Connecticut 2022 Regular Session

Connecticut House Bill HB05505 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+
	2	+
	3	+	LCO No. 5416 1 of 15
	4	+
	5	+	General Assembly Bill No. 5505
	6	+	February Session, 2022
	7	+	LCO No. 5416
	8	+
	9	+
	10	+	Referred to Committee on No Committee
	11	+
	12	+
	13	+	Introduced by:
	14	+	REP. RITTER M., 1
	15	+	st
	16	+	Dist.
	17	+	SEN. LOONEY, 11
	18	+	th
	19	+	Dist.
	20	+	REP. ROJAS, 9
	21	+	th
	22	+	Dist.
	23	+
	24	+	SEN. DUFF, 25
	25	+	th
	26	+	Dist.
	27	+	REP. CANDELORA V., 86
	28	+	th
	29	+	Dist.
	30	+	SEN. KELLY, 21
	31	+	st
	32	+	Dist.
1	33
2	34
3	35
4		-	House Bill No. 5505
5		-
6		-	Public Act No. 22-4
7	36
8	37
9	38		AN ACT CONCERNING CERTAIN AEROSPACE MANUFACTURING
10	39		PROJECTS.
11	40		Be it enacted by the Senate and House of Representatives in General
12	41		Assembly convened:
13	42
14		-	Section 1. (NEW) (Effective from passage) (a) As used in this section:
15		-	(1) "Aerospace manufacturing project" means a project involving the
16		-	production of helicopters in this state that, if certified by the
17		-	commissioner as provided in subsection (b) of this section, will require
18		-	(A) primary helicopter production for current United States government
19		-	programs specified in the assistance agreement, as of the date of the
20		-	assistance agreement, to be carried out at one or more facilities in this
21		-	state, (B) the undertaking and maintaining of primary production for
22		-	helicopters to be produced during the term of the assistance agreement
23		-	under one or more future United States government programs specified
24		-	in the assistance agreement under production contracts entered into by
25		-	the eligible taxpayer after the effective date of this section, to be carried
26		-	out at one or more facilities in this state, and (C) minimum requirements
27		-	for total employment in this state, average employee wages in this state,
28		-	supplier spend and capital expenditures by an eligible taxpayer in
29		-	furtherance of such project continuing through at least June 30, 2042;
30		-	(2) "Annual recapture amount" means the total project tax benefits House Bill No. 5505
	43	+	Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
	44	+	(1) "Aerospace manufacturing project" means a project involving the 2
	45	+	production of helicopters in this state that, if certified by the 3
	46	+	commissioner as provided in subsection (b) of this section, will require 4
	47	+	(A) primary helicopter production for current United States government 5
	48	+	programs specified in the assistance agreement, as of the date of the 6
	49	+	assistance agreement, to be carried out at one or more facilities in this 7
	50	+	state, (B) the undertaking and maintaining of primary production for 8
	51	+	helicopters to be produced during the term of the assistance agreement 9
	52	+	under one or more future United States government programs specified 10
	53	+	in the assistance agreement under production contracts entered into by 11
	54	+	the eligible taxpayer after the effective date of this section, to be carried 12
	55	+	out at one or more facilities in this state, and (C) minimum requirements 13
	56	+	Bill No.
31	57
32		-	Public Act No. 22-4 2 of 15
33	58
34		-	utilized by an eligible taxpayer divided by ten;
35		-	(3) "Assistance agreement" means a contract entered into between the
36		-	commissioner and an eligible taxpayer in accordance with subsection (c)
37		-	of this section, including any amendments to or extensions of such
38		-	contract;
39		-	(4) "Average wage requirement" means, for compliance years
40		-	commencing on or after July 1, 2022, and prior to July 1, 2032, an average
41		-	annual wage for full-time employees in this state that is not less than the
42		-	amounts specified in the assistance agreement;
43		-	(5) "Benefit period" means the period commencing on the effective
44		-	date of the assistance agreement and ending on June 30, 2032;
45		-	(6) "Capital expenditure" means bona fide costs to the wholly-owned
46		-	subsidiary and its subsidiaries for: (A) Acquisition of lands, buildings,
47		-	machinery, equipment or any combination thereof; (B) site and
48		-	infrastructure improvements; (C) planning costs; (D) research and
49		-	development expenses, as defined in section 12-217n of the general
50		-	statutes, revision of 1958, revised to January 1, 2021, and including, but
51		-	not limited to, development of new products and markets; and (E)
52		-	development of diversification strategies, including plans for regional
53		-	diversification strategies and consultants required for the completion of
54		-	such strategies and plans;
55		-	(7) "Capital expenditure requirement" means, for compliance years
56		-	commencing on or after July 1, 2022, and prior to July 1, 2032, a total
57		-	annual amount of capital expenditures made in this state by the wholly-
58		-	owned subsidiary that is not less than:
59		-	(A) Seventy million two hundred thousand dollars for the
60		-	compliance year ending June 30, 2023;
61		-	(B) Seventy-one million one hundred thousand dollars for the House Bill No. 5505
62	59
63		-	~~Public Act~~ No. ~~22-4~~ 3 of 15
	60	+	LCO No. 5416 2 of 15
64	61
65		-	compliance year ending June 30, 2024;
66		-	(C) Seventy-two million nine hundred thousand dollars for the
67		-	compliance year ending June 30, 2025;
68		-	(D) Seventy-three million eight hundred thousand dollars for the
69		-	compliance year ending June 30, 2026;
70		-	(E) Seventy-five million six hundred thousand dollars for the
71		-	compliance year ending June 30, 2027;
72		-	(F) Seventy-seven million four hundred thousand dollars for the
73		-	compliance year ending June 30, 2028;
74		-	(G) Seventy-eight million three hundred thousand dollars for the
75		-	compliance year ending June 30, 2029;
76		-	(H) Eighty million one hundred thousand dollars for the compliance
77		-	year ending June 30, 2030;
78		-	(I) Eighty-one million nine hundred thousand dollars for the
79		-	compliance year ending June 30, 2031; and
80		-	(J) Eighty-three million seven hundred thousand dollars for the
81		-	compliance year ending June 30, 2032;
82		-	(8) "Commissioner" means the Commissioner of Economic and
83		-	Community Development;
84		-	(9) "Company" means an entity with a place of business or a wholly-
85		-	owned subsidiary located in this state and the direct and indirect
86		-	subsidiaries and affiliates of such entity;
87		-	(10) "Compliance year" means each twelve -month period
88		-	commencing July first and continuing through June thirtieth of the
89		-	following year, provided the initial compliance year shall commence on House Bill No. 5505
	62	+	for total employment in this state, average employee wages in this state, 14
	63	+	supplier spend and capital expenditures by an eligible taxpayer in 15
	64	+	furtherance of such project continuing through at least June 30, 2042; 16
	65	+	(2) "Annual recapture amount" means the total project tax benefits 17
	66	+	utilized by an eligible taxpayer divided by ten; 18
	67	+	(3) "Assistance agreement" means a contract entered into between the 19
	68	+	commissioner and an eligible taxpayer in accordance with subsection (c) 20
	69	+	of this section, including any amendments to or extensions of such 21
	70	+	contract; 22
	71	+	(4) "Average wage requirement" means, for compliance years 23
	72	+	commencing on or after July 1, 2022, and prior to July 1, 2032, an average 24
	73	+	annual wage for full-time employees in this state that is not less than the 25
	74	+	amounts specified in the assistance agreement; 26
	75	+	(5) "Benefit period" means the period commencing on the effective 27
	76	+	date of the assistance agreement and ending on June 30, 2032; 28
	77	+	(6) "Capital expenditure" means bona fide costs to the wholly-owned 29
	78	+	subsidiary and its subsidiaries for: (A) Acquisition of lands, buildings, 30
	79	+	machinery, equipment or any combination thereof; (B) site and 31
	80	+	infrastructure improvements; (C) planning costs; (D) research and 32
	81	+	development expenses, as defined in section 12-217n of the general 33
	82	+	statutes, revision of 1958, revised to January 1, 2021, and including, but 34
	83	+	not limited to, development of new products and markets; and (E) 35
	84	+	development of diversification strategies, including plans for regional 36
	85	+	diversification strategies and consultants required for the completion of 37
	86	+	such strategies and plans; 38
	87	+	(7) "Capital expenditure requirement" means, for compliance years 39
	88	+	commencing on or after July 1, 2022, and prior to July 1, 2032, a total 40
	89	+	annual amount of capital expenditures made in this state by the wholly-41
	90	+	owned subsidiary that is not less than: 42
	91	+	Bill No.
