Sec. 32-1b. Department of Economic and Community Development established.
Sec. 32-7t. JobsCT tax rebate program. Eligibility. Applications. Rebate amount calculation. Report.
Sec. 32-7x. Grant program for eligible projects within high poverty-low opportunity census tracts.
Sec. 32-7y. Bond authorization for high poverty-low opportunity census tract grant program.
Sec. 32-1b. Department of Economic and Community Development established. (a) There is established a Department of Economic and Community Development. The department head shall be the Commissioner of Economic and Community Development, who shall be appointed by the Governor in accordance with the provisions of sections 4-5 to 4-8, inclusive, with the powers and duties prescribed in said sections 4-5 to 4-8, inclusive.
(b) Said department shall constitute a successor department to the Department of Economic Development in accordance with the provisions of sections 4-38d, 4-38e and 4-39.
(c) Whenever the term “Commissioner of Economic Development” is used or referred to in the general statutes, the term “Commissioner of Economic and Community Development” shall be substituted in lieu thereof. Whenever the term “Department of Economic Development” is used or referred to in the general statutes, the term “Department of Economic and Community Development” shall be substituted in lieu thereof.
(d) If the term “Commissioner of Housing” or “Commissioner of Economic Development” is used or referred to in any public or special act of 1995 or 1996, or in any section of the general statutes which is amended in 1995 or 1996, it shall be deemed to mean or refer to the “Commissioner of Economic and Community Development”.
(e) If the term “Department of Housing” or “Department of Economic Development” is used or referred to in any public or special act of 1995 or 1996, or in any section of the general statutes which is amended in 1995 or 1996, it shall be deemed to mean or refer to the “Department of Economic and Community Development”.
(P.A. 73-599, S. 2; P.A. 77-614, S. 284, 610; P.A. 95-250, S. 1, 42; P.A. 96-211, S. 1, 5, 6; June 12 Sp. Sess. P.A. 12-1, S. 114; P.A. 23-204, S. 130.)
History: P.A. 77-614 replaced commissioner and department of commerce with commissioner and department of economic development, effective January 1, 1979; P.A. 95-250 created the Department of Economic and Community Development from the former Department of Housing and the former Department of Economic Development and directed the necessary name changes be made throughout the general statutes and in the public and special acts of 1995 and 1996; P.A. 96-211 entirely replaced prior provisions substituting provisions establishing a Department of Economic and Community Development as successor department to the Department of Housing and the Department of Economic Development, and requiring use of terms “Department of Economic and Community Development” and “Commissioner of Economic and Community Development” to be used in general statutes and 1995 and 1996 public and special acts, effective July 1, 1996; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (b) by adding exception re Sec. 8-37r, deleted former Subsec. (d) re terms Commissioner and Department of Housing and redesignated existing Subsecs. (e), (f) and (g) as Subsecs. (d), (e) and (f), effective June 15, 2012; P.A. 23-204 deleted Subsec. (b) re Department of Economic and Community Development as successor to Department of Housing and redesignated existing Subsecs. (c) to (f) as Subsecs. (b) to (e).
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Sec. 32-1m. Annual report. (a) Not later than February first, annually, the Commissioner of Economic and Community Development shall submit a report to the Governor, the Auditors of Public Accounts and the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, finance, revenue and bonding and commerce, in accordance with the provisions of section 11-4a. Not later than thirty days after submission of the report, said commissioner shall post the report on the Department of Economic and Community Development's web site. Such report shall include, but not be limited to, the following information with regard to the activities of the Department of Economic and Community Development and to business assistance programs administered by Connecticut Innovations, Incorporated, during the preceding state fiscal year:
(1) A brief description and assessment of the state's economy during such year, utilizing the most recent and reasonably available data, and including:
(A) Connecticut employment by industry;
(B) Connecticut and national average unemployment; and
(C) Connecticut gross state product, by industry.
