Connecticut 2021 Regular Session

Connecticut House Bill HB06440 Compare Versions

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Version 2 (New)

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7		-	General Assembly Substitute Bill No. 6440
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	9	+	General Assembly Governor's Bill No. 6440
8	10		January Session, 2021
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	14	+	Referred to Committee on COMMERCE
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	16	+
	17	+	Introduced by:
	18	+	Request of the Governor Pursuant
	19	+	to Joint Rule 9
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14	25		AN ACT ESTABLISHING THE JOBSCT TAX REBATE PROGRAM.
15	26		Be it enacted by the Senate and House of Representatives in General
16	27		Assembly convened:
17	28
18	29		Section 1. (NEW) (Effective July 1, 2021, and applicable to taxable years 1
19	30		commencing on or after January 1, 2022) (a) As used in this section: 2
20	31		(1) "Commissioner" means the Commissioner of Economic and 3
21	32		Community Development; 4
22	33		(2) "Discretionary FTE" means an FTE that is paid qualified wages 5
23	34		and does not meet the threshold wage requirements to be a qualified 6
24	35		FTE but is approved by the commissioner pursuant to subdivision (4) of 7
25	36		subsection (c) of this section; 8
26	37		(3) "Distressed municipality" has the same meaning as provided in 9
27	38		section 32-9p of the general statutes; 10
28	39		(4) "Full-time equivalent" or "FTE" means the number of employees 11
29	40		employed at a qualified business, calculated in accordance with 12
30		-	subsection (d) of this section; 13
	41	+	subsection (d) of this section; 13 Governor's Bill No. 6440
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31	47		(5) "Full-time job" means a job in which an employee is required to 14
32	48		work at least thirty-five or more hours per week. "Full-time job" does 15
33		-	not include a temporary or seasonal job; 16 Substitute Bill No. 6440
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	49	+	not include a temporary or seasonal job; 16
40	50		(6) "Median household income" means the median annual household 17
41	51		income for residents in a municipality as calculated from the U.S. 18
42	52		Census Bureau's five-year American Community Survey or another 19
43	53		data source, at the sole discretion of the commissioner; 20
44	54		(7) "New employee" means a person or persons hired by the qualified 21
45	55		business to fill a full-time equivalent position. A new employee does not 22
46	56		include a person who was employed in this state by a related person 23
47	57		with respect to the qualified business within twelve months prior to a 24
48	58		qualified business' application to the commissioner for a rebate 25
49	59		allocation notice for a job creation rebate pursuant to subsection (c) of 26
50	60		this section; 27
51	61		(8) "New FTEs" means the number of FTEs that (A) did not exist in 28
52	62		this state at the time of a qualified business' application to the 29
53	63		commissioner for a rebate allocation notice for a job creation rebate 30
54	64		pursuant to subsection (c) of this section, (B) are not the result of FTEs 31
55	65		acquired due to a merger or acquisition, (C) are filled by a new 32
56	66		employee, (D) are qualified FTEs, and (E) are not FTEs hired to replace 33
57	67		FTEs that existed in the state after January 1, 2020. The commissioner 34
58	68		may issue guidance on the implementation of this definition; 35
59	69		(9) "New FTEs created" means the number of new FTEs that the 36
60	70		qualified business is employing at a point-in-time at the end of the 37
61	71		relevant time period; 38
62	72		(10) "New FTEs maintained" means the total number of new FTEs 39
63	73		employed throughout a relevant time period; 40
64	74		(11) "Opportunity zone" means a population census tract that is a 41
65	75		low-income community that is designated as a "qualified opportunity 42
66	76		zone" pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as 43
67		-	amended from time to time; 44
	77	+	amended from time to time; 44 Governor's Bill No. 6440
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68	83		(12) "Part-time job" means a job in which an employee is required to 45
69	84		work less than thirty-five hours per week. "Part-time job" does not 46
70		-	include a temporary or seasonal job; 47 Substitute Bill No. 6440
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	85	+	include a temporary or seasonal job; 47
77	86		(13) "Qualified business" means a person that is (A) engaged in 48
78	87		business in an industry related to finance, insurance, manufacturing, 49
79	88		clean energy, bioscience, technology, digital media or any similar 50
80	89		industry, as determined by the sole discretion of the commissioner, and 51
81	90		(B) subject to taxation under chapter 207, 208 or 228z of the general 52
82	91		statutes; 53
83	92		(14) "Qualified FTE" means an FTE who is paid qualified wages of at 54
84	93		least eighty-five per cent of the median household income for the 55
85	94		location where the FTE position is primarily located, scaled in 56
86	95		proportion to the FTE fraction, or thirty-seven thousand five hundred 57
87	96		dollars, scaled in proportion to the FTE fraction, whichever is greater; 58
88	97		(15) "Qualified wages" means wages sourced to this state pursuant to 59
89	98		section 12-705 of the general statutes; 60
90	99		(16) "Rebate period" means the calendar years in which a tax rebate 61
91	100		provided for in this section is to be paid pursuant to a contract executed 62
92	101		pursuant to subsection (c) of this section; and 63
93	102		(17) "Related person" means (A) a corporation, limited liability 64
94	103		company, partnership, association or trust controlled by the qualified 65
95	104		business, (B) an individual, corporation, limited liability company, 66
96	105		partnership, association or trust that is in control of the qualified 67
97	106		business, (C) a corporation, limited liability company, partnership, 68
98	107		association or trust controlled by an individual, corporation, limited 69
99	108		liability company, partnership, association or trust that is in control of 70
100	109		the qualified business, or (D) a member of the same controlled group as 71
101	110		the qualified business. For the purposes of this subdivision, "control" 72
102	111		means (i) ownership, directly or indirectly, of stock possessing fifty per 73
103	112		cent or more of the total combined voting power of all classes of the 74
104	113		stock of a corporation entitled to vote, (ii) ownership, directly or 75
105		-	indirectly, of fifty per cent or more of the capital or profits interest in a 76
	114	+	indirectly, of fifty per cent or more of the capital or profits interest in a 76 Governor's Bill No. 6440
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106	120		partnership, limited liability company or association, or (iii) ownership, 77
107	121		directly or indirectly, of fifty per cent or more of the beneficial interest 78
108		-	in the principal or income of a trust. The ownership of stock in a 79 Substitute Bill No. 6440
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	122	+	in the principal or income of a trust. The ownership of stock in a 79
115	123		corporation, of a capital or profits interest in a partnership, of a limited 80
116	124		liability company or association or of a beneficial interest in a trust shall 81
117	125		be determined in accordance with the rules for constructive ownership 82
118	126		of stock provided in Section 267(c) of the Internal Revenue Code of 1986, 83
119	127		or any subsequent corresponding internal revenue code of the United 84
120	128		States, as amended from time to time, other than paragraph (3) of said 85
121	129		section. 86
122	130		(b) There is established a JobsCT tax rebate program under which 87
123	131		qualified businesses that create jobs in this state, in accordance with the 88
124	132		provisions of this section, may be allowed a tax rebate, which shall be 89
125	133		treated as a credit against the tax imposed under chapter 208 or 228z of 90
126	134		the general statutes or as an offset of the tax imposed under chapter 207 91
127	135		of the general statutes. 92
128	136		(c) (1) To be eligible to claim a rebate under this section, a qualified 93
129	137		business shall apply to the commissioner in accordance with the 94
130	138		provisions of this subsection. The application shall be on a form 95
131	139		prescribed by the commissioner and may require information, 96
132	140		including, but not limited to, the number of new FTEs to be created by 97