90	92
91		-	Public Act No. 22-4 4 of 15
92	93
93		-	July 1, 2022, and end on June 30, 2023, and the last compliance year shall
94		-	commence on July 1, 2031, and end on June 30, 2032. "Annual" refers to
95		-	a compliance year;
96		-	(11) "Contract year" means each twelve-month period commencing
97		-	July first and continuing through June thirtieth of the following year,
98		-	provided the initial contract year shall commence on July 1, 2022, and
99		-	end on June 30, 2023, and the last contract year shall commence on July
100		-	1, 2041, and end on June 30, 2042;
101		-	(12) "Corporation business tax" means the tax due under chapter 208
102		-	of the general statutes;
103		-	(13) "Eligible taxpayer" means a company that, at the time application
104		-	is made under subsection (b) of this section, (A) is engaged in the
105		-	aerospace industry, (B) employs not less than seven thousand
106		-	individuals in this state, (C) operates the company's primary helicopter
107		-	production facility for its current United States government programs
108		-	in this state, (D) plans to bid on a production contract or contracts for a
109		-	helicopter under one or more United States government programs, and
110		-	(E) has a wholly-owned subsidiary with production facilities and its
111		-	headquarters, as set forth in the assistance agreement, in this state prior
112		-	to the effective date of this section;
113		-	(14) (A) "Employee requirement" means, for compliance years
114		-	commencing on or after July 1, 2022, and prior to July 1, 2032:
115		-	(i) A minimum level of full-time employees in this state that is not
116		-	less than an average of seven thousand three hundred seventy-five for
117		-	each compliance year if the eligible taxpayer has entered into a
118		-	production contract for one United States government program
119		-	specified in the assistance agreement; and
120		-	(ii) A minimum level of full-time employees in this state that is not
121		-	less than an average of seven thousand five hundred for each House Bill No. 5505
122	94
123		-	~~Public Act~~ No. ~~22-4~~ 5 of 15
	95	+	LCO No. 5416 3 of 15
124	96
125		-	compliance year if the eligible taxpayer has entered into production
126		-	contracts for two United States government programs specified in the
127		-	assistance agreement.
128		-	(B) The average number of full-time employees for each compliance
129		-	year shall be determined by adding the number of full-time employees
130		-	at the end of each quarter of the respective compliance year and
131		-	dividing the sum of such quarters by four;
132		-	(15) "Full-time employee" means an employee in this state of the
133		-	company who works a minimum of thirty-five hours per week. "Full-
134		-	time employee" does not include an employee working on a temporary
135		-	or seasonal basis or any individual who does not receive a federal Form
136		-	W-2 from the company;
137		-	(16) "Minimum requirements" means the minimum conditions the
138		-	eligible taxpayer must satisfy during each compliance year to qualify for
139		-	the sales and use tax offset for such compliance year and the refundable
140		-	tax credit for such compliance year, including, but not limited to, (A)
141		-	achieving the employee requirement, average wage requirement,
142		-	supplier spend requirement and capital expenditure requirement, (B)
143		-	the maintenance of the wholly-owned subsidiary's headquarters, as set
144		-	forth in the assistance agreement, in this state, (C) the maintenance and
145		-	operation of the company's primary helicopter production facility for its
146		-	current United States government programs, as of the date of the
147		-	assistance agreement, in this state, (D) the undertaking and maintaining
148		-	in this state of the company's primary production for helicopters to be
149		-	produced during the term of the assistance agreement under one or
150		-	more future United States government programs specified in the
151		-	assistance agreement under production contracts entered into by the
152		-	eligible taxpayer after the effective date of this section, and (E) the
153		-	maintenance of diversity and workforce training programs by the
154		-	company in accordance with the terms of the assistance agreement; House Bill No. 5505
	97	+	(A) Seventy million two hundred thousand dollars for the 43
	98	+	compliance year ending June 30, 2023; 44
	99	+	(B) Seventy-one million one hundred thousand dollars for the 45
	100	+	compliance year ending June 30, 2024; 46
	101	+	(C) Seventy-two million nine hundred thousand dollars for the 47
	102	+	compliance year ending June 30, 2025; 48
	103	+	(D) Seventy-three million eight hundred thousand dollars for the 49
	104	+	compliance year ending June 30, 2026; 50
	105	+	(E) Seventy-five million six hundred thousand dollars for the 51
	106	+	compliance year ending June 30, 2027; 52
	107	+	(F) Seventy-seven million four hundred thousand dollars for the 53
	108	+	compliance year ending June 30, 2028; 54
	109	+	(G) Seventy-eight million three hundred thousand dollars for the 55
	110	+	compliance year ending June 30, 2029; 56
	111	+	(H) Eighty million one hundred thousand dollars for the compliance 57
	112	+	year ending June 30, 2030; 58
	113	+	(I) Eighty-one million nine hundred thousand dollars for the 59
	114	+	compliance year ending June 30, 2031; and 60
	115	+	(J) Eighty-three million seven hundred thousand dollars for the 61
	116	+	compliance year ending June 30, 2032; 62
	117	+	(8) "Commissioner" means the Commissioner of Economic and 63
	118	+	Community Development; 64
	119	+	(9) "Company" means an entity with a place of business or a wholly-65
	120	+	owned subsidiary located in this state and the direct and indirect 66
	121	+	subsidiaries and affiliates of such entity; 67
	122	+	(10) "Compliance year" means each twelve -month period 68
	123	+	Bill No.
