Connecticut 2020 Regular Session

Connecticut Senate Bill SB00009 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3
4	4	LCO No. 614 1 of 13
5	5
6	6	General Assembly Governor's Bill No. 9
7	7	February Session, 2020
8	8	LCO No. 614
9	9
10	10
11	11	Referred to Committee on COMMERCE
12	12
13	13
14	14	Introduced by:
15	15	SEN. LOONEY, 11
16	16	th
17	17	Dist.
18	18	SEN. DUFF, 25
19	19	th
20	20	Dist.
21	21	REP. ARESIMOWICZ, 30
22	22	th
23	23	Dist.
24	24	REP. RITTER M., 1
25	25	st
26	26	Dist.
27	27
28	28
29	29
30	30
31	31	AN ACT ESTABLISHING THE JOBSCT TAX REBAT E PROGRAM.
32	32	Be it enacted by the Senate and House of Representatives in General
33	33	Assembly convened:
34	34
35	35	Section 1. (NEW) (Effective July 1, 2020, and applicable to taxable years 1
36	36	commencing on or after January 1, 2021) (a) As used in this section: 2
37	37	(1) "Commissioner" means the Commissioner of Economic and 3
38	38	Community Development; 4
39	39	(2) "Discretionary FTE" means an FTE that is paid qualified wages 5
40	40	and does not meet the minimum wage requirements to be a qualified 6
41	41	FTE but is approved by the commissioner pursuant to subdivision (4) of 7
42	42	subsection (c) of this section; 8
43	43	(3) "Distressed municipality" has the same meaning as provided in 9
44	44	section 32-9p of the general statutes; 10
45	45	(4) "Full-time equivalent" or "FTE" means the number of employees 11
46	46	employed at a qualified business, calculated in accordance with 12
47	47	subsection (d) of this section; 13 Governor's Bill No. 9
48	48
49	49
50	50
51	51	LCO No. 614 2 of 13
52	52
53	53	(5) "Full-time job" means a job in which an employee is required to 14
54	54	work at least thirty-five or more hours per week. "Full-time job" does 15
55	55	not include a temporary or seasonal job; 16
56	56	(6) "Median household income" means the median annual household 17
57	57	income for residents in a municipality as calculated from the U.S. 18
58	58	Census Bureau's five-year American Community Survey or another 19
59	59	data source, at the sole discretion of the commissioner; 20
60	60	(7) "New employee" means a person or persons hired by the qualified 21
61	61	business to fill a full-time equivalent position. A new employee does not 22
62	62	include a person who was employed in this state by a related person 23
63	63	with respect to the qualified business during the prior twelve months; 24
64	64	(8) "New FTEs" means the number of FTEs that (A) did not exist in 25
65	65	this state prior to a qualified business' application to the commissioner 26
66	66	for a rebate allocation notice for a job creation rebate under subsection 27
67	67	(c) of this section, (B) are not the result of FTEs acquired due to a merger 28
68	68	or acquisition, (C) are filled by a new employee, and (D) are qualified 29
69	69	FTE; 30
70	70	(9) "New FTEs created" means the number of new FTEs that the 31
71	71	qualified business is employing at the end of the relevant time period; 32
72	72	(10) "New FTEs maintained" means the total number of new FTEs 33
73	73	employed within a relevant time period; 34
74	74	(11) "Opportunity zone" means a population census tract that is a 35
75	75	low-income community that is designated as a "qualified opportunity 36
76	76	zone" pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as 37
77	77	amended from time to time; 38
78	78	(12) "Part-time job" means a job in which an employee is required to 39
79	79	work less than thirty-five hours per week. "Part-time job" does not 40
80	80	include a temporary or seasonal job; 41
81	81	(13) "Qualified business" means a person that is (A) engaged in 42
82	82	business in an industry related to finance, insurance, manufacturing, 43 Governor's Bill No. 9
83	83
84	84
85	85
86	86	LCO No. 614 3 of 13
87	87
88	88	bioscience, technology, digital media or any similar industry, as 44
89	89	determined by the sole discretion of the commissioner, and (B) subject 45
90	90	to taxation under chapter 207, 208 or 228z of the general statutes; 46
91	91	(14) "Qualified FTE" means an FTE who is paid qualified wages of at 47
92	92	least eighty-five per cent of the median household income for the 48
93	93	location where the FTE position is primarily located, scaled in 49
94	94	proportion to the FTE fraction, or thirty-seven thousand five hundred 50
95	95	dollars, scaled in proportion to the FTE fraction, whichever is greater; 51
