Connecticut 2021 Regular Session

Connecticut House Bill HB06435 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 2766 \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06435-R01-
4		-	HB.docx
5		-	1 of 4
	3	+	LCO No. 2766 1 of 4
6	4
7	5		General Assembly Raised Bill No. 6435
8	6		January Session, 2021
9	7		LCO No. 2766
10	8
11	9
12	10		Referred to Committee on COMMERCE
13	11
14	12
15	13		Introduced by:
16	14		(CE)
	15	+
17	16
18	17
19	18
20	19		AN ACT EXTENDING THE MANUFACTURING APPRE NTICESHIP TAX
21	20		CREDIT TO PASS-THROUGH ENTITIES.
22	21		Be it enacted by the Senate and House of Representatives in General
23	22		Assembly convened:
24	23
25	24		Section 1. Section 12-217g of the general statutes is repealed and the 1
26	25		following is substituted in lieu thereof (Effective July 1, 2021, and 2
27	26		applicable to income or taxable years commencing on or after January 1, 2021): 3
28	27		(a) (1) There shall be allowed a credit for any taxpayer against the tax 4
29	28		imposed under this chapter, chapter 228z or chapter 229, other than the 5
30	29		liability imposed by section 12-707, for any income or taxable year with 6
31	30		respect to each apprenticeship in the manufacturing trades commenced 7
32	31		by such taxpayer in such year under a qualified apprenticeship training 8
33	32		program as described in subsection (d) of this section, certified in 9
34	33		accordance with regulations adopted in accordance with the provisions 10
35	34		of chapter 54 by the Labor Commissioner and registered with the 11
36	35		Connecticut State Apprenticeship Council established under section 31-12
37	36		22n, in an amount equal to six dollars per hour multiplied by the total 13
38	37		number of hours worked during the income or taxable year by 14
39	38		apprentices in the first half of a two-year term of apprenticeship and the 15 Raised Bill No. 6435
40	39
41	40
42		-	LCO 2766 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06435-
43		-	R01-HB.docx }
44		-	2 of 4
	41	+
	42	+	LCO No. 2766 2 of 4
45	43
46	44		first three-quarters of a four-year term of apprenticeship, provided the 16
47	45		amount of credit allowed for any income or taxable year with respect to 17
48	46		each such apprenticeship may not exceed seven thousand five hundred 18
49	47		dollars or fifty per cent of actual wages paid in such [income] year to an 19
50	48		apprentice in the first half of a two-year term of apprenticeship or in the 20
51	49		first three-quarters of a four-year term of apprenticeship, whichever is 21
52	50		less. [(2) Effective for] For income or taxable years commencing on [and] 22
53	51		or after January 1, 2015, for purposes of this subsection, "taxpayer" 23
54	52		includes an affected business entity, as defined in section 12-284b. [Any] 24
55	53		(2) (A) For taxable years commencing on or after January 1, 2015, but 25
56	54		prior to January 1 2021, any affected business entity allowed a credit 26
57	55		under this subsection may sell, assign or otherwise transfer such credit, 27
58	56		in whole or in part, to one or more taxpayers to offset any state tax due 28
59	57		or otherwise payable by such taxpayers under this chapter, or, with 29
60	58		respect to [income] taxable years commencing on or after January 1, 30
61	59		2016, but prior to January 1, 2021, chapter 212 or 227, provided such 31
62	60		credit may be sold, assigned or otherwise transferred, in whole or in 32
63	61		part, not more than three times. 33
64	62		(B) For taxable years commencing on or after January 1, 2021, (i) if a 34
65	63		taxpayer is an S corporation or an entity that is treated as a partnership 35
66	64		for federal income tax purposes, the shareholders or partners of such 36
67	65		taxpayer may claim the credit under this subsection, and (ii) if a 37
68	66		taxpayer is a single member limited liability company that is 38
69	67		disregarded as an entity separate from its owner, the limited liability 39
70	68		company's owner may claim the credit under this subsection. 40
71	69		(b) There shall be allowed a credit for any taxpayer against the tax 41
72	70		imposed under this chapter for any income year with respect to each 42
73	71		apprenticeship in plastics and plastics-related trades commenced by 43
74	72		such taxpayer in such year under a qualified apprenticeship training 44
75	73		program as described in subsection (d) of this section, certified in 45