155	124
156		-	Public Act No. 22-4 6 of 15
157	125
158		-	(17) "Production" means the various operations related to the
159		-	completion of a helicopter, including, but not limited to, procurement,
160		-	engineering, manufacture, assembly, integration and testing;
161		-	(18) "Production contract" means a contract with the United States
162		-	government for the production of helicopters;
163		-	(19) "Project tax benefit" means the total benefit accruing to an eligible
164		-	taxpayer with respect to the sales and use tax offset and the refundable
165		-	tax credit;
166		-	(20) "Refundable tax credit" means the credit described in subsection
167		-	(e) of this section;
168		-	(21) "Regular place of business" means any bona fide office, factory,
169		-	warehouse or other space in this state at which a supply company is
170		-	doing business in its own name in a regular and systematic manner and
171		-	which place is continuously maintained, occupied and used by the
172		-	supply company in carrying on its business through its employees
173		-	regularly in attendance to carry on the supply company's business in the
174		-	supply company's own name. "Regular place of business" does not
175		-	include a place of business for a statutory agent for service of process, a
176		-	temporary office or location used by the supply company only for the
177		-	duration of the contract or an office maintained, occupied and used by
178		-	a person affiliated with the supply company;
179		-	(22) "Sales and use tax" means the taxes due under chapter 219 of the
180		-	general statutes;
181		-	(23) "Sales and use tax offset" means the offset described under
182		-	subsection (d) of this section;
183		-	(24) "Supply company" means any commercial business with a
184		-	regular place of business in this state that supplies goods and services
185		-	necessary to support (A) the manufacturing of company products, or (B) House Bill No. 5505
186	126
187		-	~~Public Act~~ No. ~~22-4~~ 7 of 15
	127	+	LCO No. 5416 4 of 15
188	128
189		-	company operations. "Supply company" does not include any local,
190		-	state or federal revenue collection or taxing entity;
191		-	(25) (A) "Supplier spend requirement" means, for compliance years
192		-	commencing on or after July 1, 2022, and prior to July 1, 2032, the total
193		-	annual spend by the wholly-owned subsidiary and by the company, on
194		-	behalf of the wholly-owned subsidiary, with supply companies in this
195		-	state of not less than:
196		-	(i) Three hundred million dollars for compliance years commencing
197		-	on or after July 1, 2022, and prior to July 1, 2024;
198		-	(ii) Four hundred ten million dollars for compliance years
199		-	commencing on or after July 1, 2024, and prior to July 1, 2029; and
200		-	(iii) Four hundred seventy million dollars for compliance years
201		-	commencing on or after July 1, 2029, and prior to July 1, 2032.
202		-	(B) If an expenditure qualifies for both the supplier spend
203		-	requirement and the capital expenditures requirement, the eligible
204		-	taxpayer may choose between such categories for which such
205		-	expenditure may be counted. In no event shall any such expenditure be
206		-	counted towards more than one such category; and
207		-	(26) "Wholly-owned subsidiary" means a subsidiary of the company,
208		-	or such subsidiary's successor to its operations, that has its
209		-	headquarters, as set forth in the assistance agreement, in this state.
210		-	"Wholly-owned subsidiary" includes any direct or indirect subsidiary of
211		-	the company's wholly-owned subsidiary and any limited liability
212		-	company wholly owned directly or indirectly by the company's wholly-
213		-	owned subsidiary.
214		-	(b) (1) Any eligible taxpayer that intends to undertake an aerospace
215		-	manufacturing project may apply to the commissioner for certification
216		-	of such project as a certified aerospace manufacturing project. In order House Bill No. 5505
	129	+	commencing July first and continuing through June thirtieth of the 69
	130	+	following year, provided the initial compliance year shall commence on 70
	131	+	July 1, 2022, and end on June 30, 2023, and the last compliance year shall 71
	132	+	commence on July 1, 2031, and end on June 30, 2032. "Annual" refers to 72
	133	+	a compliance year; 73
	134	+	(11) "Contract year" means each twelve-month period commencing 74
	135	+	July first and continuing through June thirtieth of the following year, 75
	136	+	provided the initial contract year shall commence on July 1, 2022, and 76
	137	+	end on June 30, 2023, and the last contract year shall commence on July 77
	138	+	1, 2041, and end on June 30, 2042; 78
	139	+	(12) "Corporation business tax" means the tax due under chapter 208 79
	140	+	of the general statutes; 80
	141	+	(13) "Eligible taxpayer" means a company that, at the time application 81
	142	+	is made under subsection (b) of this section, (A) is engaged in the 82
	143	+	aerospace industry, (B) employs not less than seven thousand 83
	144	+	individuals in this state, (C) operates the company's primary helicopter 84
	145	+	production facility for its current United States government programs 85
	146	+	in this state, (D) plans to bid on a production contract or contracts for a 86
	147	+	helicopter under one or more United States government programs, and 87
	148	+	(E) has a wholly-owned subsidiary with production facilities and its 88
	149	+	headquarters, as set forth in the assistance agreement, in this state prior 89
	150	+	to the effective date of this section; 90
	151	+	(14) (A) "Employee requirement" means, for compliance years 91
	152	+	commencing on or after July 1, 2022, and prior to July 1, 2032: 92
	153	+	(i) A minimum level of full-time employees in this state that is not 93
	154	+	less than an average of seven thousand three hundred seventy-five for 94
	155	+	each compliance year if the eligible taxpayer has entered into a 95
	156	+	production contract for one United States government program 96
	157	+	specified in the assistance agreement; and 97
	158	+	(ii) A minimum level of full-time employees in this state that is not 98
	159	+	Bill No.
217	160
218		-	Public Act No. 22-4 8 of 15
219	161
220		-	to receive such certification, an eligible taxpayer shall apply to the
221		-	commissioner, in a form acceptable to the commissioner and including
222		-	such information as prescribed by the commissioner, including, but not
223		-	limited to, (A) a detailed plan outlining the aerospace manufacturing
224		-	project, (B) the term of such project, and (C) the estimated expenditures
225		-	for such project. The commissioner may require such eligible taxpayer
226		-	to submit such additional information as may be necessary to evaluate
227		-	the application.
228		-	(2) All decisions of the commissioner with respect to any application
229		-	received under subdivision (1) of this subsection shall be made in the
230		-	commissioner's discretion. The provisions of this subsection shall not be
231		-	construed to authorize suit against this state by any taxpayer that is
232		-	denied certification by the commissioner and shall not be construed as
233		-	a waiver of sovereign immunity.
234		-	(c) (1) Upon certification by the commissioner of an application as
235		-	provided in subsection (b) of this section, the commissioner may enter
236		-	into an assistance agreement with an eligible taxpayer pursuant to
237		-	which the commissioner may, in consideration of the eligible taxpayer's
238		-	agreement to meet the minimum requirements in a compliance year in
239		-	connection with the certified aerospace manufacturing project and as
240		-	further inducement for the eligible taxpayer to enter into an aerospace
241		-	manufacturing project, agree to permit the eligible taxpayer to offset its
242		-	sales and use tax liability and to claim a credit against its corporation
243		-	business tax liability up to a specified amount for the corresponding
244		-	compliance year.
