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General Assembly Raised Bill No. 6435
January Session, 2021
LCO No. 2766
Referred to Committee on COMMERCE
Introduced by:
(CE)
AN ACT EXTENDING THE MANUFACTURING APPRE NTICESHIP TAX
CREDIT TO PASS-THROUGH 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 Section 12-217g of the general statutes is repealed and the 1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, 2021, and 2
applicable to income or taxable years commencing on or after January 1, 2021): 3
(a) (1) There shall be allowed a credit for any taxpayer against the tax 4
imposed under this chapter, chapter 228z or chapter 229, other than the 5
liability imposed by section 12-707, for any income or taxable year with 6
respect to each apprenticeship in the manufacturing trades commenced 7
by such taxpayer in such year under a qualified apprenticeship training 8
program as described in subsection (d) of this section, certified in 9
accordance with regulations adopted in accordance with the provisions 10
of chapter 54 by the Labor Commissioner and registered with the 11
Connecticut State Apprenticeship Council established under section 31-12
22n, in an amount equal to six dollars per hour multiplied by the total 13
number of hours worked during the income or taxable year by 14
apprentices in the first half of a two-year term of apprenticeship and the 15 Raised Bill No. 6435
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first three-quarters of a four-year term of apprenticeship, provided the 16
amount of credit allowed for any income or taxable year with respect to 17
each such apprenticeship may not exceed seven thousand five hundred 18
dollars or fifty per cent of actual wages paid in such [income] year to an 19
apprentice in the first half of a two-year term of apprenticeship or in the 20
first three-quarters of a four-year term of apprenticeship, whichever is 21
less. [(2) Effective for] For income or taxable years commencing on [and] 22
or after January 1, 2015, for purposes of this subsection, "taxpayer" 23
includes an affected business entity, as defined in section 12-284b. [Any] 24
(2) (A) For taxable years commencing on or after January 1, 2015, but 25
prior to January 1 2021, any affected business entity allowed a credit 26
under this subsection may sell, assign or otherwise transfer such credit, 27
in whole or in part, to one or more taxpayers to offset any state tax due 28
or otherwise payable by such taxpayers under this chapter, or, with 29
respect to [income] taxable years commencing on or after January 1, 30
2016, but prior to January 1, 2021, chapter 212 or 227, provided such 31
credit may be sold, assigned or otherwise transferred, in whole or in 32
part, not more than three times. 33
(B) For taxable years commencing on or after January 1, 2021, (i) if a 34
taxpayer is an S corporation or an entity that is treated as a partnership 35
for federal income tax purposes, the shareholders or partners of such 36
taxpayer may claim the credit under this subsection, and (ii) if a 37
taxpayer is a single member limited liability company that is 38
disregarded as an entity separate from its owner, the limited liability 39
company's owner may claim the credit under this subsection. 40
(b) There shall be allowed a credit for any taxpayer against the tax 41
imposed under this chapter for any income year with respect to each 42
apprenticeship in plastics and plastics-related trades commenced by 43
such taxpayer in such year under a qualified apprenticeship training 44
program as described in subsection (d) of this section, certified in 45
accordance with regulations adopted in accordance with the provisions 46
of chapter 54 by the Labor Commissioner and registered with the 47
Connecticut State Apprenticeship Council established under section 31-48 Raised Bill No. 6435
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22n, which apprenticeship exceeds the average number of such 49
apprenticeships begun by such taxpayer during the five income years 50
immediately preceding the income year with respect to which such 51
credit is allowed, in an amount equal to four dollars per hour multiplied 52
by the total number of hours worked during the income year by 53
apprentices in the first half of a two-year term of apprenticeship and the 54
first three-quarters of a four-year term of apprenticeship, provided the 55
amount of credit allowed for any income year with respect to each such 56
apprenticeship may not exceed four thousand eight hundred dollars or 57
fifty per cent of actual wages paid in such income year to an apprentice 58
in the first half of a two-year term of apprenticeship or in the first three-59
quarters of a four-year term of apprenticeship, whichever is less. 60
(c) There shall be allowed a credit for any taxpayer against the tax 61
imposed under this chapter for any income year with respect to wages 62
paid to apprentices in the construction trades by such taxpayer in such 63
year that the apprentice and taxpayer participate in a qualified 64
apprenticeship training program, as described in subsection (d) of this 65
section, which (1) is at least four years in duration, (2) is certified in 66
accordance with regulations adopted in accordance with the provisions 67
of chapter 54 by the Labor Commissioner, and (3) is registered with the 68
Connecticut State Apprenticeship Council established under section 31-69
22n. The tax credit shall be (A) in an amount equal to two dollars per 70
hour multiplied by the total number of hours completed by each 71
apprentice toward completion of such program, and (B) awarded upon 72
completion and notification of completion of such program in the 73
income year in which such completion and notification occur, provided 74
the amount of credit allowed for such income year with respect to each 75
such apprentice may not exceed four thousand dollars or fifty per cent 76
of actual wages paid over the first four income years for such 77
apprenticeship, whichever is less. 78
(d) For purposes of this section, a qualified apprenticeship training 79
program shall require at least four thousand but not more than eight 80
thousand hours of apprenticeship training for certification of such 81
apprenticeship by the Connecticut State Apprenticeship Council. The 82 Raised Bill No. 6435
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amount of credit allowed any taxpayer under this section for any 83
income or taxable year may not exceed the amount of tax due from such 84
taxpayer under this chapter, chapter 228z or chapter 229, with respect to 85
such income or taxable year. 86
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021, and
applicable to income or
taxable years commencing
on or after January 1, 2021
12-217g
Statement of Purpose:
To allow pass-through entities to claim the manufacturing
apprenticeship tax credit against the personal income tax or the affected
business entity tax.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]