(2) An analysis of the economic development portfolio of the department, including, but not limited to, each business assistance or incentive program, including any business tax credit or abatement program, grant, loan, forgivable loan or other form of assistance, enacted for the purpose of improving economic development. The analysis shall include:
(A) The Internet web site address of the state's open data portal and an indication of where the name, address and location of each recipient of the department's assistance is published on the site along with the following information concerning each recipient: (i) Business activities, (ii) standard industrial classification codes or North American industrial classification codes, (iii) whether the recipient is a minority or woman-owned business, (iv) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance and job creation or retention requirements, (v) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, and (vi) the amount of state investment;
(B) A portfolio analysis, including an analysis of the wages paid by recipients of financial assistance by industry;
(C) An investment analysis, including (i) total portfolio value, (ii) total investment by industry, (iii) portfolio dollar per job average, and (iv) portfolio leverage ratio;
(D) An overview of the business assistance and incentive programs administered by the department and an analysis of their estimated economic impact on the state's economy. The analysis shall include, for each business assistance or incentive program for which such data is available, the number of new jobs created, the borrowing cost to the state and the estimated impact of such program on annual state revenues;
(E) An analysis of whether the statutory and programmatic goals of each business or incentive program are being met, with obstacles to such goals identified, if possible;
(F) (i) Recommendations as to whether any existing business assistance or incentive program should be continued, modified or repealed and the basis or bases for such recommendations, and (ii) any recommendations for additional data collection by the state to better inform future evaluations of such programs; and
(G) The methodologies and assumptions used in carrying out the analyses under this subdivision.
(3) An analysis of the community development portfolio of the department, including:
(A) The Internet web site address of the state's open data portal and an indication of where the name, address and location of each recipient of the department's assistance is published on the site along with the following information concerning each recipient: (i) Amount of state investment, (ii) a summary of the terms and conditions for the department's assistance, including the type and amount of state financial assistance, and (iii) the amount of investments from private and other nonstate sources that have been leveraged by such assistance; and
(B) An investment analysis, including (i) total active portfolio value, (ii) total investments made in the preceding state fiscal year, and (iii) total portfolio leverage ratio.
(4) An analysis of each business assistance or incentive program, including any business tax credit or abatement program, grant, loan, forgivable loan or other form of assistance, enacted for the purpose of improving economic development, that (A) (i) had ten or more recipients of assistance in the preceding state fiscal year, or (ii) credited, abated or distributed more than one million dollars in the preceding state fiscal year, and (B) is administered by the department or Connecticut Innovations, Incorporated. The analysis shall include:
(i) An overview of the business assistance or incentive program and an analysis of its estimated economic effects on the state's economy, including, for each program where such data is available, the number of new jobs created and the estimated impact of such program on annual state revenues;
(ii) An analysis of whether the statutory and programmatic goals of each business assistance or incentive program are being met, with obstacles to such goals identified, if possible;
(iii) Recommendations as to whether any such existing business assistance or incentive program should be continued, modified or repealed and the basis or bases for such recommendations, and any recommendations for additional data collection by the state to better inform future evaluations of such programs; and
(iv) The methodologies and assumptions used in carrying out the analysis under this subdivision.
(5) A summary of the department's international trade efforts in the preceding state fiscal year, and, to the extent possible, a summary of foreign direct investment that occurred in the state in such year.
(6) A summary of the total social and economic impact of the department's efforts and activities in the areas of economic and community development, and an assessment of the department's performance in terms of meeting its stated goals and objectives.
(7) With regard to the Small Business Express program established pursuant to section 32-7g, data on (A) the number of small businesses that received assistance under said program and the general categories of such businesses, (B) the amounts and types of assistance provided, (C) the total number of jobs on the date of application and the number proposed to be created or retained, (D) the most recent employment figures of the small businesses receiving assistance, (E) the default rate of small businesses that received assistance under said program, and (F) the progress of the lenders participating in said program in becoming self-sustainable.
(8) With regard to airport development zones established pursuant to section 32-75d, a summary of the economic and cost benefits of each zone and any recommended revisions to any such zones.
(9) An overview of the department's activities related to tourism, the arts and historic preservation.
(10) An overview of the department's activities concerning digital media, motion pictures and related production activity, and an analysis of the use of the film production tax credit established under section 12-217jj, the entertainment industry infrastructure tax credit established under section 12-217kk and the digital animation production tax credit established under section 12-217ll, including the amount of any tax credit issued under said sections, the total amount of production expenses or costs incurred in the state by the taxpayer who was issued such a tax credit and the information submitted in the report required under subparagraph (A) of subdivision (1) of subsection (h) of section 12-217jj.
(11) A summary of the department's and the office of the permit ombudsman's brownfield-related efforts and activities in the preceding fiscal year.
(12) A summary of the department's dry cleaning establishment remediation account activities in the preceding fiscal year.
(b) Any annual report that is required from the department by any provision of the general statutes shall be incorporated into the annual report submitted pursuant to subsection (a) of this section.
