CT HB05438

Establishes a tax credit for income or taxable years from January 1, 2020 through December 31, 2022 against corporation business tax (Chapter 208) and personal income tax (Chapter 229) for nonresidential building improvements designed to reduce COVID-19 spread.

Eligible improvements include bipolar ionization and ultraviolet lighting, infrared thermometers for screening, transparent sneeze guards or shields, touchless entryways and security devices, ventilation improvements, and other materials and equipment necessary to create a safe work environment.

Credit amounts are 75% of expenditures for work locations under 30,000 square feet (capped at $100,000 per location) and 50% of expenditures for locations 30,000 square feet or larger (capped at $250,000 per location).

Unused credits may be carried forward for seven succeeding income or taxable years until fully claimed, and taxpayers must provide documentation to the Department of Revenue Services supporting their claims.

Shareholders or partners of S corporations and partnerships may claim the credit, and no taxpayer may claim another credit under state law for the same improvement.