245		-	(2) Such assistance agreement shall have a term of not less than
246		-	twenty years and shall list:
247		-	(A) The specifications of the certified aerospace manufacturing
248		-	project; House Bill No. 5505
249	162
250		-	~~Public Act~~ No. ~~22-4~~ 9 of 15
	163	+	LCO No. 5416 5 of 15
251	164
252		-	(B) The length of time the certified aerospace manufacturing project
253		-	will take to complete;
254		-	(C) The minimum requirements the eligible taxpayer agrees to meet
255		-	during each compliance year;
256		-	(D) The commitment by the eligible taxpayer to (i) maintain the
257		-	headquarters, as set forth in the assistance agreement, of the wholly-
258		-	owned subsidiary or its successor in this state, (ii) operate its primary
259		-	helicopter production facility for its current United States government
260		-	programs, as of the date of the assistance agreement, in this state, and
261		-	(iii) to undertake and maintain its primary production of helicopters to
262		-	be produced during the term of the assistance agreement under one or
263		-	more future United States government programs specified in the
264		-	assistance agreement in this state under production contracts entered
265		-	into by the eligible taxpayer after the effective date of this section;
266		-	(E) The amount of sales and use tax that the eligible taxpayer is
267		-	eligible to offset for each compliance year set forth in the assistance
268		-	agreement, provided the eligible taxpayer meets the minimum
269		-	requirements for each such compliance year;
270		-	(F) The terms and conditions of the repayment of any sales and use
271		-	tax offsets and other required financial penalties resulting from the
272		-	eligible taxpayer's failure to comply with the terms of the assistance
273		-	agreement;
274		-	(G) The amount of corporation business tax, subject to the limits set
275		-	forth in subsection (e) of this section, against which the eligible taxpayer
276		-	is eligible to claim a credit for each compliance year set forth in the
277		-	assistance agreement, provided the eligible taxpayer meets the
278		-	minimum requirements for each such compliance year;
279		-	(H) The manner and method for the eligible taxpayer to provide
280		-	notice of any disputed claim under the assistance agreement; and House Bill No. 5505
	165	+	less than an average of seven thousand five hundred for each 99
	166	+	compliance year if the eligible taxpayer has entered into production 100
	167	+	contracts for two United States government programs specified in the 101
	168	+	assistance agreement. 102
	169	+	(B) The average number of full-time employees for each compliance 103
	170	+	year shall be determined by adding the number of full-time employees 104
	171	+	at the end of each quarter of the respective compliance year and 105
	172	+	dividing the sum of such quarters by four; 106
	173	+	(15) "Full-time employee" means an employee in this state of the 107
	174	+	company who works a minimum of thirty-five hours per week. "Full-108
	175	+	time employee" does not include an employee working on a temporary 109
	176	+	or seasonal basis or any individual who does not receive a federal Form 110
	177	+	W-2 from the company; 111
	178	+	(16) "Minimum requirements" means the minimum conditions the 112
	179	+	eligible taxpayer must satisfy during each compliance year to qualify for 113
	180	+	the sales and use tax offset for such compliance year and the refundable 114
	181	+	tax credit for such compliance year, including, but not limited to, (A) 115
	182	+	achieving the employee requirement, average wage requirement, 116
	183	+	supplier spend requirement and capital expenditure requirement, (B) 117
	184	+	the maintenance of the wholly-owned subsidiary's headquarters, as set 118
	185	+	forth in the assistance agreement, in this state, (C) the maintenance and 119
	186	+	operation of the company's primary helicopter production facility for its 120
	187	+	current United States government programs, as of the date of the 121
	188	+	assistance agreement, in this state, (D) the undertaking and maintaining 122
	189	+	in this state of the company's primary production for helicopters to be 123
	190	+	produced during the term of the assistance agreement under one or 124
	191	+	more future United States government programs specified in the 125
	192	+	assistance agreement under production contracts entered into by the 126
	193	+	eligible taxpayer after the effective date of this section, and (E) the 127
	194	+	maintenance of diversity and workforce training programs by the 128
	195	+	company in accordance with the terms of the assistance agreement; 129
	196	+	Bill No.
281	197
282		-	Public Act No. 22-4 10 of 15
283	198
284		-	(I) Any other terms and conditions the commissioner may require.
285		-	(3) The assistance agreement shall provide that the project tax benefit
286		-	be earned and utilized during the first eight years of the term of any
287		-	production contract, provided no project tax benefit may be earned or
288		-	utilized beyond the benefit period.
289		-	(4) Any eligible taxpayer that enters into an assistance agreement
290		-	with the commissioner under this subsection may, in the event of any
291		-	disputed claim under such assistance agreement, bring an action against
292		-	this state to the superior court for the judicial district of Hartford for the
293		-	purpose of having such claim determined, provided notice of such
294		-	disputed claim is first given to the commissioner in the manner and
295		-	method described in such assistance agreement. No such action shall be
296		-	allowed unless it is brought not later than two years after the date on
297		-	which the eligible taxpayer gave proper notice to the commissioner in
298		-	accordance with such assistance agreement. All legal defenses under
299		-	such assistance agreement, except sovereign immunity, are reserved to
300		-	this state.
301		-	(5) If the provisions of subsection (c) or (e) of section 32-223 of the
302		-	general statutes or section 32-462 of the general statutes are in conflict
303		-	with the assistance agreement, the provisions of such assistance
304		-	agreement shall supersede.
305		-	(6) Upon the execution of the assistance agreement, the commissioner
306		-	shall issue an allocation notice stating the maximum combined amount
307		-	of the sales and use tax offset and the refundable tax credit available to
308		-	the eligible taxpayer for the benefit period and the specific requirements
309		-	the eligible taxpayer shall meet to qualify for such offset and credit. Such
310		-	notice shall certify to the eligible taxpayer that the offsets and credits
311		-	may be claimed by the eligible taxpayer if the eligible taxpayer meets
312		-	the specific requirements set forth in the notice. House Bill No. 5505
313	199
314		-	~~Public Act~~ No. ~~22-4~~ 11 of 15
	200	+	LCO No. 5416 6 of 15
315	201
316		-	(d) (1) The assistance agreement shall provide for the offset of sales
317		-	and use tax amounts otherwise payable by the eligible taxpayer under
318		-	the provisions of chapter 219 of the general statutes. Such offset shall be
319		-	made in the form, timing and manner determined by the commissioner
320		-	in consultation with the Commissioner of Revenue Services. The sales
321		-	and use tax offset amounts shall be calculated after the application of all
322		-	other sales and use tax exemptions set forth in chapter 219 of the general
323		-	statutes in effect on the effective date of this section and any subsequent
324		-	amendments to said chapter that the eligible taxpayer is eligible to
325		-	claim. Nothing in this subsection shall affect the eligible taxpayer's
326		-	ability to claim the sales and use tax exemptions that it otherwise
327		-	qualifies for under any provision of the general statutes.
