How to Claim the Connecticut Small Business New Employee Tax Credit

Did you know that CT provides tax incentives to hire new employees in small businesses?

The Qualified Small Business Job Creation Tax Credit Program provides incentives to Connecticut’s small businesses to hire new full-time employees. Under this program Connecticut-based businesses with less than fifty employees are eligible for a $200 per month tax credit for each new full-time employee they hire. Below are the guidelines for the program, a link to the application and the contact.

Program Guidelines

Credit Length:

Taxable years 2010-2012

Credit Amount: $200 per month for each new full-time employee

Eligible Business
Structures:
Tax credit applies to all business structures: corporations,
partnerships and LLC’s.

Eligible Business: Connecticut based-businesses with less than fifty employees

Eligible New Hire: A new employee residing in Connecticut that is hired between May 6, 2010, and prior to January 1, 2013, to fill a new full-time job. Full-time job means a job in which an employee is required to work at least thirty-five or more hours per week for not less than forty-eight weeks in a calendar year. Full-time job does not include a temporary or seasonal work. A new employee does not include a person who was employed in Connecticut by a related person with respect to the qualified small business during the prior twelve months. No qualified small business may claim a tax credit for any new employee who is an owner, member or partner in the business or who is not employed at the close of the income year of the qualified small business.

Application Process:

1. Company submits application with supporting documents and application fee of $100.00.

2. Application is reviewed by Department of Economic and Community Development, and if approved, an eligibility certificate is issued to the company.

3. Applications are now being accepted for 2011 hires, the deadline is 2/28/12.

4. Applications can be found on the CT Department of Economic Development website. Search for Connecticut Small Business Jobs Creation Tax Credit Program.

ACTION ITEM: Connecticut small businesses that have hired new eligible employees need to complete their applications as soon as possible to receive their credit.

About the author:

Tom Scanlon, CPA, CFP®

Tom Scanlon has over twenty-five years experience in public accounting with an extensive background in the areas of financial, tax and estate planning. Find Tom on Google+

5 Comments on "How to Claim the Connecticut Small Business New Employee Tax Credit"

  1. 1099 form
    Jan 4th, 2012

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  2. Tom Scanlon
    Jan 4th, 2012

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  3. Bill Clark
    Jan 6th, 2012

    It’s really a great and useful piece of information. Thank you for sharing.

  4. James Irving
    Jan 9th, 2012

    You post informative articles. Bookmarked!

  5. Irene Dannecker
    Jan 16th, 2012

    I really appreciate this post. Thank you.

Comments closed.

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