96	96	(15) "Qualified wages" means wages sourced to this state pursuant to 52
97	97	section 12-705 of the general statutes; 53
98	98	(16) "Rebate period" means the calendar years in which a tax rebate 54
99	99	provided for in this section is to be paid pursuant to a contract executed 55
100	100	pursuant to subsection (c) of this section; and 56
101	101	(17) "Related person" means (A) a corporation, limited liability 57
102	102	company, partnership, association or trust controlled by the qualified 58
103	103	business, (B) an individual, corporation, limited liability company, 59
104	104	partnership, association or trust that is in control of the qualified 60
105	105	business, (C) a corporation, limited liability company, partnership, 61
106	106	association or trust controlled by an individual, corporation, limited 62
107	107	liability company, partnership, association or trust that is in control of 63
108	108	the qualified business, or (D) a member of the same controlled group as 64
109	109	the qualified business. For purposes of this subdivision, "control" means 65
110	110	(i) ownership, directly or indirectly, of stock possessing fifty per cent or 66
111	111	more of the total combined voting power of all classes of the stock of a 67
112	112	corporation entitled to vote, (ii) ownership, directly or indirectly, of fifty 68
113	113	per cent or more of the capital or profits interest in a partnership, limited 69
114	114	liability company or association, or (iii) ownership, directly or 70
115	115	indirectly, of fifty per cent or more of the beneficial interest in the 71
116	116	principal or income of a trust. The ownership of stock in a corporation, 72
117	117	of a capital or profits interest in a partnership, of a limited liability 73
118	118	company or association or of a beneficial interest in a trust shall be 74
119	119	determined in accordance with the rules for constructive ownership of 75 Governor's Bill No. 9
120	120
121	121
122	122
123	123	LCO No. 614 4 of 13
124	124
125	125	stock provided in Section 267(c) of the Internal Revenue Code of 1986, 76
126	126	or any subsequent corresponding internal revenue code of the United 77
127	127	States, as amended from time to time, other than paragraph (3) of said 78
128	128	section. 79
129	129	(b) There is established a JobsCT tax rebate program under which 80
130	130	qualified businesses that create jobs in this state, in accordance with the 81
131	131	provisions of this section, may be allowed a tax rebate, which shall be 82
132	132	treated as a credit against the tax imposed under chapter 207, 208 or 228z 83
133	133	of the general statutes. 84
134	134	(c) (1) To be eligible to claim a rebate under this section, a qualified 85
135	135	business shall apply to the commissioner in accordance with the 86
136	136	provisions of this subsection. The application shall be on a form 87
137	137	prescribed by the commissioner and may require information, 88
138	138	including, but not limited to, the number of new FTEs to be created by 89
139	139	the qualified business, the number of current FTEs employed by the 90
140	140	qualified business, feasibility studies or business plans for the increased 91
141	141	number of FTEs, projected state and local revenue that might derive as 92
142	142	a result of the increased number of FTEs and any other information 93
143	143	necessary to determine whether there will be net benefits to the 94
144	144	economy of the municipality in which the qualified business is primarily 95
145	145	located and the state. 96
146	146	(2) Upon receipt of an application, the commissioner shall determine 97
147	147	whether the qualified business making the application is eligible for the 98
148	148	rebate and whether the proposed job growth would provide a net 99
149	149	benefit to economic development and employment opportunities in the 100
150	150	state. The commissioner may require the applicant to submit additional 101
151	151	information to evaluate an application. 102
152	152	(3) The commissioner, upon consideration of an application and any 103
153	153	additional information, may approve an application in whole or in part 104
154	154	or may approve an application with amendments. If the commissioner 105
155	155	disapproves an application, the commissioner shall identify the defects 106
