Form Ct-1120 Mec - Machinery And Equipment Expenditures Tax Credit - 2012
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1Department of Revenue Services
2012
Form CT-1120 MEC
State of Connecticut
Machinery and Equipment Expenditures Tax Credit
(Rev. 12/12)
For Income Year Beginning: _______________________ , 2012 and Ending: ________________________ , _________ .
Corporation name
Connecticut Tax Registration Number
Complete this form in blue or black ink only.
Facility means any plant, building, or other real property
improvement used by the corporation in its trade or business.
Use Form CT-1120 MEC to claim the credit available under Conn.
Full-time permanent employee is an employee whose wages,
Gen. Stat. §12-217o for the incremental increase in the amount
salaries or other compensation is paid in Connecticut and whose
spent by a corporation on machinery and equipment. Attach it to
employment requires an average of 35 hours or more of service
Form CT-1120K, Business Tax Credit Summary.
each week for at least eight consecutive weeks.
Definitions
Tax Credit Percentages
Qualifying expenditures are any expenditures that fall within
In the case of a corporation that has not more than 250 full-time
the definition of machinery and equipment acquired for and
permanent employees in Connecticut, the credit is equal to 10%
installed in a facility in Connecticut.
of the amount spent on machinery and equipment acquired for
Machinery is the basic machine itself, including all of its
and installed in a facility in Connecticut that exceeds the amount
component parts such as belts, pulleys, shafts, moving parts,
spent by the corporation during the preceding income year for such
operating structures, replacement and repair parts, whether
expenditures.
purchased separately or in conjunction with a complete machine
In the case of a corporation that has between 251 and 800 full-time
and regardless of whether the machine or component parts
permanent employees in Connecticut, the credit is equal to 5% of
are assembled by the taxpayer or another related party; and all
the amount spent by the corporation on machinery and equipment
equipment or devices used or required to control, regulate, or
acquired for and installed in a facility in Connecticut that exceeds
operate the machinery, including without limitation, computers
the amount spent by the corporation during the preceding income
and data processing equipment. Furniture and fixtures,
year for such expenditures.
automobiles, or other property used for transportation are not
machinery.
Additional Information
Equipment is a device separate from machinery but essential
See Informational Publication 2010(13), Guide to Connecticut
to the business. Repair and replacement parts for equipment
Business Tax Credits, or contact the Department of Revenue
also qualify for the credit under the same terms as provided
Services, Taxpayer Services Division at 1-800-382-9463
for parts purchased for machinery. Furniture and fixtures,
(Connecticut calls outside the Greater Hartford calling area only)
automobiles, construction equipment, or other property used
or 860-297-5962 (from anywhere).
for transportation are not equipment.
Credit Computation
1.
Enter the amount of Connecticut machinery and equipment expenditures incurred during the
income year. Attach schedule.
1.
2.
Enter the amount of Connecticut machinery and equipment expenditures incurred during the prior
income year. Attach schedule.
2.
3.
Balance: Subtract Line 2 from Line 1. If zero or less, the corporation is not eligible for this credit.
3.
4.
Enter the number of full-time permanent employees for 2012.
4.
4a.
If Line 4 is 250 or fewer, enter 10% (.10) on Line 5.
4b.
If Line 4 is at least 251, but not more than 800, enter 5% (.05) on Line 5.
5.
Enter the applicable percentage (5% or 10%) from Line 4a or Line 4b.
5.
6.
Tax credit: Multiply Line 3 by Line 5. Enter here and on Form CT-1120K
Part I-C, Column A.
6.
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