133	141		the qualified business, the number of current FTEs employed by the 98
134	142		qualified business, feasibility studies or business plans for the increased 99
135	143		number of FTEs, projected state and local revenue that may reasonably 100
136	144		derive as a result of the increased number of FTEs and any other 101
137	145		information necessary to determine whether there will be net benefits to 102
138	146		the economy of the municipality or municipalities in which the qualified 103
139	147		business is primarily located and the state. 104
140	148		(2) Upon receipt of an application, the commissioner shall determine 105
141	149		(A) whether the qualified business making the application will be 106
142	150		reasonably able to meet the FTE hiring targets and other metrics as 107
143	151		presented in such application, (B) whether such qualified business' 108
144		-	proposed job growth would provide a net benefit to economic 109
	152	+	proposed job growth would provide a net benefit to economic 109 Governor's Bill No. 6440
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145	158		development and employment opportunities in the state, and (C) 110
146	159		whether such qualified business' proposed job growth will exceed the 111
147		-	number of jobs at the business that existed prior to January 1, 2020. The 112 Substitute Bill No. 6440
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154		-	commissioner may require the applicant to submit additional 113
155		-	information to evaluate an application. Each qualified business making 114
156		-	an application shall satisfy the requirements of this subdivision, as 115
	160	+	number of jobs at the business that existed prior to January 1, 2020. The 112
	161	+	commissioner may require the applicant submit additional information 113
	162	+	to evaluate an application. Each qualified business making an 114
	163	+	application shall satisfy the requirements of this subdivision, as 115
157	164		determined by the commissioner, to be eligible for the JobsCT tax rebate 116
158	165		program. 117
159	166		(3) The commissioner, upon consideration of an application and any 118
160	167		additional information, may approve an application in whole or in part 119
161	168		or may approve an application with amendments. If the commissioner 120
162	169		disapproves an application, the commissioner shall identify the defects 121
163	170		in such application and explain the specific reasons for the disapproval. 122
164	171		The commissioner shall render a decision on an application not later 123
165	172		than ninety days after the date of its receipt by the commissioner. 124
166	173		(4) The commissioner may approve an application in whole or in part 125
167		-	by a qualified business that creates new discretionary FTEs or may 126
168		-	approve such an application with amendments if a majority of such new 127
169		-	discretionary FTEs are individuals who (A) because of a disability, are 128
170		-	receiving or have received services from the Department of Aging and 129
171		-	Disability Services; (B) are receiving employment services from the 130
172		-	Department of Mental Health and Addiction Services or participating in 131
173		-	employment opportunities and day services, as defined in section 17a-132
174		-	226 of the general statutes, operated or funded by the Department of 133
175		-	Developmental Services; (C) have been unemployed for at least six of 134
176		-	the preceding twelve months; (D) have been conv icted of a 135
177		-	misdemeanor or felony; (E) are veterans, as defined in section 27-103 of 136
178		-	the general statutes; (F) have not earned any postsecondary credential 137
179		-	and are not currently enrolled in an postsecondary institution or 138
180		-	program; or (G) are currently enrolled in a workforce training program 139
181		-	fully or substantially paid for by the employer that results in such 140
182		-	individual earning a postsecondary credential. 141
183		-	(5) The commissioner may combine approval of an application with 142
184		-	the exercise of any of the commissioner's other powers, including, but 143
185		-	not limited to, the provision of other financial assistance. 144 Substitute Bill No. 6440
	174	+	by a qualified business that creates new FTEs that do not meet the wage 126
	175	+	requirements to be qualified FTEs or may approve such an application 127
	176	+	with amendments if a majority of such new FTEs are individuals who 128
	177	+	(A) because of a disability, are receiving or have received services from 129
	178	+	the Department of Aging and Disability Services; (B) are receiving 130
	179	+	employment services from the Department of Mental Health and 131
	180	+	Addiction Services or participating in employment opportunities and 132
	181	+	day services, as defined in section 17a-226 of the general statutes, 133
	182	+	operated or funded by the Department of Developmental Services; (C) 134
	183	+	have been unemployed for at least twelve consecutive months; (D) have 135
	184	+	been convicted of a misdemeanor or felony; (E) are veterans, as defined 136
	185	+	in section 27-103 of the general statutes; or (F) have not graduated from 137
	186	+	and are not currently enrolled in an institution of higher education. 138
	187	+	(5) The commissioner may combine approval of an application with 139
	188	+	the exercise of any of the commissioner's other powers, including, but 140
	189	+	not limited to, the provision of other financial assistance. 141 Governor's Bill No. 6440
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192		-	(6) The commissioner shall enter into a contract with an approved 145
193		-	qualified business, which shall include, but need not be limited to, a 146
194		-	requirement that the qualified business consent to the Department of 147
195		-	Economic and Community Development's access of data compiled by 148
196		-	other state agencies, including, but not limited to, the Labor 149
197		-	Department, for the purposes of audit and enforcement and, if a 150
198		-	qualified business is approved by the commissioner in accordance with 151
199		-	subdivision (4) of this subsection, the required wage such business shall 152
200		-	pay new discretionary FTEs to qualify for the tax rebates provided for 153
201		-	in subsection (f) of this section. 154
202		-	(7) Upon signing a contract with an approved qualified business, the 155
203		-	commissioner shall issue a rebate allocation notice stating the maximum 156
204		-	amount of each rebate available to such business for the rebate period 157
205		-	and the specific terms that such business shall meet to qualify for each 158
206		-	rebate. Such notice shall certify to the approved qualified business that 159
207		-	the rebates may be claimed by such business if it meets the specific terms 160
208		-	set forth in the notice. 161
209		-	(d) For the purposes of this section, the FTE of a full-time job or part-162
210		-	time job is based on the hours worked or expected to be worked by an 163
211		-	employee in a calendar year. A job in which an employee worked or is 164
212		-	expected to work one thousand seven hundred fifty hours or more in a 165
213		-	calendar year equals one FTE. A job in which an employee worked or is 166
214		-	expected to work less than one thousand seven hundred fifty hours 167
215		-	equals a fraction of one FTE, where the fraction is the number of hours 168
216		-	worked in a calendar year divided by one thousand seven hundred fifty. 169
217		-	The commissioner shall have the discretion to adjust the calculation of 170
218		-	FTE. 171
219		-	(e) (1) In each calendar year of the rebate period, a qualified business 172
220		-	approved by the commissioner pursuant to subdivision (3) of subsection 173
221		-	(c) of this section that employs at least twenty-five new FTEs in this state 174
222		-	by December thirty-first of the calendar year that is two calendar years 175
223		-	prior to the calendar year in which the rebate is being claimed shall be 176
224		-	allowed a rebate equal to the greater of the following amounts: 177 Substitute Bill No. 6440
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	195	+	(6) The commissioner shall negotiate a contract with an approved 142
	196	+	qualified business, which shall include, but need not be limited to, a 143
	197	+	requirement that the qualified business consent to the Department of 144
	198	+	Economic and Community Development's access of data compiled by 145
	199	+	other state agencies, including, but not limited to, the Labor 146
	200	+	Department, for the purposes of audit and enforcement and, if a 147
	201	+	qualified business is approved by the commissioner in accordance with 148