156	156	in such application and shall explain the specific reasons for the 107 Governor's Bill No. 9
157	157
158	158
159	159
160	160	LCO No. 614 5 of 13
161	161
162	162	disapproval. The commissioner shall render a decision on an 108
163	163	application not later than ninety days after the date of its receipt by the 109
164	164	commissioner. 110
165	165	(4) The commissioner may approve an application in whole or in part 111
166	166	by a qualified business that creates new FTEs that do not meet the 112
167	167	minimum wage requirements to be qualified FTEs or may approve such 113
168	168	an application with amendments if a majority of such new FTEs are 114
169	169	individuals who are disabled, have been unemployed for at least twelve 115
170	170	consecutive months, have been convicted of a misdemeanor or felony or 116
171	171	have not graduated from and are not currently enrolled in an institution 117
172	172	of higher education. For the purposes of this subdivision, "disabled" 118
173	173	means inability to engage in any substantial gainful activity by reason 119
174	174	of any medically determinable physical or mental impairment that can 120
175	175	be expected to result in death or to be of long-continued and indefinite 121
176	176	duration. 122
177	177	(5) The commissioner may combine approval of an application with 123
178	178	the exercise of any of the commissioner's other powers, including, but 124
179	179	not limited to, the provision of other forms of financial assistance. 125
180	180	(6) The commissioner shall negotiate a contract with an approved 126
181	181	qualified business, which shall include, but need not be limited to, a 127
182	182	requirement that the qualified business consent to the Department of 128
183	183	Economic and Community Development's access of data compiled by 129
184	184	other state agencies, including, but not limited to, the Labor 130
185	185	Department, for the purposes of audit and enforcement and, if a 131
186	186	qualified business is approved by the commissioner in accordance with 132
187	187	subdivision (4) of this subsection, the required minimum wage such 133
188	188	business shall pay new discretionary FTEs to qualify for the tax rebates 134
189	189	provided for in subsection (f) of this section. 135
190	190	(7) Upon signing a contract with an approved qualified business, the 136
191	191	commissioner shall issue a rebate allocation notice stating the maximum 137
192	192	amount of each rebate available to such business for the rebate period 138
193	193	and the specific terms that such business shall meet to qualify for each 139 Governor's Bill No. 9
194	194
195	195
196	196
197	197	LCO No. 614 6 of 13
198	198
199	199	rebate. Such notice shall certify to the approved qualified business that 140
200	200	the rebates may be claimed by such business if it meets the specific terms 141
201	201	set forth in the notice. 142
202	202	(d) For the purposes of this section, the FTE of a full-time job or part-143
203	203	time job is based on the hours worked or expected to be worked by an 144
204	204	employee in a calendar year. A job in which an employee worked or is 145
205	205	expected to work one thousand seven hundred fifty hours or more in a 146
206	206	calendar year equals one FTE. A job in which an employee worked or is 147
207	207	expected to work less than one thousand seven hundred fifty hours 148
208	208	equals a fraction of one FTE, where the fraction is the number of hours 149
209	209	worked in a calendar year divided by one thousand seven hundred fifty. 150
210	210	The commissioner shall have the discretion to adjust the calculation of 151
211	211	FTE. 152
212	212	(e) (1) In each calendar year of the rebate period, a qualified business 153
213	213	approved by the commissioner pursuant to subdivision (3) of subsection 154
214	214	(c) of this section that employs at least twenty-five new FTEs in this state 155
215	215	by December thirty-first of the calendar year that is two calendar years 156
216	216	prior to the calendar year in which the rebate is being claimed shall be 157
217	217	allowed a rebate equal to the greater of the following amounts: 158
218	218	(A) The sum of: 159
219	219	(i) The lesser of (I) the new FTEs created in an opportunity zone or 160
220	220	distressed municipality on December thirty-first of the calendar year 161
