Connecticut 2022 Regular Session

Connecticut House Bill HB05127 Compare Versions

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Version 2 (New)

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4	4		HB.docx
5	5		1 of 16
6	6
7	7		General Assembly Raised Bill No. 5127
8	8		February Session, 2022
9	9		LCO No. 1160
10	10
11	11
12	12		Referred to Committee on COMMERCE
13	13
14	14
15	15		Introduced by:
16	16		(CE)
17	17
18	18
19	19
20	20		AN ACT ESTABLISHING THE JOBSCT TAX REBATE PROGRAM.
21	21		Be it enacted by the Senate and House of Representatives in General
22	22		Assembly convened:
23	23
24	24		Section 1. (NEW) (Effective July 1, 2022, and applicable to taxable years 1
25	25		commencing on or after January 1, 2023) (a) As used in this section: 2
26	26		(1) "Commissioner" means the Commissioner of Economic and 3
27	27		Community Development; 4
28	28		(2) "Discretionary FTE" means an FTE that is paid qualified wages 5
29	29		and does not meet the threshold wage requirements to be a qualified 6
30	30		FTE but is approved by the commissioner pursuant to subdivision (4) of 7
31	31		subsection (c) of this section; 8
32	32		(3) "Distressed municipality" has the same meaning as provided in 9
33	33		section 32-9p of the general statutes; 10
34	34		(4) "Full-time equivalent" or "FTE" means the number of employees 11
35	35		employed at a qualified business, calculated in accordance with 12
36		-	subsection (d) of this section; 13 ~~Substitute~~ Bill No. 5127
	36	+	subsection (d) of this section; 13 Raised Bill No. 5127
37	37
38	38
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42	42
43	43		(5) "Full-time job" means a job in which an employee is required to 14
44	44		work at least thirty-five or more hours per week. "Full-time job" does 15
45	45		not include a temporary or seasonal job; 16
46	46		(6) "Median household income" means the median annual household 17
47	47		income for residents in a municipality as calculated from the U.S. 18
48	48		Census Bureau's five-year American Community Survey or another 19
49	49		data source, at the sole discretion of the commissioner; 20
50	50		(7) "New employee" means a person or persons hired by the qualified 21
51	51		business to fill a full-time equivalent position. A new employee does not 22
52	52		include a person who was employed in this state by a related person 23
53	53		with respect to the qualified business within twelve months prior to a 24
54	54		qualified business' application to the commissioner for a rebate 25
55	55		allocation notice for a job creation rebate pursuant to subsection (c) of 26
56	56		this section; 27
57	57		(8) "New FTEs" means the number of FTEs that (A) did not exist in 28
58	58		this state at the time of a qualified business' application to the 29
59	59		commissioner for a rebate allocation notice for a job creation rebate 30
60	60		pursuant to subsection (c) of this section, (B) are not the result of FTEs 31
61	61		acquired due to a merger or acquisition, (C) are filled by a new 32
62	62		employee, (D) are qualified FTEs, and (E) are not FTEs hired to replace 33
63	63		FTEs that existed in the state after January 1, 2020. The commissioner 34
64	64		may issue guidance on the implementation of this definition; 35
65	65		(9) "New FTEs created" means the number of new FTEs that the 36
66	66		qualified business is employing at a point-in-time at the end of the 37
67	67		relevant time period; 38
68	68		(10) "New FTEs maintained" means the total number of new FTEs 39
69	69		employed throughout a relevant time period; 40
70	70		(11) "Opportunity zone" means a population census tract that is a 41
71	71		low-income community that is designated as a "qualified opportunity 42
72	72		zone" pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as 43
73		-	amended from time to time; 44 ~~Substitute~~ Bill No. 5127
	73	+	amended from time to time; 44 Raised Bill No. 5127
74	74
75	75
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79	79
80	80		(12) "Part-time job" means a job in which an employee is required to 45
81	81		work less than thirty-five hours per week. "Part-time job" does not 46
82	82		include a temporary or seasonal job; 47
83	83		(13) "Qualified business" means a person that is (A) engaged in 48
84	84		business in an industry related to finance, insurance, manufacturing, 49
85	85		clean energy, bioscience, technology, digital media or any similar 50
86	86		industry, as determined by the sole discretion of the commissioner, and 51
87	87		(B) subject to taxation under chapter 207, 208 or 228z of the general 52
88	88		statutes; 53
89	89		(14) "Qualified FTE" means an FTE who is paid qualified wages of at 54
90	90		least eighty-five per cent of the median household income for the 55
91	91		location where the FTE position is primarily located, scaled in 56
