12-707 of the general statutes, for each qualifying employee.
(c) The amount of the credit shall be five hundred dollars per month for each minor dependent enrolled in the child care center by a qualifying employee.
(d) (1) The taxpayer shall claim the credit in the income year in which it is earned. Any credit not claimed by the taxpayer in such income year shall expire and shall not be refundable.
(2) If the taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the shareholders or partners of such taxpayer may claim the credit. If the taxpayer is a single member limited liability company that is disregarded as an entity separate from its owner, the limited liability company's owner may claim the credit.
(3) No taxpayer shall claim a credit for any qualifying employee who is an owner, member or partner in the business or who is not employed by the taxpayer at the close of the taxpayer's income year.
(4) No taxpayer claiming the credit under this section with respect to a qualifying employee shall claim any credit against any tax under any other provision of the general statutes with respect to the same qualifying employee.
(e) (1) To be eligible to claim a credit under this section, a taxpayer shall apply to the commissioner in accordance with this section. The application shall be on a form provided by the commissioner and shall contain sufficient information as required by the commissioner, including, but not limited to, the activities that the taxpayer primarily engages in, the North American Industrial Classification System code of the taxpayer, the current number of employees employed by the taxpayer as of the application date, and if applicable, the name and position or job title of the qualifying employee. The commissioner may impose an application fee as the commissioner deems appropriate.
(2) Upon receipt of an application, the commissioner shall render a decision, in writing, on each completed application not later than thirty days after the date the commissioner receives the application. If the commissioner approves the application, the commissioner shall issue a certification letter to the taxpayer indicating that the credit will be available to be claimed by the taxpayer if the taxpayer and the qualifying employee otherwise meet the requirements of this section.
(f) The total amount of credits granted under this section shall not exceed one million dollars in any one fiscal year.
(g) No credit allowed under this section shall exceed the amount of tax imposed on a taxpayer under chapter 208 of the general statutes or chapter 207, 212 or 229 of the general statutes. The commissioner shall annually provide to the Commissioner of Revenue Services a list detailing all credits that have been approved and all taxpayers that have been issued a certification letter under this section.
This act shall take effect as follows and shall amend the following sections:
Section 1 January 1, 2017, and applicable to income or taxable years commencing on or after said date New section
This act shall take effect as follows and shall amend the following sections:
Section 1
January 1, 2017, and applicable to income or taxable years commencing on or after said date
New section
KID Joint Favorable
KID
Joint Favorable