(c) On or before April 1, 2022, and annually thereafter, the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, finance, revenue and bonding and commerce shall hold, individually or jointly, one or more public hearings on the analyses included in the annual report under subdivisions (2), (4) and (7) of subsection (a) of this section.
(P.A. 05-191, S. 1; P.A. 06-184, S. 2; 06-196, S. 265; P.A. 07-171, S. 1; P.A. 09-233, S. 1; 09-234, S. 8; P.A. 10-75, S. 31; 10-158, S. 12; Oct. Sp. Sess. P.A. 11-1, S. 3; P.A. 13-234, S. 54; 13-308, S. 22; P.A. 14-26, S. 1; P.A. 15-192, S. 3; P.A. 17-219, S. 4; 17-226, S.1; P.A. 18-122, S. 2; P.A. 21-193, S. 14; June Sp. Sess. P.A. 21-2, S. 286; P.A. 22-50, S. 4; 22-118, S. 157; P.A. 23-204, S. 353.)
History: P.A. 06-184 amended Subdiv. (8) by making a technical change and adding reference to Office of Brownfield Remediation and Development and summary requirement re “tracking of all funds administered through or by said office” and made technical changes in Subdiv. (12)(B), effective July 1, 2006; P.A. 06-196 made technical changes in Subdiv. (12)(B), effective June 7, 2006; P.A. 07-171 designated existing provisions as Subsec. (a), amended Subsec. (a) by deleting “at application” in Subdiv. (3)(B)(iv), requiring notice of amount of bond funds expended in Subdiv. (7), adding Subdiv. (8)(C) re information on dry cleaning grant program, adding new Subdiv. (10)(B) re assessment of rental assistance needs, adding new Subdiv. (14) re Housing Trust Fund and making technical changes, and added Subsec. (b) re inclusion of all required department reports in annual report; P.A. 09-233 amended Subsec. (a) by adding new Subdiv. (1)(G) re Connecticut's competitiveness as a place for business, redesignating existing Subdiv. (1)(G) as Subdiv. (1)(H) and adding provisions, codified by the Revisors as Subdivs. (18) and (19), re biodiesel producer incentive account grant program and fuel diversification grant program, effective July 1, 2009; P.A. 09-234 amended Subsec. (a) by adding new Subdivs. (10) and (11) re qualified biodiesel grant and fuel diversification programs and redesignating existing Subdivs. (10) to (15) as Subdivs. (12) to (17), with existing Subdiv. (16) having been redesignated by the Revisors as Subdiv. (20), effective July 1, 2009; P.A. 10-75 added Subsec. (a)(21) re Connecticut Credit Consortium, effective July 1, 2010; P.A. 10-158 amended Subsec. (a) to add provisions, codified by the Revisors as Subdiv. (22), re office of permit ombudsman; Oct. Sp. Sess. P.A. 11-1 amended Subsec. (a) to add Subdivs. (23) re Small Business Express program and (24) re airport development zones, effective October 27, 2011; P.A. 13-234 amended Subsec. (a) by deleting former Subdivs. (12) to (17) re housing development and redesignating existing Subdivs. (18) to (24) as Subdivs. (12) to (18), effective July 1, 2013; P.A. 13-308 made a technical change in Subsec. (a)(8), effective July 1, 2013; P.A. 14-26 amended Subsec. (a)(14) to delete requirement that report include summary of social and economic impact re efforts and activities concerning housing development; P.A. 15-192 amended Subsec. (a)(18) to delete provision re consultation with Connecticut Airport Authority, effective July 2, 2015; P.A. 17-219 substantially amended subsection (a) including by replacing provision re submission of report to Governor and General Assembly with provision re submission of report to Governor, Auditors of Public Accounts, and Appropriations, Finance, Revenue and Bonding and Commerce Committees, adding provision re reporting on business assistance or incentive programs not administered by department, deleting former Subdiv. (2) and redesignating existing Subdivs. (3) and (4) as new Subdivs. (2) and (3), amending redesignated Subdiv. (2) by adding provisions re analysis of economic development portfolio to include Internet web site address of state's open data portal, overview of business assistance and incentive programs administered by department, number of new jobs created, borrowing cost, estimated impact of program on state revenues, whether