	202	+	subdivision (4) of this subsection, the required wage such business shall 149
	203	+	pay new discretionary FTEs to qualify for the tax rebates provided for 150
	204	+	in subsection (f) of this section. 151
	205	+	(7) Upon signing a contract with an approved qualified business, the 152
	206	+	commissioner shall issue a rebate allocation notice stating the maximum 153
	207	+	amount of each rebate available to such business for the rebate period 154
	208	+	and the specific terms that such business shall meet to qualify for each 155
	209	+	rebate. Such notice shall certify to the approved qualified business that 156
	210	+	the rebates may be claimed by such business if it meets the specific terms 157
	211	+	set forth in the notice. 158
	212	+	(d) For the purposes of this section, the FTE of a full-time job or part-159
	213	+	time job is based on the hours worked or expected to be worked by an 160
	214	+	employee in a calendar year. A job in which an employee worked or is 161
	215	+	expected to work one thousand seven hundred fifty hours or more in a 162
	216	+	calendar year equals one FTE. A job in which an employee worked or is 163
	217	+	expected to work less than one thousand seven hundred fifty hours 164
	218	+	equals a fraction of one FTE, where the fraction is the number of hours 165
	219	+	worked in a calendar year divided by one thousand seven hundred fifty. 166
	220	+	The commissioner shall have the discretion to adjust the calculation of 167
	221	+	FTE. 168
	222	+	(e) (1) In each calendar year of the rebate period, a qualified business 169
	223	+	approved by the commissioner pursuant to subdivision (3) of subsection 170
	224	+	(c) of this section that employs at least twenty-five new FTEs in this state 171
	225	+	by December thirty-first of the calendar year that is two calendar years 172
	226	+	prior to the calendar year in which the rebate is being claimed shall be 173
	227	+	allowed a rebate equal to the greater of the following amounts: 174 Governor's Bill No. 6440
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231		-	(A) The sum of: 178
232		-	(i) The lesser of (I) the new FTEs created in an opportunity zone or 179
233		-	distressed municipality on December thirty-first of the calendar year 180
234		-	that is two calendar years prior to the calendar year in which the rebate 181
235		-	is being claimed, or (II) the new FTEs maintained in an opportunity zone 182
236		-	or distressed municipality in the previous calendar year, multiplied by 183
237		-	fifty per cent of the income tax that would be paid on the average wage 184
238		-	of the new FTEs, as determined by the applicable marginal rate set forth 185
239		-	in chapter 229 of the general statutes for an unmarried individual based 186
240		-	solely on such wages; and 187
241		-	(ii) The lesser of (I) the new FTEs created on December thirty-first of 188
242		-	the calendar year that is two calendar years prior to the calendar year in 189
243		-	which the rebate is being claimed, or (II) the new FTEs maintained in a 190
244		-	location other than an opportunity zone or distressed municipality in 191
245		-	the previous calendar year, multiplied by twenty-five per cent of the 192
246		-	income tax that would be paid on the average wage of the new FTEs, as 193
247		-	determined by the applicable marginal rate set forth in chapter 229 of 194
248		-	the general statutes for an unmarried individual based solely on such 195
249		-	wages; or 196
250		-	(B) The greater of: 197
251		-	(i) One thousand dollars multiplied by the lesser of (I) the new FTEs 198
252		-	created by December thirty-first of the calendar year that is two calendar 199
253		-	years prior to the calendar year in which the rebate is being claimed, or 200
254		-	(II) the new FTEs maintained in the calendar year immediately prior to 201
255		-	the calendar year in which the rebate is being claimed; or 202
256		-	(ii) For tax credits earned, claimed or payable prior to January 1, 2024, 203
257		-	two thousand dollars multiplied by the lesser of (I) the new FTEs created 204
258		-	by December 31, 2021, or (II) the new FTEs maintained in the calendar 205
259		-	year immediately prior to the calendar year in which the rebate is being 206
260		-	claimed. 207
261		-	(2) In no event shall the rebate under this subsection exceed in any 208 Substitute Bill No. 6440
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	232	+
	233	+	(A) The sum of: 175
	234	+	(i) The lesser of (I) the new FTEs created in an opportunity zone or 176
	235	+	distressed municipality on December thirty-first of the calendar year 177
	236	+	that is two calendar years prior to the calendar year in which the rebate 178
	237	+	is being claimed, or (II) the new FTEs maintained in an opportunity zone 179
	238	+	or distressed municipality in the previous calendar year, multiplied by 180
	239	+	fifty per cent of the income tax that would be paid on the average wage 181
	240	+	of the new FTEs, as determined by the applicable marginal rate set forth 182
	241	+	in chapter 229 of the general statutes for an unmarried individual based 183
	242	+	solely on such wages; and 184
	243	+	(ii) The lesser of (I) the new FTEs created on December thirty-first of 185
	244	+	the calendar year that is two calendar years prior to the calendar year in 186
	245	+	which the rebate is being claimed, or (II) the new FTEs maintained in a 187
	246	+	location other than an opportunity zone or distressed municipality in 188
	247	+	the previous calendar year, multiplied by twenty-five per cent of the 189
	248	+	income tax that would be paid on the average wage of the new FTEs, as 190
	249	+	determined by the applicable marginal rate set forth in chapter 229 of 191
	250	+	the general statutes for an unmarried individual based solely on such 192
	251	+	wages; or 193
	252	+	(B) The greater of: 194
	253	+	(i) One thousand dollars multiplied by the lesser of (I) the new FTEs 195
	254	+	created by December thirty-first of the calendar year that is two calendar 196
	255	+	years prior to the calendar year in which the rebate is being claimed, or 197
	256	+	(II) the new FTEs maintained in the calendar year immediately prior to 198
	257	+	the calendar year in which the rebate is being claimed; or 199
	258	+	(ii) For tax credits earned, claimed or payable prior to January 1, 2024, 200
	259	+	two thousand dollars multiplied by the lesser of (I) the new FTEs created 201
	260	+	by December 31, 2021, or (II) the new FTEs maintained in the calendar 202
	261	+	year immediately prior to the calendar year in which the rebate is being 203
	262	+	claimed. 204
	263	+	(2) In no event shall the rebate under this subsection exceed in any 205 Governor's Bill No. 6440
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268		-	calendar year of the rebate period five thousand dollars multiplied by 209
269		-	the lesser of (A) the new FTEs created by December thirty-first of the 210
270		-	calendar year that is two calendar years prior to the calendar year in 211
271		-	which the rebate is being claimed, or (B) the new FTEs maintained in the 212
272		-	calendar year immediately prior to the calendar year in which the rebate 213
273		-	is being claimed. 214
274		-	(3) In no event shall an approved qualified business receive a rebate 215
275		-	under this subsection in any calendar year of the rebate period if such 216
276		-	business has not maintained at least twenty-five new FTEs in the 217
277		-	calendar year immediately prior to the calendar year in which the rebate 218
278		-	is being claimed. 219
279		-	(f) (1) In each calendar year of the rebate period, a qualified business 220
280		-	approved by the commissioner pursuant to subdivision (4) of subsection 221
281		-	(c) of this section that employs at least twenty-five new discretionary 222
282		-	FTEs in this state by December thirty-first of the calendar year that is 223
283		-	two calendar years prior to the calendar year in which the rebate is being 224
284		-	claimed shall be allowed a rebate equal to the sum of the amount 225
285		-	calculated pursuant to subdivision (1) of subsection (e) of this section 226
286		-	and the greater of the following: 227
287		-	(A) The sum of: 228
288		-	(i) The lesser of the new discretionary FTEs (I) created in an 229
289		-	opportunity zone or distressed municipality on December thirty-first of 230
290		-	the calendar year that is two calendar years prior to the calendar year in 231
291		-	which the rebate is being claimed, or (II) maintained in an opportunity 232
292		-	zone or distressed municipality in the previous calendar year, 233
293		-	multiplied by fifty per cent of the income tax that would be paid on the 234
294		-	average wage of the new discretionary FTEs, as determined by the 235
