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General Assembly Raised Bill No. 1096
January Session, 2021
LCO No. 6632
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT AUTHORIZING THE EXCHANGE OF EXCES S CREDITS WITH
THE STATE AT A REDUCED RATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2021) (a) Any corporation or 1
affected business entity, as defined in section 12-699 of the general 2
statutes, that has excess credits remaining for a taxable year that such 3
corporation or affected business entity is unable to apply against its own 4
state tax liability for such taxable year may apply to the Commissioner 5
of Revenue Services, in a form and manner prescribed by the 6
commissioner, to exchange such credits with the state for a credit refund 7
equal to ninety per cent of the value of the credit. Any such credit refund 8
shall not be subject to the provisions of section 12-227 of the general 9
statutes. The aggregate amount of credit refunds allowed in a fiscal year 10
under this section shall not exceed five hundred million dollars. 11
(b) The commissioner may disallow a credit refund otherwise 12
allowable under this section if the corporation or affected business 13
entity claiming the credit refund has any amount of taxes due and 14 Raised Bill No. 1096
LCO No. 6632 2 of 2
unpaid to the state including interest, penalties, fees and other charges 15
related thereto for which a period in excess of thirty days has elapsed 16
following the date on which such taxes were due and that are not the 17
subject of a timely filed administrative appeal to the commissioner 18
pending before any court of competent jurisdiction. Before any such 19
disallowance, the commissioner shall send written notice to the 20
corporation or affected business entity, stating that it may pay the 21
amount of such delinquent tax or enter into an agreement with the 22
commissioner for the payment thereof, by the date set forth in such 23
notice, provided such date shall not be less than thirty days after the 24
date of such notice. Failure on the part of the company to pay the 25
amount of the delinquent tax or enter into an agreement to pay the 26
amount thereof by such date shall result in a disallowance of the credit 27
refund being claimed.28
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 New section
Statement of Purpose:
To authorize corporations and affected business entities to exchange
excess credits with the state at a reduced rate.
[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.]