221	221	that is two calendar years prior to the calendar year in which the rebate 162
222	222	is being claimed, or (II) the new FTEs maintained in an opportunity zone 163
223	223	or distressed municipality in the previous calendar year, multiplied by 164
224	224	fifty per cent of the income tax that would be paid on the average wage 165
225	225	of the new FTEs, as determined using the applicable marginal rate set 166
226	226	forth in chapter 229 of the general statutes for an unmarried individual 167
227	227	based solely on such wages; and 168
228	228	(ii) The lesser of (I) the new FTEs created on December thirty-first of 169
229	229	the calendar year that is two calendar years prior to the calendar year in 170
230	230	which the rebate is being claimed, or (II) the new FTEs maintained in a 171 Governor's Bill No. 9
231	231
232	232
233	233
234	234	LCO No. 614 7 of 13
235	235
236	236	location other than an opportunity zone or distressed municipality in 172
237	237	the previous calendar year, multiplied by twenty-five per cent of the 173
238	238	income tax that would be paid on the average wage of the new FTEs, as 174
239	239	determined using the applicable marginal rate set forth in chapter 229 175
240	240	of the general statutes for an unmarried individual based solely on such 176
241	241	wages; or 177
242	242	(B) One thousand dollars multiplied by the lesser of (i) the new FTEs 178
243	243	created by December thirty-first of the calendar year that is two calendar 179
244	244	years prior to the calendar year in which the rebate is being claimed, or 180
245	245	(ii) the new FTEs maintained in the calendar year immediately prior to 181
246	246	the calendar year in which the rebate is being claimed. 182
247	247	(2) In no event shall the rebate under this subsection exceed in any 183
248	248	calendar year of the rebate period five thousand dollars multiplied by 184
249	249	the lesser of (A) the new FTEs created by December thirty-first of the 185
250	250	calendar year that is two calendar years prior to the calendar year in 186
251	251	which the rebate is being claimed, or (B) the new FTEs maintained in the 187
252	252	calendar year immediately prior to the calendar year in which the rebate 188
253	253	is being claimed. 189
254	254	(3) In no event shall an approved qualified business receive a rebate 190
255	255	under this section in any calendar year of the rebate period if such 191
256	256	business has not maintained at least twenty-five new FTEs in the 192
257	257	calendar year immediately prior to the calendar year in which the rebate 193
258	258	is being claimed. 194
259	259	(f) (1) In each calendar year of the rebate period, a qualified business 195
260	260	approved by the commissioner pursuant to subdivision (4) of subsection 196
261	261	(c) of this section that employs at least twenty-five new discretionary 197
262	262	FTEs in this state by December thirty-first of the calendar year that is 198
263	263	two calendar years prior to the calendar year in which the rebate is being 199
264	264	claimed shall be allowed a rebate equal to the sum of the amount 200
265	265	calculated pursuant to subdivision (1) of subsection (e) of this section 201
266	266	and the greater of the following: 202
267	267	(A) The sum of: 203 Governor's Bill No. 9
268	268
269	269
270	270
271	271	LCO No. 614 8 of 13
272	272
273	273	(i) The lesser of the new discretionary FTEs (I) created in an 204
274	274	opportunity zone or distressed municipality on December thirty-first of 205
275	275	the calendar year that is two calendar years prior to the calendar year in 206
276	276	which the rebate is being claimed, or (II) maintained in an opportunity 207
277	277	zone or distressed municipality in the previous calendar year, 208
278	278	multiplied by fifty per cent of the income tax that would be paid on the 209
279	279	average wage of the new discretionary FTEs, as determined using the 210
280	280	applicable marginal rate set forth in chapter 229 of the general statutes 211
281	281	for an unmarried individual based solely on such wages; and 212
282	282	(ii) The lesser of the new discretionary FTEs (I) created on December 213
283	283	thirty-first of the calendar year that is two calendar years prior to the 214
284	284	calendar year in which the rebate is being claimed, or (II) maintained in 215
285	285	a location other than an opportunity zone or distressed municipality in 216