295		-	applicable marginal rate set forth in chapter 229 of the general statutes 236
296		-	for an unmarried individual based solely on such wages; and 237
297		-	(ii) The lesser of the new discretionary FTEs (I) created on December 238
298		-	thirty-first of the calendar year that is two calendar years prior to the 239 Substitute Bill No. 6440
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	268	+
	269	+	calendar year of the rebate period five thousand dollars multiplied by 206
	270	+	the lesser of (A) the new FTEs created by December thirty-first of the 207
	271	+	calendar year that is two calendar years prior to the calendar year in 208
	272	+	which the rebate is being claimed, or (B) the new FTEs maintained in the 209
	273	+	calendar year immediately prior to the calendar year in which the rebate 210
	274	+	is being claimed. 211
	275	+	(3) In no event shall an approved qualified business receive a rebate 212
	276	+	under this section in any calendar year of the rebate period if such 213
	277	+	business has not maintained at least twenty-five new FTEs in the 214
	278	+	calendar year immediately prior to the calendar year in which the rebate 215
	279	+	is being claimed. 216
	280	+	(f) (1) In each calendar year of the rebate period, a qualified business 217
	281	+	approved by the commissioner pursuant to subdivision (4) of subsection 218
	282	+	(c) of this section that employs at least twenty-five new discretionary 219
	283	+	FTEs in this state by December thirty-first of the calendar year that is 220
	284	+	two calendar years prior to the calendar year in which the rebate is being 221
	285	+	claimed shall be allowed a rebate equal to the sum of the amount 222
	286	+	calculated pursuant to subdivision (1) of subsection (e) of this section 223
	287	+	and the greater of the following: 224
	288	+	(A) The sum of: 225
	289	+	(i) The lesser of the new discretionary FTEs (I) created in an 226
	290	+	opportunity zone or distressed municipality on December thirty-first of 227
	291	+	the calendar year that is two calendar years prior to the calendar year in 228
	292	+	which the rebate is being claimed, or (II) maintained in an opportunity 229
	293	+	zone or distressed municipality in the previous calendar year, 230
	294	+	multiplied by fifty per cent of the income tax that would be paid on the 231
	295	+	average wage of the new discretionary FTEs, as determined by the 232
	296	+	applicable marginal rate set forth in chapter 229 of the general statutes 233
	297	+	for an unmarried individual based solely on such wages; and 234
	298	+	(ii) The lesser of the new discretionary FTEs (I) created on December 235
	299	+	thirty-first of the calendar year that is two calendar years prior to the 236
	300	+	calendar year in which the rebate is being claimed, or (II) maintained in 237 Governor's Bill No. 6440
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305		-	calendar year in which the rebate is being claimed, or (II) maintained in 240
306		-	a location other than an opportunity zone or distressed municipality in 241
307		-	the previous calendar year, multiplied by twenty-five per cent of the 242
308		-	income tax that would be paid on the average wage of the new 243
309		-	discretionary FTEs, as determined by the applicable marginal rate set 244
310		-	forth in chapter 229 of the general statutes for an unmarried individual 245
311		-	based solely on such wages; or 246
312		-	(B) The greater of: 247
313		-	(i) Seven hundred fifty dollars multiplied by the lesser of the new 248
314		-	discretionary FTEs (I) created by December thirty-first of the calendar 249
315		-	year that is two calendar years prior to the calendar year in which the 250
316		-	rebate is being claimed, or (II) maintained in the calendar year 251
317		-	immediately prior to the calendar year in which the rebate is being 252
318		-	claimed; or 253
319		-	(ii) For tax credits earned, claimed or payable prior to January 1, 2024, 254
320		-	one thousand five hundred dollars multiplied by the lesser of (I) the new 255
321		-	FTEs created by December 31, 2021, or (II) the new FTEs maintained in 256
322		-	the calendar year immediately prior to the calendar year in which the 257
323		-	rebate is being claimed. 258
324		-	(2) In no event shall the rebate under this section exceed in any 259
325		-	calendar year of the rebate period five thousand dollars multiplied by 260
326		-	the lesser of the new discretionary FTEs (A) created by December thirty-261
327		-	first of the calendar year that is two calendar years prior to the calendar 262
328		-	year in which the rebate is being claimed, or (B) maintained in the 263
329		-	calendar year immediately prior to the calendar year in which the rebate 264
330		-	is being claimed. 265
331		-	(3) In no event shall an approved qualified business receive a rebate 266
332		-	under this subsection in any calendar year of the rebate period if such 267
333		-	business has not maintained at least twenty-five new discretionary FTEs 268
334		-	in the calendar year immediately prior to the calendar year in which the 269
335		-	rebate is being claimed. 270 Substitute Bill No. 6440
	304	+	LCO No. 3219 9 of 17
	305	+
	306	+	a location other than an opportunity zone or distressed municipality in 238
	307	+	the previous calendar year, multiplied by twenty-five per cent of the 239
	308	+	income tax that would be paid on the average wage of the new 240
	309	+	discretionary FTEs, as determined by the applicable marginal rate set 241
	310	+	forth in chapter 229 of the general statutes for an unmarried individual 242
	311	+	based solely on such wages; or 243
	312	+	(B) The greater of: 244
	313	+	(i) Seven hundred fifty dollars multiplied by the lesser of the new 245
	314	+	discretionary FTEs (I) created by December thirty-first of the calendar 246
	315	+	year that is two calendar years prior to the calendar year in which the 247
	316	+	rebate is being claimed, or (II) maintained in the calendar year 248
	317	+	immediately prior to the calendar year in which the rebate is being 249
	318	+	claimed; or 250
	319	+	(ii) For tax credits earned, claimed or payable prior to January 1, 2024, 251
	320	+	one thousand five hundred dollars multiplied by the lesser of (I) the new 252
	321	+	FTEs created by December 31, 2021, or (II) the new FTEs maintained in 253
	322	+	the calendar year immediately prior to the calendar year in which the 254
	323	+	rebate is being claimed. 255
	324	+	(2) In no event shall the rebate under this section exceed in any 256
	325	+	calendar year of the rebate period five thousand dollars multiplied by 257
	326	+	the lesser of the new discretionary FTEs (A) created by December thirty-258
	327	+	first of the calendar year that is two calendar years prior to the calendar 259
	328	+	year in which the rebate is being claimed, or (B) maintained in the 260
	329	+	calendar year immediately prior to the calendar year in which the rebate 261
	330	+	is being claimed. 262
	331	+	(3) In no event shall an approved qualified business receive a rebate 263
	332	+	under this subsection in any calendar year of the rebate period if such 264
	333	+	business has not maintained at least twenty-five new discretionary FTEs 265
	334	+	in the calendar year immediately prior to the calendar year in which the 266
	335	+	rebate is being claimed. 267
	336	+	(g) The aggregate amount of rebates issued to all approved qualified 268 Governor's Bill No. 6440
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342		-	(g) (1) Notwithstanding the provisions of subdivisions (3) and (4) of 271
343		-	subsection (c) of this section, the commissioner may not approve an 272
344		-	application in whole or in part if the full amount of rebates that such 273
345		-	applicant may be paid pursuant to subsection (e) or (f) of this section 274
346		-	would result in the aggregate amount of rebates issued to all approved 275
347		-	qualified businesses under this section exceeding forty million dollars 276
348		-	in any fiscal year. 277
349		-	(2) Notwithstanding the provisions of subdivision (4) of subsection 278
350		-	(c) of this section, the commissioner may not approve an application in 279
351		-	whole or in part if the full amount of rebates that such applicant may be 280
352		-	paid pursuant to subsection (f) of this section would result in the 281
353		-	aggregate amount of rebates issued pursuant to subsection (f) of this 282
354		-	section exceeding ten million dollars in any fiscal year. 283
355		-	(h) (1) A rebate under this section may be granted to an approved 284
356		-	qualified business for not more than seven successive calendar years. A 285
357		-	rebate shall not be granted until at least twenty-four months after the 286
