Sec. 12-217y. Tax credit for employing persons who are receiving benefits from the temporary family assistance program. - Connecticut Statutes

      Sec. 12-217y. Tax credit for employing persons who are receiving benefits from the temporary family assistance program. (a) As used in this section:

      (1) "Business firm" means any business entity authorized to do business in this state and subject to the corporation business tax imposed under this chapter;

      (2) "Qualifying employee" means during fiscal year 2000 or with respect to the business firm's income year commencing in 2000 or thereafter, any employee who is employed not less than thirty hours per week by the same business firm and who, at the time of being hired by such business firm, is and has been receiving benefits from the temporary family assistance program for more than nine months and meets other requirements that the Labor Commissioner may establish in regulations adopted in accordance with chapter 54. For purposes of this subdivision, the number of hours per week an employee participates in a job training program approved by the Labor Commissioner shall be included in calculating the number of hours such employee is employed.

      (b) Any business firm which desires to hire a qualifying employee in any income year commencing on or after January 1, 1997, may apply to the Labor Commissioner for an allocation of a tax credit in an amount equal to one hundred twenty-five dollars for each full month that such employee is employed by such firm. The application for a tax credit under this subsection shall set forth information that said commissioner deems necessary in regulations adopted in accordance with chapter 54.

      (c) Applications shall be submitted annually, before such expenditures are made, to the Labor Commissioner on or after July first but not later than December thirty-first. The commissioner shall approve or disapprove each application within sixty days of its submission to the commissioner based on (1) the compliance of such application with the provisions of this section, (2) regulations adopted pursuant to this section, and (3) the amount of tax credits remaining in the annual allotment provided in this section for the year involved. The commissioner shall approve applications in the order in which they are received in the commissioner's office between July first and December thirty-first of each year. If the commissioner approves the application of the business firm and if the limit for tax credit for that year has not yet been allocated, the commissioner shall allocate and commit an amount of tax credits to such business firm. Any business firm receiving such an allocation shall, within thirty days of the end of its income year, submit a report on the number of full months that qualifying employees were employed by such firm during such year.

      (d) The credit shall be claimed on the tax return for the income year during which qualifying employees were employed for full months by the business firm. Any tax credit not used in the period during which the expenditure was made may be carried forward for the five immediately succeeding income years until the full credit has been allowed.

      (e) In no event shall the total amount of all tax credits allowed to all business firms pursuant to the provisions of this section exceed one million dollars in any one fiscal year.

      (f) No credit under subsection (c) of this section shall be allowed, with respect to wages paid to any qualifying employee, to any business firm that has previously been granted a tax credit under this section with respect to wages paid to the same employee.

      (P.A. 97-295, S. 7, 25; P.A. 98-262, S. 14, 22; P.A. 99-203, S. 1, 3; P.A. 00-174, S. 25, 83.)

      History: P.A. 97-295, Sec. 7 effective July 8, 1997; P.A. 98-262 revised effective date of P.A. 97-295, but without affecting this section; P.A. 99-203 amended Subsec. (a) by adding Subdiv. indicators, by increasing from 15 to 25 the minimum number of hours per week a qualified employee must work during fiscal year 1999, by increasing from 25 to 30 the minimum number of hours per week a qualified employee must work during and after fiscal year 2000, and by including the hours spent in an approved job training program in calculating the number of hours an employee is employed, and amended Subsecs. (a), (b) and (c) by transferring administration of the tax credit program from the Department of Social Services to the Labor Department, effective July 1, 1999, and applicable to income years commencing on or after January 1, 1999; P.A. 00-174 amended Subsec. (a)(2) to delete former Subpara. (A) and make technical and conforming changes, effective May 26, 2000, and applicable to income years commencing on or after January 1, 2000.