goals of program are being met, recommendations whether any program should be continued, modified or repealed, recommendations for additional data collection, and methodologies and assumptions used in carrying out analyses, amending redesignated Subdiv. (3) by adding provision re analysis of community development portfolio to include Internet web site address of state's open data portal, and deleting provision re estimated economic effects of department's economic development investments on state's economy, adding new Subdiv. (4) re analysis of business assistance or incentive program, deleting former Subdiv. (5), redesignating existing Subdiv. (6) as new Subdiv. (5), deleting former Subdivs. (7) to (13), redesignating existing Subdiv. (14) as new Subdiv. (6), deleting Subdivs. (15) and (16), redesignating existing Subdivs. (17) and (18) as new Subdiv. (7) and (8), and adding new Subdivs. (9) to (12), amended Subsec. (b) by replacing “provided” with “submitted”, and added Subsec. (c) re public hearings on analyses included in report, and made technical and conforming changes, effective July 11, 2017; P.A. 17-226 amended subsection (a) by replacing provision re submission of report to Governor and General Assembly with provision re submission of report to Governor, Auditors of Public Accounts, and Appropriations, Finance, Revenue and Bonding and Commerce Committees, adding provision re reporting on business assistance or incentive programs not administered by department, amending Subdiv. (3) by adding provisions re analysis of community development portfolio to include each business assistance or incentive program enacted for purpose of improving economic development, number of new jobs created, borrowing cost, estimated impact of program on state revenues, whether goals of program are being met, recommendations whether any program should be continued, modified or repealed, recommendations for additional data collection, and methodologies and assumptions used in carrying out analyses, adding Subdiv. (5) re analysis of each assistance or incentive program enacted for purpose of improving economic development, redesignating existing Subdivs. (5) to (18) as new Subdivs. (6) to (19), amended Subsec. (b) by replacing “provided” with “submitted”, and added Subsec. (c) re public hearings on analyses included in report, and made technical and conforming changes, effective July 11, 2017; P.A. 18-122 amended Subsec. (c) by replacing reference to Subdiv. (3) with reference to Subdiv. (2) and replacing reference to Subdiv. (5) with reference to Subdiv. (4), effective June 7, 2018; P.A. 21-193 amended Subsec. (a) by replacing “or incentive programs not administered by the department,” with “programs administered by Connecticut Innovations, Incorporated,” re report, and deleting “not” and adding “or Connecticut Innovations, Incorporated” in Subdiv. (4)(B) and amended Subsec. (c) by replacing “On or before March 1, 2018, and annually thereafter” with “Not later than sixty days after the submission of a report by the Auditors of Public Accounts pursuant to section 2-90c,” and adding “such report and” re hearing, effective July 13, 2021; June Sp. Sess. P.A. 21-2 amended Subsec. (a)(7) by deleting former Subpara. (A), redesignating existing Subparas. (B) to (E) as Subparas. (A) to (D) and adding new Subpara. (E) re default rate of businesses that receive assistance and Subpara.(F) re progress of lenders in becoming self-sustainable and amended Subsec. (c) by replacing “Not later than sixty days after the submission of a report by the Auditors of Public Accounts pursuant to section 2-90c” with “On or before April 1, 2022, and annually thereafter”, deleting provision re public hearing on report, adding reference to Subsec. (a)(7) and making a conforming change, effective June 23, 2021; P.A. 22-50 amended Subsec. (a)(2)(C) by adding “and” before “(iv)”; P.A. 22-118 made an identical change as P.A. 22-50; P.A. 23-204 amended Subsec. (a)(10) by adding reference to information submitted in report required under Sec. 12-217jj(h)(1)(A), effective January 1, 2024.