328		-	(2) Subsequent to a production contract taking effect for helicopters
329		-	to be produced during the term of the assistance agreement, not later
330		-	than sixty days after the end of each compliance year or, if the eligible
331		-	taxpayer requests and the commissioner approves an extended date, not
332		-	later than such extended date, the eligible taxpayer shall certify, subject
333		-	to a third-party audit performed in accordance with the Department of
334		-	Economic and Community Development audit guide or such protocols
335		-	as may be set forth in the assistance agreement, the actual employment,
336		-	wages, supplier spend and capital expenditure amounts to the
337		-	commissioner in accordance with the requirements of the assistance
338		-	agreement. If the results of such audit reveal that the eligible taxpayer
339		-	has claimed a sales and use tax offset in excess of the amount allowable,
340		-	the eligible taxpayer shall be subject to the repayment provisions as set
341		-	forth in the assistance agreement. At the end of each compliance year,
342		-	upon receipt of the eligible taxpayer's certification, the commissioner
343		-	shall notify the Commissioner of Revenue Services whether the eligible
344		-	taxpayer has met all minimum requirements necessary to qualify for the
345		-	sales and use tax offset or is required to repay the amount of such offset
346		-	in accordance with the terms of the assistance agreement. House Bill No. 5505
	202	+	(17) "Production" means the various operations related to the 130
	203	+	completion of a helicopter, including, but not limited to, procurement, 131
	204	+	engineering, manufacture, assembly, integration and testing; 132
	205	+	(18) "Production contract" means a contract with the United States 133
	206	+	government for the production of helicopters; 134
	207	+	(19) "Project tax benefit" means the total benefit accruing to an eligible 135
	208	+	taxpayer with respect to the sales and use tax offset and the refundable 136
	209	+	tax credit; 137
	210	+	(20) "Refundable tax credit" means the credit described in subsection 138
	211	+	(e) of this section; 139
	212	+	(21) "Regular place of business" means any bona fide office, factory, 140
	213	+	warehouse or other space in this state at which a supply company is 141
	214	+	doing business in its own name in a regular and systematic manner and 142
	215	+	which place is continuously maintained, occupied and used by the 143
	216	+	supply company in carrying on its business through its employees 144
	217	+	regularly in attendance to carry on the supply company's business in the 145
	218	+	supply company's own name. "Regular place of business" does not 146
	219	+	include a place of business for a statutory agent for service of process, a 147
	220	+	temporary office or location used by the supply company only for the 148
	221	+	duration of the contract or an office maintained, occupied and used by 149
	222	+	a person affiliated with the supply company; 150
	223	+	(22) "Sales and use tax" means the taxes due under chapter 219 of the 151
	224	+	general statutes; 152
	225	+	(23) "Sales and use tax offset" means the offset described under 153
	226	+	subsection (d) of this section; 154
	227	+	(24) "Supply company" means any commercial business with a 155
	228	+	regular place of business in this state that supplies goods and services 156
	229	+	necessary to support (A) the manufacturing of company products, or (B) 157
	230	+	company operations. "Supply company" does not include any local, 158
	231	+	Bill No.
347	232
348		-	Public Act No. 22-4 12 of 15
349	233
350		-	(e) (1) If the results of the audit performed pursuant to subdivision
351		-	(2) of subsection (d) of this section reveal that the eligible taxpayer was
352		-	unable to utilize all of the sales and use tax offset to which it was entitled
353		-	under the assistance agreement for a compliance year against its sales
354		-	and use tax liability, the assistance agreement shall permit the eligible
355		-	taxpayer to claim the excess amount as a refundable tax credit, not to
356		-	exceed five million dollars for each compliance year, against the
357		-	corporation business tax. If the amount of the excess is greater than five
358		-	million dollars for any compliance year, the excess over five million
359		-	dollars shall be carried forward to future compliance years to offset the
360		-	eligible taxpayer's sales and use tax liability and then as refundable tax
361		-	credits of up to five million dollars for each compliance year against the
362		-	eligible taxpayer's corporation business tax liability, until the excess is
363		-	fully utilized, except that no carry-forward shall extend beyond the
364		-	benefit period. Such carry-forward shall be utilized prior to any sales
365		-	and use tax offset earned in any subsequent compliance year.
366		-	(2) If the amount of the refundable tax credit exceeds the eligible
367		-	taxpayer's corporation business tax liability for the applicable income
368		-	year, the Commissioner of Revenue Services shall treat such excess as
369		-	an overpayment and shall refund the amount of such excess, without
370		-	interest, to the eligible taxpayer. In no event shall the refundable tax
371		-	credits allowed under this subsection exceed forty-five million dollars
372		-	in the aggregate over the term of the assistance agreement. The eligible
373		-	taxpayer shall claim the refundable tax credit allowed under this
374		-	subsection on its corporate tax return for the income year that ends
375		-	during the compliance year and such credit shall not be subject to the
376		-	limits set forth in section 12-217zz of the general statutes.
377		-	Notwithstanding the provisions of section 12-217aa of the general
378		-	statutes, such credit shall be claimed after all other tax credits have been
379		-	claimed.
380		-	(3) Not later than thirty days after the commissioner receives an audit House Bill No. 5505
381	234
382		-	~~Public Act~~ No. ~~22-4~~ 13 of 15
	235	+	LCO No. 5416 7 of 15
383	236
384		-	performed pursuant to subdivision (2) of subsection (d) of this section
385		-	or as provided for in the assistance agreement, during each year of the
386		-	benefit period, the Department of Economic and Community
387		-	Development shall issue the eligible taxpayer a credit voucher that sets
388		-	forth the amount of the refundable tax credit permitted pursuant to this
389		-	subsection and the income year for which such credit may be claimed.
390		-	The commissioner shall annually provide to the Commissioner of
391		-	Revenue Services a report detailing all credit vouchers that have been
392		-	issued under this subsection.
393		-	(f) (1) The eligible taxpayer shall pay the total amount of project tax
394		-	benefit that was utilized by the eligible taxpayer for a particular
395		-	compliance year and any penalty set forth in the assistance agreement if
396		-	the commissioner determines that the eligible taxpayer failed to satisfy
397		-	any of the minimum requirements for such compliance year.
398		-	(2) The project tax benefit utilized by the eligible taxpayer under
399		-	subsections (d) and (e) of this section shall be subject to recapture during
400		-	the contract years commencing on or after July 1, 2032, and ending on
401		-	June 30, 2042, if the eligible taxpayer fails to satisfy during such time
402		-	period certain annual thresholds relating to employee head count,
403		-	average wages, supplier spend and capital expenditures, as detailed in
404		-	the assistance agreement, and such other requirements including (A) the
405		-	maintenance of the wholly-owned subsidiary's headquarters, as set
406		-	forth in the assistance agreement, in this state, (B) the maintenance and
407		-	operation of the company's primary helicopter production facility for its
408		-	current United States government programs, as of the date of the
409		-	assistance agreement, in this state, (C) the undertaking and maintaining
410		-	in this state of the company's primary production for helicopters to be
411		-	produced during the term of the assistance agreement under one or
412		-	more of its future United States government programs specified in the
413		-	assistance agreement under production contracts entered into by the
414		-	eligible taxpayer after the effective date of this section, and (D) the House Bill No. 5505
	237	+	state or federal revenue collection or taxing entity; 159
	238	+	(25) (A) "Supplier spend requirement" means, for compliance years 160
	239	+	commencing on or after July 1, 2022, and prior to July 1, 2032, the total 161
	240	+	annual spend by the wholly-owned subsidiary and by the company, on 162
	241	+	behalf of the wholly-owned subsidiary, with supply companies in this 163
	242	+	state of not less than: 164
	243	+	(i) Three hundred million dollars for compliance years commencing 165
	244	+	on or after July 1, 2022, and prior to July 1, 2024; 166
	245	+	(ii) Four hundred ten million dollars for compliance years 167
	246	+	commencing on or after July 1, 2024, and prior to July 1, 2029; and 168
	247	+	(iii) Four hundred seventy million dollars for compliance years 169
	248	+	commencing on or after July 1, 2029, and prior to July 1, 2032. 170
	249	+	(B) If an expenditure qualifies for both the supplier spend 171
	250	+	requirement and the capital expenditures requirement, the eligible 172
	251	+	taxpayer may choose between such categories for which such 173
	252	+	expenditure may be counted. In no event shall any such expenditure be 174
	253	+	counted towards more than one such category; and 175
	254	+	(26) "Wholly-owned subsidiary" means a subsidiary of the company, 176
	255	+	or such subsidiary's successor to its operations, that has its 177
	256	+	headquarters, as set forth in the assistance agreement, in this state. 178
	257	+	"Wholly-owned subsidiary" includes any direct or indirect subsidiary of 179
	258	+	the company's wholly-owned subsidiary and any limited liability 180
	259	+	company wholly owned directly or indirectly by the company's wholly-181
	260	+	owned subsidiary. 182
	261	+	(b) (1) Any eligible taxpayer that intends to undertake an aerospace 183
	262	+	manufacturing project may apply to the commissioner for certification 184
	263	+	of such project as a certified aerospace manufacturing project. In order 185
	264	+	to receive such certification, an eligible taxpayer shall apply to the 186
	265	+	commissioner, in a form acceptable to the commissioner and including 187
	266	+	Bill No.
