Connecticut 2019 Regular Session

Connecticut House Bill HB07377 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	5		General Assembly Raised Bill No. 7377
8	6		January Session, 2019
9	7		LCO No. 5014
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11	9
12	10		Referred to Committee on FINANCE, REVENUE AND
13	11		BONDING
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15	13
16	14		Introduced by:
17	15		(FIN)
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21	20		AN ACT EXTENDING THE MANUFACTURING APPREN TICESHIP TAX
22	21		CREDIT TO AFFECTED B USINESS ENTITIES.
23	22		Be it enacted by the Senate and House of Representatives in General
24	23		Assembly convened:
25	24
26	25		Section 1. Section 12-217g of the general statutes is repealed and the 1
27	26		following is substituted in lieu thereof (Effective July 1, 2019, and 2
28	27		applicable to income or taxable years commencing on or after January 1, 3
29	28		2019): 4
30	29		(a) (1) There shall be allowed a credit for any taxpayer against the 5
31	30		tax imposed under this chapter, chapter 228z or chapter 229, other than 6
32	31		the liability imposed by section 12-707, for any income or taxable year 7
33	32		with respect to each apprenticeship in the manufacturing trades 8
34	33		commenced by such taxpayer in such year under a qualified 9
35	34		apprenticeship training program as described in subsection (d) of this 10
36	35		section, certified in accordance with regulations adopted in accordance 11
37	36		with the provisions of chapter 54 by the Labor Commissioner and 12
38	37		registered with the Connecticut State Apprenticeship Council 13
39	38		established under section 31-22n, in an amount equal to six dollars per 14
40		-	~~hour multiplied by the total number of hours worked during the 15~~ Raised Bill No. 7377
	39	+	Raised Bill No. 7377
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	45	+	hour multiplied by the total number of hours worked during the 15
47	46		income or taxable year by apprentices in the first half of a two-year 16
48	47		term of apprenticeship and the first three-quarters of a four-year term 17
49	48		of apprenticeship, provided the amount of credit allowed for any 18
50	49		income or taxable year with respect to each such apprenticeship may 19
51	50		not exceed seven thousand five hundred dollars or fifty per cent of 20
52	51		actual wages paid in such [income] year to an apprentice in the first 21
53	52		half of a two-year term of apprenticeship or in the first three-quarters 22
54	53		of a four-year term of apprenticeship, whichever is less. [(2) Effective 23
55	54		for] For income or taxable years commencing on [and] or after January 24
56	55		1, 2015, for purposes of this subsection, "taxpayer" includes an affected 25
57	56		business entity, as defined in section 12-284b. [Any] 26
58	57		(2) (A) For taxable years commencing on or after January 1, 2015, 27
59	58		but prior to January 1, 2019, any affected business entity allowed a 28
60	59		credit under this subsection may sell, assign or otherwise transfer such 29
61	60		credit, in whole or in part, to one or more taxpayers to offset any state 30
62	61		tax due or otherwise payable by such taxpayers under this chapter, or, 31
63	62		with respect to [income] taxable years commencing on or after January 32
64	63		1, 2016, but prior to January 1, 2019, chapter 212 or 227, provided such 33
65	64		credit may be sold, assigned or otherwise transferred, in whole or in 34
66	65		part, not more than three times. 35
67	66		(B) For taxable years commencing on or after January 1, 2019, (i) if a 36
68	67		taxpayer is an S corporation or an entity that is treated as a partnership 37
69	68		for federal income tax purposes, the shareholders or partners of such 38
70	69		taxpayer may claim the credit under this subsection, and (ii) if a 39
71	70		taxpayer is a single member limited liability company that is 40
72	71		disregarded as an entity separate from its owner, the limited liability 41
73	72		company's owner may claim the credit under this subsection. 42
74	73		(b) There shall be allowed a credit for any taxpayer against the tax 43
75	74		imposed under this chapter for any income year with respect to each 44
76	75		apprenticeship in plastics and plastics-related trades commenced by 45
77	76		such taxpayer in such year under a qualified apprenticeship training 46