92	92		proportion to the FTE fraction, or thirty-seven thousand five hundred 57
93	93		dollars, scaled in proportion to the FTE fraction, whichever is greater; 58
94	94		(15) "Qualified wages" means wages sourced to this state pursuant to 59
95	95		section 12-705 of the general statutes; 60
96	96		(16) "Rebate period" means the calendar years in which a tax rebate 61
97	97		provided for in this section is to be paid pursuant to a contract executed 62
98	98		pursuant to subsection (c) of this section; and 63
99	99		(17) "Related person" means (A) a corporation, limited liability 64
100	100		company, partnership, association or trust controlled by the qualified 65
101	101		business, (B) an individual, corporation, limited liability company, 66
102	102		partnership, association or trust that is in control of the qualified 67
103	103		business, (C) a corporation, limited liability company, partnership, 68
104	104		association or trust controlled by an individual, corporation, limited 69
105	105		liability company, partnership, association or trust that is in control of 70
106	106		the qualified business, or (D) a member of the same controlled group as 71
107	107		the qualified business. For the purposes of this subdivision, "control" 72
108	108		means (i) ownership, directly or indirectly, of stock possessing fifty per 73
109	109		cent or more of the total combined voting power of all classes of the 74
110		-	stock of a corporation entitled to vote, (ii) ownership, directly or 75 ~~Substitute~~ Bill No. 5127
	110	+	stock of a corporation entitled to vote, (ii) ownership, directly or 75 Raised Bill No. 5127
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116	116
117	117		indirectly, of fifty per cent or more of the capital or profits interest in a 76
118	118		partnership, limited liability company or association, or (iii) ownership, 77
119	119		directly or indirectly, of fifty per cent or more of the beneficial interest 78
120	120		in the principal or income of a trust. The ownership of stock in a 79
121	121		corporation, of a capital or profits interest in a partnership, of a limited 80
122	122		liability company or association or of a beneficial interest in a trust shall 81
123	123		be determined in accordance with the rules for constructive ownership 82
124	124		of stock provided in Section 267(c) of the Internal Revenue Code of 1986, 83
125	125		or any subsequent corresponding internal revenue code of the United 84
126	126		States, as amended from time to time, other than paragraph (3) of said 85
127	127		section. 86
128	128		(b) There is established a JobsCT tax rebate program under which 87
129	129		qualified businesses that create jobs in this state, in accordance with the 88
130	130		provisions of this section, may be allowed a tax rebate, which shall be 89
131	131		treated as a credit against the tax imposed under chapter 208 or 228z of 90
132	132		the general statutes or as an offset of the tax imposed under chapter 207 91
133	133		of the general statutes. 92
134	134		(c) (1) To be eligible to claim a rebate under this section, a qualified 93
135	135		business shall apply to the commissioner in accordance with the 94
136	136		provisions of this subsection. The application shall be on a form 95
137	137		prescribed by the commissioner and may require information, 96
138	138		including, but not limited to, the number of new FTEs to be created by 97
139	139		the qualified business, the number of current FTEs employed by the 98
140	140		qualified business, feasibility studies or business plans for the increased 99
141	141		number of FTEs, projected state and local revenue that may reasonably 100
142	142		derive as a result of the increased number of FTEs and any other 101
143	143		information necessary to determine whether there will be net benefits to 102
144	144		the economy of the municipality or municipalities in which the qualified 103
145	145		business is primarily located and the state. 104
146	146		(2) Upon receipt of an application, the commissioner shall determine 105
147	147		(A) whether the qualified business making the application will be 106
148	148		reasonably able to meet the FTE hiring targets and other metrics as 107
149		-	presented in such application, (B) whether such qualified business' 108 ~~Substitute~~ Bill No. 5127
	149	+	presented in such application, (B) whether such qualified business' 108 Raised Bill No. 5127
150	150
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155	155
156	156		proposed job growth would provide a net benefit to economic 109
157	157		development and employment opportunities in the state, and (C) 110
158	158		whether such qualified business' proposed job growth will exceed the 111
159	159		number of jobs at the business that existed prior to January 1, 2020. The 112
160	160		commissioner may require the applicant to submit additional 113
