CT
Connecticut Senate Bill SB01027

Connecticut 2023 Regular Session

Connecticut Senate Bill SB01027 Compare Versions

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7+General Assembly Raised Bill No. 1027
8+January Session, 2023
9+LCO No. 3721
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11+
12+Referred to Committee on COMMERCE
13+
14+
15+Introduced by:
16+(CE)
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4-Senate Bill No. 1027
5-
6-Public Act No. 23-96
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8-
920 AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND
10-COMMUNITY DEVELOPMENT'S RECOMMENDATIONS
11-REGARDING THE JOBSCT TAX REBATE PROGRAM AND
12-CERTAIN AEROSPACE MANUFACTURING PROJECTS.
21+COMMUNITY DEVELOPMENT'S RECOMMENDATIONS REGARDING
22+THE JOBSCT TAX REBATE PROGRAM AND CERTAIN AEROSPACE
23+MANUFACTURING PROJECTS.
1324 Be it enacted by the Senate and House of Representatives in General
1425 Assembly convened:
1526
16-Section 1. Section 32-7t of the general statutes is repealed and the
17-following is substituted in lieu thereof (Effective from passage):
18-(a) As used in this section:
19-(1) "Commissioner" means the Commissioner of Economic and
20-Community Development;
21-(2) "Discretionary FTE" means an FTE that is paid qualified wages
22-and does not meet the threshold wage requirements to be a qualified
23-FTE but is approved by the commissioner pursuant to subdivision (4) of
24-subsection (c) of this section;
25-(3) "Distressed municipality" has the same meaning as provided in
26-section 32-9p;
27-(4) "Full-time equivalent" or "FTE" means the number of employees
28-employed at a qualified business, calculated in accordance with
29-subsection (d) of this section; Senate Bill No. 1027
27+Section 1. Section 32-7t of the general statutes is repealed and the 1
28+following is substituted in lieu thereof (Effective from passage): 2
29+(a) As used in this section: 3
30+(1) "Commissioner" means the Commissioner of Economic and 4
31+Community Development; 5
32+(2) "Discretionary FTE" means an FTE that is paid qualified wages 6
33+and does not meet the threshold wage requirements to be a qualified 7
34+FTE but is approved by the commissioner pursuant to subdivision (4) 8
35+of subsection (c) of this section; 9
36+(3) "Distressed municipality" has the same meaning as provided in 10
37+section 32-9p; 11 Bill No. 1027
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31-Public Act No. 23-96 2 of 26
3239
33-(5) "Full-time job" means a job in which an employee is required to
34-work at least thirty-five or more hours per week. "Full-time job" does
35-not include a temporary or seasonal job;
36-(6) "Median household income" means the median annual household
37-income for residents in a municipality as calculated from the U.S.
38-Census Bureau's five-year American Community Survey or another
39-data source, at the sole discretion of the commissioner;
40-(7) "New employee" means a person or persons hired by the qualified
41-business to fill a full-time equivalent position. A new employee does not
42-include a person who was employed in this state by a related person
43-with respect to the qualified business within twelve months prior to a
44-qualified [business'] business's application to the commissioner for a
45-rebate allocation notice for a job creation rebate pursuant to subsection
46-(c) of this section;
47-(8) "New FTEs" means the number of FTEs that (A) did not exist in
48-this state at the time of a qualified [business'] business's application to
49-the commissioner for a rebate allocation notice for a job creation rebate
50-pursuant to subsection (c) of this section, (B) are not the result of FTEs
51-acquired due to a merger or acquisition, (C) are filled by a new
52-employee, (D) are qualified FTEs, and (E) are not FTEs hired to replace
53-FTEs that existed in the state after January 1, 2020. The commissioner
54-may issue guidance on the implementation of this definition;
55-(9) "New FTEs created" means the number of new FTEs that the
56-qualified business is employing at a point-in-time at the end of the
57-relevant time period;
58-(10) "New FTEs maintained" means the total number of new FTEs
59-employed throughout a relevant time period;
60-(11) "Opportunity zone" means a population census tract that is a
61-low-income community that is designated as a "qualified opportunity Senate Bill No. 1027
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44+(4) "Full-time equivalent" or "FTE" means the number of employees 12
45+employed at a qualified business, calculated in accordance with 13
46+subsection (d) of this section; 14
47+(5) "Full-time job" means a job in which an employee is required to 15
48+work at least thirty-five or more hours per week. "Full-time job" does 16
49+not include a temporary or seasonal job; 17
50+(6) "Median household income" means the median annual 18
51+household income for residents in a municipality as calculated from 19
52+the U.S. Census Bureau's five-year American Community Survey or 20
53+another data source, at the sole discretion of the commissioner; 21
54+(7) "New employee" means a person or persons hired by the 22
55+qualified business to fill a full-time equivalent position. A new 23
56+employee does not include a person who was employed in this state by 24
57+a related person with respect to the qualified business within twelve 25
58+months prior to a qualified [business'] business's application to the 26
59+commissioner for a rebate allocation notice for a job creation rebate 27
60+pursuant to subsection (c) of this section; 28
61+(8) "New FTEs" means the number of FTEs that (A) did not exist in 29
62+this state at the time of a qualified [business'] business's application to 30
63+the commissioner for a rebate allocation notice for a job creation rebate 31
64+pursuant to subsection (c) of this section, (B) are not the result of FTEs 32
65+acquired due to a merger or acquisition, (C) are filled by a new 33
66+employee, (D) are qualified FTEs, and (E) are not FTEs hired to replace 34
67+FTEs that existed in the state after January 1, 2020. The commissioner 35
68+may issue guidance on the implementation of this definition; 36
69+(9) "New FTEs created" means the number of new FTEs that the 37
70+qualified business is employing at a point-in-time at the end of the 38
71+relevant time period; 39
72+(10) "New FTEs maintained" means the total number of new FTEs 40
73+employed throughout a relevant time period; 41 Bill No. 1027
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65-zone" pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as
66-amended from time to time;
67-(12) "Part-time job" means a job in which an employee is required to
68-work less than thirty-five hours per week. "Part-time job" does not
69-include a temporary or seasonal job;
70-(13) "Qualified business" means a person that is (A) engaged in
71-business in an industry related to finance, insurance, manufacturing,
72-clean energy, bioscience, technology, digital media or any similar
73-industry, as determined by the sole discretion of the commissioner, and
74-(B) subject to taxation under chapter 207, 208 or 228z;
75-(14) "Qualified FTE" means an FTE who is paid qualified wages of at
76-least eighty-five per cent of the median household income for the
77-location where the FTE position is primarily located, scaled in
78-proportion to the FTE fraction, or thirty-seven thousand five hundred
79-dollars, scaled in proportion to the FTE fraction, whichever is greater;
80-(15) "Qualified wages" means wages sourced to this state pursuant to
81-section 12-705;
82-(16) "Rebate period" means the calendar years in which a tax rebate
83-provided for in this section is to be paid pursuant to a [contract
84-executed] rebate allocation notice issued pursuant to subsection (c) of
85-this section; and
86-(17) "Related person" means (A) a corporation, limited liability
87-company, partnership, association or trust controlled by the qualified
88-business, (B) an individual, corporation, limited liability company,
89-partnership, association or trust that is in control of the qualified
90-business, (C) a corporation, limited liability company, partnership,
91-association or trust controlled by an individual, corporation, limited
92-liability company, partnership, association or trust that is in control of
93-the qualified business, or (D) a member of the same controlled group as Senate Bill No. 1027
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97-the qualified business. For the purposes of this subdivision, "control"
98-means (i) ownership, directly or indirectly, of stock possessing fifty per
99-cent or more of the total combined voting power of all classes of the
100-stock of a corporation entitled to vote, (ii) ownership, directly or
101-indirectly, of fifty per cent or more of the capital or profits interest in a
102-partnership, limited liability company or association, or (iii) ownership,
103-directly or indirectly, of fifty per cent or more of the beneficial interest
104-in the principal or income of a trust. The ownership of stock in a
105-corporation, of a capital or profits interest in a partnership, of a limited
106-liability company or association or of a beneficial interest in a trust shall
107-be determined in accordance with the rules for constructive ownership
108-of stock provided in Section 267(c) of the Internal Revenue Code of 1986,
109-or any subsequent corresponding internal revenue code of the United
110-States, as amended from time to time, other than paragraph (3) of said
111-section.
112-(b) There is established a JobsCT tax rebate program under which
113-qualified businesses that create jobs in this state, in accordance with the
114-provisions of this section, may be allowed a tax rebate, which shall be
115-treated as a credit against the tax imposed under chapter 208 or 228z or
116-as an offset of the tax imposed under chapter 207.
117-(c) (1) To be eligible to claim a rebate under this section, a qualified
118-business shall apply to the commissioner in accordance with the
119-provisions of this subsection. The application shall be on a form
120-prescribed by the commissioner and may require information,
121-including, but not limited to, the number of new FTEs to be created by
122-the qualified business, the number of current FTEs employed by the
123-qualified business, feasibility studies or business plans for the increased
124-number of FTEs, projected state and local revenue that may reasonably
125-derive as a result of the increased number of FTEs and any other
126-information necessary to determine whether there will be net benefits to
127-the economy of the municipality or municipalities in which the qualified Senate Bill No. 1027
80+(11) "Opportunity zone" means a population census tract that is a 42
81+low-income community that is designated as a "qualified opportunity 43
82+zone" pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as 44
83+amended from time to time; 45
84+(12) "Part-time job" means a job in which an employee is required to 46
85+work less than thirty-five hours per week. "Part-time job" does not 47
86+include a temporary or seasonal job; 48
87+(13) "Qualified business" means a person that is (A) engaged in 49
88+business in an industry related to finance, insurance, manufacturing, 50
89+clean energy, bioscience, technology, digital media or any similar 51
90+industry, as determined by the sole discretion of the commissioner, 52
91+and (B) subject to taxation under chapter 207, 208 or 228z; 53
92+(14) "Qualified FTE" means an FTE who is paid qualified wages of at 54
93+least eighty-five per cent of the median household income for the 55
94+location where the FTE position is primarily located, scaled in 56
95+proportion to the FTE fraction, or thirty-seven thousand five hundred 57
96+dollars, scaled in proportion to the FTE fraction, whichever is greater; 58
97+(15) "Qualified wages" means wages sourced to this state pursuant 59
98+to section 12-705; 60
99+(16) "Rebate period" means the calendar years in which a tax rebate 61
100+provided for in this section is to be paid pursuant to a [contract 62
101+executed] rebate allocation notice issued pursuant to subsection (c) of 63
102+this section; and 64
103+(17) "Related person" means (A) a corporation, limited liability 65
104+company, partnership, association or trust controlled by the qualified 66
105+business, (B) an individual, corporation, limited liability company, 67
106+partnership, association or trust that is in control of the qualified 68
107+business, (C) a corporation, limited liability company, partnership, 69
108+association or trust controlled by an individual, corporation, limited 70
109+liability company, partnership, association or trust that is in control of 71
110+the qualified business, or (D) a member of the same controlled group 72 Bill No. 1027
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131-business is primarily located and the state.