358		-	commissioner's approval of a qualified business' application. 287
359		-	(2) An approved qualified business that has fewer than twenty-five 288
360		-	new FTEs created in each of two consecutive calendar years or, if such 289
361		-	business is approved by the commissioner pursuant to subdivision (4) 290
362		-	of subsection (c) of this section, fewer than twenty-five new 291
363		-	discretionary FTEs in each of two consecutive calendar years shall 292
364		-	forfeit all remaining rebate allocations, unless the commissioner 293
365		-	recognizes mitigating circumstances of a regional or national nature, 294
366		-	including, but not limited to, a recession. 295
367		-	(i) Not later than January thirty-first of each year during the rebate 296
368		-	period, each approved qualified business shall provide information to 297
369		-	the commissioner regarding the number of new FTEs or new 298
370		-	discretionary FTEs created or maintained during the prior calendar year 299
371		-	and the qualified wages of such new employees. Any information 300
372		-	provided under this subsection shall be subject to audit by the 301
373		-	Department of Economic and Community Development. 302 Substitute Bill No. 6440
	340	+	LCO No. 3219 10 of 17
	341	+
	342	+	businesses under this section shall not exceed forty million dollars in 269
	343	+	any one fiscal year, provided the aggregate amount of rebates issued 270
	344	+	pursuant to subsection (f) of this section shall not exceed twenty-five per 271
	345	+	cent of such aggregate limit. 272
	346	+	(h) (1) A rebate under this section may be granted to an approved 273
	347	+	qualified business for not more than seven successive calendar years. A 274
	348	+	rebate shall not be granted until at least twenty-four months after the 275
	349	+	commissioner's approval of a qualified business' application. 276
	350	+	(2) An approved qualified business that has fewer than twenty-five 277
	351	+	new FTEs created in each of two consecutive calendar years or, if such 278
	352	+	business is approved by the commissioner pursuant to subdivision (4) 279
	353	+	of subsection (c) of this section, fewer than twenty-five new 280
	354	+	discretionary FTEs in each of two consecutive calendar years shall 281
	355	+	forfeit all remaining rebate allocations, unless the commissioner 282
	356	+	recognizes mitigating circumstances of a regional or national nature, 283
	357	+	including, but not limited to, a recession. 284
	358	+	(i) Not later than January thirty-first of each year during the rebate 285
	359	+	period, each approved qualified business shall provide information to 286
	360	+	the commissioner regarding the number of new FTEs or new 287
	361	+	discretionary FTEs created or maintained during the prior calendar year 288
	362	+	and the qualified wages of such new employees. Any information 289
	363	+	provided under this subsection shall be subject to audit by the 290
	364	+	Department of Economic and Community Development. 291
	365	+	(j) Not later than March fifteenth of each year during the rebate 292
	366	+	period, the Department of Economic and Community Development 293
	367	+	shall issue the approved qualified business a rebate voucher that sets 294
	368	+	forth the amount of the rebate, as calculated pursuant to subsections (e) 295
	369	+	and (f) of this section, and the taxable year against which such rebate 296
	370	+	may be claimed. The approved qualified business shall claim such 297
	371	+	rebate as a credit against the taxes due under chapter 208 or 228z of the 298
	372	+	general statutes or as an offset of the tax imposed under chapter 207 of 299
	373	+	the general statutes. The commissioner shall annually provide to the 300 Governor's Bill No. 6440
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380		-	(j) Not later than March fifteenth of each year during the rebate 303
381		-	period, the Department of Economic and Community Development 304
382		-	shall issue the approved qualified business a rebate voucher that sets 305
383		-	forth the amount of the rebate, as calculated pursuant to subsections (e) 306
384		-	and (f) of this section, and the taxable year against which such rebate 307
385		-	may be claimed. The approved qualified business shall claim such 308
386		-	rebate as a credit against the taxes due under chapter 208 or 228z of the 309
387		-	general statutes or as an offset of the tax imposed under chapter 207 of 310
388		-	the general statutes. The commissioner shall annually provide to the 311
389		-	Commissioner of Revenue Services a report detailing all rebate vouchers 312
390		-	that have been issued under this section. 313
391		-	(k) Beginning on January 1, 2023, and annually thereafter, the 314
392		-	commissioner, in consultation with the office of the State Comptroller 315
393		-	and the Auditors of Public Accounts, shall submit a report to the Office 316
394		-	of Policy and Management on the expenses of the JobsCT tax rebate 317
395		-	program and the number of FTEs and discretionary FTEs created and 318
396		-	maintained. 319
397		-	Sec. 2. (NEW) (Effective July 1, 2021, and applicable to taxable years 320
398		-	commencing on or after January 1, 2022) As used in this section, "affected 321
399		-	business entity" and "member" have the same meanings as provided in 322
400		-	subsection (a) of section 12-699 of the general statutes. An affected 323
401		-	business entity that receives a rebate under section 1 of this act shall 324
402		-	claim such rebate as a credit against the tax due under chapter 228z of 325
403		-	the general statutes. If the amount of the rebate allowed pursuant to 326
404		-	section 1 of this act exceeds the liability for the tax imposed under 327
405		-	chapter 228z of the general statutes, the Commissioner of Revenue 328
406		-	Services shall treat such excess as an overpayment and shall refund the 329
407		-	amount of such excess, without interest, to the taxpayer. With respect to 330
408		-	an affected business entity granted a rebate pursuant to section 1 of this 331
409		-	act, the credit available to the members of such entity pursuant to 332
410		-	subdivision (1) of subsection (g) of section 12-699 of the general statutes 333
411		-	shall be based upon the amount of tax due under chapter 228z of the 334
412		-	general statutes from such entity prior to the application of the rebate 335 Substitute Bill No. 6440
	377	+	LCO No. 3219 11 of 17
	378	+
	379	+	Commissioner of Revenue Services a report detailing all rebate vouchers 301
	380	+	that have been issued under this section. 302
	381	+	(k) Beginning on January 1, 2023, and annually thereafter, the 303
	382	+	commissioner, in consultation with the office of the State Comptroller 304
	383	+	and the Auditors of Public Accounts, shall submit a report to the Office 305
	384	+	of Policy and Management on the expenses of the JobsCT tax rebate 306
	385	+	program and the number of FTEs and discretionary FTEs created and 307
	386	+	maintained. 308
	387	+	Sec. 2. (NEW) (Effective July 1, 2021, and applicable to taxable years 309
	388	+	commencing on or after January 1, 2022) As used in this section, "affected 310
	389	+	business entity" and "member" have the same meanings as provided in 311
	390	+	subsection (a) of section 12-699 of the general statutes. An affected 312
	391	+	business entity that receives a rebate under section 1 of this act shall 313
	392	+	claim such rebate as a credit against the tax due under chapter 228z of 314
	393	+	the general statutes. If the amount of the rebate allowed pursuant to 315
	394	+	section 1 of this act exceeds the liability for the tax imposed under 316
	395	+	chapter 228z of the general statutes, the Commissioner of Revenue 317
	396	+	Services shall treat such excess as an overpayment and shall refund the 318
	397	+	amount of such excess, without interest, to the taxpayer. With respect to 319
	398	+	an affected business entity granted a rebate pursuant to section 1 of this 320
	399	+	act, the credit available to the members of such entity pursuant to 321
	400	+	subdivision (1) of subsection (g) of section 12-699 of the general statutes 322
	401	+	shall be based upon the amount of tax due under chapter 228z of the 323
	402	+	general statutes from such entity prior to the application of the rebate 324
	403	+	granted pursuant to section 1 of this act and any other payments made 325
	404	+	against such tax due. 326
	405	+	Sec. 3. Subsection (b) of section 12-211a of the general statutes is 327
	406	+	repealed and the following is substituted in lieu thereof (Effective July 1, 328
	407	+	2021, and applicable to taxable years commencing on or after January 1, 2022): 329
	408	+	[(b) (1) For a calendar year commencing on or after January 1, 2011, 330
