Connecticut businesses can be eligible for tax credits of $500 per month for each new full‐time job created. If the new employee is receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits, or is a veteran employee who, at the time of hiring by the taxpayer, is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces, then the tax credit is increased to $900 per month.
These credits will be available for each new employee hired between January 1, 2012 and prior to January 1, 2014 for a period of three years. The credit may be applied against the following taxes:
- Insurance premiums tax under Chapter 207 of the general statutes
- Corporation business tax under Chapter 208 of the general statutes
- Utilities company tax under Chapter 212 of the general statutes
- Income tax under Chapter 229 of the general statutes
Please see the process outlined below to apply for this credit.
Note: An application must be completed and submitted to DECD before hiring new employees.
There are three thresholds to qualify for the credits:
- Businesses with under 50 employees must hire at least one new full-time employee
- Businesses with 50 to 100 employees must hire at least five new full-time employees
- Businesses with over 100 employees must hire at least 10 new full-time employees
Application Process/Next Steps:
- Eligibility Application is submitted by the applicant
- Eligibility Review is then conducted by DECD
- Tax Credit Eligibility Letter is submitted to the applicant
- DECD will provide the Applicant with the DECD Reporting Form JET-1 after the end of the Applicant’s fiscal year
- Certificate of Eligibility is issued for tax credits earned based upon a net increase in jobs above the Applicant’s baseline employment
Please contact your Marcum LLP tax professional for further information about this credit.