161	161		information to evaluate an application. Each qualified business making 114
162	162		an application shall satisfy the requirements of this subdivision, as 115
163	163		determined by the commissioner, to be eligible for the JobsCT tax rebate 116
164	164		program. 117
165	165		(3) The commissioner, upon consideration of an application and any 118
166	166		additional information, may approve an application in whole or in part 119
167	167		or may approve an application with amendments. If the commissioner 120
168	168		disapproves an application, the commissioner shall identify the defects 121
169	169		in such application and explain the specific reasons for the disapproval. 122
170	170		The commissioner shall render a decision on an application not later 123
171	171		than ninety days after the date of its receipt by the commissioner. 124
172	172		(4) The commissioner may approve an application in whole or in part 125
173	173		by a qualified business that creates new discretionary FTEs or may 126
174	174		approve such an application with amendments if a majority of such new 127
175	175		discretionary FTEs are individuals who (A) because of a disability, are 128
176	176		receiving or have received services from the Department of Aging and 129
177	177		Disability Services; (B) are receiving employment services from the 130
178	178		Department of Mental Health and Addiction Services or participating in 131
179	179		employment opportunities and day services, as defined in section 17a-132
180	180		226 of the general statutes, operated or funded by the Department of 133
181	181		Developmental Services; (C) have been unemployed for at least six of 134
182	182		the preceding twelve months; (D) have been convicted of a 135
183	183		misdemeanor or felony; (E) are veterans, as defined in section 27-103 of 136
184	184		the general statutes; (F) have not earned any postsecondary credential 137
185	185		and are not currently enrolled in an postsecondary institution or 138
186	186		program; or (G) are currently enrolled in a workforce training program 139
187	187		fully or substantially paid for by the employer that results in such 140
188		-	individual earning a postsecondary credential. 141 ~~Substitute~~ Bill No. 5127
	188	+	individual earning a postsecondary credential. 141 Raised Bill No. 5127
189	189
190	190
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194	194
195	195		(5) The commissioner may combine approval of an application with 142
196	196		the exercise of any of the commissioner's other powers, including, but 143
197	197		not limited to, the provision of other financial assistance. 144
198	198		(6) The commissioner shall enter into a contract with an approved 145
199	199		qualified business, which shall include, but need not be limited to, a 146
200	200		requirement that the qualified business consent to the Department of 147
201	201		Economic and Community Development's access of data compiled by 148
202	202		other state agencies, including, but not limited to, the Labor 149
203	203		Department, for the purposes of audit and enforcement and, if a 150
204	204		qualified business is approved by the commissioner in accordance with 151
205	205		subdivision (4) of this subsection, the required wage such business shall 152
206	206		pay new discretionary FTEs to qualify for the tax rebates provided for 153
207	207		in subsection (f) of this section. 154
208	208		(7) Upon signing a contract with an approved qualified business, the 155
209	209		commissioner shall issue a rebate allocation notice stating the maximum 156
210	210		amount of each rebate available to such business for the rebate period 157
211	211		and the specific terms that such business shall meet to qualify for each 158
212	212		rebate. Such notice shall certify to the approved qualified business that 159
213	213		the rebates may be claimed by such business if it meets the specific terms 160
214	214		set forth in the notice. 161
215	215		(d) For the purposes of this section, the FTE of a full-time job or part-162
216	216		time job is based on the hours worked or expected to be worked by an 163
217	217		employee in a calendar year. A job in which an employee worked or is 164
218	218		expected to work one thousand seven hundred fifty hours or more in a 165
219	219		calendar year equals one FTE. A job in which an employee worked or is 166
220	220		expected to work less than one thousand seven hundred fifty hours 167
221	221		equals a fraction of one FTE, where the fraction is the number of hours 168
222	222		worked in a calendar year divided by one thousand seven hundred fifty. 169
223	223		The commissioner shall have the discretion to adjust the calculation of 170
224	224		FTE. 171
225	225		(e) (1) In each calendar year of the rebate period, a qualified business 172