	409	+	and prior to January 1, 2013, the amount of tax credit or credits 331
	410	+	otherwise allowable against the tax imposed under this chapter for such 332 Governor's Bill No. 6440
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419		-	granted pursuant to section 1 of this act and any other payments made 336
420		-	against such tax due. 337
421		-	Sec. 3. Subsection (b) of section 12-211a of the general statutes is 338
422		-	repealed and the following is substituted in lieu thereof (Effective July 1, 339
423		-	2021, and applicable to taxable years commencing on or after January 1, 2022): 340
424		-	[(b) (1) For a calendar year commencing on or after January 1, 2011, 341
425		-	and prior to January 1, 2013, the amount of tax credit or credits 342
426		-	otherwise allowable against the tax imposed under this chapter for such 343
427		-	calendar year may exceed the amount specified in subsection (a) of this 344
428		-	section only by the amount computed under subparagraph (A) of 345
429		-	subdivision (2) of this subsection, provided in no event may the amount 346
430		-	of tax credit or credits otherwise allowable against the tax imposed 347
431		-	under this chapter for such calendar year exceed one hundred per cent 348
432		-	of the amount of tax due from such taxpayer under this chapter with 349
433		-	respect to such calendar year of the taxpayer prior to the application of 350
434		-	such credit or credits. 351
435		-	(2) (A) The taxpayer's average monthly net employee gain for a 352
436		-	calendar year shall be multiplied by six thousand dollars. 353
437		-	(B) The taxpayer's average monthly net employee gain for a calendar 354
438		-	year shall be computed as follows: For each month in the calendar year, 355
439		-	the taxpayer shall subtract from the number of its employees in this state 356
440		-	on the last day of such month the number of its employees in this state 357
441		-	on the first day of the calendar year. The taxpayer shall total the 358
442		-	differences for the twelve months in the calendar year, and such total, 359
443		-	when divided by twelve, shall be the taxpayer's average monthly net 360
444		-	employee gain for the calendar year. For purposes of this computation, 361
445		-	only employees who are required to work at least thirty-five hours per 362
446		-	week and only employees who were not employed in this state by a 363
447		-	related person, as defined in section 12-217ii, within the twelve months 364
448		-	prior to the first day of the calendar year may be taken into account in 365
449		-	computing the number of employees. 366 Substitute Bill No. 6440
	414	+	LCO No. 3219 12 of 17
	415	+
	416	+	calendar year may exceed the amount specified in subsection (a) of this 333
	417	+	section only by the amount computed under subparagraph (A) of 334
	418	+	subdivision (2) of this subsection, provided in no event may the amount 335
	419	+	of tax credit or credits otherwise allowable against the tax imposed 336
	420	+	under this chapter for such calendar year exceed one hundred per cent 337
	421	+	of the amount of tax due from such taxpayer under this chapter with 338
	422	+	respect to such calendar year of the taxpayer prior to the application of 339
	423	+	such credit or credits. 340
	424	+	(2) (A) The taxpayer's average monthly net employee gain for a 341
	425	+	calendar year shall be multiplied by six thousand dollars. 342
	426	+	(B) The taxpayer's average monthly net employee gain for a calendar 343
	427	+	year shall be computed as follows: For each month in the calendar year, 344
	428	+	the taxpayer shall subtract from the number of its employees in this state 345
	429	+	on the last day of such month the number of its employees in this state 346
	430	+	on the first day of the calendar year. The taxpayer shall total the 347
	431	+	differences for the twelve months in the calendar year, and such total, 348
	432	+	when divided by twelve, shall be the taxpayer's average monthly net 349
	433	+	employee gain for the calendar year. For purposes of this computation, 350
	434	+	only employees who are required to work at least thirty-five hours per 351
	435	+	week and only employees who were not employed in this state by a 352
	436	+	related person, as defined in section 12-217ii, within the twelve months 353
	437	+	prior to the first day of the calendar year may be taken into account in 354
	438	+	computing the number of employees. 355
	439	+	(C) If the taxpayer's average monthly net employee gain is zero or 356
	440	+	less than zero, the taxpayer may not exceed the amount specified in 357
	441	+	subsection (a) of this section.] 358
	442	+	(b) The amount of the rebate computed under section 1 of this act 359
	443	+	shall be treated as an offset of the tax due under chapter 207 and may 360
	444	+	exceed the amount specified in subsection (a) of this section. If the 361
	445	+	amount of the rebate allowed pursuant to section 1 of this act exceeds 362
	446	+	the taxpayer's liability for the tax imposed under this chapter, the 363
	447	+	commissioner shall treat such excess as an overpayment and shall 364 Governor's Bill No. 6440
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456		-	(C) If the taxpayer's average monthly net employee gain is zero or 367
457		-	less than zero, the taxpayer may not exceed the amount specified in 368
458		-	subsection (a) of this section.] 369
459		-	(b) The amount of the rebate computed under section 1 of this act 370
460		-	shall be treated as an offset of the tax due under chapter 207 and may 371
461		-	exceed the amount specified in subsection (a) of this section. If the 372
462		-	amount of the rebate allowed pursuant to section 1 of this act exceeds 373
463		-	the taxpayer's liability for the tax imposed under this chapter, the 374
464		-	commissioner shall treat such excess as an overpayment and shall 375
465		-	refund the amount of such excess, without interest, to the taxpayer. 376
466		-	Sec. 4. Subsection (b) of section 12-217zz of the general statutes is 377
467		-	repealed and the following is substituted in lieu thereof (Effective July 1, 378
468		-	2021, and applicable to taxable years commencing on or after January 1, 2022): 379
469		-	[(b) (1) For an income year commencing on or after January 1, 2011, 380
470		-	and prior to January 1, 2013, the amount of tax credit or credits 381
471		-	otherwise allowable against the tax imposed under this chapter for such 382
472		-	income year may exceed the amount specified in subsection (a) of this 383
473		-	section only by the amount computed under subparagraph (A) of 384
474		-	subdivision (2) of this subsection, provided in no event may the amount 385
475		-	of tax credit or credits otherwise allowable against the tax imposed 386
476		-	under this chapter for such income year exceed one hundred per cent of 387
477		-	the amount of tax due from such taxpayer under this chapter with 388
478		-	respect to such income year of the taxpayer prior to the application of 389
479		-	such credit or credits. 390
480		-	(2) (A) The taxpayer's average monthly net employee gain for an 391
481		-	income year shall be multiplied by six thousand dollars. 392
482		-	(B) The taxpayer's average monthly net employee gain for an income 393
483		-	year shall be computed as follows: For each month in the taxpayer's 394
484		-	income year, the taxpayer shall subtract from the number of its 395
485		-	employees in this state on the last day of such month the number of its 396
486		-	employees in this state on the first day of its income year. The taxpayer 397 Substitute Bill No. 6440
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	452	+
	453	+	refund the amount of such excess, without interest, to the taxpayer. 365
	454	+	Sec. 4. Subsection (b) of section 12-217zz of the general statutes is 366
	455	+	repealed and the following is substituted in lieu thereof (Effective July 1, 367
	456	+	2021, and applicable to taxable years commencing on or after January 1, 2022): 368
	457	+	[(b) (1) For an income year commencing on or after January 1, 2011, 369
	458	+	and prior to January 1, 2013, the amount of tax credit or credits 370
	459	+	otherwise allowable against the tax imposed under this chapter for such 371
	460	+	income year may exceed the amount specified in subsection (a) of this 372
	461	+	section only by the amount computed under subparagraph (A) of 373
	462	+	subdivision (2) of this subsection, provided in no event may the amount 374
	463	+	of tax credit or credits otherwise allowable against the tax imposed 375
	464	+	under this chapter for such income year exceed one hundred per cent of 376
	465	+	the amount of tax due from such taxpayer under this chapter with 377
