Bill Text: CT SB00420 | 2014 | General Assembly | Comm Sub

---

Bill Title: An Act Extending The Manufacturing Apprenticeship And Neighborhood Assistance Act Tax Credits To Pass-through Entities.

Spectrum:

Status: (Introduced - Dead) 2014-03-24 - Favorable Change of Reference, House to Committee on Finance, Revenue and Bonding [SB00420 Detail]

Download: Connecticut-2014-SB00420-Comm_Sub.html

---

General Assembly		Raised Bill No. 420
February Session, 2014		LCO No. 1925
		*_____SB00420CE_FIN032014____*
Referred to Committee on COMMERCE
Introduced by:
(CE)

AN ACT EXTENDING THE MANUFACTURING APPRENTICESHIP AND NEIGHBORHOOD ASSISTANCE ACT TAX CREDITS TO PASS-THROUGH ENTITIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 12-217g of the 2014 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014):

(a) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter or chapter 229, other than the liability imposed by section 12-707, for any income or taxable year with respect to each apprenticeship in the manufacturing trades commenced by such taxpayer in such year under a qualified apprenticeship training program as described in this section, certified in accordance with regulations adopted by the Labor Commissioner and registered with the Connecticut State Apprenticeship Council established under section 31-22n, in an amount equal to four dollars per hour multiplied by the total number of hours worked during [the income] such year by apprentices in the first half of a two-year term of apprenticeship and the first three-quarters of a four-year term of apprenticeship, provided the amount of credit allowed for any income or taxable year with respect to each such apprenticeship may not exceed four thousand eight hundred dollars or fifty per cent of actual wages paid in such [income] year to an apprentice in the first half of a two-year term of apprenticeship or in the first three-quarters of a four-year term of apprenticeship, whichever is less. If such taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the shareholders or partners of such taxpayer may claim the credit. If such taxpayer is a single-member limited liability company that is disregarded as an entity separate from its owner, the limited liability company's owner may claim the credit.

Sec. 2. Subsection (a) of section 12-217g of the 2014 supplement to the general statutes, as amended by section 1 of public act 13-265, is repealed and the following is substituted in lieu thereof (Effective July 1, 2015, and applicable to income and taxable years commencing on or after January 1, 2015):

(a) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter or chapter 229, other than the liability imposed by section 12-707, for any income or taxable year with respect to each apprenticeship in the manufacturing trades commenced by such taxpayer in such year under a qualified apprenticeship training program as described in this section, certified in accordance with regulations adopted by the Labor Commissioner and registered with the Connecticut State Apprenticeship Council established under section 31-22n, in an amount equal to six dollars per hour multiplied by the total number of hours worked during [the income] such year by apprentices in the first half of a two-year term of apprenticeship and the first three-quarters of a four-year term of apprenticeship, provided the amount of credit allowed for any income or taxable year with respect to each such apprenticeship may not exceed seven thousand five hundred dollars or fifty per cent of actual wages paid in such [income] year to an apprentice in the first half of a two-year term of apprenticeship or in the first three-quarters of a four-year term of apprenticeship, whichever is less. If such taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the shareholders or partners of such taxpayer may claim the credit. If such taxpayer is a single-member limited liability company that is disregarded as an entity separate from its owner, the limited liability company's owner may claim the credit.

Sec. 3. Section 12-632 of the general statutes is amended by adding subsection (k) as follows (Effective July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014):

(NEW) (k) If any business firm granted a tax credit under this chapter is an S corporation or an entity treated as a partnership for federal income tax purposes, the shareholders or partners of such business firm may claim the credit. If the business firm is a single-member limited liability company that is disregarded as an entity separate from its owner, the limited liability company's owner may claim the credit.

Sec. 4. Section 12-633 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014):

The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211, [or] 212 or 229, other than the liability imposed by section 12-707, in an amount not to exceed sixty per cent of the total cash amount invested during the income or taxable year by the business firm in programs operated or created pursuant to proposals approved pursuant to section 12-632, as amended by this act, provided a tax credit not to exceed one hundred per cent of the total cash amount invested during [the taxable] such year by the business firm may be allowed for investment in certain energy conservation projects as provided in subdivisions (1) and (2) of section 12-635, as amended by this act.