132-(2) Upon receipt of an application, the commissioner shall determine
133-(A) whether the qualified business making the application will be
134-reasonably able to meet the FTE hiring targets and other metrics as
135-presented in such application, (B) whether such qualified [business']
136-business's proposed job growth would provide a net benefit to economic
137-development and employment opportunities in the state, and (C)
138-whether such qualified [business'] business's proposed job growth will
139-exceed the number of jobs at the business that existed prior to January
140-1, 2020. The commissioner may require the applicant to submit
141-additional information to evaluate an application. Each qualified
142-business making an application shall satisfy the requirements of this
143-subdivision, as determined by the commissioner, to be eligible for the
144-JobsCT tax rebate program.
145-(3) The commissioner, upon consideration of an application and any
146-additional information, may approve an application in whole or in part
147-or may approve an application with amendments. If the commissioner
148-disapproves an application, the commissioner shall identify the defects
149-in such application and explain the specific reasons for the disapproval.
150-The commissioner shall render a decision on an application not later
151-than ninety days after the date of its receipt by the commissioner.
152-(4) The commissioner may approve an application in whole or in part
153-by a qualified business that creates new discretionary FTEs or may
154-approve such an application with amendments if a majority of such new
155-discretionary FTEs are individuals who (A) because of a disability, are
156-receiving or have received services from the Department of Aging and
157-Disability Services; (B) are receiving employment services from the
158-Department of Mental Health and Addiction Services or participating in
159-employment opportunities and day services, as defined in section 17a-
160-226, operated or funded by the Department of Developmental Services;
161-(C) have been unemployed for at least six of the preceding twelve Senate Bill No. 1027
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117+as the qualified business. For the purposes of this subdivision, 73
118+"control" means (i) ownership, directly or indirectly, of stock 74
119+possessing fifty per cent or more of the total combined voting power of 75
120+all classes of the stock of a corporation entitled to vote, (ii) ownership, 76
121+directly or indirectly, of fifty per cent or more of the capital or profits 77
122+interest in a partnership, limited liability company or association, or 78
123+(iii) ownership, directly or indirectly, of fifty per cent or more of the 79
124+beneficial interest in the principal or income of a trust. The ownership 80
125+of stock in a corporation, of a capital or profits interest in a 81
126+partnership, of a limited liability company or association or of a 82
127+beneficial interest in a trust shall be determined in accordance with the 83
128+rules for constructive ownership of stock provided in Section 267(c) of 84
129+the Internal Revenue Code of 1986, or any subsequent corresponding 85
130+internal revenue code of the United States, as amended from time to 86
131+time, other than paragraph (3) of said section. 87
132+(b) There is established a JobsCT tax rebate program under which 88
133+qualified businesses that create jobs in this state, in accordance with 89
134+the provisions of this section, may be allowed a tax rebate, which shall 90
135+be treated as a credit against the tax imposed under chapter 208 or 91
136+228z or as an offset of the tax imposed under chapter 207. 92
137+(c) (1) To be eligible to claim a rebate under this section, a qualified 93
138+business shall apply to the commissioner in accordance with the 94
139+provisions of this subsection. The application shall be on a form 95
140+prescribed by the commissioner and may require information, 96
141+including, but not limited to, the number of new FTEs to be created by 97
142+the qualified business, the number of current FTEs employed by the 98
143+qualified business, feasibility studies or business plans for the 99
144+increased number of FTEs, projected state and local revenue that may 100
145+reasonably derive as a result of the increased number of FTEs and any 101
146+other information necessary to determine whether there will be net 102
147+benefits to the economy of the municipality or municipalities in which 103
148+the qualified business is primarily located and the state. 104
149+(2) Upon receipt of an application, the commissioner shall 105 Bill No. 1027
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165-months; (D) have been convicted of a misdemeanor or felony; (E) are
166-veterans, as defined in section 27-103; (F) have not earned any
167-postsecondary credential and are not currently enrolled in an
168-postsecondary institution or program; or (G) are currently enrolled in a
169-workforce training program fully or substantially paid for by the
170-employer that results in such individual earning a postsecondary
171-credential.
172-(5) The commissioner may combine approval of an application with
173-the exercise of any of the commissioner's other powers, including, but
174-not limited to, the provision of other financial assistance.
175-(6) [The commissioner shall enter into a contract with an approved
176-qualified business, which shall include, but need not be limited to, a
177-requirement that the qualified business consent] By submitting an
178-application, a qualified business consents to the Department of
179-Economic and Community Development's access of data compiled by
180-other state agencies, including, but not limited to, the Labor
181-Department, for the purposes of audit and enforcement. [and, if a
182-qualified business is approved by the commissioner in accordance with
183-subdivision (4) of this subsection, the required wage such business shall
184-pay new discretionary FTEs to qualify for the tax rebates provided for
185-in subsection (f) of this section.]
186-(7) [Upon signing a contract with an approved qualified business,
187-the] The commissioner shall issue a rebate allocation notice stating the
188-maximum amount of each rebate available to [such] an approved
189-qualified business for the rebate period and the specific terms that such
190-business shall meet to qualify for each rebate. Such notice shall certify
191-to the approved qualified business that the rebates may be claimed by
192-such business if it meets the specific terms set forth in the notice. Such
193-terms shall include the required wage, as determined by the
194-commissioner, such business shall pay new discretionary FTEs to
195-qualify for the tax rebates provided in subsection (f) of this section. Senate Bill No. 1027
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198155
199-(d) For the purposes of this section, the FTE of a full-time job or part-
200-time job is based on the hours worked or expected to be worked by an
201-employee in a calendar year. A job in which an employee worked or is
202-expected to work one thousand seven hundred fifty hours or more in a
203-calendar year equals one FTE. A job in which an employee worked or is
204-expected to work less than one thousand seven hundred fifty hours
205-equals a fraction of one FTE, where the fraction is the number of hours
206-worked in a calendar year divided by one thousand seven hundred fifty.
207-The commissioner shall have the discretion to adjust the calculation of
208-FTE.
209-(e) (1) In each calendar year of the rebate period, a qualified business
210-approved by the commissioner pursuant to subdivision (3) of subsection
211-(c) of this section that employs at least twenty-five new FTEs in this state
212-by December thirty-first of the calendar year that is two calendar years
213-prior to the calendar year in which the rebate is being claimed shall be
214-allowed a rebate equal to the greater of the following amounts:
215-(A) The sum of:
216-(i) The lesser of (I) the new FTEs created in an opportunity zone or
217-distressed municipality on December thirty-first of the calendar year
218-that is two calendar years prior to the calendar year in which the rebate
219-is being claimed, or (II) the new FTEs maintained in an opportunity zone
220-or distressed municipality in the previous calendar year, multiplied by
221-fifty per cent of the income tax that would be paid on the average wage
222-of the new FTEs, as determined by the applicable marginal rate set forth
223-in chapter 229 for an unmarried individual based solely on such wages;
224-and
225-(ii) The lesser of (I) the new FTEs created on December thirty-first of
226-the calendar year that is two calendar years prior to the calendar year in
227-which the rebate is being claimed, or (II) the new FTEs maintained in a
228-location other than an opportunity zone or distressed municipality in Senate Bill No. 1027
156+determine (A) whether the qualified business making the application 106
157+will be reasonably able to meet the FTE hiring targets and other 107
158+metrics as presented in such application, (B) whether such qualified 108
159+[business'] business's proposed job growth would provide a net benefit 109
160+to economic development and employment opportunities in the state, 110
161+and (C) whether such qualified [business'] business's proposed job 111
162+growth will exceed the number of jobs at the business that existed 112
163+prior to January 1, 2020. The commissioner may require the applicant 113
164+to submit additional information to evaluate an application. Each 114
165+qualified business making an application shall satisfy the requirements 115
166+of this subdivision, as determined by the commissioner, to be eligible 116
167+for the JobsCT tax rebate program. 117
168+(3) The commissioner, upon consideration of an application and any 118
169+additional information, may approve an application in whole or in part 119
170+or may approve an application with amendments. If the commissioner 120
171+disapproves an application, the commissioner shall identify the defects 121
172+in such application and explain the specific reasons for the 122
173+disapproval. The commissioner shall render a decision on an 123
174+application not later than ninety days after the date of its receipt by the 124
175+commissioner. 125
176+(4) The commissioner may approve an application in whole or in 126
177+part by a qualified business that creates new discretionary FTEs or 127
178+may approve such an application with amendments if a majority of 128
179+such new discretionary FTEs are individuals who (A) because of a 129
180+disability, are receiving or have received services from the Department 130
181+of Aging and Disability Services; (B) are receiving employment 131
182+services from the Department of Mental Health and Addiction Services 132
183+or participating in employment opportunities and day services, as 133
184+defined in section 17a-226, operated or funded by the Department of 134
185+Developmental Services; (C) have been unemployed for at least six of 135
186+the preceding twelve months; (D) have been convicted of a 136
187+misdemeanor or felony; (E) are veterans, as defined in section 27-103; 137
188+(F) have not earned any postsecondary credential and are not currently 138 Bill No. 1027
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232-the previous calendar year, multiplied by twenty-five per cent of the
233-income tax that would be paid on the average wage of the new FTEs, as
234-determined by the applicable marginal rate set forth in chapter 229 for
235-an unmarried individual based solely on such wages; or
236-(B) The greater of:
237-(i) One thousand dollars multiplied by the lesser of (I) the new FTEs
238-created by December thirty-first of the calendar year that is two calendar
239-years prior to the calendar year in which the rebate is being claimed, or
240-(II) the new FTEs maintained in the calendar year immediately prior to
241-the calendar year in which the rebate is being claimed; or
242-(ii) For tax credits earned, claimed or payable prior to January 1, 2024,
243-two thousand dollars multiplied by the lesser of (I) the new FTEs created
244-by December 31, 2022, or (II) the new FTEs maintained in the calendar
245-year immediately prior to the calendar year in which the rebate is being
246-claimed.
247-(2) In no event shall the rebate under this subsection exceed in any
248-calendar year of the rebate period five thousand dollars multiplied by
249-the lesser of (A) the new FTEs created by December thirty-first of the
250-calendar year that is two calendar years prior to the calendar year in
251-which the rebate is being claimed, or (B) the new FTEs maintained in the
252-calendar year immediately prior to the calendar year in which the rebate
253-is being claimed.
254-(3) In no event shall an approved qualified business receive a rebate
255-under this subsection in any calendar year of the rebate period if such
256-business has not maintained at least twenty-five new FTEs in the
257-calendar year immediately prior to the calendar year in which the rebate
258-is being claimed.
