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Manufacturing Apprenticeship Tax Credit
- Corporate Tax Credit in Manufacturing Apprenticeship
Pursuant to Sections 12-217g-1 to 12-217g-8 of the Regulations of Connecticut State Agencies

The following is information concerning the Tax Credit for Manufacturing Apprenticeships against the Connecticut Corporate Business Tax imposed under Chapter 208 of the Connecticut General Statutes.  

This tax credit is designed to encourage the development of skilled workers through apprentice training programs in order to counter the current and projected shortage of skilled craftworkers in the Manufacturing Trades which exists in Connecticut.  

Some examples of crafts that are eligible for the Manufacturing Trades tax credit are: Machinist, Tool and Diemaker, Tool and Machine Setter, Plastic Technician, Injection Molding Technician, Moldmaker and in similar occupations which involve multiple work processes including the shaping of metals by machine tool equipment designed to perform cutting, grinding, milling, turning, drilling, boring, planing, hobbing, and abrading operations, and the set-up, operation, troubleshooting, repair, and maintenance of machinery used by the Manufacturing Industry.

Note: A taxpayer may submit a tax credit for an apprentice up to three (3) years from the due date of the taxpayer's last tax return.

Sec. 12-217g-3. Eligibility.
Any taxpayer who employs an apprentice duly enrolled and registered under the terms of a qualified Manufacturing Program is entitled to a tax credit for each eligible apprentice of up to $7,500.00 maximum or 50% of actual wages, whichever is less, provided such apprenticeships meet the following requirements:

a) The tax credit is limited to qualified Manufacturing Programs with apprenticeship periods of duration which are not less than 4,000 hours (2 years) and not more than 8,000 hours (4 years).

b) The apprentice must be employed on a full time basis which is defined as working a minimum of 120 hours per month at the trade. Up to 80 hours may be applied during the tax year against the 120 hour limitation.

c) Pre-apprentices are not counted as apprenticeships begun and wages earned by pre-apprentices are not eligible for tax credits under this regulation.  

Note: The credit is applied only to the first half of the apprentice's period (or first three-fourths of the period for those in a four-year program).  Also, you must obtain a letter stating the credited amount from the Department of Labor prior to filing your tax return with the Department of Revenue Services.

For additional information about the apprenticeship tax credit, please contact the Connecticut Department of Labor, 200 Folly Brook Blvd., Wethersfield, CT 06109, (860) 263-6085. 

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200 Folly Brook Boulevard, Wethersfield, CT 06109 / Phone: 860-263-6000

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