415	267
416		-	Public Act No. 22-4 14 of 15
417	268
418		-	maintenance of diversity and workforce training programs by the
419		-	company in accordance with the terms of the assistance agreement.
420		-	(3) If the eligible taxpayer enters into a production contract with the
421		-	United States government for one helicopter program specified in the
422		-	assistance agreement, the targeted job requirement shall be seven
423		-	thousand two hundred fifty, and the minimum job requirement shall be
424		-	six thousand for each of the years subject to the recapture under
425		-	subdivision (2) of this subsection. If the eligible taxpayer enters into
426		-	production contracts with the United States government for two
427		-	helicopter programs specified in the assistance agreement, the targeted
428		-	job requirement shall be seven thousand seven hundred fifty, and the
429		-	minimum job requirement shall be seven thousand for each of the years
430		-	subject to the recapture under subdivision (2) of this subsection. The
431		-	annual recapture amount shall be (A) repaid if the number of actual jobs
432		-	in any year subject to the recapture is less than the minimum job
433		-	requirement, and (B) prorated at ninety per cent value of the annual
434		-	recapture amount if the number of actual jobs is equal to or greater than
435		-	the minimum job requirement but less than the targeted job
436		-	requirement. In addition to the recapture job obligation, the
437		-	commissioner may require other criteria, including, but not limited to,
438		-	wage requirements, with respect to the recapture of the remaining ten
439		-	per cent of the annual recapture amount. In no event shall the amount
440		-	of the recapture exceed the annual recapture amount.
441		-	(g) The aggregate amount of the project tax benefit granted by the
442		-	commissioner under this section shall not exceed (1) six million two
443		-	hundred fifty thousand dollars for each compliance year or fifty million
444		-	dollars during the term of the assistance agreement if the eligible
445		-	taxpayer has entered into a production contract after the effective date
446		-	of this section with the United States government for one helicopter
447		-	program specified in the assistance agreement, and (2) nine million
448		-	three hundred seventy-five thousand dollars for each compliance year House Bill No. 5505
449	269
450		-	~~Public Act~~ No. ~~22-4~~ 15 of 15
	270	+	LCO No. 5416 8 of 15
451	271
452		-	or seventy-five million dollars during the term of the assistance
453		-	agreement if the eligible taxpayer has entered into production contracts
454		-	after the effective date of this section with the United States government
455		-	for two helicopter programs specified in the assistance agreement.
456		-	(h) The commissioner shall not enter into any assistance agreement
457		-	under subsection (c) of this section after January 31, 2023.
458		-	(i) The commissioner may make revisions to the terms of the
459		-	assistance agreement to address a scenario where a delay, not caused by
460		-	the eligible taxpayer, prevents the eligible taxpayer from entering into
461		-	one or more production contracts by June 30, 2024. Such revisions may
462		-	include changes to the timing of (1) the benefit period, (2) the
463		-	compliance years, (3) the contract years, (4) the minimum requirements,
464		-	and (5) the recapture period, and other conforming changes, provided
465		-	in all cases, the project tax benefit shall be earned and utilized during
466		-	the first eight years of the term of any such production contract.
467		-	(j) The commissioner may from time to time amend, supplement or
468		-	modify the terms of the assistance agreement consistent with the
469		-	provisions of this section.
470		-	Approved April 28, 2022
	272	+	such information as prescribed by the commissioner, including, but not 188
	273	+	limited to, (A) a detailed plan outlining the aerospace manufacturing 189
	274	+	project, (B) the term of such project, and (C) the estimated expenditures 190
	275	+	for such project. The commissioner may require such eligible taxpayer 191
	276	+	to submit such additional information as may be necessary to evaluate 192
	277	+	the application. 193
	278	+	(2) All decisions of the commissioner with respect to any application 194
	279	+	received under subdivision (1) of this subsection shall be made in the 195
	280	+	commissioner's discretion. The provisions of this subsection shall not be 196
	281	+	construed to authorize suit against this state by any taxpayer that is 197
	282	+	denied certification by the commissioner and shall not be construed as 198
	283	+	a waiver of sovereign immunity. 199
	284	+	(c) (1) Upon certification by the commissioner of an application as 200
	285	+	provided in subsection (b) of this section, the commissioner may enter 201
	286	+	into an assistance agreement with an eligible taxpayer pursuant to 202
	287	+	which the commissioner may, in consideration of the eligible taxpayer's 203
	288	+	agreement to meet the minimum requirements in a compliance year in 204
	289	+	connection with the certified aerospace manufacturing project and as 205
	290	+	further inducement for the eligible taxpayer to enter into an aerospace 206
	291	+	manufacturing project, agree to permit the eligible taxpayer to offset its 207
	292	+	sales and use tax liability and to claim a credit against its corporation 208
	293	+	business tax liability up to a specified amount for the corresponding 209
	294	+	compliance year. 210
	295	+	(2) Such assistance agreement shall have a term of not less than 211
	296	+	twenty years and shall list: 212
	297	+	(A) The specifications of the certified aerospace manufacturing 213
	298	+	project; 214
	299	+	(B) The length of time the certified aerospace manufacturing project 215
	300	+	will take to complete; 216
	301	+	(C) The minimum requirements the eligible taxpayer agrees to meet 217
	302	+	Bill No.