259-(f) (1) In each calendar year of the rebate period, a qualified business
260-approved by the commissioner pursuant to subdivision (4) of subsection Senate Bill No. 1027
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195+enrolled in an postsecondary institution or program; or (G) are 139
196+currently enrolled in a workforce training program fully or 140
197+substantially paid for by the employer that results in such individual 141
198+earning a postsecondary credential. 142
199+(5) The commissioner may combine approval of an application with 143
200+the exercise of any of the commissioner's other powers, including, but 144
201+not limited to, the provision of other financial assistance. 145
202+(6) [The commissioner shall enter into a contract with an approved 146
203+qualified business, which shall include, but need not be limited to, a 147
204+requirement that the qualified business consent] By submitting an 148
205+application, a qualified business consents to the Department of 149
206+Economic and Community Development's access of data compiled by 150
207+other state agencies, including, but not limited to, the Labor 151
208+Department, for the purposes of audit and enforcement. [and, if a 152
209+qualified business is approved by the commissioner in accordance 153
210+with subdivision (4) of this subsection, the required wage such 154
211+business shall pay new discretionary FTEs to qualify for the tax rebates 155
212+provided for in subsection (f) of this section.] 156
213+(7) [Upon signing a contract with an approved qualified business, 157
214+the] The commissioner shall issue a rebate allocation notice stating the 158
215+maximum amount of each rebate available to [such] an approved 159
216+qualified business for the rebate period and the specific terms that such 160
217+business shall meet to qualify for each rebate. Such notice shall certify 161
218+to the approved qualified business that the rebates may be claimed by 162
219+such business if it meets the specific terms set forth in the notice. Such 163
220+terms shall include the required wage, as determined by the 164
221+commissioner, such business shall pay new discretionary FTEs to 165
222+qualify for the tax rebates provided in subsection (f) of this section. 166
223+(d) For the purposes of this section, the FTE of a full-time job or 167
224+part-time job is based on the hours worked or expected to be worked 168
225+by an employee in a calendar year. A job in which an employee 169
226+worked or is expected to work one thousand seven hundred fifty 170 Bill No. 1027
263227
264-(c) of this section that employs at least twenty-five new discretionary
265-FTEs in this state by December thirty-first of the calendar year that is
266-two calendar years prior to the calendar year in which the rebate is being
267-claimed shall be allowed a rebate equal to the sum of the amount
268-calculated pursuant to subdivision (1) of subsection (e) of this section
269-and the greater of the following:
270-(A) The sum of:
271-(i) The lesser of the new discretionary FTEs (I) created in an
272-opportunity zone or distressed municipality on December thirty-first of
273-the calendar year that is two calendar years prior to the calendar year in
274-which the rebate is being claimed, or (II) maintained in an opportunity
275-zone or distressed municipality in the previous calendar year,
276-multiplied by fifty per cent of the income tax that would be paid on the
277-average wage of the new discretionary FTEs, as determined by the
278-applicable marginal rate set forth in chapter 229 for an unmarried
279-individual based solely on such wages; and
280-(ii) The lesser of the new discretionary FTEs (I) created on December
281-thirty-first of the calendar year that is two calendar years prior to the
282-calendar year in which the rebate is being claimed, or (II) maintained in
283-a location other than an opportunity zone or distressed municipality in
284-the previous calendar year, multiplied by twenty-five per cent of the
285-income tax that would be paid on the average wage of the new
286-discretionary FTEs, as determined by the applicable marginal rate set
287-forth in chapter 229 for an unmarried individual based solely on such
288-wages; or
289-(B) The greater of:
290-(i) Seven hundred fifty dollars multiplied by the lesser of the new
291-discretionary FTEs (I) created by December thirty-first of the calendar
292-year that is two calendar years prior to the calendar year in which the Senate Bill No. 1027
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295232
296-rebate is being claimed, or (II) maintained in the calendar year
297-immediately prior to the calendar year in which the rebate is being
298-claimed; or
299-(ii) For tax credits earned, claimed or payable prior to January 1, 2024,
300-one thousand five hundred dollars multiplied by the lesser of (I) the new
301-FTEs created by December 31, 2022, or (II) the new FTEs maintained in
302-the calendar year immediately prior to the calendar year in which the
303-rebate is being claimed.
304-(2) In no event shall the rebate under this section exceed in any
305-calendar year of the rebate period five thousand dollars multiplied by
306-the lesser of the new discretionary FTEs (A) created by December thirty-
307-first of the calendar year that is two calendar years prior to the calendar
308-year in which the rebate is being claimed, or (B) maintained in the
309-calendar year immediately prior to the calendar year in which the rebate
310-is being claimed.
311-(3) In no event shall an approved qualified business receive a rebate
312-under this subsection in any calendar year of the rebate period if such
313-business has not maintained at least twenty-five new discretionary FTEs
314-in the calendar year immediately prior to the calendar year in which the
315-rebate is being claimed.
316-(g) (1) Notwithstanding the provisions of subdivisions (3) and (4) of
317-subsection (c) of this section, the commissioner may not approve an
318-application in whole or in part if the full amount of rebates that such
319-applicant may be paid pursuant to subsection (e) or (f) of this section
320-would result in the aggregate amount of rebates issued to all approved
321-qualified businesses under this section exceeding forty million dollars
322-in any fiscal year.
323-(2) Notwithstanding the provisions of subdivision (4) of subsection
324-(c) of this section, the commissioner may not approve an application in Senate Bill No. 1027
233+hours or more in a calendar year equals one FTE. A job in which an 171
234+employee worked or is expected to work less than one thousand seven 172
235+hundred fifty hours equals a fraction of one FTE, where the fraction is 173
236+the number of hours worked in a calendar year divided by one 174
237+thousand seven hundred fifty. The commissioner shall have the 175
238+discretion to adjust the calculation of FTE. 176
239+(e) (1) In each calendar year of the rebate period, a qualified 177
240+business approved by the commissioner pursuant to subdivision (3) of 178
241+subsection (c) of this section that employs at least twenty-five new 179
242+FTEs in this state by December thirty-first of the calendar year that is 180
243+two calendar years prior to the calendar year in which the rebate is 181
244+being claimed shall be allowed a rebate equal to the greater of the 182
245+following amounts: 183
246+(A) The sum of: 184
247+(i) The lesser of (I) the new FTEs created in an opportunity zone or 185
248+distressed municipality on December thirty-first of the calendar year 186
249+that is two calendar years prior to the calendar year in which the 187
250+rebate is being claimed, or (II) the new FTEs maintained in an 188
251+opportunity zone or distressed municipality in the previous calendar 189
252+year, multiplied by fifty per cent of the income tax that would be paid 190
253+on the average wage of the new FTEs, as determined by the applicable 191
254+marginal rate set forth in chapter 229 for an unmarried individual 192
255+based solely on such wages; and 193
256+(ii) The lesser of (I) the new FTEs created on December thirty-first of 194
257+the calendar year that is two calendar years prior to the calendar year 195
258+in which the rebate is being claimed, or (II) the new FTEs maintained 196
259+in a location other than an opportunity zone or distressed municipality 197
260+in the previous calendar year, multiplied by twenty-five per cent of the 198
261+income tax that would be paid on the average wage of the new FTEs, 199
262+as determined by the applicable marginal rate set forth in chapter 229 200
263+for an unmarried individual based solely on such wages; or 201 Bill No. 1027
325264
326-Public Act No. 23-96 11 of 26
327265
328-whole or in part if the full amount of rebates that such applicant may be
329-paid pursuant to subsection (f) of this section would result in the
330-aggregate amount of rebates issued pursuant to subsection (f) of this
331-section exceeding ten million dollars in any fiscal year.
332-(h) (1) A rebate under this section may be granted to an approved
333-qualified business for not more than seven successive calendar years. A
334-rebate shall not be granted until at least twenty-four months after the
335-commissioner's approval of a qualified [business'] business's
336-application.
337-(2) An approved qualified business that has fewer than twenty-five
338-new FTEs created in each of two consecutive calendar years or, if such
339-business is approved by the commissioner pursuant to subdivision (4)
340-of subsection (c) of this section, fewer than twenty-five new
341-discretionary FTEs in each of two consecutive calendar years shall
342-forfeit all remaining rebate allocations, unless the commissioner
343-recognizes mitigating circumstances of a regional or national nature,
344-including, but not limited to, a recession.
345-(i) Not later than January thirty-first of each year during the rebate
346-period, each approved qualified business shall provide information to
347-the commissioner regarding the number of new FTEs or new
348-discretionary FTEs created or maintained during the prior calendar year
349-and the qualified wages of such new employees. Any information
350-provided under this subsection shall be subject to audit by the
351-Department of Economic and Community Development.
352-(j) Not later than March fifteenth of each year during the rebate
353-period, the Department of Economic and Community Development
354-shall issue the approved qualified business a rebate voucher that sets
355-forth the amount of the rebate, as calculated pursuant to subsections (e)
356-and (f) of this section, and the taxable year against which such rebate
357-may be claimed. The approved qualified business shall claim such Senate Bill No. 1027
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270+(B) The greater of: 202
271+(i) One thousand dollars multiplied by the lesser of (I) the new FTEs 203
272+created by December thirty-first of the calendar year that is two 204
273+calendar years prior to the calendar year in which the rebate is being 205
274+claimed, or (II) the new FTEs maintained in the calendar year 206
275+immediately prior to the calendar year in which the rebate is being 207
276+claimed; or 208
277+(ii) For tax credits earned, claimed or payable prior to January 1, 209
278+2024, two thousand dollars multiplied by the lesser of (I) the new FTEs 210
279+created by December 31, 2022, or (II) the new FTEs maintained in the 211
280+calendar year immediately prior to the calendar year in which the 212
281+rebate is being claimed. 213
282+(2) In no event shall the rebate under this subsection exceed in any 214
283+calendar year of the rebate period five thousand dollars multiplied by 215
284+the lesser of (A) the new FTEs created by December thirty-first of the 216
285+calendar year that is two calendar years prior to the calendar year in 217
286+which the rebate is being claimed, or (B) the new FTEs maintained in 218
287+the calendar year immediately prior to the calendar year in which the 219
288+rebate is being claimed. 220
289+(3) In no event shall an approved qualified business receive a rebate 221
290+under this subsection in any calendar year of the rebate period if such 222
291+business has not maintained at least twenty-five new FTEs in the 223
292+calendar year immediately prior to the calendar year in which the 224
293+rebate is being claimed. 225
294+(f) (1) In each calendar year of the rebate period, a qualified business 226
295+approved by the commissioner pursuant to subdivision (4) o f 227
296+subsection (c) of this section that employs at least twenty-five new 228
297+discretionary FTEs in this state by December thirty-first of the calendar 229
298+year that is two calendar years prior to the calendar year in which the 230
299+rebate is being claimed shall be allowed a rebate equal to the sum of 231
300+the amount calculated pursuant to subdivision (1) of subsection (e) of 232 Bill No. 1027
360301
361-rebate as a credit against the taxes due under chapter 208 or 228z or as
362-an offset of the tax imposed under chapter 207. The commissioner shall
363-annually provide to the Commissioner of Revenue Services a report
364-detailing all rebate vouchers that have been issued under this section.
365-(k) Beginning on January 1, 2023, and annually thereafter, the
366-commissioner, in consultation with the office of the State Comptroller
367-and the Auditors of Public Accounts, shall submit a report to the Office
368-of Policy and Management on the expenses of the JobsCT tax rebate
369-program and the number of FTEs and discretionary FTEs created and
370-maintained.
