1. Research and Experimental Expenditures Credit (RC Credit) – Tax credit for incremental CT research spending.
  2. Research and Development Expenditures Credit (RDC Credit) – Credit for non-incremental research and development costs.
  3. Connecticut Department of Revenue Services (DRS) – State agency administering Connecticut tax laws.
  4. Connecticut General Statutes (C.G.S.) § 12-217j – Statute governing incremental research expenditure tax credits.
  5. Connecticut General Statutes (C.G.S.) § 12-217n – Statute establishing non-incremental R&D tax credits.
  6. Qualified Small Business (QSB) (for RDC) – Company with gross income under $100 million.
  7. Qualified Small Business (QSB) (for Refund Exchange) – Company with gross income under $70 million.
  8. Corporation Business Tax – Tax levied on corporations doing business in CT.
  9. Incremental Credit (RC) – Credit based on increase over prior spending.
  10. Non-Incremental Credit (RDC) – Credit based on total current year spending.
  11. Prior Year’s Expenditures (RC Base) – Previous year’s research spending used for calculation.
  12. Base Period Expenditures – Historic spending amount used to calculate credit.
  13. Excess Qualified Research Expenses (QREs) – Amount exceeding the base period spending.
  14. Research and Experimental Expenditures – Costs for discovery of information in science.
  15. Research and Development Expenses – Costs for experimental/developmental activities in CT.
  16. IRC § 174 (Reference) – Federal code defining deduction of research expenses.
  17. IRC § 41 (Reference) – Federal code defining credit for increasing research.
  18. Basic Research Payments – Payments to qualified organizations for scientific research.
  19. Research Conducted in Connecticut – Activities must occur physically within Connecticut borders.
  20. Funded Research Exclusion (Connecticut) – Research paid for by grant or contract.
  21. Tentative Tax Credit Amount (RDC) – Preliminary credit amount before applying limitations.
  22. Tentative Tax Credit Rate Schedule (RDC Tiered) – Percentage rates applied to R&D expenditure tiers.
  23. 6% Credit Rate (QSB-RDC) – Higher credit rate for qualified small businesses.
  24. $1\%$ Credit Rate (RDC Tier 1) – Rate for expenditures up to $50 million.
  25. Maximum Credit Allowed (Percentage of Tax Liability) – Limit on credit usage against annual tax.
  26. 70% Tax Liability Limit (Effective 2023+) – Credits offset up to 70% of tax.
  27. Unused Credit Carryforward – Excess credit saved for future tax years.
  28. Carryforward Period (15 Years) – Duration unused credits remain valid for use.
  29. Form CT-1120RC – Form to claim incremental research expenditure credit.
  30. Form CT-1120 RDC – Form to claim non-incremental R&D credit.
  31. Form CT-1120 XCH – Application to exchange tax credits for refund.
  32. Application for Exchange of Tax Credit for Refund – Request to monetize credits instead of offset.
  33. Exchange of Credit for Refund (QSB) – QSBs trading credits for cash refund.
  34. Refund Percentage (65% of Credit Value) – Rate at which credits convert to cash.
  35. Refund Cap ($1,500,000 Annual) – Maximum refund amount per income year.
  36. Qualified Small Biotechnology Company (Refund Percentage) – Biotech firms eligible for credit exchange.
  37. Exchange Eligibility (Zero/Negative Apportioned Net Income) – Requirement to have no tax liability to exchange.
  38. Capital Base Tax ($250 Minimum) – Minimum tax liability owed by corporations.
  39. Corporate Gross Income Test ($\$100$ Million QSB) – Income limit for higher RDC credit rate.
  40. Corporate Gross Income Test ($\$70$ Million QSB Refund) – Income limit to qualify for credit exchange.
  41. Related Person (Gross Income Test) – Affiliates whose income counts towards QSB limits.
  42. Enterprise Zone (EZ) – Designated distressed area offering enhanced tax incentives.
  43. Enterprise Zone Headquartered Company (3.5% Rate) – CT-based EZ companies get higher credit rates.
  44. Department of Economic and Community Development (DECD) – Agency overseeing economic growth and Enterprise Zones.
  45. Workforce Reduction (Credit Reduction) – Job cuts may reduce allowable tax credits.
  46. Combined Return (Combined Group) – Filing status for affiliated corporate groups.
  47. Accumulated Credits (C.G.S. § 12-217aaa) – Law allowing exchange of old unused credits.
  48. Capital Projects (for Accumulated Credit Utilization) – Exchange credits for investments in physical assets.
  49. Taxable Year / Income Year – The accounting period for tax reporting.