286	286	the previous calendar year, multiplied by twenty-five per cent of the 217
287	287	income tax that would be paid on the average wage of the new 218
288	288	discretionary FTEs, as determined using the applicable marginal rate set 219
289	289	forth in chapter 229 of the general statutes for an unmarried individual 220
290	290	based solely on such wages; or 221
291	291	(B) Seven hundred fifty dollars multiplied by the lesser of the new 222
292	292	discretionary FTEs (i) created by December thirty-first of the calendar 223
293	293	year that is two calendar years prior to the calendar year in which the 224
294	294	rebate is being claimed, or (ii) maintained in the calendar year 225
295	295	immediately prior to the calendar year in which the rebate is being 226
296	296	claimed. 227
297	297	(2) In no event shall the rebate under this section exceed in any 228
298	298	calendar year of the rebate period five thousand dollars multiplied by 229
299	299	the lesser of the new discretionary FTEs (A) created by December thirty-230
300	300	first of the calendar year that is two calendar years prior to the calendar 231
301	301	year in which the rebate is being claimed, or (B) maintained in the 232
302	302	calendar year immediately prior to the calendar year in which the rebate 233
303	303	is being claimed. 234
304	304	(3) In no event shall an approved qualified business receive a rebate 235 Governor's Bill No. 9
305	305
306	306
307	307
308	308	LCO No. 614 9 of 13
309	309
310	310	under this subsection in any calendar year of the rebate period if such 236
311	311	business has not maintained at least twenty-five new discretionary FTEs 237
312	312	in the calendar year immediately prior to the calendar year in which the 238
313	313	rebate is being claimed. 239
314	314	(g) The aggregate amount of rebates issued to all approved qualified 240
315	315	businesses under this section shall not exceed forty million dollars in 241
316	316	any one fiscal year, provided the aggregate amount of rebates issued 242
317	317	pursuant to subsection (f) of this section shall not exceed ten per cent of 243
318	318	such aggregate limit. 244
319	319	(h) (1) A rebate under this section may be granted to an approved 245
320	320	qualified business for not more than seven successive calendar years. A 246
321	321	rebate shall not be granted until at least thirty-six months after the 247
322	322	commissioner's approval of a qualified business' application. 248
323	323	(2) An approved qualified business that has fewer than twenty-five 249
324	324	new FTEs created in each of two consecutive calendar years or, if such 250
325	325	business is approved by the commissioner pursuant to subdivision (4) 251
326	326	of subsection (c) of this section, fewer than twenty-five new 252
327	327	discretionary FTEs in each of two consecutive calendar years shall 253
328	328	forfeit all remaining rebate allocations, unless the commissioner 254
329	329	recognizes mitigating circumstances of a regional or national nature, 255
330	330	including, but not limited to, a recession. 256
331	331	(i) Not later than January thirty-first of each year during the rebate 257
332	332	period, each approved qualified business shall provide information to 258
333	333	the commissioner regarding the number of new FTEs or new 259
334	334	discretionary FTEs created or maintained during the prior calendar year 260
335	335	and the qualified wages of such new employees. Any information 261
336	336	provided under this subsection shall be subject to audit by the 262
337	337	Departments of Economic and Community Development and Revenue 263
338	338	Services. 264
339	339	(j) Not later than March fifteenth of each year during the rebate 265
340	340	period, the Department of Economic and Community Development 266
341	341	shall report to the Department of Revenue Services the amounts of 267 Governor's Bill No. 9
342	342
343	343
344	344
345	345	LCO No. 614 10 of 13
346	346
347	347	rebates earned by each qualified business, as calculated pursuant to 268
348	348	subsections (e) and (f) of this section. The Department of Revenue 269
349	349	Services shall pay such rebates against taxes owed by an approved 270
350	350	qualified business pursuant to chapter 207, 208 or 228z of the general 271
351	351	statutes as determined by the Department of Revenue Services based on 272