371-Sec. 2. Section 32-4p of the general statutes is repealed and the
372-following is substituted in lieu thereof (Effective from passage):
373-(a) As used in this section:
374-(1) "Aerospace manufacturing project" means a project involving the
375-production of helicopters in this state that, if certified by the
376-commissioner as provided in subsection (b) of this section, will require
377-(A) primary helicopter production for current United States government
378-programs specified in the assistance agreement, as of the date of the
379-assistance agreement, to be carried out at one or more facilities in this
380-state, (B) the undertaking and maintaining of primary production for
381-helicopters to be produced during the term of the assistance agreement
382-under one or more future United States government programs specified
383-in the assistance agreement under production contracts entered into by
384-the eligible taxpayer after April 28, 2022, to be carried out at one or more
385-facilities in this state, and (C) minimum requirements for total
386-employment in this state, average employee wages in this state, supplier
387-spend and capital expenditures by an eligible taxpayer in furtherance of
388-such project continuing through at least June 30, 2042;
389-(2) "Annual recapture amount" means the total project tax benefits Senate Bill No. 1027
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392306
393-utilized by an eligible taxpayer divided by ten;
394-(3) "Assistance agreement" means a contract entered into between the
395-commissioner and an eligible taxpayer in accordance with subsection (c)
396-of this section, including any amendments to or extensions of such
397-contract;
398-(4) "Average wage requirement" means, for compliance years
399-commencing on or after July 1, 2022, and prior to July 1, 2032, an average
400-annual wage for full-time employees in this state that is not less than the
401-amounts specified in the assistance agreement;
402-(5) "Benefit period" means the period commencing on the effective
403-date of the assistance agreement and ending on June 30, 2032;
404-(6) "Capital expenditure" means bona fide costs to the wholly-owned
405-subsidiary and its subsidiaries for: (A) Acquisition of lands, buildings,
406-machinery, equipment or any combination thereof; (B) site and
407-infrastructure improvements; (C) planning costs; (D) research and
408-development expenses, as defined in section 12-217n of the general
409-statutes, revision of 1958, revised to January 1, 2021, and including, but
410-not limited to, development of new products and markets; and (E)
411-development of diversification strategies, including plans for regional
412-diversification strategies and consultants required for the completion of
413-such strategies and plans;
414-(7) "Capital expenditure requirement" means, for compliance years
415-commencing on or after July 1, 2022, and prior to July 1, 2032, a total
416-annual amount of capital expenditures made in this state by the wholly-
417-owned subsidiary that is not less than:
418-(A) Seventy million two hundred thousand dollars for the
419-compliance year ending June 30, 2023;
420-(B) Seventy-one million one hundred thousand dollars for the Senate Bill No. 1027
307+this section and the greater of the following: 233
308+(A) The sum of: 234
309+(i) The lesser of the new discretionary FTEs (I) created in an 235
310+opportunity zone or distressed municipality on December thirty-first 236
311+of the calendar year that is two calendar years prior to the calendar 237
312+year in which the rebate is being claimed, or (II) maintained in an 238
313+opportunity zone or distressed municipality in the previous calendar 239
314+year, multiplied by fifty per cent of the income tax that would be paid 240
315+on the average wage of the new discretionary FTEs, as determined by 241
316+the applicable marginal rate set forth in chapter 229 for an unmarried 242
317+individual based solely on such wages; and 243
318+(ii) The lesser of the new discretionary FTEs (I) created on December 244
319+thirty-first of the calendar year that is two calendar years prior to the 245
320+calendar year in which the rebate is being claimed, or (II) maintained 246
321+in a location other than an opportunity zone or distressed municipality 247
322+in the previous calendar year, multiplied by twenty-five per cent of the 248
323+income tax that would be paid on the average wage of the new 249
324+discretionary FTEs, as determined by the applicable marginal rate set 250
325+forth in chapter 229 for an unmarried individual based solely on such 251
326+wages; or 252
327+(B) The greater of: 253
328+(i) Seven hundred fifty dollars multiplied by the lesser of the new 254
329+discretionary FTEs (I) created by December thirty-first of the calendar 255
330+year that is two calendar years prior to the calendar year in which the 256
331+rebate is being claimed, or (II) maintained in the calendar year 257
332+immediately prior to the calendar year in which the rebate is being 258
333+claimed; or 259
334+(ii) For tax credits earned, claimed or payable prior to January 1, 260
335+2024, one thousand five hundred dollars multiplied by the lesser of (I) 261
336+the new FTEs created by December 31, 2022, or (II) the new FTEs 262
337+maintained in the calendar year immediately prior to the calendar year 263 Bill No. 1027
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422-Public Act No. 23-96 14 of 26
423339
424-compliance year ending June 30, 2024;
425-(C) Seventy-two million nine hundred thousand dollars for the
426-compliance year ending June 30, 2025;
427-(D) Seventy-three million eight hundred thousand dollars for the
428-compliance year ending June 30, 2026;
429-(E) Seventy-five million six hundred thousand dollars for the
430-compliance year ending June 30, 2027;
431-(F) Seventy-seven million four hundred thousand dollars for the
432-compliance year ending June 30, 2028;
433-(G) Seventy-eight million three hundred thousand dollars for the
434-compliance year ending June 30, 2029;
435-(H) Eighty million one hundred thousand dollars for the compliance
436-year ending June 30, 2030;
437-(I) Eighty-one million nine hundred thousand dollars for the
438-compliance year ending June 30, 2031; and
439-(J) Eighty-three million seven hundred thousand dollars for the
440-compliance year ending June 30, 2032;
441-(8) "Commissioner" means the Commissioner of Economic and
442-Community Development;
443-(9) "Company" means an entity with a place of business or a wholly-
444-owned subsidiary located in this state and the direct and indirect
445-subsidiaries and affiliates of such entity;
446-(10) "Compliance year" means each twelve -month period
447-commencing July first and continuing through June thirtieth of the
448-following year, provided the initial compliance year shall commence on Senate Bill No. 1027
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450-Public Act No. 23-96 15 of 26
344+in which the rebate is being claimed. 264
345+(2) In no event shall the rebate under this section exceed in any 265
346+calendar year of the rebate period five thousand dollars multiplied by 266
347+the lesser of the new discretionary FTEs (A) created by December 267
348+thirty-first of the calendar year that is two calendar years prior to the 268
349+calendar year in which the rebate is being claimed, or (B) maintained 269
350+in the calendar year immediately prior to the calendar year in which 270
351+the rebate is being claimed. 271
352+(3) In no event shall an approved qualified business receive a rebate 272
353+under this subsection in any calendar year of the rebate period if such 273
354+business has not maintained at least twenty-five new discretionary 274
355+FTEs in the calendar year immediately prior to the calendar year in 275
356+which the rebate is being claimed. 276
357+(g) (1) Notwithstanding the provisions of subdivisions (3) and (4) of 277
358+subsection (c) of this section, the commissioner may not approve an 278
359+application in whole or in part if the full amount of rebates that such 279
360+applicant may be paid pursuant to subsection (e) or (f) of this section 280
361+would result in the aggregate amount of rebates issued to all approved 281
362+qualified businesses under this section exceeding forty million dollars 282
363+in any fiscal year. 283
364+(2) Notwithstanding the provisions of subdivision (4) of subsection 284
365+(c) of this section, the commissioner may not approve an application in 285
366+whole or in part if the full amount of rebates that such applicant may 286
367+be paid pursuant to subsection (f) of this section would result in the 287
368+aggregate amount of rebates issued pursuant to subsection (f) of this 288
369+section exceeding ten million dollars in any fiscal year. 289
370+(h) (1) A rebate under this section may be granted to an approved 290
371+qualified business for not more than seven successive calendar years. 291
372+A rebate shall not be granted until at least twenty-four months after 292
373+the commissioner's approval of a qualified [business'] business's 293
374+application. 294 Bill No. 1027
451375
452-July 1, 2022, and end on June 30, 2023, and the last compliance year shall
453-commence on July 1, 2031, and end on June 30, 2032. "Annual" refers to
454-a compliance year;
455-(11) "Contract year" means each twelve-month period commencing
456-July first and continuing through June thirtieth of the following year,
457-provided the initial contract year shall commence on July 1, 2022, and
458-end on June 30, 2023, and the last contract year shall commence on July
459-1, 2041, and end on June 30, 2042;
460-(12) "Corporation business tax" means the tax due under chapter 208;
461-(13) "Eligible taxpayer" means a company that, at the time application
462-is made under subsection (b) of this section, (A) is engaged in the
463-aerospace industry, (B) employs not less than seven thousand
464-individuals in this state, (C) operates the company's primary helicopter
465-production facility for its current United States government programs
466-in this state, (D) plans to bid on a production contract or contracts for a
467-helicopter under one or more United States government programs, and
468-(E) has a wholly-owned subsidiary with production facilities and its
469-headquarters, as set forth in the assistance agreement, in this state prior
470-to April 28, 2022;
471-(14) (A) "Employee requirement" means, for compliance years
472-commencing on or after July 1, 2022, and prior to July 1, 2032:
473-(i) A minimum level of full-time employees in this state that is not
474-less than an average of seven thousand three hundred seventy-five for
475-each compliance year if the eligible taxpayer has entered into a
476-production contract for one United States government program
477-specified in the assistance agreement; and
478-(ii) A minimum level of full-time employees in this state that is not
479-less than an average of seven thousand five hundred for each
480-compliance year if the eligible taxpayer has entered into production Senate Bill No. 1027
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483380
484-contracts for two United States government programs specified in the
485-assistance agreement.