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Sec. 32-4p. Certified aerospace manufacturing project for production contracts entered into after April 28, 2022. Assistance agreement. Project tax benefit. Recapture. (a) As used in this section:
(1) “Aerospace manufacturing project” means a project involving the production of helicopters in this state that, if certified by the commissioner as provided in subsection (b) of this section, will require (A) primary helicopter production for current United States government programs specified in the assistance agreement, as of the date of the assistance agreement, to be carried out at one or more facilities in this state, (B) the undertaking and maintaining of primary production for helicopters to be produced during the term of the assistance agreement under one or more future United States government programs specified in the assistance agreement under production contracts entered into by the eligible taxpayer after April 28, 2022, to be carried out at one or more facilities in this state, and (C) minimum requirements for total employment in this state, average employee wages in this state, supplier spend and capital expenditures by an eligible taxpayer in furtherance of such project continuing through at least June 30, 2042;
(2) “Annual recapture amount” means the total project tax benefits utilized by an eligible taxpayer divided by ten;
(3) “Assistance agreement” means a contract entered into between the commissioner and an eligible taxpayer in accordance with subsection (c) of this section, including any amendments to or extensions of such contract;
(4) “Average wage requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032, an average annual wage for full-time employees in this state that is not less than the amounts specified in the assistance agreement;
(5) “Benefit period” means the period commencing on the effective date of the assistance agreement and ending on June 30, 2032;
(6) “Capital expenditure” means bona fide costs to the wholly-owned subsidiary and its subsidiaries for: (A) Acquisition of lands, buildings, machinery, equipment or any combination thereof; (B) site and infrastructure improvements; (C) planning costs; (D) research and development expenses, as defined in section 12-217n of the general statutes, revision of 1958, revised to January 1, 2021, and including, but not limited to, development of new products and markets; and (E) development of diversification strategies, including plans for regional diversification strategies and consultants required for the completion of such strategies and plans;
(7) “Capital expenditure requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032, a total annual amount of capital expenditures made in this state by the wholly-owned subsidiary that is not less than:
(A) Seventy million two hundred thousand dollars for the compliance year ending June 30, 2023;
(B) Seventy-one million one hundred thousand dollars for the compliance year ending June 30, 2024;
(C) Seventy-two million nine hundred thousand dollars for the compliance year ending June 30, 2025;
(D) Seventy-three million eight hundred thousand dollars for the compliance year ending June 30, 2026;
(E) Seventy-five million six hundred thousand dollars for the compliance year ending June 30, 2027;
(F) Seventy-seven million four hundred thousand dollars for the compliance year ending June 30, 2028;
(G) Seventy-eight million three hundred thousand dollars for the compliance year ending June 30, 2029;
(H) Eighty million one hundred thousand dollars for the compliance year ending June 30, 2030;
(I) Eighty-one million nine hundred thousand dollars for the compliance year ending June 30, 2031; and
(J) Eighty-three million seven hundred thousand dollars for the compliance year ending June 30, 2032;
(8) “Commissioner” means the Commissioner of Economic and Community Development;
(9) “Company” means an entity with a place of business or a wholly-owned subsidiary located in this state and the direct and indirect subsidiaries and affiliates of such entity;
(10) “Compliance year” means each twelve-month period commencing July first and continuing through June thirtieth of the following year, provided the initial compliance year shall commence on July 1, 2022, and end on June 30, 2023, and the last compliance year shall commence on July 1, 2031, and end on June 30, 2032. “Annual” refers to a compliance year;
(11) “Contract year” means each twelve-month period commencing July first and continuing through June thirtieth of the following year, provided the initial contract year shall commence on July 1, 2022, and end on June 30, 2023, and the last contract year shall commence on July 1, 2041, and end on June 30, 2042;
(12) “Corporation business tax” means the tax due under chapter 208;
(13) “Eligible taxpayer” means a company that, at the time application is made under subsection (b) of this section, (A) is engaged in the aerospace industry, (B) employs not less than seven thousand individuals in this state, (C) operates the company's primary helicopter production facility for its current United States government programs in this state, (D) plans to bid on a production contract or contracts for a helicopter under one or more United States government programs, and (E) has a wholly-owned subsidiary with production facilities and its headquarters, as set forth in the assistance agreement, in this state prior to April 28, 2022;
(14) (A) “Employee requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032:
(i) A minimum level of full-time employees in this state that is not less than an average of seven thousand three hundred seventy-five for each compliance year if the eligible taxpayer has entered into a production contract for one United States government program specified in the assistance agreement; and
(ii) A minimum level of full-time employees in this state that is not less than an average of seven thousand five hundred for each compliance year if the eligible taxpayer has entered into production contracts for two United States government programs specified in the assistance agreement.