226		-	approved by the commissioner pursuant to subdivision (3) of subsection 173 ~~Substitute~~ Bill No. 5127
	226	+	approved by the commissioner pursuant to subdivision (3) of subsection 173 Raised Bill No. 5127
227	227
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232	232
233	233		(c) of this section that employs at least twenty-five new FTEs in this state 174
234	234		by December thirty-first of the calendar year that is two calendar years 175
235	235		prior to the calendar year in which the rebate is being claimed shall be 176
236	236		allowed a rebate equal to the greater of the following amounts: 177
237	237		(A) The sum of: 178
238	238		(i) The lesser of (I) the new FTEs created in an opportunity zone or 179
239	239		distressed municipality on December thirty-first of the calendar year 180
240	240		that is two calendar years prior to the calendar year in which the rebate 181
241	241		is being claimed, or (II) the new FTEs maintained in an opportunity zone 182
242	242		or distressed municipality in the previous calendar year, multiplied by 183
243	243		fifty per cent of the income tax that would be paid on the average wage 184
244	244		of the new FTEs, as determined by the applicable marginal rate set forth 185
245	245		in chapter 229 of the general statutes for an unmarried individual based 186
246	246		solely on such wages; and 187
247	247		(ii) The lesser of (I) the new FTEs created on December thirty-first of 188
248	248		the calendar year that is two calendar years prior to the calendar year in 189
249	249		which the rebate is being claimed, or (II) the new FTEs maintained in a 190
250	250		location other than an opportunity zone or distressed municipality in 191
251	251		the previous calendar year, multiplied by twenty-five per cent of the 192
252	252		income tax that would be paid on the average wage of the new FTEs, as 193
253	253		determined by the applicable marginal rate set forth in chapter 229 of 194
254	254		the general statutes for an unmarried individual based solely on such 195
255	255		wages; or 196
256	256		(B) The greater of: 197
257	257		(i) One thousand dollars multiplied by the lesser of (I) the new FTEs 198
258	258		created by December thirty-first of the calendar year that is two calendar 199
259	259		years prior to the calendar year in which the rebate is being claimed, or 200
260	260		(II) the new FTEs maintained in the calendar year immediately prior to 201
261	261		the calendar year in which the rebate is being claimed; or 202
262	262		(ii) For tax credits earned, claimed or payable prior to January 1, 2024, 203
263		-	two thousand dollars multiplied by the lesser of (I) the new FTEs created 204 ~~Substitute~~ Bill No. 5127
	263	+	two thousand dollars multiplied by the lesser of (I) the new FTEs created 204 Raised Bill No. 5127
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269	269
270	270		by December 31, 2022, or (II) the new FTEs maintained in the calendar 205
271	271		year immediately prior to the calendar year in which the rebate is being 206
272	272		claimed. 207
273	273		(2) In no event shall the rebate under this subsection exceed in any 208
274	274		calendar year of the rebate period five thousand dollars multiplied by 209
275	275		the lesser of (A) the new FTEs created by December thirty-first of the 210
276	276		calendar year that is two calendar years prior to the calendar year in 211
277	277		which the rebate is being claimed, or (B) the new FTEs maintained in the 212
278	278		calendar year immediately prior to the calendar year in which the rebate 213
279	279		is being claimed. 214
280	280		(3) In no event shall an approved qualified business receive a rebate 215
281	281		under this subsection in any calendar year of the rebate period if such 216
282	282		business has not maintained at least twenty-five new FTEs in the 217
283	283		calendar year immediately prior to the calendar year in which the rebate 218
284	284		is being claimed. 219
285	285		(f) (1) In each calendar year of the rebate period, a qualified business 220
286	286		approved by the commissioner pursuant to subdivision (4) of subsection 221
287	287		(c) of this section that employs at least twenty-five new discretionary 222
288	288		FTEs in this state by December thirty-first of the calendar year that is 223
289	289		two calendar years prior to the calendar year in which the rebate is being 224
290	290		claimed shall be allowed a rebate equal to the sum of the amount 225
291	291		calculated pursuant to subdivision (1) of subsection (e) of this section 226
292	292		and the greater of the following: 227
293	293		(A) The sum of: 228
294	294		(i) The lesser of the new discretionary FTEs (I) created in an 229
295	295		opportunity zone or distressed municipality on December thirty-first of 230
296	296		the calendar year that is two calendar years prior to the calendar year in 231