	303	+
	304	+
	305	+
	306	+	LCO No. 5416 9 of 15
	307	+
	308	+	during each compliance year; 218
	309	+	(D) The commitment by the eligible taxpayer to (i) maintain the 219
	310	+	headquarters, as set forth in the assistance agreement, of the wholly-220
	311	+	owned subsidiary or its successor in this state, (ii) operate its primary 221
	312	+	helicopter production facility for its current United States government 222
	313	+	programs, as of the date of the assistance agreement, in this state, and 223
	314	+	(iii) to undertake and maintain its primary production of helicopters to 224
	315	+	be produced during the term of the assistance agreement under one or 225
	316	+	more future United States government programs specified in the 226
	317	+	assistance agreement in this state under production contracts entered 227
	318	+	into by the eligible taxpayer after the effective date of this section; 228
	319	+	(E) The amount of sales and use tax that the eligible taxpayer is 229
	320	+	eligible to offset for each compliance year set forth in the assistance 230
	321	+	agreement, provided the eligible taxpayer meets the minimum 231
	322	+	requirements for each such compliance year; 232
	323	+	(F) The terms and conditions of the repayment of any sales and use 233
	324	+	tax offsets and other required financial penalties resulting from the 234
	325	+	eligible taxpayer's failure to comply with the terms of the assistance 235
	326	+	agreement; 236
	327	+	(G) The amount of corporation business tax, subject to the limits set 237
	328	+	forth in subsection (e) of this section, against which the eligible taxpayer 238
	329	+	is eligible to claim a credit for each compliance year set forth in the 239
	330	+	assistance agreement, provided the eligible taxpayer meets the 240
	331	+	minimum requirements for each such compliance year; 241
	332	+	(H) The manner and method for the eligible taxpayer to provide 242
	333	+	notice of any disputed claim under the assistance agreement; and 243
	334	+	(I) Any other terms and conditions the commissioner may require. 244
	335	+	(3) The assistance agreement shall provide that the project tax benefit 245
	336	+	be earned and utilized during the first eight years of the term of any 246
	337	+	Bill No.
	338	+
	339	+
	340	+
	341	+	LCO No. 5416 10 of 15
	342	+
	343	+	production contract, provided no project tax benefit may be earned or 247
	344	+	utilized beyond the benefit period. 248
	345	+	(4) Any eligible taxpayer that enters into an assistance agreement 249
	346	+	with the commissioner under this subsection may, in the event of any 250
	347	+	disputed claim under such assistance agreement, bring an action against 251
	348	+	this state to the superior court for the judicial district of Hartford for the 252
	349	+	purpose of having such claim determined, provided notice of such 253
	350	+	disputed claim is first given to the commissioner in the manner and 254
	351	+	method described in such assistance agreement. No such action shall be 255
	352	+	allowed unless it is brought not later than two years after the date on 256
	353	+	which the eligible taxpayer gave proper notice to the commissioner in 257
	354	+	accordance with such assistance agreement. All legal defenses under 258
	355	+	such assistance agreement, except sovereign immunity, are reserved to 259
	356	+	this state. 260
	357	+	(5) If the provisions of subsection (c) or (e) of section 32-223 of the 261
	358	+	general statutes or section 32-462 of the general statutes are in conflict 262
	359	+	with the assistance agreement, the provisions of such assistance 263
	360	+	agreement shall supersede. 264
	361	+	(6) Upon the execution of the assistance agreement, the commissioner 265
	362	+	shall issue an allocation notice stating the maximum combined amount 266
	363	+	of the sales and use tax offset and the refundable tax credit available to 267
	364	+	the eligible taxpayer for the benefit period and the specific requirements 268
	365	+	the eligible taxpayer shall meet to qualify for such offset and credit. Such 269
	366	+	notice shall certify to the eligible taxpayer that the offsets and credits 270
	367	+	may be claimed by the eligible taxpayer if the eligible taxpayer meets 271
	368	+	the specific requirements set forth in the notice. 272
	369	+	(d) (1) The assistance agreement shall provide for the offset of sales 273
	370	+	and use tax amounts otherwise payable by the eligible taxpayer under 274
	371	+	the provisions of chapter 219 of the general statutes. Such offset shall be 275
	372	+	made in the form, timing and manner determined by the commissioner 276
	373	+	in consultation with the Commissioner of Revenue Services. The sales 277
	374	+	Bill No.
	375	+
	376	+
	377	+
	378	+	LCO No. 5416 11 of 15
	379	+
	380	+	and use tax offset amounts shall be calculated after the application of all 278
	381	+	other sales and use tax exemptions set forth in chapter 219 of the general 279
	382	+	statutes in effect on the effective date of this section and any subsequent 280
	383	+	amendments to said chapter that the eligible taxpayer is eligible to 281
	384	+	claim. Nothing in this subsection shall affect the eligible taxpayer's 282
	385	+	ability to claim the sales and use tax exemptions that it otherwise 283
	386	+	qualifies for under any provision of the general statutes. 284
	387	+	(2) Subsequent to a production contract taking effect for helicopters 285
	388	+	to be produced during the term of the assistance agreement, not later 286
	389	+	than sixty days after the end of each compliance year or, if the eligible 287
	390	+	taxpayer requests and the commissioner approves an extended date, not 288
	391	+	later than such extended date, the eligible taxpayer shall certify, subject 289
	392	+	to a third-party audit performed in accordance with the Department of 290
	393	+	Economic and Community Development audit guide or such protocols 291
	394	+	as may be set forth in the assistance agreement, the actual employment, 292
	395	+	wages, supplier spend and capital expenditure amounts to the 293
	396	+	commissioner in accordance with the requirements of the assistance 294
	397	+	agreement. If the results of such audit reveal that the eligible taxpayer 295
	398	+	has claimed a sales and use tax offset in excess of the amount allowable, 296
	399	+	the eligible taxpayer shall be subject to the repayment provisions as set 297
	400	+	forth in the assistance agreement. At the end of each compliance year, 298
	401	+	upon receipt of the eligible taxpayer's certification, the commissioner 299
	402	+	shall notify the Commissioner of Revenue Services whether the eligible 300
	403	+	taxpayer has met all minimum requirements necessary to qualify for the 301
	404	+	sales and use tax offset or is required to repay the amount of such offset 302
	405	+	in accordance with the terms of the assistance agreement. 303
	406	+	(e) (1) If the results of the audit performed pursuant to subdivision 304
	407	+	(2) of subsection (d) of this section reveal that the eligible taxpayer was 305
	408	+	unable to utilize all of the sales and use tax offset to which it was entitled 306
	409	+	under the assistance agreement for a compliance year against its sales 307
	410	+	and use tax liability, the assistance agreement shall permit the eligible 308
	411	+	taxpayer to claim the excess amount as a refundable tax credit, not to 309
	412	+	exceed five million dollars for each compliance year, against the 310
	413	+	Bill No.