352	352	the form of incorporation of the qualified business. 273
353	353	(k) The commissioner, in consultation with the Department of 274
354	354	Revenue Services, the office of the State Comptroller and the Auditors 275
355	355	of Public Accounts, shall report annually on the expenses of the JobsCT 276
356	356	tax rebate program and the number of FTEs and discretionary FTEs 277
357	357	created and maintained. 278
358	358	Sec. 2. (NEW) (Effective July 1, 2020, and applicable to taxable years 279
359	359	commencing on or after January 1, 2021) As used in this section, "affected 280
360	360	business entity" and "member" have the same meanings as provided in 281
361	361	subsection (a) of section 12-699 of the general statutes. An affected 282
362	362	business entity that receives a rebate under section 1 of this act shall 283
363	363	claim such rebate as a credit against the tax due under section 12-699 of 284
364	364	the general statutes. If the amount of the rebate allowed pursuant to 285
365	365	section 1 of this act exceeds the liability for the tax imposed under 286
366	366	section 12-699 of the general statutes, the Commissioner of Revenue 287
367	367	Services shall treat such excess as an overpayment and shall refund the 288
368	368	amount of such excess, without interest, to the taxpayer. For the 289
369	369	purposes of calculating a member's credit pursuant to subsection (g) of 290
370	370	section 12-699 of the general statutes, the tax paid by an affected 291
371	371	business entity shall be calculated using the tax due under section 12-292
372	372	699 of the general statutes without regard to the rebate allowed 293
373	373	pursuant to section 1 of this act. 294
374	374	Sec. 3. Subsection (b) of section 12-211a of the general statutes is 295
375	375	repealed and the following is substituted in lieu thereof (Effective July 1, 296
376	376	2020): 297
377	377	(b) [(1) For a calendar year commencing on or after January 1, 2011, 298
378	378	and prior to January 1, 2013, the amount of tax credit or credits 299 Governor's Bill No. 9
379	379
380	380
381	381
382	382	LCO No. 614 11 of 13
383	383
384	384	otherwise allowable against the tax imposed under this chapter for such 300
385	385	calendar year may exceed the amount specified in subsection (a) of this 301
386	386	section only by the amount computed under subparagraph (A) of 302
387	387	subdivision (2) of this subsection, provided in no event may the amount 303
388	388	of tax credit or credits otherwise allowable against the tax imposed 304
389	389	under this chapter for such calendar year exceed one hundred per cent 305
390	390	of the amount of tax due from such taxpayer under this chapter with 306
391	391	respect to such calendar year of the taxpayer prior to the application of 307
392	392	such credit or credits. 308
393	393	(2) (A) The taxpayer's average monthly net employee gain for a 309
394	394	calendar year shall be multiplied by six thousand dollars. 310
395	395	(B) The taxpayer's average monthly net employee gain for a calendar 311
396	396	year shall be computed as follows: For each month in the calendar year, 312
397	397	the taxpayer shall subtract from the number of its employees in this state 313
398	398	on the last day of such month the number of its employees in this state 314
399	399	on the first day of the calendar year. The taxpayer shall total the 315
400	400	differences for the twelve months in the calendar year, and such total, 316
401	401	when divided by twelve, shall be the taxpayer's average monthly net 317
402	402	employee gain for the calendar year. For purposes of this computation, 318
403	403	only employees who are required to work at least thirty-five hours per 319
404	404	week and only employees who were not employed in this state by a 320
405	405	related person, as defined in section 12-217ii, within the twelve months 321
406	406	prior to the first day of the calendar year may be taken into account in 322
407	407	computing the number of employees. 323
408	408	(C) If the taxpayer's average monthly net employee gain is zero or 324
409	409	less than zero, the taxpayer may not exceed the amount specified in 325
410	410	subsection (a) of this section.] For calendar years commencing on or after 326
411	411	January 1, 2024, the amount of the rebate computed under section 1 of 327