297	297		which the rebate is being claimed, or (II) maintained in an opportunity 232
298	298		zone or distressed municipality in the previous calendar year, 233
299	299		multiplied by fifty per cent of the income tax that would be paid on the 234
300		-	average wage of the new discretionary FTEs, as determined by the 235 ~~Substitute~~ Bill No. 5127
	300	+	average wage of the new discretionary FTEs, as determined by the 235 Raised Bill No. 5127
301	301
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306	306
307	307		applicable marginal rate set forth in chapter 229 of the general statutes 236
308	308		for an unmarried individual based solely on such wages; and 237
309	309		(ii) The lesser of the new discretionary FTEs (I) created on December 238
310	310		thirty-first of the calendar year that is two calendar years prior to the 239
311	311		calendar year in which the rebate is being claimed, or (II) maintained in 240
312	312		a location other than an opportunity zone or distressed municipality in 241
313	313		the previous calendar year, multiplied by twenty-five per cent of the 242
314	314		income tax that would be paid on the average wage of the new 243
315	315		discretionary FTEs, as determined by the applicable marginal rate set 244
316	316		forth in chapter 229 of the general statutes for an unmarried individual 245
317	317		based solely on such wages; or 246
318	318		(B) The greater of: 247
319	319		(i) Seven hundred fifty dollars multiplied by the lesser of the new 248
320	320		discretionary FTEs (I) created by December thirty-first of the calendar 249
321	321		year that is two calendar years prior to the calendar year in which the 250
322	322		rebate is being claimed, or (II) maintained in the calendar year 251
323	323		immediately prior to the calendar year in which the rebate is being 252
324	324		claimed; or 253
325	325		(ii) For tax credits earned, claimed or payable prior to January 1, 2024, 254
326	326		one thousand five hundred dollars multiplied by the lesser of (I) the new 255
327	327		FTEs created by December 31, 2022, or (II) the new FTEs maintained in 256
328	328		the calendar year immediately prior to the calendar year in which the 257
329	329		rebate is being claimed. 258
330	330		(2) In no event shall the rebate under this section exceed in any 259
331	331		calendar year of the rebate period five thousand dollars multiplied by 260
332	332		the lesser of the new discretionary FTEs (A) created by December thirty-261
333	333		first of the calendar year that is two calendar years prior to the calendar 262
334	334		year in which the rebate is being claimed, or (B) maintained in the 263
335	335		calendar year immediately prior to the calendar year in which the rebate 264
336	336		is being claimed. 265
337		-	(3) In no event shall an approved qualified business receive a rebate 266 ~~Substitute~~ Bill No. 5127
	337	+	(3) In no event shall an approved qualified business receive a rebate 266 Raised Bill No. 5127
338	338
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340	340		LCO 1160 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05127-
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343	343
344	344		under this subsection in any calendar year of the rebate period if such 267
345	345		business has not maintained at least twenty-five new discretionary FTEs 268
346	346		in the calendar year immediately prior to the calendar year in which the 269
347	347		rebate is being claimed. 270
348	348		(g) (1) Notwithstanding the provisions of subdivisions (3) and (4) of 271
349	349		subsection (c) of this section, the commissioner may not approve an 272
350	350		application in whole or in part if the full amount of rebates that such 273
351	351		applicant may be paid pursuant to subsection (e) or (f) of this section 274
352	352		would result in the aggregate amount of rebates issued to all approved 275
353	353		qualified businesses under this section exceeding forty million dollars 276
354	354		in any fiscal year. 277
355	355		(2) Notwithstanding the provisions of subdivision (4) of subsection 278
356	356		(c) of this section, the commissioner may not approve an application in 279
357	357		whole or in part if the full amount of rebates that such applicant may be 280
358	358		paid pursuant to subsection (f) of this section would result in the 281
359	359		aggregate amount of rebates issued pursuant to subsection (f) of this 282
360	360		section exceeding ten million dollars in any fiscal year. 283
361	361		(h) (1) A rebate under this section may be granted to an approved 284
362	362		qualified business for not more than seven successive calendar years. A 285
363	363		rebate shall not be granted until at least twenty-four months after the 286
364	364		commissioner's approval of a qualified business' application. 287
365	365		(2) An approved qualified business that has fewer than twenty-five 288
