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General Assembly Raised Bill No. 7377
January Session, 2019
LCO No. 5014
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT EXTENDING THE MANUFACTURING APPREN TICESHIP TAX
CREDIT TO AFFECTED B USINESS ENTITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-217g of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2019, and 2
applicable to income or taxable years commencing on or after January 1, 3
2019): 4
(a) (1) There shall be allowed a credit for any taxpayer against the 5
tax imposed under this chapter, chapter 228z or chapter 229, other than 6
the liability imposed by section 12-707, for any income or taxable year 7
with respect to each apprenticeship in the manufacturing trades 8
commenced by such taxpayer in such year under a qualified 9
apprenticeship training program as described in subsection (d) of this 10
section, certified in accordance with regulations adopted in accordance 11
with the provisions of chapter 54 by the Labor Commissioner and 12
registered with the Connecticut State Apprenticeship Council 13
established under section 31-22n, in an amount equal to six dollars per 14
hour multiplied by the total number of hours worked during the 15 Raised Bill No. 7377
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income or taxable year by apprentices in the first half of a two-year 16
term of apprenticeship and the first three-quarters of a four-year term 17
of apprenticeship, provided the amount of credit allowed for any 18
income or taxable year with respect to each such apprenticeship may 19
not exceed seven thousand five hundred dollars or fifty per cent of 20
actual wages paid in such [income] year to an apprentice in the first 21
half of a two-year term of apprenticeship or in the first three-quarters 22
of a four-year term of apprenticeship, whichever is less. [(2) Effective 23
for] For income or taxable years commencing on [and] or after January 24
1, 2015, for purposes of this subsection, "taxpayer" includes an affected 25
business entity, as defined in section 12-284b. [Any] 26
(2) (A) For taxable years commencing on or after January 1, 2015, 27
but prior to January 1, 2019, any affected business entity allowed a 28
credit under this subsection may sell, assign or otherwise transfer such 29
credit, in whole or in part, to one or more taxpayers to offset any state 30
tax due or otherwise payable by such taxpayers under this chapter, or, 31
with respect to [income] taxable years commencing on or after January 32
1, 2016, but prior to January 1, 2019, chapter 212 or 227, provided such 33
credit may be sold, assigned or otherwise transferred, in whole or in 34
part, not more than three times. 35
(B) For taxable years commencing on or after January 1, 2019, (i) if a 36
taxpayer is an S corporation or an entity that is treated as a partnership 37
for federal income tax purposes, the shareholders or partners of such 38
taxpayer may claim the credit under this subsection, and (ii) if a 39
taxpayer is a single member limited liability company that is 40
disregarded as an entity separate from its owner, the limited liability 41
company's owner may claim the credit under this subsection. 42
(b) There shall be allowed a credit for any taxpayer against the tax 43
imposed under this chapter for any income year with respect to each 44
apprenticeship in plastics and plastics-related trades commenced by 45
such taxpayer in such year under a qualified apprenticeship training 46
program as described in subsection (d) of this section, certified in 47
accordance with regulations adopted in accordance with the 48 Raised Bill No. 7377
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provisions of chapter 54 by the Labor Commissioner and registered 49
with the Connecticut State Apprenticeship Council established under 50
section 31-22n, which apprenticeship exceeds the average number of 51
such apprenticeships begun by such taxpayer during the five income 52
years immediately preceding the income year with respect to which 53
such credit is allowed, in an amount equal to four dollars per hour 54
multiplied by the total number of hours worked during the income 55
year by apprentices in the first half of a two-year term of 56
apprenticeship and the first three-quarters of a four-year term of 57
apprenticeship, provided the amount of credit allowed for any income 58
year with respect to each such apprenticeship may not exceed four 59
thousand eight hundred dollars or fifty per cent of actual wages paid 60
in such income year to an apprentice in the first half of a two-year term 61
of apprenticeship or in the first three-quarters of a four-year term of 62
apprenticeship, whichever is less. 63
(c) There shall be allowed a credit for any taxpayer against the tax 64
imposed under this chapter for any income year with respect to wages 65
paid to apprentices in the construction trades by such taxpayer in such 66
year that the apprentice and taxpayer participate in a qualified 67
apprenticeship training program, as described in subsection (d) of this 68
section, which (1) is at least four years in duration, (2) is certified in 69
accordance with regulations adopted in accordance with the 70
provisions of chapter 54 by the Labor Commissioner, and (3) is 71
registered with the Connecticut State Apprenticeship Council 72
established under section 31-22n. The tax credit shall be (A) in an 73
amount equal to two dollars per hour multiplied by the total number 74
of hours completed by each apprentice toward completion of such 75
program, and (B) awarded upon completion and notification of 76
completion of such program in the income year in which such 77
completion and notification occur, provided the amount of credit 78
allowed for such income year with respect to each such apprentice 79
may not exceed four thousand dollars or fifty per cent of actual wages 80
paid over the first four income years for such apprenticeship, 81
whichever is less. 82 Raised Bill No. 7377
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(d) For purposes of this section, a qualified apprenticeship training 83
program shall require at least four thousand but not more than eight 84
thousand hours of apprenticeship training for certification of such 85
apprenticeship by the Connecticut State Apprenticeship Council. The 86
amount of credit allowed any taxpayer under this section for any 87
income or taxable year may not exceed the amount of tax due from 88
such taxpayer under this chapter, chapter 228z or chapter 229, with 89
respect to such income or taxable year. 90
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019, and
applicable to income or
taxable years commencing
on or after January 1, 2019
12-217g
FIN Joint Favorable