486-(B) The average number of full-time employees for each compliance
487-year shall be determined by adding the number of full-time employees
488-at the end of each quarter of the respective compliance year and
489-dividing the sum of such quarters by four;
490-(15) "Full-time employee" means an employee in this state of the
491-company who works a minimum of thirty-five hours per week. "Full-
492-time employee" does not include an employee working on a temporary
493-or seasonal basis or any individual who does not receive a federal Form
494-W-2 from the company;
495-(16) "Minimum requirements" means the minimum conditions the
496-eligible taxpayer must satisfy during each compliance year to qualify for
497-the sales and use tax offset for such compliance year and the refundable
498-tax credit for such compliance year, including, but not limited to, (A)
499-achieving the employee requirement, average wage requirement,
500-supplier spend requirement and capital expenditure requirement, (B)
501-the maintenance of the wholly-owned subsidiary's headquarters, as set
502-forth in the assistance agreement, in this state, (C) the maintenance and
503-operation of the company's primary helicopter production facility for its
504-current United States government programs, as of the date of the
505-assistance agreement, in this state, (D) the undertaking and maintaining
506-in this state of the company's primary production for helicopters to be
507-produced during the term of the assistance agreement under one or
508-more future United States government programs specified in the
509-assistance agreement under production contracts entered into by the
510-eligible taxpayer after April 28, 2022, and (E) the maintenance of
511-diversity and workforce training programs by the company in
512-accordance with the terms of the assistance agreement;
513-(17) "Production" means the various operations related to the Senate Bill No. 1027
381+(2) An approved qualified business that has fewer than twenty-five 295
382+new FTEs created in each of two consecutive calendar years or, if such 296
383+business is approved by the commissioner pursuant to subdivision (4) 297
384+of subsection (c) of this section, fewer than twenty-five new 298
385+discretionary FTEs in each of two consecutive calendar years shall 299
386+forfeit all remaining rebate allocations, unless the commissioner 300
387+recognizes mitigating circumstances of a regional or national nature, 301
388+including, but not limited to, a recession. 302
389+(i) Not later than January thirty-first of each year during the rebate 303
390+period, each approved qualified business shall provide information to 304
391+the commissioner regarding the number of new FTEs or new 305
392+discretionary FTEs created or maintained during the prior calendar 306
393+year and the qualified wages of such new employees. Any information 307
394+provided under this subsection shall be subject to audit by the 308
395+Department of Economic and Community Development. 309
396+(j) Not later than March fifteenth of each year during the rebate 310
397+period, the Department of Economic and Community Development 311
398+shall issue the approved qualified business a rebate voucher that sets 312
399+forth the amount of the rebate, as calculated pursuant to subsections 313
400+(e) and (f) of this section, and the taxable year against which such 314
401+rebate may be claimed. The approved qualified business shall claim 315
402+such rebate as a credit against the taxes due under chapter 208 or 228z 316
403+or as an offset of the tax imposed under chapter 207. The commissioner 317
404+shall annually provide to the Commissioner of Revenue Services a 318
405+report detailing all rebate vouchers that have been issued under this 319
406+section. 320
407+(k) Beginning on January 1, 2023, and annually thereafter, the 321
408+commissioner, in consultation with the office of the State Comptroller 322
409+and the Auditors of Public Accounts, shall submit a report to the Office 323
410+of Policy and Management on the expenses of the JobsCT tax rebate 324
411+program and the number of FTEs and discretionary FTEs created and 325
412+maintained. 326 Bill No. 1027
514413
515-Public Act No. 23-96 17 of 26
516414
517-completion of a helicopter, including, but not limited to, procurement,
518-engineering, manufacture, assembly, integration and testing;
519-(18) "Production contract" means a contract with the United States
520-government for the production of helicopters;
521-(19) "Project tax benefit" means the total benefit accruing to an eligible
522-taxpayer with respect to the sales and use tax offset and the refundable
523-tax credit;
524-(20) "Refundable tax credit" means the credit described in subsection
525-(e) of this section;
526-(21) "Regular place of business" means any bona fide office, factory,
527-warehouse or other space in this state at which a supply company is
528-doing business in its own name in a regular and systematic manner and
529-which place is continuously maintained, occupied and used by the
530-supply company in carrying on its business through its employees
531-regularly in attendance to carry on the supply company's business in the
532-supply company's own name. "Regular place of business" does not
533-include a place of business for a statutory agent for service of process, a
534-temporary office or location used by the supply company only for the
535-duration of the contract or an office maintained, occupied and used by
536-a person affiliated with the supply company;
537-(22) "Sales and use tax" means the taxes due under chapter 219;
538-(23) "Sales and use tax offset" means the offset described under
539-subsection (d) of this section;
540-(24) "Supply company" means any commercial business with a
541-regular place of business in this state that supplies goods and services
542-necessary to support (A) the manufacturing of company products, or (B)
543-company operations. "Supply company" does not include any local,
544-state or federal revenue collection or taxing entity; Senate Bill No. 1027
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546-Public Act No. 23-96 18 of 26
419+Sec. 2. Section 32-4p of the general statutes is repealed and the 327
420+following is substituted in lieu thereof (Effective from passage): 328
421+(a) As used in this section: 329
422+(1) "Aerospace manufacturing project" means a project involving the 330
423+production of helicopters in this state that, if certified by the 331
424+commissioner as provided in subsection (b) of this section, will require 332
425+(A) primary helicopter production for current United States 333
426+government programs specified in the assistance agreement, as of the 334
427+date of the assistance agreement, to be carried out at one or more 335
428+facilities in this state, (B) the undertaking and maintaining of primary 336
429+production for helicopters to be produced during the term of the 337
430+assistance agreement under one or more future United States 338
431+government programs specified in the assistance agreement under 339
432+production contracts entered into by the eligible taxpayer after April 340
433+28, 2022, to be carried out at one or more facilities in this state, and (C) 341
434+minimum requirements for total employment in this state, average 342
435+employee wages in this state, supplier spend and capital expenditures 343
436+by an eligible taxpayer in furtherance of such project continuing 344
437+through at least June 30, 2042; 345
438+(2) "Annual recapture amount" means the total project tax benefits 346
439+utilized by an eligible taxpayer divided by ten; 347
440+(3) "Assistance agreement" means a contract entered into between 348
441+the commissioner and an eligible taxpayer in accordance with 349
442+subsection (c) of this section, including any amendments to or 350
443+extensions of such contract; 351
444+(4) "Average wage requirement" means, for compliance years 352
445+commencing on or after July 1, 2022, and prior to July 1, 2032, an 353
446+average annual wage for full-time employees in this state that is not 354
447+less than the amounts specified in the assistance agreement; 355
448+(5) "Benefit period" means the period commencing on the effective 356
449+date of the assistance agreement and ending on June 30, 2032; 357 Bill No. 1027
547450
548-(25) (A) "Supplier spend requirement" means, for compliance years
549-commencing on or after July 1, 2022, and prior to July 1, 2032, the total
550-annual spend by the wholly-owned subsidiary and by the company, on
551-behalf of the wholly-owned subsidiary, with supply companies in this
552-state of not less than:
553-(i) Three hundred million dollars for compliance years commencing
554-on or after July 1, 2022, and prior to July 1, 2024;
555-(ii) Four hundred ten million dollars for compliance years
556-commencing on or after July 1, 2024, and prior to July 1, 2029; and
557-(iii) Four hundred seventy million dollars for compliance years
558-commencing on or after July 1, 2029, and prior to July 1, 2032.
559-(B) If an expenditure qualifies for both the supplier spend
560-requirement and the capital expenditures requirement, the eligible
561-taxpayer may choose between such categories for which such
562-expenditure may be counted. In no event shall any such expenditure be
563-counted towards more than one such category; and
564-(26) "Wholly-owned subsidiary" means a subsidiary of the company,
565-or such subsidiary's successor to its operations, that has its
566-headquarters, as set forth in the assistance agreement, in this state.
567-"Wholly-owned subsidiary" includes any direct or indirect subsidiary of
568-the company's wholly-owned subsidiary and any limited liability
569-company wholly owned directly or indirectly by the company's wholly-
570-owned subsidiary.
571-(b) (1) Any eligible taxpayer that intends to undertake an aerospace
572-manufacturing project may apply to the commissioner for certification
573-of such project as a certified aerospace manufacturing project. In order
574-to receive such certification, an eligible taxpayer shall apply to the
575-commissioner, in a form acceptable to the commissioner and including
576-such information as prescribed by the commissioner, including, but not Senate Bill No. 1027
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580-limited to, (A) a detailed plan outlining the aerospace manufacturing
581-project, (B) the term of such project, and (C) the estimated expenditures
582-for such project. The commissioner may require such eligible taxpayer
583-to submit such additional information as may be necessary to evaluate
584-the application.
585-(2) All decisions of the commissioner with respect to any application
586-received under subdivision (1) of this subsection shall be made in the
587-commissioner's discretion. The provisions of this subsection shall not be
588-construed to authorize suit against this state by any taxpayer that is
589-denied certification by the commissioner and shall not be construed as
590-a waiver of sovereign immunity.
591-(c) (1) Upon certification by the commissioner of an application as
592-provided in subsection (b) of this section, the commissioner may enter
593-into an assistance agreement with an eligible taxpayer pursuant to
594-which the commissioner may, in consideration of the eligible taxpayer's
595-agreement to meet the minimum requirements in a compliance year in
596-connection with the certified aerospace manufacturing project and as
597-further inducement for the eligible taxpayer to enter into an aerospace
598-manufacturing project, agree to permit the eligible taxpayer to offset its
599-sales and use tax liability and to claim a credit against its corporation
600-business tax liability up to a specified amount for the corresponding
601-compliance year.
602-(2) Such assistance agreement shall have a term of not less than
603-twenty years and shall list:
604-(A) The specifications of the certified aerospace manufacturing
605-project;
606-(B) The length of time the certified aerospace manufacturing project
607-will take to complete;
608-(C) The minimum requirements the eligible taxpayer agrees to meet Senate Bill No. 1027
456+(6) "Capital expenditure" means bona fide costs to the wholly-358
457+owned subsidiary and its subsidiaries for: (A) Acquisition of lands, 359
458+buildings, machinery, equipment or any combination thereof; (B) site 360
459+and infrastructure improvements; (C) planning costs; (D) research and 361
460+development expenses, as defined in section 12-217n of the general 362
461+statutes, revision of 1958, revised to January 1, 2021, and including, but 363
462+not limited to, development of new products and markets; and (E) 364
463+development of diversification strategies, including plans for regional 365
464+diversification strategies and consultants required for the completion 366
465+of such strategies and plans; 367
466+(7) "Capital expenditure requirement" means, for compliance years 368
467+commencing on or after July 1, 2022, and prior to July 1, 2032, a total 369
468+annual amount of capital expenditures made in this state by the 370
469+wholly-owned subsidiary that is not less than: 371
470+(A) Seventy million two hundred thousand dollars for the 372
471+compliance year ending June 30, 2023; 373
472+(B) Seventy-one million one hundred thousand dollars for the 374
473+compliance year ending June 30, 2024; 375
474+(C) Seventy-two million nine hundred thousand dollars for the 376
475+compliance year ending June 30, 2025; 377
476+(D) Seventy-three million eight hundred thousand dollars for the 378
477+compliance year ending June 30, 2026; 379
478+(E) Seventy-five million six hundred thousand dollars for the 380
479+compliance year ending June 30, 2027; 381
480+(F) Seventy-seven million four hundred thousand dollars for the 382
481+compliance year ending June 30, 2028; 383
482+(G) Seventy-eight million three hundred thousand dollars for the 384
483+compliance year ending June 30, 2029; 385 Bill No. 1027
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612-during each compliance year;
613-(D) The commitment by the eligible taxpayer to (i) maintain the
614-headquarters, as set forth in the assistance agreement, of the wholly-
615-owned subsidiary or its successor in this state, (ii) operate its primary
616-helicopter production facility for its current United States government
617-programs, as of the date of the assistance agreement, in this state, and
618-(iii) to undertake and maintain its primary production of helicopters to
619-be produced during the term of the assistance agreement under one or
620-more future United States government programs specified in the
621-assistance agreement in this state under production contracts entered
622-into by the eligible taxpayer after April 28, 2022;
623-(E) The amount of sales and use tax that the eligible taxpayer is
624-eligible to offset for each compliance year set forth in the assistance
625-agreement, provided the eligible taxpayer meets the minimum
626-requirements for each such compliance year;
627-(F) The terms and conditions of the repayment of any sales and use
628-tax offsets and other required financial penalties resulting from the
629-eligible taxpayer's failure to comply with the terms of the assistance
630-agreement;
631-(G) The amount of corporation business tax, subject to the limits set
632-forth in subsection (e) of this section, against which the eligible taxpayer
633-is eligible to claim a credit for each compliance year set forth in the
634-assistance agreement, provided the eligible taxpayer meets the
635-minimum requirements for each such compliance year;
636-(H) The manner and method for the eligible taxpayer to provide
637-notice of any disputed claim under the assistance agreement; and
638-(I) Any other terms and conditions the commissioner may require.