366	366		new FTEs created in each of two consecutive calendar years or, if such 289
367	367		business is approved by the commissioner pursuant to subdivision (4) 290
368	368		of subsection (c) of this section, fewer than twenty-five new 291
369	369		discretionary FTEs in each of two consecutive calendar years shall 292
370	370		forfeit all remaining rebate allocations, unless the commissioner 293
371	371		recognizes mitigating circumstances of a regional or national nature, 294
372	372		including, but not limited to, a recession. 295
373	373		(i) Not later than January thirty-first of each year during the rebate 296
374		-	period, each approved qualified business shall provide information to 297 ~~Substitute~~ Bill No. 5127
	374	+	period, each approved qualified business shall provide information to 297 Raised Bill No. 5127
375	375
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380	380
381	381		the commissioner regarding the number of new FTEs or new 298
382	382		discretionary FTEs created or maintained during the prior calendar year 299
383	383		and the qualified wages of such new employees. Any information 300
384	384		provided under this subsection shall be subject to audit by the 301
385	385		Department of Economic and Community Development. 302
386	386		(j) Not later than March fifteenth of each year during the rebate 303
387	387		period, the Department of Economic and Community Development 304
388	388		shall issue the approved qualified business a rebate voucher that sets 305
389	389		forth the amount of the rebate, as calculated pursuant to subsections (e) 306
390	390		and (f) of this section, and the taxable year against which such rebate 307
391	391		may be claimed. The approved qualified business shall claim such 308
392	392		rebate as a credit against the taxes due under chapter 208 or 228z of the 309
393	393		general statutes or as an offset of the tax imposed under chapter 207 of 310
394	394		the general statutes. The commissioner shall annually provide to the 311
395	395		Commissioner of Revenue Services a report detailing all rebate vouchers 312
396	396		that have been issued under this section. 313
397	397		(k) Beginning on January 1, 2023, and annually thereafter, the 314
398	398		commissioner, in consultation with the office of the State Comptroller 315
399	399		and the Auditors of Public Accounts, shall submit a report to the Office 316
400	400		of Policy and Management on the expenses of the JobsCT tax rebate 317
401	401		program and the number of FTEs and discretionary FTEs created and 318
402	402		maintained. 319
403	403		Sec. 2. (NEW) (Effective July 1, 2022, and applicable to taxable years 320
404	404		commencing on or after January 1, 2023) As used in this section, "affected 321
405	405		business entity" and "member" have the same meanings as provided in 322
406	406		subsection (a) of section 12-699 of the general statutes. An affected 323
407	407		business entity that receives a rebate under section 1 of this act shall 324
408	408		claim such rebate as a credit against the tax due under chapter 228z of 325
409	409		the general statutes. If the amount of the rebate allowed pursuant to 326
410	410		section 1 of this act exceeds the liability for the tax imposed under 327
411	411		chapter 228z of the general statutes, the Commissioner of Revenue 328
412	412		Services shall treat such excess as an overpayment and shall refund the 329
413		-	amount of such excess, without interest, to the taxpayer. With respect to 330 ~~Substitute~~ Bill No. 5127
	413	+	amount of such excess, without interest, to the taxpayer. With respect to 330 Raised Bill No. 5127
414	414
415	415
416	416		LCO 1160 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05127-
417		-	~~R02~~-HB.docx }
	417	+	R01-HB.docx }
418	418		12 of 16
419	419
420	420		an affected business entity granted a rebate pursuant to section 1 of this 331
421	421		act, the credit available to the members of such entity pursuant to 332
422	422		subdivision (1) of subsection (g) of section 12-699 of the general statutes 333
423	423		shall be based upon the amount of tax due under chapter 228z of the 334
424	424		general statutes from such entity prior to the application of the rebate 335
425	425		granted pursuant to section 1 of this act and any other payments made 336
426	426		against such tax due. 337
427	427		Sec. 3. Subsection (b) of section 12-211a of the general statutes is 338
428	428		repealed and the following is substituted in lieu thereof (Effective July 1, 339
429	429		2022, and applicable to taxable years commencing on or after January 1, 2023): 340
430	430		[(b) (1) For a calendar year commencing on or after January 1, 2011, 341
431	431		and prior to January 1, 2013, the amount of tax credit or credits 342
432	432		otherwise allowable against the tax imposed under this chapter for such 343
