Connecticut · Workforce · CT-HC-001
Human Capital Investment Credit
Publication revised September 24, 2026. Sourcebook page 65.
Credit amount / calculation
10% of eligible training and other qualifying human-capital costs; 25% for qualifying child-care investments.
Business fit and eligible activity
Qualified training and human-capital spending can earn a credit. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
Eligible costs include approved categories of training, education and child care. Employee wages earned during training, payroll taxes and fringe benefits are not eligible training expenditures. Do not claim two credits for the same investment.
Illustrative business benefit
A mill incurs $40,000 in eligible training costs and $20,000 in eligible child-care subsidies. The credit is $4,000 + $5,000 = $9,000 before the tax-liability limit.
Official sources
Related programs
Fixed Capital Investment Credit
5% of eligible fixed-capital investment
Credit for qualifying fixed capital acquired by a Connecticut business.
Machinery and Equipment Expenditure Credit
10% of the increase in eligible machinery
Manufacturers can obtain a credit tied to qualifying machinery and equipment expenditures.
Manufacturing Apprenticeship Training Credit
Up to
Manufacturers employing qualified registered apprentices can earn a credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Employer-Provided Child Care Credit (Internal Revenue Code §45F)
For 2026+
Broad employer credit that can apply to logging companies and mills providing or contracting for qualified employee child care; substantially expanded for 2026.