639-(3) The commissioner may amend the assistance agreement [shall] to Senate Bill No. 1027
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490+(H) Eighty million one hundred thousand dollars for the compliance 386
491+year ending June 30, 2030; 387
492+(I) Eighty-one million nine hundred thousand dollars for the 388
493+compliance year ending June 30, 2031; and 389
494+(J) Eighty-three million seven hundred thousand dollars for the 390
495+compliance year ending June 30, 2032; 391
496+(8) "Commissioner" means the Commissioner of Economic and 392
497+Community Development; 393
498+(9) "Company" means an entity with a place of business or a wholly-394
499+owned subsidiary located in this state and the direct and indirect 395
500+subsidiaries and affiliates of such entity; 396
501+(10) "Compliance year" means each twelve -month period 397
502+commencing July first and continuing through June thirtieth of the 398
503+following year, provided the initial compliance year shall commence 399
504+on July 1, 2022, and end on June 30, 2023, and the last compliance year 400
505+shall commence on July 1, 2031, and end on June 30, 2032. "Annual" 401
506+refers to a compliance year; 402
507+(11) "Contract year" means each twelve-month period commencing 403
508+July first and continuing through June thirtieth of the following year, 404
509+provided the initial contract year shall commence on July 1, 2022, and 405
510+end on June 30, 2023, and the last contract year shall commence on July 406
511+1, 2041, and end on June 30, 2042; 407
512+(12) "Corporation business tax" means the tax due under chapter 408
513+208; 409
514+(13) "Eligible taxpayer" means a company that, at the time 410
515+application is made under subsection (b) of this section, (A) is engaged 411
516+in the aerospace industry, (B) employs not less than seven thousand 412
517+individuals in this state, (C) operates the company's primary helicopter 413
518+production facility for its current United States government programs 414 Bill No. 1027
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643-provide that the project tax benefit be earned [and utilized] during the
644-first eight years of the term of any production contract and utilized
645-within the first nine years of the term of any production contract,
646-provided no project tax benefit may be earned [or utilized] beyond the
647-benefit period or utilized beyond one year after the end of the benefit
648-period.
649-(4) Any eligible taxpayer that enters into an assistance agreement
650-with the commissioner under this subsection may, in the event of any
651-disputed claim under such assistance agreement, bring an action against
652-this state to the superior court for the judicial district of Hartford for the
653-purpose of having such claim determined, provided notice of such
654-disputed claim is first given to the commissioner in the manner and
655-method described in such assistance agreement. No such action shall be
656-allowed unless it is brought not later than two years after the date on
657-which the eligible taxpayer gave proper notice to the commissioner in
658-accordance with such assistance agreement. All legal defenses under
659-such assistance agreement, except sovereign immunity, are reserved to
660-this state.
661-(5) If the provisions of subsection (c) or (e) of section 32-223 or section
662-32-462 are in conflict with the assistance agreement, the provisions of
663-such assistance agreement shall supersede.
664-(6) Upon the execution of the assistance agreement, the commissioner
665-shall issue an allocation notice stating the maximum combined amount
666-of the sales and use tax offset and the refundable tax credit available to
667-the eligible taxpayer for the benefit period and the specific requirements
668-the eligible taxpayer shall meet to qualify for such offset and credit. Such
669-notice shall certify to the eligible taxpayer that the offsets and credits
670-may be claimed by the eligible taxpayer if the eligible taxpayer meets
671-the specific requirements set forth in the notice.
672-(d) (1) The assistance agreement shall provide for the offset of sales Senate Bill No. 1027
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676-and use tax amounts otherwise payable by the eligible taxpayer under
677-the provisions of chapter 219. Such offset shall be made in the form,
678-timing and manner determined by the commissioner in consultation
679-with the Commissioner of Revenue Services. The sales and use tax offset
680-amounts shall be calculated after the application of all other sales and
681-use tax exemptions set forth in chapter 219 in effect on April 28, 2022
682-and any subsequent amendments to said chapter that the eligible
683-taxpayer is eligible to claim. Nothing in this subsection shall affect the
684-eligible taxpayer's ability to claim the sales and use tax exemptions that
685-it otherwise qualifies for under any provision of the general statutes.
686-(2) Subsequent to a production contract taking effect for helicopters
687-to be produced during the term of the assistance agreement, not later
688-than sixty days after the end of each compliance year or, if the eligible
689-taxpayer requests and the commissioner approves an extended date, not
690-later than such extended date, the eligible taxpayer shall certify, subject
691-to a third-party audit performed in accordance with the Department of
692-Economic and Community Development audit guide or such protocols
693-as may be set forth in the assistance agreement, the actual employment,
694-wages, supplier spend and capital expenditure amounts to the
695-commissioner in accordance with the requirements of the assistance
696-agreement. If the results of such audit reveal that the eligible taxpayer
697-has claimed a sales and use tax offset in excess of the amount allowable,
698-the eligible taxpayer shall be subject to the repayment provisions as set
699-forth in the assistance agreement. At the end of each compliance year,
700-upon receipt of the eligible taxpayer's certification, the commissioner
701-shall notify the Commissioner of Revenue Services whether the eligible
702-taxpayer has met all minimum requirements necessary to qualify for the
703-sales and use tax offset or is required to repay the amount of such offset
704-in accordance with the terms of the assistance agreement.
705-(e) (1) If the results of the audit performed pursuant to subdivision
706-(2) of subsection (d) of this section reveal that the eligible taxpayer was Senate Bill No. 1027
525+in this state, (D) plans to bid on a production contract or contracts for a 415
526+helicopter under one or more United States government programs, and 416
527+(E) has a wholly-owned subsidiary with production facilities and its 417
528+headquarters, as set forth in the assistance agreement, in this state 418
529+prior to April 28, 2022; 419
530+(14) (A) "Employee requirement" means, for compliance years 420
531+commencing on or after July 1, 2022, and prior to July 1, 2032: 421
532+(i) A minimum level of full-time employees in this state that is not 422
533+less than an average of seven thousand three hundred seventy-five for 423
534+each compliance year if the eligible taxpayer has entered into a 424
535+production contract for one United States government program 425
536+specified in the assistance agreement; and 426
537+(ii) A minimum level of full-time employees in this state that is not 427
538+less than an average of seven thousand five hundred for each 428
539+compliance year if the eligible taxpayer has entered into production 429
540+contracts for two United States government programs specified in the 430
541+assistance agreement. 431
542+(B) The average number of full-time employees for each compliance 432
543+year shall be determined by adding the number of full-time employees 433
544+at the end of each quarter of the respective compliance year and 434
545+dividing the sum of such quarters by four; 435
546+(15) "Full-time employee" means an employee in this state of the 436
547+company who works a minimum of thirty-five hours per week. "Full-437
548+time employee" does not include an employee working on a temporary 438
549+or seasonal basis or any individual who does not receive a federal 439
550+Form W-2 from the company; 440
551+(16) "Minimum requirements" means the minimum conditions the 441
552+eligible taxpayer must satisfy during each compliance year to qualify 442
553+for the sales and use tax offset for such compliance year and the 443
554+refundable tax credit for such compliance year, including, but not 444
555+limited to, (A) achieving the employee requirement, average wage 445 Bill No. 1027
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710-unable to utilize all of the sales and use tax offset to which it was entitled
711-under the assistance agreement for a compliance year against its sales
712-and use tax liability, the assistance agreement shall permit the eligible
713-taxpayer to claim the excess amount as a refundable tax credit, not to
714-exceed five million dollars for each compliance year, against the
715-corporation business tax. If the amount of the excess is greater than five
716-million dollars for any compliance year, the excess over five million
717-dollars shall be carried forward to future compliance years to offset the
718-eligible taxpayer's sales and use tax liability and then as refundable tax
719-credits of up to five million dollars for each compliance year against the
720-eligible taxpayer's corporation business tax liability, until the excess is
721-fully utilized, except that no carry-forward shall extend beyond one year
722-after the end of the benefit period. Such carry-forward shall be utilized
723-prior to any sales and use tax offset earned in any subsequent
724-compliance year.
725-(2) If the amount of the refundable tax credit exceeds the eligible
726-taxpayer's corporation business tax liability for the applicable income
727-year, the Commissioner of Revenue Services shall treat such excess as
728-an overpayment and shall refund the amount of such excess, without
729-interest, to the eligible taxpayer. In no event shall the refundable tax
730-credits allowed under this subsection exceed forty-five million dollars
731-in the aggregate over the term of the assistance agreement. The eligible
732-taxpayer shall claim the refundable tax credit allowed under this
733-subsection on its corporate tax return for the income year that ends
734-during the compliance year and such credit shall not be subject to the
735-limits set forth in section 12-217zz. Notwithstanding the provisions of
736-section 12-217aa, such credit shall be claimed after all other tax credits
737-have been claimed.
738-(3) Not later than thirty days after the commissioner receives an audit
739-performed pursuant to subdivision (2) of subsection (d) of this section
740-or as provided for in the assistance agreement, during each year of the Senate Bill No. 1027
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562+requirement, supplier spend requirement and capital expenditure 446
563+requirement, (B) the maintenance of the wholly-owned subsidiary's 447
564+headquarters, as set forth in the assistance agreement, in this state, (C) 448
565+the maintenance and operation of the company's primary helicopter 449
566+production facility for its current United States government programs, 450
567+as of the date of the assistance agreement, in this state, (D) the 451
568+undertaking and maintaining in this state of the company's primary 452
569+production for helicopters to be produced during the term of the 453
570+assistance agreement under one or more future United States 454
571+government programs specified in the assistance agreement under 455
572+production contracts entered into by the eligible taxpayer after April 456
573+28, 2022, and (E) the maintenance of diversity and workforce training 457
574+programs by the company in accordance with the terms of the 458
575+assistance agreement; 459
576+(17) "Production" means the various operations related to the 460
577+completion of a helicopter, including, but not limited to, procurement, 461
578+engineering, manufacture, assembly, integration and testing; 462
579+(18) "Production contract" means a contract with the United States 463
580+government for the production of helicopters; 464
581+(19) "Project tax benefit" means the total benefit accruing to an 465
582+eligible taxpayer with respect to the sales and use tax offset and the 466
583+refundable tax credit; 467
584+(20) "Refundable tax credit" means the credit described in subsection 468
585+(e) of this section; 469
586+(21) "Regular place of business" means any bona fide office, factory, 470
587+warehouse or other space in this state at which a supply company is 471
588+doing business in its own name in a regular and systematic manner 472
589+and which place is continuously maintained, occupied and used by the 473
590+supply company in carrying on its business through its employees 474
591+regularly in attendance to carry on the supply company's business in 475
592+the supply company's own name. "Regular place of business" does not 476 Bill No. 1027
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744-benefit period, the Department of Economic a nd Community
745-Development shall issue the eligible taxpayer a credit voucher that sets
746-forth the amount of the refundable tax credit permitted pursuant to this
747-subsection and the income year for which such credit may be claimed.