(B) The average number of full-time employees for each compliance year shall be determined by adding the number of full-time employees at the end of each quarter of the respective compliance year and dividing the sum of such quarters by four;
(15) “Full-time employee” means an employee in this state of the company who works a minimum of thirty-five hours per week. “Full-time employee” does not include an employee working on a temporary or seasonal basis or any individual who does not receive a federal Form W-2 from the company;
(16) “Minimum requirements” means the minimum conditions the eligible taxpayer must satisfy during each compliance year to qualify for the sales and use tax offset for such compliance year and the refundable tax credit for such compliance year, including, but not limited to, (A) achieving the employee requirement, average wage requirement, supplier spend requirement and capital expenditure requirement, (B) the maintenance of the wholly-owned subsidiary's headquarters, as set forth in the assistance agreement, in this state, (C) the maintenance and operation of the company's primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state, (D) the undertaking and maintaining in this state of the company's primary production for helicopters to be produced during the term of the assistance agreement under one or more future United States government programs specified in the assistance agreement under production contracts entered into by the eligible taxpayer after April 28, 2022, and (E) the maintenance of diversity and workforce training programs by the company in accordance with the terms of the assistance agreement;
(17) “Production” means the various operations related to the completion of a helicopter, including, but not limited to, procurement, engineering, manufacture, assembly, integration and testing;
(18) “Production contract” means a contract with the United States government for the production of helicopters;
(19) “Project tax benefit” means the total benefit accruing to an eligible taxpayer with respect to the sales and use tax offset and the refundable tax credit;
(20) “Refundable tax credit” means the credit described in subsection (e) of this section;
(21) “Regular place of business” means any bona fide office, factory, warehouse or other space in this state at which a supply company is doing business in its own name in a regular and systematic manner and which place is continuously maintained, occupied and used by the supply company in carrying on its business through its employees regularly in attendance to carry on the supply company's business in the supply company's own name. “Regular place of business” does not include a place of business for a statutory agent for service of process, a temporary office or location used by the supply company only for the duration of the contract or an office maintained, occupied and used by a person affiliated with the supply company;
(22) “Sales and use tax” means the taxes due under chapter 219;
(23) “Sales and use tax offset” means the offset described under subsection (d) of this section;
(24) “Supply company” means any commercial business with a regular place of business in this state that supplies goods and services necessary to support (A) the manufacturing of company products, or (B) company operations. “Supply company” does not include any local, state or federal revenue collection or taxing entity;
(25) (A) “Supplier spend requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032, the total annual spend by the wholly-owned subsidiary and by the company, on behalf of the wholly-owned subsidiary, with supply companies in this state of not less than:
(i) Three hundred million dollars for compliance years commencing on or after July 1, 2022, and prior to July 1, 2024;
(ii) Four hundred ten million dollars for compliance years commencing on or after July 1, 2024, and prior to July 1, 2029; and
(iii) Four hundred seventy million dollars for compliance years commencing on or after July 1, 2029, and prior to July 1, 2032.
(B) If an expenditure qualifies for both the supplier spend requirement and the capital expenditures requirement, the eligible taxpayer may choose between such categories for which such expenditure may be counted. In no event shall any such expenditure be counted towards more than one such category; and
(26) “Wholly-owned subsidiary” means a subsidiary of the company, or such subsidiary's successor to its operations, that has its headquarters, as set forth in the assistance agreement, in this state. “Wholly-owned subsidiary” includes any direct or indirect subsidiary of the company's wholly-owned subsidiary and any limited liability company wholly owned directly or indirectly by the company's wholly-owned subsidiary.
(b) (1) Any eligible taxpayer that intends to undertake an aerospace manufacturing project may apply to the commissioner for certification of such project as a certified aerospace manufacturing project. In order to receive such certification, an eligible taxpayer shall apply to the commissioner, in a form acceptable to the commissioner and including such information as prescribed by the commissioner, including, but not limited to, (A) a detailed plan outlining the aerospace manufacturing project, (B) the term of such project, and (C) the estimated expenditures for such project. The commissioner may require such eligible taxpayer to submit such additional information as may be necessary to evaluate the application.
(2) All decisions of the commissioner with respect to any application received under subdivision (1) of this subsection shall be made in the commissioner's discretion. The provisions of this subsection shall not be construed to authorize suit against this state by any taxpayer that is denied certification by the commissioner and shall not be construed as a waiver of sovereign immunity.
(c) (1) Upon certification by the commissioner of an application as provided in subsection (b) of this section, the commissioner may enter into an assistance agreement with an eligible taxpayer pursuant to which the commissioner may, in consideration of the eligible taxpayer's agreement to meet the minimum requirements in a compliance year in connection with the certified aerospace manufacturing project and as further inducement for the eligible taxpayer to enter into an aerospace manufacturing project, agree to permit the eligible taxpayer to offset its sales and use tax liability and to claim a credit against its corporation business tax liability up to a specified amount for the corresponding compliance year.
