General Assembly Substitute Bill No. 5574
February Session, 2016 *_____HB05574CE_FIN031816____*
General Assembly
Substitute Bill No. 5574
February Session, 2016
*_____HB05574CE_FIN031816____*
AN ACT CONCERNING STRANDED RESEARCH AND DEVELOPMENT TAX CREDITS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2016) (a) As used in this section:
(1) "Accumulated credits" means the amount of credits allowed, in accordance with the provisions of section 12-217n of the general statutes, that have not been taken through an applicant's last income year completed prior to the date of an application submitted as provided in subsection (b) of this section.
(2) "Commissioner" means the Commissioner of Economic and Community Development.
(3) "Eligible expenditures" means those expenditures made or incurred in this state by a business in furtherance of a capital project approved by the commissioner under subsection (b) of this section, including, but not limited to, (A) expenditures with respect to buildings, improvements, property, plants and equipment, and expenses directly related to such expenditures, such as design work, professional fees, surveys and site preparation, remediation and clean-up, demolition, moving and renovation expenses, and (B) expenditures with respect to personal property.
(b) The Commissioner of Economic and Community Development shall establish and administer a program to allow businesses in the state to exchange accumulated tax credits for payments of eligible expenditures in support of capital projects in the state that propose to (1) expand the scale or scope of such business, (2) increase employment at such business, or (3) generate a substantial return to the state economy. A business seeking to exchange accumulated tax credits for payments in support of a capital project under this section shall apply to the commissioner, on forms provided by the commissioner, an application that shall include, but not be limited to: (A) A detailed plan outlining the capital project, (B) the term of such project, (C) the estimated costs of such project, and (D) the amount of accumulated credits the eligible taxpayer proposes it be allowed to exchange in connection with such project. The commissioner may approve an application if he or she determines that such project would generate direct and indirect economic benefits to the state that exceed the amount of the accumulated tax credits proposed to be exchanged. The amount of such accumulated credits shall be subject to confirmation, in accordance with the provisions of title 12 of the general statutes, by the Commissioner of Revenue Services in consultation with the commissioner.
(c) The payment by the state of amounts directly attributable to the exchange of accumulated credits in connection with an application approved under subsection (b) of this section may be made in the form and manner and at the time determined by the commissioner, including as an offset or refund of state taxes otherwise payable by the eligible taxpayer under the provisions of chapters 208 and 219 of the general statutes. To the extent that such payments involve the offset or refund of state taxes, such payments shall be made in consultation with the Commissioner of Revenue Services.
(d) The commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.
(e) Not later than July 1, 2017, and annually thereafter, the commissioner shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and finance. Such report shall include (1) information on the number of applications received and the number of applications approved under this section, (2) the status of the capital projects associated with such approved applications, and (3) the amount of accumulated credits that have been exchanged in connection with such capital projects.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2016 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2016
New section
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