748-The commissioner shall annually provide to the Commissioner of
749-Revenue Services a report detailing all credit vouchers that have been
750-issued under this subsection.
751-(f) (1) The eligible taxpayer shall pay the total amount of project tax
752-benefit that was utilized by the eligible taxpayer for a particular
753-compliance year and any penalty set forth in the assistance agreement if
754-the commissioner determines that the eligible taxpayer failed to satisfy
755-any of the minimum requirements for such compliance year.
756-(2) The project tax benefit utilized by the eligible taxpayer under
757-subsections (d) and (e) of this section shall be subject to recapture during
758-the contract years commencing on or after July 1, 2032, and ending on
759-June 30, 2042, if the eligible taxpayer fails to satisfy during such time
760-period certain annual thresholds relating to employee head count,
761-average wages, supplier spend and capital expenditures, as detailed in
762-the assistance agreement, and such other requirements including (A) the
763-maintenance of the wholly-owned subsidiary's headquarters, as set
764-forth in the assistance agreement, in this state, (B) the maintenance and
765-operation of the company's primary helicopter production facility for its
766-current United States government programs, as of the date of the
767-assistance agreement, in this state, (C) the undertaking and maintaining
768-in this state of the company's primary production for helicopters to be
769-produced during the term of the assistance agreement under one or
770-more of its future United States government programs specified in the
771-assistance agreement under production contracts entered into by the
772-eligible taxpayer after April 28, 2022, and (D) the maintenance of
773-diversity and workforce training programs by the company in
774-accordance with the terms of the assistance agreement. Senate Bill No. 1027
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778-(3) If the eligible taxpayer enters into a production contract with the
779-United States government for one helicopter program specified in the
780-assistance agreement, the targeted job requirement shall be seven
781-thousand two hundred fifty, and the minimum job requirement shall be
782-six thousand for each of the years subject to the recapture under
783-subdivision (2) of this subsection. If the eligible taxpayer enters into
784-production contracts with the United States government for two
785-helicopter programs specified in the assistance agreement, the targeted
786-job requirement shall be seven thousand seven hundred fifty, and the
787-minimum job requirement shall be seven thousand for each of the years
788-subject to the recapture under subdivision (2) of this subsection. The
789-annual recapture amount shall be (A) repaid if the number of actual jobs
790-in any year subject to the recapture is less than the minimum job
791-requirement, and (B) prorated at ninety per cent value of the annual
792-recapture amount if the number of actual jobs is equal to or greater than
793-the minimum job requirement but less than the targeted job
794-requirement. In addition to the recapture job obligation, the
795-commissioner may require other criteria, including, but not limited to,
796-wage requirements, with respect to the recapture of the remaining ten
797-per cent of the annual recapture amount. In no event shall the amount
798-of the recapture exceed the annual recapture amount.
799-(g) The aggregate amount of the project tax benefit granted by the
800-commissioner under this section shall not exceed (1) six million two
801-hundred fifty thousand dollars for each compliance year or fifty million
802-dollars during the term of the assistance agreement if the eligible
803-taxpayer has entered into a production contract after April 28, 2022, with
804-the United States government for one helicopter program specified in
805-the assistance agreement, and (2) nine million three hundred seventy-
806-five thousand dollars for each compliance year or seventy-five million
807-dollars during the term of the assistance agreement if the eligible
808-taxpayer has entered into production contracts after April 28, 2022, with
809-the United States government for two helicopter programs specified in Senate Bill No. 1027
599+include a place of business for a statutory agent for service of process, 477
600+a temporary office or location used by the supply company only for 478
601+the duration of the contract or an office maintained, occupied and used 479
602+by a person affiliated with the supply company; 480
603+(22) "Sales and use tax" means the taxes due under chapter 219; 481
604+(23) "Sales and use tax offset" means the offset described under 482
605+subsection (d) of this section; 483
606+(24) "Supply company" means any commercial business with a 484
607+regular place of business in this state that supplies goods and services 485
608+necessary to support (A) the manufacturing of company products, or 486
609+(B) company operations. "Supply company" does not include any local, 487
610+state or federal revenue collection or taxing entity; 488
611+(25) (A) "Supplier spend requirement" means, for compliance years 489
612+commencing on or after July 1, 2022, and prior to July 1, 2032, the total 490
613+annual spend by the wholly-owned subsidiary and by the company, 491
614+on behalf of the wholly-owned subsidiary, with supply companies in 492
615+this state of not less than: 493
616+(i) Three hundred million dollars for compliance years commencing 494
617+on or after July 1, 2022, and prior to July 1, 2024; 495
618+(ii) Four hundred ten million dollars for compliance years 496
619+commencing on or after July 1, 2024, and prior to July 1, 2029; and 497
620+(iii) Four hundred seventy million dollars for compliance years 498
621+commencing on or after July 1, 2029, and prior to July 1, 2032. 499
622+(B) If an expenditure qualifies for both the supplier spend 500
623+requirement and the capital expenditures requirement, the eligible 501
624+taxpayer may choose between such categories for which such 502
625+expenditure may be counted. In no event shall any such expenditure 503
626+be counted towards more than one such category; and 504 Bill No. 1027
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813-the assistance agreement.
814-(h) The commissioner shall not enter into any assistance agreement
815-under subsection (c) of this section after January 31, 2023.
816-(i) The commissioner may make revisions to the terms of the
817-assistance agreement to address a scenario where a delay, not caused by
818-the eligible taxpayer, prevents the eligible taxpayer from entering into
819-one or more production contracts by June 30, 2024. Such revisions may
820-include changes to the timing of (1) the benefit period, (2) the
821-compliance years, (3) the contract years, (4) the minimum requirements,
822-and (5) the recapture period, and other conforming changes, provided
823-in all cases, the project tax benefit shall be earned [and utilized] during
824-the first eight years of the term of any such production contract and
825-utilized not later than one year after the end of the benefit period.
826-(j) The commissioner may from time to time amend, supplement or
827-modify the terms of the assistance agreement consistent with the
828-provisions of this section.
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633+(26) "Wholly-owned subsidiary" means a subsidiary of the 505
634+company, or such subsidiary's successor to its operations, that has its 506
635+headquarters, as set forth in the assistance agreement, in this state. 507
636+"Wholly-owned subsidiary" includes any direct or indirect subsidiary 508
637+of the company's wholly-owned subsidiary and any limited liability 509
638+company wholly owned directly or indirectly by the company's 510
639+wholly-owned subsidiary. 511
640+(b) (1) Any eligible taxpayer that intends to undertake an aerospace 512
641+manufacturing project may apply to the commissioner for certification 513
642+of such project as a certified aerospace manufacturing project. In order 514
643+to receive such certification, an eligible taxpayer shall apply to the 515
644+commissioner, in a form acceptable to the commissioner and including 516
645+such information as prescribed by the commissioner, including, but 517
646+not limited to, (A) a detailed plan outlining the aerospace 518
647+manufacturing project, (B) the term of such project, and (C) the 519
648+estimated expenditures for such project. The commissioner may 520
649+require such eligible taxpayer to submit such additional information as 521
650+may be necessary to evaluate the application. 522
651+(2) All decisions of the commissioner with respect to any application 523
652+received under subdivision (1) of this subsection shall be made in the 524
653+commissioner's discretion. The provisions of this subsection shall not 525
654+be construed to authorize suit against this state by any taxpayer that is 526
655+denied certification by the commissioner and shall not be construed as 527
656+a waiver of sovereign immunity. 528
657+(c) (1) Upon certification by the commissioner of an application as 529
658+provided in subsection (b) of this section, the commissioner may enter 530
659+into an assistance agreement with an eligible taxpayer pursuant to 531
660+which the commissioner may, in consideration of the eligible 532
661+taxpayer's agreement to meet the minimum requirements in a 533
662+compliance year in connection with the certified aerospace 534
663+manufacturing project and as further inducement for the eligible 535
664+taxpayer to enter into an aerospace manufacturing project, agree to 536
665+permit the eligible taxpayer to offset its sales and use tax liability and 537 Bill No. 1027
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667+
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671+
672+to claim a credit against its corporation business tax liability up to a 538
673+specified amount for the corresponding compliance year. 539
674+(2) Such assistance agreement shall have a term of not less than 540
675+twenty years and shall list: 541
676+(A) The specifications of the certified aerospace manufacturing 542
677+project; 543
678+(B) The length of time the certified aerospace manufacturing project 544
679+will take to complete; 545
680+(C) The minimum requirements the eligible taxpayer agrees to meet 546
681+during each compliance year; 547
682+(D) The commitment by the eligible taxpayer to (i) maintain the 548
683+headquarters, as set forth in the assistance agreement, of the wholly-549
684+owned subsidiary or its successor in this state, (ii) operate its primary 550
685+helicopter production facility for its current United States government 551
686+programs, as of the date of the assistance agreement, in this state, and 552
687+(iii) to undertake and maintain its primary production of helicopters to 553
688+be produced during the term of the assistance agreement under one or 554
689+more future United States government programs specified in the 555
690+assistance agreement in this state under production contracts entered 556
691+into by the eligible taxpayer after April 28, 2022; 557
692+(E) The amount of sales and use tax that the eligible taxpayer is 558
693+eligible to offset for each compliance year set forth in the assistance 559
694+agreement, provided the eligible taxpayer meets the minimum 560
695+requirements for each such compliance year; 561
696+(F) The terms and conditions of the repayment of any sales and use 562
697+tax offsets and other required financial penalties resulting from the 563
698+eligible taxpayer's failure to comply with the terms of the assistance 564
699+agreement; 565
700+(G) The amount of corporation business tax, subject to the limits set 566 Bill No. 1027
701+
702+
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705+20 of 25
706+
707+forth in subsection (e) of this section, against which the eligible 567
708+taxpayer is eligible to claim a credit for each compliance year set forth 568
709+in the assistance agreement, provided the eligible taxpayer meets the 569
710+minimum requirements for each such compliance year; 570
711+(H) The manner and method for the eligible taxpayer to provide 571
712+notice of any disputed claim under the assistance agreement; and 572
713+(I) Any other terms and conditions the commissioner may require. 573
714+(3) The commissioner may amend the assistance agreement [shall] 574
715+to provide that the project tax benefit be earned [and utilized] during 575
716+the first eight years of the term of any production contract and utilized 576
717+within the first nine years of the term of any production contract, 577
718+provided no project tax benefit may be earned [or utilized] beyond the 578
719+benefit period or utilized beyond one year after the end of the benefit 579
720+period. 580
721+(4) Any eligible taxpayer that enters into an assistance agreement 581
722+with the commissioner under this subsection may, in the event of any 582
