House Bill No. 6785
               House Bill No. 6785

              PUBLIC ACT NO. 97-163


AN  ACT  CONCERNING  FULL  IMPLEMENTATION  OF  THE
PHASE-IN OF THE ONE HUNDRED PER CENT  SAFE  HARBOR
PROVISIONS FOR THE CORPORATION BUSINESS TAX.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  12-242d  of  the general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  For purposes of this section, there shall
be four required instalments for each income year.
The  due date for the first required instalment is
the fifteenth day of the third month of the income
year.   The  due  date  for  the  second  required
instalment is the fifteenth day of the sixth month
of  the  income  year.  The due date for the third
required instalment is the fifteenth  day  of  the
ninth  month  of the income year. The due date for
the fourth required instalment  is  the  fifteenth
day of the twelfth month of the income year.
    (b)   The   amount   of   the  first  required
instalment  shall  be  thirty  per  cent  of   the
required  annual payment, as defined in subsection
(e) of this section.  The  amount  of  the  second
required instalment shall be forty per cent of the
required annual payment, as defined in  subsection
(e)  of  this  section.  The  amount  of the third
required instalment shall be ten per cent  of  the
required  annual payment, as defined in subsection
(e) of this section.  The  amount  of  the  fourth
required  instalment  shall  be twenty per cent of
the  required  annual  payment,  as   defined   in
subsection (e) of this section.
    (c)  Except  as  otherwise  provided  in  this
section,  in  the  case  of  any  underpayment  of
estimated  tax  by a company, there shall be added
to  the  tax  an  amount  determined  by  applying
interest (1) at the rate of one per cent per month
or fraction thereof, (2)  to  the  amount  of  the
underpayment,   (3)   for   the   period   of  the
underpayment.
    (d)  For  purposes of this section, the amount
of the underpayment shall be  the  excess  of  the
required  instalment,  over the amount, if any, of
the instalment paid on or before the due date  for
the  instalment.  The  period  of the underpayment
shall run from the due date for the instalment  to
whichever  of  the following dates is earlier: (1)
The first day of the  fourth  month  of  the  next
succeeding income year, or (2) with respect to any
portion of the underpayment,  the  date  on  which
such   portion  is  paid.  For  purposes  of  this
subsection, a payment of estimated  tax  shall  be
credited  against  unpaid  required instalments in
the order in which such instalments  are  required
to be paid.
    (e)   (1)  Except  as  otherwise  provided  in
subdivision  (2)  of  this  subsection,  "required
annual payment" means the lesser of (A) ninety per
cent of the tax shown on the return for the income
year,  or,  if no return is filed, ninety per cent
of the tax for such year, or (B)  for  the  income
year  commencing  in 1996, two hundred per cent of
the tax shown on the return for the next preceding
income  year  without  regard  to any credit under
this chapter; for the income  year  commencing  in
1997, one hundred [seventy-five] FIFTY per cent of
the tax shown on the return for the next preceding
income  year  without  regard  to any credit under
this chapter; for the income  year  commencing  in
1998, [one hundred fifty per cent of the tax shown
on the return for the next preceding  income  year
without  regard  to any credit under this chapter;
for  the  income  year  commencing  in  1999,  one
hundred  twenty-five  per cent of the tax shown on
the return for  the  next  preceding  income  year
without  regard  to any credit under this chapter;
and for  income  years  commencing  in  2000]  and
thereafter  one  hundred per cent of the tax shown
on the return for the next preceding  income  year
without regard to any credit under this chapter.
    (2)  Any  credit  that  may otherwise be taken
under section  12-217n  shall  be  disregarded  in
determining  the  tax  due  for  any  income years
commencing prior to January 1, 1997.
    (f)  The application of this section to income
years of less  than  twelve  months  shall  be  in
accordance   with   regulations   adopted  by  the
commissioner.
    (g)  No addition to tax shall be imposed under
subsection (c) of this section for any income year
if  the  tax  shown  on the return for such income
year, or, if no return is filed, the tax,  is  one
thousand dollars or less.
    Sec.  2.  This  act shall take effect from its
passage and shall be applicable  to  income  years
commencing on or after January 1, 1997.

Approved June 24, 1997