Connecticut Administrative Code
Title 12 - Taxation
217s - The Traffic Reduction Tax Credit Program
Section 12-217s-6 - Direct costs
Universal Citation: CT Reg of State Agencies 12-217s-6
Current through September 9, 2024
(a) A direct cost is a cost that:
(1) Directly supports a
traffic reduction program and was incurred primarily for the purpose of
encouraging or supporting the use of a trip reduction measure;
(2) Can be audited using generally accepted
accounting procedures; and
(3) Is
customary and reasonable in amount for the service or the product.
(b) Direct costs include, but are not limited to:
(1) On-going or occasional
cash or in-kind gifts or benefits of greater than nominal financial value
provided to affected employees in exchange for their utilization or
consideration of trip reduction measures;
(2) Capital and operating costs to provide or
upgrade facilities, vehicles, vehicle services, and equipment, the primary
purpose of which is to promote or support the use of trip reduction
measures;
(3) Salary and benefit
costs for employees and any contract staff to conduct traffic reduction program
activities or administer the programs, and costs for office expenses and
equipment directly related to the traffic reduction programs. Annual costs for
staff who work part-time shall be prorated by the annual hours the employee
devotes to traffic reduction program activities relative to the total hours
worked; or
(4) Costs to prepare and
distribute traffic reduction program information and costs to sponsor
promotional activities and events.
(c) The direct cost for a service provided internally by corporate staff rather than by an outside vendor shall be the lesser of:
(1) The documented time and
materials costs to provide the service; or
(2) The reasonable cost of an equivalent
service if procured from an outside vendor.
(d) Costs excluded from direct costs include but are not limited to:
(1) Benefits provided
to employees not defined as participating employees;
(2) Capital costs in excess of tax
depreciation schedules; or
(3)
Salary costs and benefit costs such as overhead and indirect costs not directly
attributable to the traffic reduction program, and costs related to the
preparation and submission of plans.
(e) The total direct costs claimed by a corporation for purposes of the tax credit shall be the sum of direct costs less any revenue or reimbursement received by the corporation as a direct result of the voluntary traffic reduction program, including any gain from the sale of any capital equipment for which a credit was previously claimed.
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