2021 CT State Tax Developments
CT recently released a summary of its legislation enacted during the 2021 Regular Session and June Special Session.
Here are a few key developments that may apply to your business:
“Admissions Tax: Beginning July 1, 2021, admissions tax applies only to movie theaters. As of that date, the admissions tax is no longer imposed on admissions to all other places of amusement, entertainment, or recreation.”
“Sales and Use Tax: …
- Sales tax retention for restaurants. Restaurants are allowed to keep 100% of the sales taxes they collect on meals during one week during fiscal year 2022. The restaurant may select one of three different weeks: August 1, 2021 to August 7, 2021; December 12, 2021 to December 18, 2021; or May 15, 2022 to May 21, 2022…
- Exemption for beer manufacturers. For sales occurring on or after July 1, 2023, establishes a new sales and use tax exemption for certain beer manufacturers that also make substantial retail sales.”
“Other Taxes and Miscellaneous Provisions: …
- Tax Amnesty. A Tax Amnesty Program is established to run from November 1, 2021 through January 31, 2022. Interested taxpayers must complete an application with DRS to participate in the program. After compliance with the program’s requirements, these taxpayers will be entitled to the cancellation of penalties and a 75% reduction in interest on the outstanding balances due for eligible periods.”
“Corporation Business Tax: …
- Research & Development (R&D) Tax Credits.
- Limitation increase.The cap on the amount of R&D tax credits corporations may claim is increased from 50.01% to 70% of their annual tax liability. This increase is phased in over two years. For income year 2022, R&D tax credits may be claimed up to 60% of the corporation’s tax liability. For income year 2023 and thereafter, R&D tax credits may be claimed up to 70% of the corporation’s tax liability.
- Carryforward period. All R&D tax credits earned in income year 2021 and thereafter may be carried forward for 15 years.”
Please note that details for these developments have not been released. We will provide additional guidance as it becomes available.
The full summary can be read at https://portal.ct.gov/DRS/Miscellaneous-Taxes/Other-Tax-Page/State-Tax-Developments.
Please contact us at (860) 643-1001 with any questions you may have.