The Contractor's Gross Receipts credit is a tax credit for people and businesses doing work under public contracts and paying the Contractor's 1% Gross Receipts Tax (CGR).
Contractors performing public construction work under any government contract.
The license fees paid with the 1% gross receipts tax.
Taxpayers may either claim a nonrefundable income tax credit or a refund for personal property taxes and certain fees paid on assets used in their contracting business.
The income tax credit can offset individual income tax or corporate income tax. It cannot offset any taxes owed by a pass-through entity.
This credit can also be used to request a refund of personal property taxes and motor vehicles fees you used as a contractor, including:
To claim a refund of personal property taxes and fees, file the Contractor's Gross Receipts Application for Refund of Personal Property Taxes and Motor Vehicle Fees Paid (Form CGR-3) on our TransAction Portal.
This credit can be carried forward up to five years.