78		-	program as described in subsection (d) of this section, certified in 47
79		-	accordance with regulations adopted in accordance with the 48 Raised Bill No. 7377
	77	+	Raised Bill No. 7377
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	83	+	program as described in subsection (d) of this section, certified in 47
	84	+	accordance with regulations adopted in accordance with the 48
86	85		provisions of chapter 54 by the Labor Commissioner and registered 49
87	86		with the Connecticut State Apprenticeship Council established under 50
88	87		section 31-22n, which apprenticeship exceeds the average number of 51
89	88		such apprenticeships begun by such taxpayer during the five income 52
90	89		years immediately preceding the income year with respect to which 53
91	90		such credit is allowed, in an amount equal to four dollars per hour 54
92	91		multiplied by the total number of hours worked during the income 55
93	92		year by apprentices in the first half of a two-year term of 56
94	93		apprenticeship and the first three-quarters of a four-year term of 57
95	94		apprenticeship, provided the amount of credit allowed for any income 58
96	95		year with respect to each such apprenticeship may not exceed four 59
97	96		thousand eight hundred dollars or fifty per cent of actual wages paid 60
98	97		in such income year to an apprentice in the first half of a two-year term 61
99	98		of apprenticeship or in the first three-quarters of a four-year term of 62
100	99		apprenticeship, whichever is less. 63
101	100		(c) There shall be allowed a credit for any taxpayer against the tax 64
102	101		imposed under this chapter for any income year with respect to wages 65
103	102		paid to apprentices in the construction trades by such taxpayer in such 66
104	103		year that the apprentice and taxpayer participate in a qualified 67
105	104		apprenticeship training program, as described in subsection (d) of this 68
106	105		section, which (1) is at least four years in duration, (2) is certified in 69
107	106		accordance with regulations adopted in accordance with the 70
108	107		provisions of chapter 54 by the Labor Commissioner, and (3) is 71
109	108		registered with the Connecticut State Apprenticeship Council 72
110	109		established under section 31-22n. The tax credit shall be (A) in an 73
111	110		amount equal to two dollars per hour multiplied by the total number 74
112	111		of hours completed by each apprentice toward completion of such 75
113	112		program, and (B) awarded upon completion and notification of 76
114	113		completion of such program in the income year in which such 77
115	114		completion and notification occur, provided the amount of credit 78
116	115		allowed for such income year with respect to each such apprentice 79
	116	+	Raised Bill No. 7377
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117	122		may not exceed four thousand dollars or fifty per cent of actual wages 80
118	123		paid over the first four income years for such apprenticeship, 81
119		-	whichever is less. 82 Raised Bill No. 7377
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	124	+	whichever is less. 82
126	125		(d) For purposes of this section, a qualified apprenticeship training 83
127	126		program shall require at least four thousand but not more than eight 84
128	127		thousand hours of apprenticeship training for certification of such 85
129	128		apprenticeship by the Connecticut State Apprenticeship Council. The 86
130	129		amount of credit allowed any taxpayer under this section for any 87
131	130		income or taxable year may not exceed the amount of tax due from 88
132	131		such taxpayer under this chapter, chapter 228z or chapter 229, with 89
133	132		respect to such income or taxable year. 90
134	133		This act shall take effect as follows and shall amend the following
135	134		sections:
136	135
137	136		Section 1 July 1, 2019, and
138	137		applicable to income or
139	138		taxable years commencing
140	139		on or after January 1, 2019
141	140		12-217g
142	141
143		-	FIN Joint Favorable
	142	+	Statement of Purpose:
	143	+	To allow affected business entities to claim the manufacturing
	144	+	apprenticeship tax credit against the personal income tax or the
	145	+	affected business entity tax.
	146	+
	147	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	148	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	149	+	not underlined.]
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