	466	+	respect to such income year of the taxpayer prior to the application of 378
	467	+	such credit or credits. 379
	468	+	(2) (A) The taxpayer's average monthly net employee gain for an 380
	469	+	income year shall be multiplied by six thousand dollars. 381
	470	+	(B) The taxpayer's average monthly net employee gain for an income 382
	471	+	year shall be computed as follows: For each month in the taxpayer's 383
	472	+	income year, the taxpayer shall subtract from the number of its 384
	473	+	employees in this state on the last day of such month the number of its 385
	474	+	employees in this state on the first day of its income year. The taxpayer 386
	475	+	shall total the differences for the twelve months in such income year, 387
	476	+	and such total, when divided by twelve, shall be the taxpayer's average 388
	477	+	monthly net employee gain for the income year. For purposes of this 389
	478	+	computation, only employees who are required to work at least thirty-390
	479	+	five hours per week and only employees who were not employed in this 391
	480	+	state by a related person, as defined in section 12-217ii, within the twelve 392
	481	+	months prior to the first day of the income year may be taken into 393
	482	+	account in computing the number of employees. 394
	483	+	(C) If the taxpayer's average monthly net employee gain is zero or 395
	484	+	less than zero, the taxpayer may not exceed the seventy per cent limit 396 Governor's Bill No. 6440
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493		-	shall total the differences for the twelve months in such income year, 398
494		-	and such total, when divided by twelve, shall be the taxpayer's average 399
495		-	monthly net employee gain for the income year. For purposes of this 400
496		-	computation, only employees who are required to work at least thirty-401
497		-	five hours per week and only employees who were not employed in this 402
498		-	state by a related person, as defined in section 12-217ii, within the twelve 403
499		-	months prior to the first day of the income year may be taken into 404
500		-	account in computing the number of employees. 405
501		-	(C) If the taxpayer's average monthly net employee gain is zero or 406
502		-	less than zero, the taxpayer may not exceed the seventy per cent limit 407
503		-	imposed under subsection (a) of this section.] 408
504		-	(b) The amount of the rebate computed under section 1 of this act 409
505		-	shall be treated as a credit and may exceed the amount specified in 410
506		-	subsection (a) of this section. If the amount of the rebate allowed 411
507		-	pursuant to section 1 of this act exceeds the taxpayer's liability for the 412
508		-	tax imposed under this chapter, the commissioner shall treat such excess 413
509		-	as an overpayment and shall refund the amount of such excess, without 414
510		-	interest, to the taxpayer. 415
511		-	Sec. 5. Section 12-217aa of the general statutes is repealed and the 416
512		-	following is substituted in lieu thereof (Effective July 1, 2021, and 417
513		-	applicable to income years beginning on or after January 1, 2022): 418
514		-	(a) Except as otherwise provided in section 12-217t and subsection (c) 419
515		-	of this section, whenever a company is eligible to claim more than one 420
516		-	corporation business tax credit, the credits shall be claimed for the 421
517		-	income year in the following order: (1) Any credit that may be carried 422
518		-	backward to a preceding income year or years shall first be claimed (A) 423
519		-	with any credit carry-back that will expire first being claimed before any 424
520		-	credit carry-back that will expire later or will not expire at all, and (B) if 425
521		-	the credit carry-backs will expire at the same time, in the order in which 426
522		-	the company may receive the maximum benefit; (2) any credit that may 427
523		-	not be carried backward to a preceding income year or years and that 428
524		-	may not be carried forward to a succeeding income year or years shall 429 Substitute Bill No. 6440
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	489	+
	490	+	imposed under subsection (a) of this section.] 397
	491	+	(b) The amount of the rebate computed under section 1 of this act 398
	492	+	shall be treated as a credit and may exceed the amount specified in 399
	493	+	subsection (a) of this section. If the amount of the rebate allowed 400
	494	+	pursuant to section 1 of this act exceeds the taxpayer's liability for the 401
	495	+	tax imposed under this chapter, the commissioner shall treat such excess 402
	496	+	as an overpayment and shall refund the amount of such excess, without 403
	497	+	interest, to the taxpayer. 404
	498	+	Sec. 5. Section 12-217aa of the general statutes is repealed and the 405
	499	+	following is substituted in lieu thereof (Effective July 1, 2021, and 406
	500	+	applicable to income years beginning on or after January 1, 2022): 407
	501	+	(a) Except as otherwise provided in section 12-217t and subsection (c) 408
	502	+	of this section, whenever a company is eligible to claim more than one 409
	503	+	corporation business tax credit, the credits shall be claimed for the 410
	504	+	income year in the following order: (1) Any credit that may be carried 411
	505	+	backward to a preceding income year or years shall first be claimed (A) 412
	506	+	with any credit carry-back that will expire first being claimed before any 413
	507	+	credit carry-back that will expire later or will not expire at all, and (B) if 414
	508	+	the credit carry-backs will expire at the same time, in the order in which 415
	509	+	the company may receive the maximum benefit; (2) any credit that may 416
	510	+	not be carried backward to a preceding income year or years and that 417
	511	+	may not be carried forward to a succeeding income year or years shall 418
	512	+	next be claimed, in the order in which the company may receive the 419
	513	+	maximum benefit; and (3) any credit that may be carried forward to a 420
	514	+	succeeding income year or years shall next be claimed (A) with any 421
	515	+	credit carry-forward that will expire first being claimed before any 422
	516	+	credit carry-forward that will expire later or will not expire at all, and 423
	517	+	(B) if the credit carry-forwards will expire at the same time, in the order 424
	518	+	in which the company may receive the maximum benefit. 425
	519	+	(b) In no event shall any credit be claimed more than once. 426
	520	+	(c) The rebate allowed pursuant to section 1 of this act shall be 427
	521	+	claimed after all other credits have been claimed. 428 Governor's Bill No. 6440
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531		-	next be claimed, in the order in which the company may receive the 430
532		-	maximum benefit; and (3) any credit that may be carried forward to a 431
533		-	succeeding income year or years shall next be claimed (A) with any 432
534		-	credit carry-forward that will expire first being claimed before any 433
535		-	credit carry-forward that will expire later or will not expire at all, and 434
536		-	(B) if the credit carry-forwards will expire at the same time, in the order 435
537		-	in which the company may receive the maximum benefit. 436
538		-	(b) In no event shall any credit be claimed more than once. 437
539		-	(c) The rebate allowed pursuant to section 1 of this act shall be 438
540		-	claimed after all other credits have been claimed. 439
541		-	Sec. 6. (NEW) (Effective July 1, 2021) (a) As used in this section: 440
542		-	(1) "Dislocated worker" means an individual who: 441
543		-	(A) (i) Has been terminated or laid off, or has received a notice of 442
544		-	termination or layoff, from employment; (ii) is eligible for or has 443
545		-	exhausted entitlement to unemployment compensation or has been 444
546		-	employed for a duration sufficient to demonstrate, to the appropriate 445
547		-	entity at a one-stop center referred to in Section 134(c) of the federal 446
548		-	Workforce Innovation and Opportunity Act of 2014, P.L. 113-128, as 447
549		-	amended from time to time, attachment to the workforce, but is not 448
550		-	eligible for unemployment compensation due to insufficient earnings or 449
551		-	having performed services for an employer that were not covered under 450
552		-	chapter 567 of the general statutes; or (iii) is unlikely to return to a 451
553		-	previous industry or occupation; 452
554		-	(B) (i) Has been terminated or laid off, or has received a notice of 453
555		-	termination or layoff, from employment as a result of any permanent 454
556		-	closure of, or any substantial layoff at, a plant, facility or enterprise; (ii) 455
557		-	is employed at a facility at which the employer has made a general 456