433	433		calendar year may exceed the amount specified in subsection (a) of this 344
434	434		section only by the amount computed under subparagraph (A) of 345
435	435		subdivision (2) of this subsection, provided in no event may the amount 346
436	436		of tax credit or credits otherwise allowable against the tax imposed 347
437	437		under this chapter for such calendar year exceed one hundred per cent 348
438	438		of the amount of tax due from such taxpayer under this chapter with 349
439	439		respect to such calendar year of the taxpayer prior to the application of 350
440	440		such credit or credits. 351
441	441		(2) (A) The taxpayer's average monthly net employee gain for a 352
442	442		calendar year shall be multiplied by six thousand dollars. 353
443	443		(B) The taxpayer's average monthly net employee gain for a calendar 354
444	444		year shall be computed as follows: For each month in the calendar year, 355
445	445		the taxpayer shall subtract from the number of its employees in this state 356
446	446		on the last day of such month the number of its employees in this state 357
447	447		on the first day of the calendar year. The taxpayer shall total the 358
448	448		differences for the twelve months in the calendar year, and such total, 359
449	449		when divided by twelve, shall be the taxpayer's average monthly net 360
450	450		employee gain for the calendar year. For purposes of this computation, 361
451		-	only employees who are required to work at least thirty-five hours per 362 ~~Substitute~~ Bill No. 5127
	451	+	only employees who are required to work at least thirty-five hours per 362 Raised Bill No. 5127
452	452
453	453
454	454		LCO 1160 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05127-
455		-	~~R02~~-HB.docx }
	455	+	R01-HB.docx }
456	456		13 of 16
457	457
458	458		week and only employees who were not employed in this state by a 363
459	459		related person, as defined in section 12-217ii, within the twelve months 364
460	460		prior to the first day of the calendar year may be taken into account in 365
461	461		computing the number of employees. 366
462	462		(C) If the taxpayer's average monthly net employee gain is zero or 367
463	463		less than zero, the taxpayer may not exceed the amount specified in 368
464	464		subsection (a) of this section.] 369
465	465		(b) The amount of the rebate computed under section 1 of this act 370
466	466		shall be treated as an offset of the tax due under chapter 207 and may 371
467	467		exceed the amount specified in subsection (a) of this section. If the 372
468	468		amount of the rebate allowed pursuant to section 1 of this act exceeds 373
469	469		the taxpayer's liability for the tax imposed under this chapter, the 374
470	470		commissioner shall treat such excess as an overpayment and shall 375
471	471		refund the amount of such excess, without interest, to the taxpayer. 376
472	472		Sec. 4. Subsection (b) of section 12-217zz of the general statutes is 377
473	473		repealed and the following is substituted in lieu thereof (Effective July 1, 378
474	474		2022, and applicable to taxable years commencing on or after January 1, 2023): 379
475	475		[(b) (1) For an income year commencing on or after January 1, 2011, 380
476	476		and prior to January 1, 2013, the amount of tax credit or credits 381
477	477		otherwise allowable against the tax imposed under this chapter for such 382
478	478		income year may exceed the amount specified in subsection (a) of this 383
479	479		section only by the amount computed under subparagraph (A) of 384
480	480		subdivision (2) of this subsection, provided in no event may the amount 385
481	481		of tax credit or credits otherwise allowable against the tax imposed 386
482	482		under this chapter for such income year exceed one hundred per cent of 387
483	483		the amount of tax due from such taxpayer under this chapter with 388
484	484		respect to such income year of the taxpayer prior to the application of 389
485	485		such credit or credits. 390
486	486		(2) (A) The taxpayer's average monthly net employee gain for an 391
487	487		income year shall be multiplied by six thousand dollars. 392
488		-	(B) The taxpayer's average monthly net employee gain for an income 393 ~~Substitute~~ Bill No. 5127
	488	+	(B) The taxpayer's average monthly net employee gain for an income 393 Raised Bill No. 5127
489	489
490	490
491	491		LCO 1160 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05127-
492		-	~~R02~~-HB.docx }
	492	+	R01-HB.docx }
493	493		14 of 16
494	494
495	495		year shall be computed as follows: For each month in the taxpayer's 394
496	496		income year, the taxpayer shall subtract from the number of its 395
497	497		employees in this state on the last day of such month the number of its 396
498	498		employees in this state on the first day of its income year. The taxpayer 397