76	74		accordance with regulations adopted in accordance with the provisions 46
77	75		of chapter 54 by the Labor Commissioner and registered with the 47
78	76		Connecticut State Apprenticeship Council established under section 31-48 Raised Bill No. 6435
79	77
80	78
81		-	LCO 2766 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06435-
82		-	R01-HB.docx }
83		-	3 of 4
	79	+
	80	+	LCO No. 2766 3 of 4
84	81
85	82		22n, which apprenticeship exceeds the average number of such 49
86	83		apprenticeships begun by such taxpayer during the five income years 50
87	84		immediately preceding the income year with respect to which such 51
88	85		credit is allowed, in an amount equal to four dollars per hour multiplied 52
89	86		by the total number of hours worked during the income year by 53
90	87		apprentices in the first half of a two-year term of apprenticeship and the 54
91	88		first three-quarters of a four-year term of apprenticeship, provided the 55
92	89		amount of credit allowed for any income year with respect to each such 56
93	90		apprenticeship may not exceed four thousand eight hundred dollars or 57
94	91		fifty per cent of actual wages paid in such income year to an apprentice 58
95	92		in the first half of a two-year term of apprenticeship or in the first three-59
96	93		quarters of a four-year term of apprenticeship, whichever is less. 60
97	94		(c) There shall be allowed a credit for any taxpayer against the tax 61
98	95		imposed under this chapter for any income year with respect to wages 62
99	96		paid to apprentices in the construction trades by such taxpayer in such 63
100	97		year that the apprentice and taxpayer participate in a qualified 64
101	98		apprenticeship training program, as described in subsection (d) of this 65
102	99		section, which (1) is at least four years in duration, (2) is certified in 66
103	100		accordance with regulations adopted in accordance with the provisions 67
104	101		of chapter 54 by the Labor Commissioner, and (3) is registered with the 68
105	102		Connecticut State Apprenticeship Council established under section 31-69
106	103		22n. The tax credit shall be (A) in an amount equal to two dollars per 70
107	104		hour multiplied by the total number of hours completed by each 71
108	105		apprentice toward completion of such program, and (B) awarded upon 72
109	106		completion and notification of completion of such program in the 73
110	107		income year in which such completion and notification occur, provided 74
111	108		the amount of credit allowed for such income year with respect to each 75
112	109		such apprentice may not exceed four thousand dollars or fifty per cent 76
113	110		of actual wages paid over the first four income years for such 77
114	111		apprenticeship, whichever is less. 78
115	112		(d) For purposes of this section, a qualified apprenticeship training 79
116	113		program shall require at least four thousand but not more than eight 80
117		-	thousand hours of apprenticeship training for certification of such 81 Raised Bill No. 6435
	114	+	thousand hours of apprenticeship training for certification of such 81
	115	+	apprenticeship by the Connecticut State Apprenticeship Council. The 82 Raised Bill No. 6435
118	116
119	117
120		-	LCO 2766 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06435-
121		-	R01-HB.docx }
122		-	4 of 4
123	118
124		-	apprenticeship by the Connecticut State Apprenticeship Council. The 82
	119	+	LCO No. 2766 4 of 4
	120	+
125	121		amount of credit allowed any taxpayer under this section for any 83
126	122		income or taxable year may not exceed the amount of tax due from such 84
127	123		taxpayer under this chapter, chapter 228z or chapter 229, with respect to 85
128	124		such income or taxable year. 86
129	125		This act shall take effect as follows and shall amend the following
130	126		sections:
131	127
132	128		Section 1 July 1, 2021, and
133	129		applicable to income or
134	130		taxable years commencing
135	131		on or after January 1, 2021
136	132		12-217g
137	133
138		-	CE Joint Favorable
	134	+	Statement of Purpose:
	135	+	To allow pass-through entities to claim the manufacturing
	136	+	apprenticeship tax credit against the personal income tax or the affected
	137	+	business entity tax.
	138	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	139	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	140	+	underlined.]
139	141