(2) Such assistance agreement shall have a term of not less than twenty years and shall list:
(A) The specifications of the certified aerospace manufacturing project;
(B) The length of time the certified aerospace manufacturing project will take to complete;
(C) The minimum requirements the eligible taxpayer agrees to meet during each compliance year;
(D) The commitment by the eligible taxpayer to (i) maintain the headquarters, as set forth in the assistance agreement, of the wholly-owned subsidiary or its successor in this state, (ii) operate its primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state, and (iii) to undertake and maintain its primary production of helicopters to be produced during the term of the assistance agreement under one or more future United States government programs specified in the assistance agreement in this state under production contracts entered into by the eligible taxpayer after April 28, 2022;
(E) The amount of sales and use tax that the eligible taxpayer is eligible to offset for each compliance year set forth in the assistance agreement, provided the eligible taxpayer meets the minimum requirements for each such compliance year;
(F) The terms and conditions of the repayment of any sales and use tax offsets and other required financial penalties resulting from the eligible taxpayer's failure to comply with the terms of the assistance agreement;
(G) The amount of corporation business tax, subject to the limits set forth in subsection (e) of this section, against which the eligible taxpayer is eligible to claim a credit for each compliance year set forth in the assistance agreement, provided the eligible taxpayer meets the minimum requirements for each such compliance year;
(H) The manner and method for the eligible taxpayer to provide notice of any disputed claim under the assistance agreement; and
(I) Any other terms and conditions the commissioner may require.
(3) The commissioner may amend the assistance agreement to provide that the project tax benefit be earned during the first eight years of the term of any production contract and utilized within the first nine years of the term of any production contract, provided no project tax benefit may be earned beyond the benefit period or utilized beyond one year after the end of the benefit period.
(4) Any eligible taxpayer that enters into an assistance agreement with the commissioner under this subsection may, in the event of any disputed claim under such assistance agreement, bring an action against this state to the superior court for the judicial district of Hartford for the purpose of having such claim determined, provided notice of such disputed claim is first given to the commissioner in the manner and method described in such assistance agreement. No such action shall be allowed unless it is brought not later than two years after the date on which the eligible taxpayer gave proper notice to the commissioner in accordance with such assistance agreement. All legal defenses under such assistance agreement, except sovereign immunity, are reserved to this state.
(5) If the provisions of subsection (c) or (e) of section 32-223 or section 32-462 are in conflict with the assistance agreement, the provisions of such assistance agreement shall supersede.
(6) Upon the execution of the assistance agreement, the commissioner shall issue an allocation notice stating the maximum combined amount of the sales and use tax offset and the refundable tax credit available to the eligible taxpayer for the benefit period and the specific requirements the eligible taxpayer shall meet to qualify for such offset and credit. Such notice shall certify to the eligible taxpayer that the offsets and credits may be claimed by the eligible taxpayer if the eligible taxpayer meets the specific requirements set forth in the notice.
(d) (1) The assistance agreement shall provide for the offset of sales and use tax amounts otherwise payable by the eligible taxpayer under the provisions of chapter 219. Such offset shall be made in the form, timing and manner determined by the commissioner in consultation with the Commissioner of Revenue Services. The sales and use tax offset amounts shall be calculated after the application of all other sales and use tax exemptions set forth in chapter 219 in effect on April 28, 2022 and any subsequent amendments to said chapter that the eligible taxpayer is eligible to claim. Nothing in this subsection shall affect the eligible taxpayer's ability to claim the sales and use tax exemptions that it otherwise qualifies for under any provision of the general statutes.
(2) Subsequent to a production contract taking effect for helicopters to be produced during the term of the assistance agreement, not later than sixty days after the end of each compliance year or, if the eligible taxpayer requests and the commissioner approves an extended date, not later than such extended date, the eligible taxpayer shall certify, subject to a third-party audit performed in accordance with the Department of Economic and Community Development audit guide or such protocols as may be set forth in the assistance agreement, the actual employment, wages, supplier spend and capital expenditure amounts to the commissioner in accordance with the requirements of the assistance agreement. If the results of such audit reveal that the eligible taxpayer has claimed a sales and use tax offset in excess of the amount allowable, the eligible taxpayer shall be subject to the repayment provisions as set forth in the assistance agreement. At the end of each compliance year, upon receipt of the eligible taxpayer's certification, the commissioner shall notify the Commissioner of Revenue Services whether the eligible taxpayer has met all minimum requirements necessary to qualify for the sales and use tax offset or is required to repay the amount of such offset in accordance with the terms of the assistance agreement.
