Several new tax developments from the state's 2014 legislative session may affect businesses in Connecticut. The state has an ongoing $75 million revenue tax collection initiative focused on transfer payments, non-filers and remaining tax deficiencies following the 2013 tax amnesty. Here’s a summary of two of the most significant business changes.
Manufacturing Reinvestment Account (MRA)
The tax exemption for MRAs is increased from 50% to 100% for amounts used for eligible purposes for both income and corporation business tax. Effective July 1, 2014.
Sales and Use Tax Return Due Date Accelerated
The filing and payment due date for all filers is moved up to the 20th of the month, rather than the last day of the month. Certain delinquent taxpayers may be required to remit on a weekly basis. Effective October 1, 2014.
In addition to the above mentioned changes, also available are some tax incentives for targeted areas such as apprenticeship training, historic preservation, and aerospace reinvestment (R&D).
If you would like to find out how these provisions may affect your business, please contact us.
Meredith Smith, SALT tax manager, at MTheiss@TaxOps.com or 720.227.0064.
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