Sec. 12-217hh. Tax credit for hiring displaced worker.
Sec. 12-217hh. Tax credit for hiring displaced worker. (a) For the purposes of
this section:
(1) "Displaced worker" means any person employed in Connecticut whose (A) position was terminated by his or her former employer as a direct result of a business restructuring in which the positions of at least ten persons employed in Connecticut by the
former employer were terminated, and (B) wages or salary for the first twelve months
of his or her new employment are at least seventy-five per cent of the displaced worker's
previous annual wages or salary. "Displaced worker" shall not include any person whose
former employer is, or was at the time of termination of the position, a related person
with respect to the taxpayer;
(2) "Related person" means (A) a corporation, limited liability company, partnership, association or trust controlled by the taxpayer, (B) an individual, corporation,
limited liability company, partnership, association or trust that is in control of the taxpayer, (C) a corporation, limited liability company, partnership, association or trust
controlled by an individual, corporation, limited liability company, partnership, association or trust that is in control of the taxpayer, or (D) a member of the same controlled
group as the taxpayer;
(3) "Control", with respect to a corporation, means ownership, directly or indirectly,
of stock possessing fifty per cent or more of the total combined voting power of all
classes of the stock of such corporation entitled to vote. "Control", with respect to a
trust, means ownership, directly or indirectly, of fifty per cent or more of the beneficial
interest in the principal or income of such trust. The ownership of stock in a corporation,
of a capital or profits interest in a partnership, limited liability company, or association
or of a beneficial interest in a trust shall be determined in accordance with the rules for
constructive ownership of stock provided in Section 267(c) of the Internal Revenue
Code of 1986, or any subsequent corresponding internal revenue code of the United
States, as from time to time amended, other than paragraph (3) of said Section 267(c).
(b) There shall be allowed a credit against the insurance premiums tax imposed
under chapter 207, the corporation business tax imposed under this chapter, or the utilities company tax imposed under chapter 212, as provided in subsections (c) and (d) of
this section with respect to each displaced worker hired by a taxpayer on or after January
1, 2006.
(c) The amount of the credit shall be one thousand five hundred dollars with respect
to each displaced worker hired by a taxpayer on or after January 1, 2006. The credit
shall be allowed for the income year during which such displaced worker first completes
twelve full months of full-time employment with the taxpayer.
(d) The amount of credit allowed any taxpayer under this section for any income
year shall not exceed the amount of tax due from such taxpayer under chapter 207, this
chapter or chapter 212 with respect to such income year. The credit allowed under this
section shall be taken only once with respect to any displaced worker. No taxpayer may
claim the credit under this section and under section 12-217bb for the same displaced
worker.
(P.A. 06-186, S. 81.)
History: P.A. 06-186 effective July 1, 2006, and applicable to income years commencing on or after January 1, 2006.