Sec. 12-217t. Tax credit for personal property taxes paid on electronic data processing equipment.
Sec. 12-217t. Tax credit for personal property taxes paid on electronic data
processing equipment. (a) There shall be allowed as a credit against the tax imposed
by chapter 207, this chapter, chapter 208a, 209, 210, 211, or 212 or against the tax
imposed pursuant to section 12-202a in an amount determined under the provisions of
subsection (b) of this section with respect to the personal property taxes paid during any
income year, on electronic data processing equipment. For the purposes of this section
"electronic data processing equipment" means computers, printers, peripheral computer
equipment, bundled software and any computer-based equipment acting as a computer
as defined under Section 168 of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
and any other such equipment reported as a Code 20 on the Personal Property Declaration
as prescribed by the Secretary of the Office of Policy and Management pursuant to
section 12-27.
(b) The amount allowed as a credit in any income year shall be the full amount of
the tax on such electronic data processing equipment paid pursuant to section 12-71 or
12-80a, and as defined under Section 168 of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as from time to
time amended, provided no credit shall be allowed for the payment of any interest or
penalty on the tax.
(c) The credit provided for by this section shall be allowed for any taxes owed on
the grand list of October 1, 1994, and each grand list annually thereafter or included in
the list prescribed under section 12-80a for such grand list. Such credits shall first be
used by the taxpayer against the corporation business tax under this chapter, if any, and
then may be used against any tax paid by the taxpayer under the provisions of chapter
207, 208a, 209, 210, 211 or 212 or the tax imposed upon a health care center under
section 12-202a. The amount of credits allowable under this section in any tax year
against the taxes imposed by chapter 207, 208, 208a, 209, 210, 211 or 212 or against
the tax imposed on health care centers, under the provisions of section 12-202a, shall
be allowable only after all other credits allowable against such taxes for such tax year
have been applied.
(d) In the case of leased electronic data processing equipment, the lessee, not the
lessor, shall be entitled to claim the credit allowed pursuant to this section if the lease
by its terms or operation imposes on the lessee the cost of the personal property taxes
on such equipment, provided the lessor and lessee may elect, in writing, that the lessor
may claim the credit provided by this section. The lessor shall provide a copy of such
election to the Commissioner of Revenue Services, upon the request of said commissioner.
(e) In the case of taxpayers filing a combined return pursuant to section 12-223a,
the credit provided by this section shall be allowed on a combined basis, such that the
amount of personal property taxes paid by such taxpayers with respect to such equipment
may be claimed as a tax credit against the combined tax liability of such taxpayers as
determined under this chapter. Credits available to taxpayers which are subject to tax
under this chapter but not subject to tax under chapter 207, 208a, 209, 210, 211 or 212
or the tax imposed on health care centers under the provisions of section 12-202a shall
be used prior to credits of companies included in such combined return which are also
subject to tax under said chapter 207, 208a, 209, 210, 211 or 212 or the tax imposed
upon health centers pursuant to the provisions of section 12-202a.
(f) If the amount of credit allowable under this section exceeds the sum of (1) the
corporation business tax, if any, and (2) any taxes imposed by chapter 207, 208a, 209,
210, 211 or 212 paid by the taxpayer, after all other credits allowable against such taxes
have first been applied, then any balance of the credit allowable under this section
remaining may be taken in any of the five succeeding income years.
(May Sp. Sess. P.A. 94-4, S. 47, 85; P.A. 95-160, S. 35, 64, 69; P.A. 96-139, S. 12, 13; 96-144, S. 1, 5; P.A. 06-159,
S. 10.)
History: May Sp. Sess. P.A. 94-4, S. 47, effective June 9, 1994, and applicable to property on the grand list as of October
1, 1994; P.A. 95-160 amended Subsec. (a) to allow credit against the tax imposed by chapters 207, 209, 210, 211 or 212
or Sec. 12-202a in income years commencing on or after January 1, 1997, instead of January 1, 1995, and Subsec. (c) to
make conforming technical changes, effective June 1, 1995, and applicable to income years commencing on or after January
1, 1995 (Revisor's note: P.A. 95-160 also revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this
section); P.A. 96-139 changed effective date of P.A. 95-160 but without affecting this section; P.A. 96-144 advanced the
effective date of credit against chapters 207, 209, 210, 211, 212 and Sec. 12-202a from income years commencing on or
after January 1, 1997, to income years commencing on or after January 1, 1995, and added new Subsec. (f) to provide a
five-year carry forward of any unused credit, effective May 29, 1996; P.A. 06-159 amended Subsec. (d) to require submittal
of copy of election upon request of commissioner, rather than with tax return, effective June 6, 2006, and applicable to
income years commencing on or after January 1, 2006.
Text indicates that legislature intended to grant eligibility for tax credit to taxpayer who has paid personal property
taxes on electronic data processing equipment and who can use the tax against any tax liability arising from corporation
business tax or other specific chapters of tax code. 273 C. 240.