723+disputed claim under such assistance agreement, bring an action 583
724+against this state to the superior court for the judicial district of 584
725+Hartford for the purpose of having such claim determined, provided 585
726+notice of such disputed claim is first given to the commissioner in the 586
727+manner and method described in such assistance agreement. No such 587
728+action shall be allowed unless it is brought not later than two years 588
729+after the date on which the eligible taxpayer gave proper notice to the 589
730+commissioner in accordance with such assistance agreement. All legal 590
731+defenses under such assistance agreement, except sovereign immunity, 591
732+are reserved to this state. 592
733+(5) If the provisions of subsection (c) or (e) of section 32-223 or 593
734+section 32-462 are in conflict with the assistance agreement, the 594
735+provisions of such assistance agreement shall supersede. 595
736+(6) Upon the execution of the assistance agreement, the 596
737+commissioner shall issue an allocation notice stating the maximum 597 Bill No. 1027
738+
739+
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742+21 of 25
743+
744+combined amount of the sales and use tax offset and the refundable tax 598
745+credit available to the eligible taxpayer for the benefit period and the 599
746+specific requirements the eligible taxpayer shall meet to qualify for 600
747+such offset and credit. Such notice shall certify to the eligible taxpayer 601
748+that the offsets and credits may be claimed by the eligible taxpayer if 602
749+the eligible taxpayer meets the specific requirements set forth in the 603
750+notice. 604
751+(d) (1) The assistance agreement shall provide for the offset of sales 605
752+and use tax amounts otherwise payable by the eligible taxpayer under 606
753+the provisions of chapter 219. Such offset shall be made in the form, 607
754+timing and manner determined by the commissioner in consultation 608
755+with the Commissioner of Revenue Services. The sales and use tax 609
756+offset amounts shall be calculated after the application of all other sales 610
757+and use tax exemptions set forth in chapter 219 in effect on April 28, 611
758+2022 and any subsequent amendments to said chapter that the eligible 612
759+taxpayer is eligible to claim. Nothing in this subsection shall affect the 613
760+eligible taxpayer's ability to claim the sales and use tax exemptions that 614
761+it otherwise qualifies for under any provision of the general statutes. 615
762+(2) Subsequent to a production contract taking effect for helicopters 616
763+to be produced during the term of the assistance agreement, not later 617
764+than sixty days after the end of each compliance year or, if the eligible 618
765+taxpayer requests and the commissioner approves an extended date, 619
766+not later than such extended date, the eligible taxpayer shall certify, 620
767+subject to a third-party audit performed in accordance with the 621
768+Department of Economic and Community Development audit guide or 622
769+such protocols as may be set forth in the assistance agreement, the 623
770+actual employment, wages, supplier spend and capital expenditure 624
771+amounts to the commissioner in accordance with the requirements of 625
772+the assistance agreement. If the results of such audit reveal that the 626
773+eligible taxpayer has claimed a sales and use tax offset in excess of the 627
774+amount allowable, the eligible taxpayer shall be subject to the 628
775+repayment provisions as set forth in the assistance agreement. At the 629
776+end of each compliance year, upon receipt of the eligible taxpayer's 630 Bill No. 1027
777+
778+
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781+22 of 25
782+
783+certification, the commissioner shall notify the Commissioner of 631
784+Revenue Services whether the eligible taxpayer has met all minimum 632
785+requirements necessary to qualify for the sales and use tax offset or is 633
786+required to repay the amount of such offset in accordance with the 634
787+terms of the assistance agreement. 635
788+(e) (1) If the results of the audit performed pursuant to subdivision 636
789+(2) of subsection (d) of this section reveal that the eligible taxpayer was 637
790+unable to utilize all of the sales and use tax offset to which it was 638
791+entitled under the assistance agreement for a compliance year against 639
792+its sales and use tax liability, the assistance agreement shall permit the 640
793+eligible taxpayer to claim the excess amount as a refundable tax credit, 641
794+not to exceed five million dollars for each compliance year, against the 642
795+corporation business tax. If the amount of the excess is greater than 643
796+five million dollars for any compliance year, the excess over five 644
797+million dollars shall be carried forward to future compliance years to 645
798+offset the eligible taxpayer's sales and use tax liability and then as 646
799+refundable tax credits of up to five million dollars for each compliance 647
800+year against the eligible taxpayer's corporation business tax liability, 648
801+until the excess is fully utilized, except that no carry-forward shall 649
802+extend beyond one year after the end of the benefit period. Such carry-650
803+forward shall be utilized prior to any sales and use tax offset earned in 651
804+any subsequent compliance year. 652
805+(2) If the amount of the refundable tax credit exceeds the eligible 653
806+taxpayer's corporation business tax liability for the applicable income 654
807+year, the Commissioner of Revenue Services shall treat such excess as 655
808+an overpayment and shall refund the amount of such excess, without 656
809+interest, to the eligible taxpayer. In no event shall the refundable tax 657
810+credits allowed under this subsection exceed forty-five million dollars 658
811+in the aggregate over the term of the assistance agreement. The eligible 659
812+taxpayer shall claim the refundable tax credit allowed under this 660
813+subsection on its corporate tax return for the income year that ends 661
814+during the compliance year and such credit shall not be subject to the 662
815+limits set forth in section 12-217zz. Notwithstanding the provisions of 663 Bill No. 1027
816+
817+
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820+23 of 25
821+
822+section 12-217aa, such credit shall be claimed after all other tax credits 664
823+have been claimed. 665
824+(3) Not later than thirty days after the commissioner receives an 666
825+audit performed pursuant to subdivision (2) of subsection (d) of this 667
826+section or as provided for in the assistance agreement, during each 668
827+year of the benefit period, the Department of Economic and 669
828+Community Development shall issue the eligible taxpayer a credit 670
829+voucher that sets forth the amount of the refundable tax credit 671
830+permitted pursuant to this subsection and the income year for which 672
831+such credit may be claimed. The commissioner shall annually provide 673
832+to the Commissioner of Revenue Services a report detailing all credit 674
833+vouchers that have been issued under this subsection. 675
834+(f) (1) The eligible taxpayer shall pay the total amount of project tax 676
835+benefit that was utilized by the eligible taxpayer for a particular 677
836+compliance year and any penalty set forth in the assistance agreement 678
837+if the commissioner determines that the eligible taxpayer failed to 679
838+satisfy any of the minimum requirements for such compliance year. 680
839+(2) The project tax benefit utilized by the eligible taxpayer under 681
840+subsections (d) and (e) of this section shall be subject to recapture 682
841+during the contract years commencing on or after July 1, 2032, and 683
842+ending on June 30, 2042, if the eligible taxpayer fails to satisfy during 684
843+such time period certain annual thresholds relating to employee head 685
844+count, average wages, supplier spend and capital expenditures, as 686
845+detailed in the assistance agreement, and such other requirements 687
846+including (A) the maintenance of the wholly-owned subsidiary's 688
847+headquarters, as set forth in the assistance agreement, in this state, (B) 689
848+the maintenance and operation of the company's primary helicopter 690
849+production facility for its current United States government programs, 691
850+as of the date of the assistance agreement, in this state, (C) the 692
851+undertaking and maintaining in this state of the company's primary 693
852+production for helicopters to be produced during the term of the 694
853+assistance agreement under one or more of its future United States 695
854+government programs specified in the assistance agreement under 696 Bill No. 1027
855+
856+
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859+24 of 25
860+
861+production contracts entered into by the eligible taxpayer after April 697
862+28, 2022, and (D) the maintenance of diversity and workforce training 698
863+programs by the company in accordance with the terms of the 699
864+assistance agreement. 700
865+(3) If the eligible taxpayer enters into a production contract with the 701
866+United States government for one helicopter program specified in the 702
867+assistance agreement, the targeted job requirement shall be seven 703
868+thousand two hundred fifty, and the minimum job requirement shall 704
869+be six thousand for each of the years subject to the recapture under 705
870+subdivision (2) of this subsection. If the eligible taxpayer enters into 706
871+production contracts with the United States government for two 707
872+helicopter programs specified in the assistance agreement, the targeted 708
873+job requirement shall be seven thousand seven hundred fifty, and the 709
874+minimum job requirement shall be seven thousand for each of the 710
875+years subject to the recapture under subdivision (2) of this subsection. 711
876+The annual recapture amount shall be (A) repaid if the number of 712
877+actual jobs in any year subject to the recapture is less than the 713
878+minimum job requirement, and (B) prorated at ninety per cent value of 714
879+the annual recapture amount if the number of actual jobs is equal to or 715
880+greater than the minimum job requirement but less than the targeted 716
881+job requirement. In addition to the recapture job obligation, the 717
882+commissioner may require other criteria, including, but not limited to, 718
883+wage requirements, with respect to the recapture of the remaining ten 719
884+per cent of the annual recapture amount. In no event shall the amount 720
885+of the recapture exceed the annual recapture amount. 721
886+(g) The aggregate amount of the project tax benefit granted by the 722
887+commissioner under this section shall not exceed (1) six million two 723
888+hundred fifty thousand dollars for each compliance year or fifty 724
889+million dollars during the term of the assistance agreement if the 725
890+eligible taxpayer has entered into a production contract after April 28, 726
891+2022, with the United States government for one helicopter program 727
892+specified in the assistance agreement, and (2) nine million three 728
893+hundred seventy-five thousand dollars for each compliance year or 729 Bill No. 1027
894+
895+
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898+25 of 25
899+
900+seventy-five million dollars during the term of the assistance 730
901+agreement if the eligible taxpayer has entered into production 731
902+contracts after April 28, 2022, with the United States government for 732
903+two helicopter programs specified in the assistance agreement. 733
904+(h) The commissioner shall not enter into any assistance agreement 734
905+under subsection (c) of this section after January 31, 2023. 735
906+(i) The commissioner may make revisions to the terms of the 736
907+assistance agreement to address a scenario where a delay, not caused 737
908+by the eligible taxpayer, prevents the eligible taxpayer from entering 738
909+into one or more production contracts by June 30, 2024. Such revisions 739
910+may include changes to the timing of (1) the benefit period, (2) the 740
911+compliance years, (3) the contract years, (4) the minimum 741
912+requirements, and (5) the recapture period, and other conforming 742
913+changes, provided in all cases, the project tax benefit shall be earned 743
914+[and utilized] during the first eight years of the term of any such 744
915+production contract and utilized not later than one year after the end 745
916+of the benefit period. 746
917+(j) The commissioner may from time to time amend, supplement or 747
918+modify the terms of the assistance agreement consistent with the 748
919+provisions of this section. 749
920+This act shall take effect as follows and shall amend the following
921+sections:
922+
923+Section 1 from passage 32-7t
924+Sec. 2 from passage 32-4p
925+
926+CE Joint Favorable C/R FIN
927+FIN Joint Favorable
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