Connecticut State Department of Revenue Services

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Research and Development Tax Credit for Grants to Institutions of Higher Education

Conn. Gen. Stat. §12-217l

Description and Applicable Taxes

A tax credit may be applied against the tax imposed under Chapter 208 of the Connecticut General Statutes for the incremental increase in amounts spent by a corporation for any grant or combination of grants to any institution of higher education in Connecticut made for the purposes of research and development related to advancements in technology.

Definitions

Institution of higher education means any public or nonprofit institution in Connecticut that:

  • Admits regular students having a certificate of graduation from high school or equivalent certificate;
  • Is licensed, accredited, or approved by the Board of Governors of Higher Education to provide a program beyond high school education; and
  • Provides an educational program in Connecticut for which it awards a bachelor’s or higher degree, or provides a program towards gainful employment.

Research and development related to advancements in technology means development of new products, development of new uses for existing products, and improving methods for producing products.

Research and development related to advancements in technology does not include:

  • Testing or inspection for quality control purposes;
  • Efficiency surveys, management studies, consumer surveys or other market research;
  • Advertising or promotional activities; or
  • Research in connection with literacy, historical, or similar projects.

Tax Credit Amount

The tax credit is equal to 25% of the excess of the current income year’s expenditures for research and development grants to institutions of higher education over the average expenditures for such grants during the three immediately preceding income years.

Carryforward and Carryback Limitations

No carryforward or carryback is allowed.

How to Claim the Tax Credit

Complete Form CT-1120GC, Research and Development Tax Credit for Grants to Institutions of Higher Education, and attach it to Form CT-1120K, Business Tax Credit Summary.

Where to Get Additional Information

Direct inquiries to:

Connecticut Department of Revenue Services

450 Columbus Blvd

Hartford CT 06103

1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only), or

860-297-5962 (from anywhere) 

Statutory and Regulatory References

Conn. Gen. Stat. §12-217l

Last updated March 1, 2012