412	412	this act shall be treated as a credit and may exceed the amount specified 328
413	413	in subsection (a) of this section. If the amount of the rebate allowed 329
414	414	pursuant to section 1 of this act exceeds the taxpayer's liability for the 330
415	415	tax imposed under this chapter, the commissioner shall treat such excess 331
416	416	as an overpayment and shall refund the amount of such excess, without 332 Governor's Bill No. 9
417	417
418	418
419	419
420	420	LCO No. 614 12 of 13
421	421
422	422	interest, to the taxpayer. 333
423	423	Sec. 4. Subsection (b) of section 12-217zz of the 2020 supplement to 334
424	424	the general statutes is repealed and the following is substituted in lieu 335
425	425	thereof (Effective July 1, 2020): 336
426	426	(b) [(1) For an income year commencing on or after January 1, 2011, 337
427	427	and prior to January 1, 2013, the amount of tax credit or credits 338
428	428	otherwise allowable against the tax imposed under this chapter for such 339
429	429	income year may exceed the amount specified in subsection (a) of this 340
430	430	section only by the amount computed under subparagraph (A) of 341
431	431	subdivision (2) of this subsection, provided in no event may the amount 342
432	432	of tax credit or credits otherwise allowable against the tax imposed 343
433	433	under this chapter for such income year exceed one hundred per cent of 344
434	434	the amount of tax due from such taxpayer under this chapter with 345
435	435	respect to such income year of the taxpayer prior to the application of 346
436	436	such credit or credits. 347
437	437	(2) (A) The taxpayer's average monthly net employee gain for an 348
438	438	income year shall be multiplied by six thousand dollars. 349
439	439	(B) The taxpayer's average monthly net employee gain for an income 350
440	440	year shall be computed as follows: For each month in the taxpayer's 351
441	441	income year, the taxpayer shall subtract from the number of its 352
442	442	employees in this state on the last day of such month the number of its 353
443	443	employees in this state on the first day of its income year. The taxpayer 354
444	444	shall total the differences for the twelve months in such income year, 355
445	445	and such total, when divided by twelve, shall be the taxpayer's average 356
446	446	monthly net employee gain for the income year. For purposes of this 357
447	447	computation, only employees who are required to work at least thirty-358
448	448	five hours per week and only employees who were not employed in this 359
449	449	state by a related person, as defined in section 12-217ii, within the twelve 360
450	450	months prior to the first day of the income year may be taken into 361
451	451	account in computing the number of employees. 362
452	452	(C) If the taxpayer's average monthly net employee gain is zero or 363
453	453	less than zero, the taxpayer may not exceed the seventy per cent limit 364 Governor's Bill No. 9
454	454
455	455
456	456
457	457	LCO No. 614 13 of 13
458	458
459	459	imposed under subsection (a) of this section.] For income years 365
460	460	commencing on or after January 1, 2024, the amount of the rebate 366
461	461	computed under section 1 of this act shall be treated as a credit and may 367
462	462	exceed the amount specified in subsection (a) of this section. If the 368
463	463	amount of the rebate allowed pursuant to section 1 of this act exceeds 369
464	464	the taxpayer's liability for the tax imposed under this chapter, the 370
465	465	commissioner shall treat such excess as an overpayment and shall 371
466	466	refund the amount of such excess, without interest, to the taxpayer. 372
467	467	This act shall take effect as follows and shall amend the following
468	468	sections:
469	469
470	470	Section 1 July 1, 2020, and
471	471	applicable to taxable years
472	472	commencing on or after
473	473	January 1, 2021
474	474	New section
475	475	Sec. 2 July 1, 2020, and
476	476	applicable to taxable years
477	477	commencing on or after
478	478	January 1, 2021
479	479	New section
480	480	Sec. 3 July 1, 2020 12-211a(b)
481	481	Sec. 4 July 1, 2020 12-217zz(b)
482	482
483	483	Statement of Purpose:
484	484	To implement the Governor's budget recommendations.
485	485	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
486	486	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
487	487	underlined.]
488	488