499	499		shall total the differences for the twelve months in such income year, 398
500	500		and such total, when divided by twelve, shall be the taxpayer's average 399
501	501		monthly net employee gain for the income year. For purposes of this 400
502	502		computation, only employees who are required to work at least thirty-401
503	503		five hours per week and only employees who were not employed in this 402
504	504		state by a related person, as defined in section 12-217ii, within the twelve 403
505	505		months prior to the first day of the income year may be taken into 404
506	506		account in computing the number of employees. 405
507	507		(C) If the taxpayer's average monthly net employee gain is zero or 406
508	508		less than zero, the taxpayer may not exceed the seventy per cent limit 407
509	509		imposed under subsection (a) of this section.] 408
510	510		(b) The amount of the rebate computed under section 1 of this act 409
511	511		shall be treated as a credit and may exceed the amount specified in 410
512	512		subsection (a) of this section. If the amount of the rebate allowed 411
513	513		pursuant to section 1 of this act exceeds the taxpayer's liability for the 412
514	514		tax imposed under this chapter, the commissioner shall treat such excess 413
515	515		as an overpayment and shall refund the amount of such excess, without 414
516	516		interest, to the taxpayer. 415
517	517		Sec. 5. Section 12-217aa of the general statutes is repealed and the 416
518	518		following is substituted in lieu thereof (Effective July 1, 2022, and 417
519	519		applicable to income years beginning on or after January 1, 2023): 418
520	520		(a) Except as otherwise provided in section 12-217t and subsection (c) 419
521	521		of this section, whenever a company is eligible to claim more than one 420
522	522		corporation business tax credit, the credits shall be claimed for the 421
523	523		income year in the following order: (1) Any credit that may be carried 422
524	524		backward to a preceding income year or years shall first be claimed (A) 423
525	525		with any credit carry-back that will expire first being claimed before any 424
526		-	credit carry-back that will expire later or will not expire at all, and (B) if 425 ~~Substitute~~ Bill No. 5127
	526	+	credit carry-back that will expire later or will not expire at all, and (B) if 425 Raised Bill No. 5127
527	527
528	528
529	529		LCO 1160 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05127-
530		-	~~R02~~-HB.docx }
	530	+	R01-HB.docx }
531	531		15 of 16
532	532
533	533		the credit carry-backs will expire at the same time, in the order in which 426
534	534		the company may receive the maximum benefit; (2) any credit that may 427
535	535		not be carried backward to a preceding income year or years and that 428
536	536		may not be carried forward to a succeeding income year or years shall 429
537	537		next be claimed, in the order in which the company may receive the 430
538	538		maximum benefit; and (3) any credit that may be carried forward to a 431
539	539		succeeding income year or years shall next be claimed (A) with any 432
540	540		credit carry-forward that will expire first being claimed before any 433
541	541		credit carry-forward that will expire later or will not expire at all, and 434
542	542		(B) if the credit carry-forwards will expire at the same time, in the order 435
543	543		in which the company may receive the maximum benefit. 436
544	544		(b) In no event shall any credit be claimed more than once. 437
545	545		(c) The rebate allowed pursuant to section 1 of this act shall be 438
546	546		claimed after all other credits have been claimed. 439
547	547		This act shall take effect as follows and shall amend the following
548	548		sections:
549	549
550	550		Section 1 July 1, 2022, and
551	551		applicable to taxable years
552	552		commencing on or after
553	553		January 1, 2023
554	554		New section
555	555		Sec. 2 July 1, 2022, and
556	556		applicable to taxable years
557	557		commencing on or after
558	558		January 1, 2023
559	559		New section
560	560		Sec. 3 July 1, 2022, and
561	561		applicable to taxable years
562	562		commencing on or after
563	563		January 1, 2023
564	564		12-211a(b)
565	565		Sec. 4 July 1, 2022, and
566	566		applicable to taxable years
567	567		commencing on or after
568	568		January 1, 2023
569		-	12-217zz(b) ~~Substitute~~ Bill No. 5127
	569	+	12-217zz(b) Raised Bill No. 5127
570	570
571	571
572	572		LCO 1160 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05127-
573		-	~~R02~~-HB.docx }
	573	+	R01-HB.docx }
574	574		16 of 16
575	575
576	576		Sec. 5 July 1, 2022, and
577	577		applicable to income years
578	578		beginning on or after
579	579		January 1, 2023
580	580		12-217aa
581	581
582	582		CE Joint Favorable C/R FIN
583		-	FIN Joint Favorable
584	583