558		-	announcement that such facility will close within one hundred eighty 457
559		-	days; or (iii) for purposes of eligibility to receive services, other than 458
560		-	training services described in subdivision (14) of subsection (b) of 459
561		-	section 31-11p of the general statutes, as amended by this act, intensive 460 Substitute Bill No. 6440
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	526	+
	527	+	Sec. 6. (NEW) (Effective July 1, 2021) (a) As used in this section: 429
	528	+	(1) "Dislocated worker" means an individual who: 430
	529	+	(A) (i) Has been terminated or laid off, or has received a notice of 431
	530	+	termination or layoff, from employment; (ii) is eligible for or has 432
	531	+	exhausted entitlement to unemployment compensation or has been 433
	532	+	employed for a duration sufficient to demonstrate, to the appropriate 434
	533	+	entity at a one-stop center referred to in Section 134(c) of the federal 435
	534	+	Workforce Innovation and Opportunity Act of 2014, P.L. 113-128, as 436
	535	+	amended from time to time, attachment to the workforce, but is not 437
	536	+	eligible for unemployment compensation due to insufficient earnings or 438
	537	+	having performed services for an employer that were not covered under 439
	538	+	chapter 567 of the general statutes; or (iii) is unlikely to return to a 440
	539	+	previous industry or occupation; 441
	540	+	(B) (i) Has been terminated or laid off, or has received a notice of 442
	541	+	termination or layoff, from employment as a result of any permanent 443
	542	+	closure of, or any substantial layoff at, a plant, facility or enterprise; (ii) 444
	543	+	is employed at a facility at which the employer has made a general 445
	544	+	announcement that such facility will close within one hundred eighty 446
	545	+	days; or (iii) for purposes of eligibility to receive services, other than 447
	546	+	training services described in subdivision (14) of subsection (b) of 448
	547	+	section 31-11p of the general statutes, as amended by this act, intensive 449
	548	+	services described in subdivision (13) of subsection (b) of said section, 450
	549	+	or supportive services, is employed at a facility at which the employer 451
	550	+	has made a general announcement that such facility will close; 452
	551	+	(C) Was self-employed, including employment as a farmer, rancher 453
	552	+	or fisherman, but is unemployed as a result of general economic 454
	553	+	conditions in the community in which the individual resides or because 455
	554	+	of natural disasters; or 456
	555	+	(D) Is a displaced homemaker; 457
	556	+	(2) "Displaced homemaker" means an individual who has been 458
	557	+	providing unpaid services to family members in the home and who (A) 459 Governor's Bill No. 6440
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568		-	services described in subdivision (13) of subsection (b) of said section, 461
569		-	or supportive services, is employed at a facility at which the employer 462
570		-	has made a general announcement that such facility will close; 463
571		-	(C) Was self-employed, including employment as a farmer, rancher 464
572		-	or fisherman, but is unemployed as a result of general economic 465
573		-	conditions in the community in which the individual resides or because 466
574		-	of natural disasters; or 467
575		-	(D) Is a displaced homemaker; 468
576		-	(2) "Displaced homemaker" means an individual who has been 469
577		-	providing unpaid services to family members in the home and who (A) 470
578		-	has been dependent on the income of another family member, but is no 471
579		-	longer supported by that income; and (B) is unemployed or 472
580		-	underemployed and is experiencing difficulty in obtaining or 473
581		-	upgrading employment; 474
582		-	(3) "Economic development financial assistance" means any grant, 475
583		-	loan or loan guarantee, or combination thereof, or any tax credits 476
584		-	approved pursuant to chapter 578 of the general statutes, provided to a 477
585		-	business for the purpose of economic development; 478
586		-	(4) "Low-income individual" means an individual whose family 479
587		-	income is less than three hundred per cent of the federal poverty level 480
588		-	for the prior calendar year; 481
589		-	(5) "Nontraditional employment" means occupations or fields of 482
590		-	work for which individuals from one gender comprise less than twenty-483
591		-	five per cent of the individuals employed in each such occupation or 484
592		-	field of work; and 485
593		-	(6) "Veteran" means any person who is a member of, was honorably 486
594		-	discharged from or released under honorable conditions from active 487
595		-	service in the armed forces, as defined in section 27-103 of the general 488
596		-	statutes. 489 Substitute Bill No. 6440
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	562	+
	563	+	has been dependent on the income of another family member, but is no 460
	564	+	longer supported by that income; and (B) is unemployed or 461
	565	+	underemployed and is experiencing difficulty in obtaining or 462
	566	+	upgrading employment; 463
	567	+	(3) "Economic development financial assistance" means any grant, 464
	568	+	loan or loan guarantee, or combination thereof, or any tax credits 465
	569	+	approved pursuant to chapter 578 of the general statutes, provided to a 466
	570	+	business for the purpose of economic development; 467
	571	+	(4) "Low-income individual" means an individual whose family 468
	572	+	income is less than three hundred per cent of the federal poverty level 469
	573	+	for the prior calendar year; 470
	574	+	(5) "Nontraditional employment" means occupations or fields of 471
	575	+	work for which individuals from one gender comprise less than twenty-472
	576	+	five per cent of the individuals employed in each such occupation or 473
	577	+	field of work; and 474
	578	+	(6) "Veteran" means any person who is a member of, was honorably 475
	579	+	discharged from or released under honorable conditions from active 476
	580	+	service in the armed forces, as defined in section 27-103 of the general 477
	581	+	statutes. 478
	582	+	(b) Notwithstanding any provision of the general statutes, the 479
	583	+	Commissioner of Economic and Community Development shall give 480
	584	+	priority to applicants for economic development financial assistance 481
	585	+	who demonstrate a willingness, as determined by the commissioner, to 482
	586	+	make jobs available to unemployed individuals, low -income 483
	587	+	individuals, dislocated workers, individuals training for nontraditional 484
	588	+	employment, veterans and individuals with disabilities to the extent 485
	589	+	consistent with any state or regional economic development strategy.486
	590	+	This act shall take effect as follows and shall amend the following
	591	+	sections:
	592	+	Governor's Bill No. 6440
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603		-	(b) Notwithstanding any provision of the general statutes, the 490
604		-	Commissioner of Economic and Community Development shall give 491
605		-	priority to applicants for economic development financial assistance 492
606		-	who demonstrate a willingness, as determined by the commissioner, to 493
607		-	make jobs available to unemployed individuals, low -income 494
608		-	individuals, dislocated workers, individuals training for nontraditional 495
609		-	employment, veterans and individuals with disabilities to the extent 496
610		-	consistent with any state or regional economic development strategy. 497
611		-	This act shall take effect as follows and shall amend the following
612		-	sections:
	596	+	LCO No. 3219 17 of 17
613	597
614	598		Section 1 July 1, 2021, and
615	599		applicable to taxable years
616	600		commencing on or after
617	601		January 1, 2022
618	602		New section
619	603		Sec. 2 July 1, 2021, and
620	604		applicable to taxable years
621	605		commencing on or after
622	606		January 1, 2022
623	607		New section
624	608		Sec. 3 July 1, 2021, and
625	609		applicable to taxable years
626	610		commencing on or after
627	611		January 1, 2022
628	612		12-211a(b)
629	613		Sec. 4 July 1, 2021, and
630	614		applicable to taxable years
631	615		commencing on or after
632	616		January 1, 2022
633	617		12-217zz(b)
634	618		Sec. 5 July 1, 2021, and
635	619		applicable to income years
636	620		beginning on or after
637	621		January 1, 2022
638	622		12-217aa
639	623		Sec. 6 July 1, 2021 New section
640	624
641		-	CE Joint Favorable Subst.
	625	+	Statement of Purpose:
	626	+	To implement the Governor's budget recommendations.
	627	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	628	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	629	+	underlined.]
642	630