Connecticut Senate Bill SB00601

Connecticut 2016 Regular Session

• Introduced: 9/27/16
• Engrossed: 9/28/16
• Enrolled: 9/28/16

Caption

An Act Concerning The Connecticut Strategic Defense Investment Act.

Impact

The bill is expected to play a crucial role in enhancing Connecticut's position as a hub for aerospace manufacturing. By incentivizing companies to meet their labor and investment commitments, the act seeks to create jobs and stimulate local economic growth. Financial performance, including employment and supplier expenditures, is rigorously tied to grant eligibility, thereby encouraging compliance and maximizing investments in the state's workforce and infrastructure.

Summary

SB00601, known as the Connecticut Strategic Defense Investment Act, aims to bolster aerospace manufacturing within the state by offering significant sales tax offsets and financial grants to eligible taxpayers engaged in certified aerospace projects. The act specifically focuses on projects that involve helicopter production for U.S. government programs, delineating strict requirements related to employment, payroll, and capital expenditures that companies must satisfy over a period of at least fourteen years. The financial assistance is intended to stimulate job creation and retention in the aerospace sector while ensuring that operational facilities remain located in Connecticut.

Contention

Points of contention surrounding SB00601 primarily revolve around its potential implications for state revenue and the effectiveness of its incentives. Critics argue that the reliance on tax offsets could undermine state funding, particularly if companies fail to meet their commitments. Supporters, however, assert that the long-term benefits of job creation and sustained economic activity will outweigh initial costs. The structured oversight and reporting requirements built into the law are designed to mitigate concerns about accountability and ensure that public funds are utilized effectively.