	414	+
	415	+
	416	+
	417	+	LCO No. 5416 12 of 15
	418	+
	419	+	corporation business tax. If the amount of the excess is greater than five 311
	420	+	million dollars for any compliance year, the excess over five million 312
	421	+	dollars shall be carried forward to future compliance years to offset the 313
	422	+	eligible taxpayer's sales and use tax liability and then as refundable tax 314
	423	+	credits of up to five million dollars for each compliance year against the 315
	424	+	eligible taxpayer's corporation business tax liability, until the excess is 316
	425	+	fully utilized, except that no carry-forward shall extend beyond the 317
	426	+	benefit period. Such carry-forward shall be utilized prior to any sales 318
	427	+	and use tax offset earned in any subsequent compliance year. 319
	428	+	(2) If the amount of the refundable tax credit exceeds the eligible 320
	429	+	taxpayer's corporation business tax liability for the applicable income 321
	430	+	year, the Commissioner of Revenue Services shall treat such excess as 322
	431	+	an overpayment and shall refund the amount of such excess, without 323
	432	+	interest, to the eligible taxpayer. In no event shall the refundable tax 324
	433	+	credits allowed under this subsection exceed forty-five million dollars 325
	434	+	in the aggregate over the term of the assistance agreement. The eligible 326
	435	+	taxpayer shall claim the refundable tax credit allowed under this 327
	436	+	subsection on its corporate tax return for the income year that ends 328
	437	+	during the compliance year and such credit shall not be subject to the 329
	438	+	limits set forth in section 12-217zz of the general statutes. 330
	439	+	Notwithstanding the provisions of section 12-217aa of the general 331
	440	+	statutes, such credit shall be claimed after all other tax credits have been 332
	441	+	claimed. 333
	442	+	(3) Not later than thirty days after the commissioner receives an audit 334
	443	+	performed pursuant to subdivision (2) of subsection (d) of this section 335
	444	+	or as provided for in the assistance agreement, during each year of the 336
	445	+	benefit period, the Department of Economic and Community 337
	446	+	Development shall issue the eligible taxpayer a credit voucher that sets 338
	447	+	forth the amount of the refundable tax credit permitted pursuant to this 339
	448	+	subsection and the income year for which such credit may be claimed. 340
	449	+	The commissioner shall annually provide to the Commissioner of 341
	450	+	Revenue Services a report detailing all credit vouchers that have been 342
	451	+	issued under this subsection. 343
	452	+	Bill No.
	453	+
	454	+
	455	+
	456	+	LCO No. 5416 13 of 15
	457	+
	458	+	(f) (1) The eligible taxpayer shall pay the total amount of project tax 344
	459	+	benefit that was utilized by the eligible taxpayer for a particular 345
	460	+	compliance year and any penalty set forth in the assistance agreement if 346
	461	+	the commissioner determines that the eligible taxpayer failed to satisfy 347
	462	+	any of the minimum requirements for such compliance year. 348
	463	+	(2) The project tax benefit utilized by the eligible taxpayer under 349
	464	+	subsections (d) and (e) of this section shall be subject to recapture during 350
	465	+	the contract years commencing on or after July 1, 2032, and ending on 351
	466	+	June 30, 2042, if the eligible taxpayer fails to satisfy during such time 352
	467	+	period certain annual thresholds relating to employee head count, 353
	468	+	average wages, supplier spend and capital expenditures, as detailed in 354
	469	+	the assistance agreement, and such other requirements including (A) the 355
	470	+	maintenance of the wholly-owned subsidiary's headquarters, as set 356
	471	+	forth in the assistance agreement, in this state, (B) the maintenance and 357
	472	+	operation of the company's primary helicopter production facility for its 358
	473	+	current United States government programs, as of the date of the 359
	474	+	assistance agreement, in this state, (C) the undertaking and maintaining 360
	475	+	in this state of the company's primary production for helicopters to be 361
	476	+	produced during the term of the assistance agreement under one or 362
	477	+	more of its future United States government programs specified in the 363
	478	+	assistance agreement under production contracts entered into by the 364
	479	+	eligible taxpayer after the effective date of this section, and (D) the 365
	480	+	maintenance of diversity and workforce training programs by the 366
	481	+	company in accordance with the terms of the assistance agreement. 367
	482	+	(3) If the eligible taxpayer enters into a production contract with the 368
	483	+	United States government for one helicopter program specified in the 369
	484	+	assistance agreement, the targeted job requirement shall be seven 370
	485	+	thousand two hundred fifty, and the minimum job requirement shall be 371
	486	+	six thousand for each of the years subject to the recapture under 372
	487	+	subdivision (2) of this subsection. If the eligible taxpayer enters into 373
	488	+	production contracts with the United States government for two 374
	489	+	helicopter programs specified in the assistance agreement, the targeted 375
	490	+	job requirement shall be seven thousand seven hundred fifty, and the 376
	491	+	Bill No.
	492	+
	493	+
	494	+
	495	+	LCO No. 5416 14 of 15
	496	+
	497	+	minimum job requirement shall be seven thousand for each of the years 377
	498	+	subject to the recapture under subdivision (2) of this subsection. The 378
	499	+	annual recapture amount shall be (A) repaid if the number of actual jobs 379
	500	+	in any year subject to the recapture is less than the minimum job 380
	501	+	requirement, and (B) prorated at ninety per cent value of the annual 381
	502	+	recapture amount if the number of actual jobs is equal to or greater than 382
	503	+	the minimum job requirement but less than the targeted job 383
	504	+	requirement. In addition to the recapture job obligation, the 384
	505	+	commissioner may require other criteria, including, but not limited to, 385
	506	+	wage requirements, with respect to the recapture of the remaining ten 386
	507	+	per cent of the annual recapture amount. In no event shall the amount 387
	508	+	of the recapture exceed the annual recapture amount. 388
	509	+	(g) The aggregate amount of the project tax benefit granted by the 389
	510	+	commissioner under this section shall not exceed (1) six million two 390
	511	+	hundred fifty thousand dollars for each compliance year or fifty million 391
	512	+	dollars during the term of the assistance agreement if the eligible 392
	513	+	taxpayer has entered into a production contract after the effective date 393
	514	+	of this section with the United States government for one helicopter 394
	515	+	program specified in the assistance agreement, and (2) nine million 395
	516	+	three hundred seventy-five thousand dollars for each compliance year 396
	517	+	or seventy-five million dollars during the term of the assistance 397
	518	+	agreement if the eligible taxpayer has entered into production contracts 398
	519	+	after the effective date of this section with the United States government 399
	520	+	for two helicopter programs specified in the assistance agreement. 400
	521	+	(h) The commissioner shall not enter into any assistance agreement 401
	522	+	under subsection (c) of this section after January 31, 2023. 402
	523	+	(i) The commissioner may make revisions to the terms of the 403
	524	+	assistance agreement to address a scenario where a delay, not caused by 404
	525	+	the eligible taxpayer, prevents the eligible taxpayer from entering into 405
	526	+	one or more production contracts by June 30, 2024. Such revisions may 406
	527	+	include changes to the timing of (1) the benefit period, (2) the 407
	528	+	compliance years, (3) the contract years, (4) the minimum requirements, 408
	529	+	Bill No.
	530	+
	531	+
	532	+
	533	+	LCO No. 5416 15 of 15
	534	+
	535	+	and (5) the recapture period, and other conforming changes, provided 409
	536	+	in all cases, the project tax benefit shall be earned and utilized during 410
	537	+	the first eight years of the term of any such production contract. 411
	538	+	(j) The commissioner may from time to time amend, supplement or 412
	539	+	modify the terms of the assistance agreement consistent with the 413
	540	+	provisions of this section. 414
	541	+	This act shall take effect as follows and shall amend the following
	542	+	sections:
	543	+
	544	+	Section 1 from passage New section
	545	+