Sec. 5. Section 12-634 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014):

The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211, [or] 212 or 229, other than the liability imposed by section 12-707, in an amount not to exceed sixty per cent of the total cash amount invested during the income or taxable year by the business firm in programs operated or created pursuant to proposals approved pursuant to section 12-632, as amended by this act, for planning, site preparation, construction, renovation or acquisition of facilities for purposes of establishing a child day care facility to be used primarily by the children of such business firm's employees and equipment installed for such facility, including kitchen appliances, to the extent that such equipment or appliances are necessary in the use of such facility for purposes of child day care, provided: (1) Such facility is operated under the authority of a license issued by the Commissioner of Public Health in accordance with sections 19a-77 to 19a-87, inclusive, (2) such facility is operated without profit by such business firm related to any charges imposed for the use of such facility for purposes of child day care, and (3) the amount of tax credit allowed any business firm under the provisions of this section for any income year may not exceed fifty thousand dollars. If two or more business firms share in the cost of establishing such a facility for the children of their employees, each such taxpayer shall be allowed such credit in relation to the respective share, paid or incurred by such taxpayer, of the total expenditures for the facility in such income year. The commissioner shall not grant a credit pursuant to this section to any taxpayer claiming a credit for the same year pursuant to section 12-217x.

Sec. 6. Section 12-635 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014):

The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211, [or] 212 or 229, other than the liability imposed by section 12-707: (1) In an amount not to exceed one hundred per cent of the total cash amount invested during the income or taxable year by the business firm in programs operated or created pursuant to proposals approved pursuant to section 12-632, as amended by this act, for energy conservation projects directed toward properties occupied by persons, at least seventy-five per cent of whom are at an income level not exceeding one hundred fifty per cent of the poverty level for the year next preceding the year during which such tax credit is to be granted; (2) in an amount equal to one hundred per cent of the total cash amount invested during the income or taxable year by the business firm in programs operated or created pursuant to proposals approved pursuant to section 12-632, as amended by this act, for energy conservation projects at properties owned or occupied by charitable corporations, foundations, trusts or other entities as determined under regulations adopted pursuant to this chapter; or (3) in an amount not to exceed sixty per cent of the total cash amount invested during the income or taxable year by the business firm (A) in employment and training programs directed at youths, at least seventy-five per cent of whom are at an income level not exceeding one hundred fifty per cent of the poverty level for the year next preceding the year during which such tax credit is to be granted; (B) in employment and training programs directed at handicapped persons as determined under regulations adopted pursuant to this chapter; (C) in employment and training programs for unemployed workers who are fifty years of age or older; (D) in education and employment training programs for recipients in the temporary family assistance program; or (E) in child care services. Any other program [which] that serves persons at least seventy-five per cent of whom are at an income level not exceeding one hundred fifty per cent of the poverty level for the year next preceding the year during which such tax credit is to be granted and [which] that meets the standards for eligibility under this chapter shall be eligible for a tax credit under this section in an amount equal to sixty per cent of the total cash invested by the business firm in such program.

Sec. 7. Section 12-635a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014):

The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211, [or] 212 or 229, other than the liability imposed by section 12-707, in an amount not to exceed sixty per cent of the total cash amount invested during the income or taxable year by the business firm in community-based alcoholism prevention or treatment programs operated or created pursuant to proposals approved pursuant to section 12-632, as amended by this act.

This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014	12-217g(a)
Sec. 2	July 1, 2015, and applicable to income and taxable years commencing on or after January 1, 2015	12-217g(a)
Sec. 3	July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014	12-632
Sec. 4	July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014	12-633
Sec. 5	July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014	12-634
Sec. 6	July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014	12-635
Sec. 7	July 1, 2014, and applicable to income and taxable years commencing on or after January 1, 2014	12-635a

CE

Joint Favorable C/R

FIN