July 24, 2012

Connecticut Job Expansion Tax Credit (JET)

Related Service Tax & Business

Connecticut Job Expansion Tax Credit (JET) Tax & Business

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.