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General Assembly Raised Bill No. 7081
January Session, 2019
LCO No. 3539
Referred to Committee on COMMERCE
Introduced by:
(CE)
AN ACT EXTENDING THE MANUFA CTURING APPRENTICESH IP TAX
CREDIT TO PASS-THROUGH ENTITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 12-217g of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 2
1, 2019, and applicable to income and taxable years commencing on or after 3
January 1, 2019): 4
(a) (1) There shall be allowed a credit for any taxpayer against the 5
tax imposed under this chapter or chapter 229, other than the liability 6
imposed by section 12-707, for any income or taxable year with respect 7
to each apprenticeship in the manufacturing trades commenced by 8
such taxpayer in such year under a qualified apprenticeship training 9
program as described in this section, certified in accordance with 10
regulations adopted by the Labor Commissioner and registered with 11
the Connecticut State Apprenticeship Council established under 12
section 31-22n, in an amount equal to six dollars per hour multiplied 13
by the total number of hours worked during the income or taxable 14
year by apprentices in the first half of a two-year term of 15
apprenticeship and the first three-quarters of a four-year term of 16
apprenticeship, provided the amount of credit allowed for any income 17 Raised Bill No. 7081
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or taxable year with respect to each such apprenticeship may not 18
exceed seven thousand five hundred dollars or fifty per cent of actual 19
wages paid in such [income] year to an apprentice in the first half of a 20
two-year term of apprenticeship or in the first three-quarters of a four-21
year term of apprenticeship, whichever is less. 22
(2) (A) Effective for income years commencing on [and] or after 23
January 1, 2015, for purposes of this subsection, "taxpayer" includes an 24
affected business entity, as defined in section 12-284b. [Any] For 25
income years commencing on or after January 1, 2015, but prior to 26
January 1, 2019, any affected business entity allowed a credit under 27
this subsection may sell, assign or otherwise transfer such credit, in 28
whole or in part, to one or more taxpayers to offset any state tax due or 29
otherwise payable by such taxpayers under this chapter, or, with 30
respect to income years commencing on or after January 1, 2016, but 31
prior to January 1, 2019, chapter 212 or 227, provided such credit may 32
be sold, assigned or otherwise transferred, in whole or in part, not 33
more than three times. 34
(B) Effective for income years commencing on or after January 1, 35
2019, if the taxpayer is an S corporation or an entity treated as a 36
partnership for federal income tax purposes, the shareholders or 37
partners of such taxpayer may claim the credit under this subsection. If 38
the taxpayer is a single member limited liability company that is 39
disregarded as an entity separate from its owner, the limited liability 40
company's owner may claim the credit under this subsection. 41
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019, and
applicable to income and
taxable years commencing
on or after January 1, 2019
12-217g(a)
CE Joint Favorable Raised Bill No. 7081
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