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This act extends to non-union
businesses the corporation tax
credit for hiring construction
trade apprentices that was
previously available only to
businesses that sponsored a
four-year apprenticeship program
jointly with a union. It
postpones awarding the credit
until an apprentice completes a
program that lasts at least four
years. |
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.
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.
In
order to be eligible for the tax
credit
you must be a qualified
registered apprenticeship
program sponsor and the business
must be classified as a
manufacturing establishment
according to the Standard
Industrial Classification
Manual.
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.
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ELIGIBILITY
There shall be allowed a credit
for any taxpayer against the tax
imposed under this chapter for
any income year with respect to
wages paid to apprentices in the
construction trades by such
taxpayer in such year that the
apprentice and taxpayer
participate in a qualified
apprenticeship training program,
as described in this section,
which (1) is administered
pursuant to 29 USC Section
186(c), (2) is at least four
years in duration (3) is
certified in accordance with
regulations adopted by the Labor
Commissioner, and (4) is
registered with the Connecticut
State Apprenticeship Council
established under section
31-22n. The tax credit shall be
(A) in an amount equal to two
dollars per hour multiplied by
the total number of hours
completed by each apprentice
toward completion of such
program, and (B) awarded upon
completion and notification of
completion of such program in
the income year in which such
completion and notification
occur, provided the amount the
credit allowed for such income
year with respect to each such
apprentice may not exceed four
thousand dollars or fifty per
cent of actual wages paid over
the first four income years for
such apprenticeship, whichever
is less. |
