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Manufacturing Apprenticeship Tax
Credit
INFORMATION SHEET
- 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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