(e) (1) If the results of the audit performed pursuant to subdivision (2) of subsection (d) of this section reveal that the eligible taxpayer was unable to utilize all of the sales and use tax offset to which it was entitled under the assistance agreement for a compliance year against its sales and use tax liability, the assistance agreement shall permit the eligible taxpayer to claim the excess amount as a refundable tax credit, not to exceed five million dollars for each compliance year, against the corporation business tax. If the amount of the excess is greater than five million dollars for any compliance year, the excess over five million dollars shall be carried forward to future compliance years to offset the eligible taxpayer's sales and use tax liability and then as refundable tax credits of up to five million dollars for each compliance year against the eligible taxpayer's corporation business tax liability, until the excess is fully utilized, except that no carry-forward shall extend beyond one year after the end of the benefit period. Such carry-forward shall be utilized prior to any sales and use tax offset earned in any subsequent compliance year.
(2) If the amount of the refundable tax credit exceeds the eligible taxpayer's corporation business tax liability for the applicable income year, the Commissioner of Revenue Services shall treat such excess as an overpayment and shall refund the amount of such excess, without interest, to the eligible taxpayer. In no event shall the refundable tax credits allowed under this subsection exceed forty-five million dollars in the aggregate over the term of the assistance agreement. The eligible taxpayer shall claim the refundable tax credit allowed under this subsection on its corporate tax return for the income year that ends during the compliance year and such credit shall not be subject to the limits set forth in section 12-217zz. Notwithstanding the provisions of section 12-217aa, such credit shall be claimed after all other tax credits have been claimed.
(3) Not later than thirty days after the commissioner receives an audit performed pursuant to subdivision (2) of subsection (d) of this section or as provided for in the assistance agreement, during each year of the benefit period, the Department of Economic and Community Development shall issue the eligible taxpayer a credit voucher that sets forth the amount of the refundable tax credit permitted pursuant to this subsection and the income year for which such credit may be claimed. The commissioner shall annually provide to the Commissioner of Revenue Services a report detailing all credit vouchers that have been issued under this subsection.
(f) (1) The eligible taxpayer shall pay the total amount of project tax benefit that was utilized by the eligible taxpayer for a particular compliance year and any penalty set forth in the assistance agreement if the commissioner determines that the eligible taxpayer failed to satisfy any of the minimum requirements for such compliance year.
(2) The project tax benefit utilized by the eligible taxpayer under subsections (d) and (e) of this section shall be subject to recapture during the contract years commencing on or after July 1, 2032, and ending on June 30, 2042, if the eligible taxpayer fails to satisfy during such time period certain annual thresholds relating to employee head count, average wages, supplier spend and capital expenditures, as detailed in the assistance agreement, and such other requirements including (A) the maintenance of the wholly-owned subsidiary's headquarters, as set forth in the assistance agreement, in this state, (B) the maintenance and operation of the company's primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state, (C) the undertaking and maintaining in this state of the company's primary production for helicopters to be produced during the term of the assistance agreement under one or more of its future United States government programs specified in the assistance agreement under production contracts entered into by the eligible taxpayer after April 28, 2022, and (D) the maintenance of diversity and workforce training programs by the company in accordance with the terms of the assistance agreement.
(3) If the eligible taxpayer enters into a production contract with the United States government for one helicopter program specified in the assistance agreement, the targeted job requirement shall be seven thousand two hundred fifty, and the minimum job requirement shall be six thousand for each of the years subject to the recapture under subdivision (2) of this subsection. If the eligible taxpayer enters into production contracts with the United States government for two helicopter programs specified in the assistance agreement, the targeted job requirement shall be seven thousand seven hundred fifty, and the minimum job requirement shall be seven thousand for each of the years subject to the recapture under subdivision (2) of this subsection. The annual recapture amount shall be (A) repaid if the number of actual jobs in any year subject to the recapture is less than the minimum job requirement, and (B) prorated at ninety per cent value of the annual recapture amount if the number of actual jobs is equal to or greater than the minimum job requirement but less than the targeted job requirement. In addition to the recapture job obligation, the commissioner may require other criteria, including, but not limited to, wage requirements, with respect to the recapture of the remaining ten per cent of the annual recapture amount. In no event shall the amount of the recapture exceed the annual recapture amount.
(g) The aggregate amount of the project tax benefit granted by the commissioner under this section shall not exceed (1) six million two hundred fifty thousand dollars for each compliance year or fifty million dollars during the term of the assistance agreement if the eligible taxpayer has entered into a production contract after April 28, 2022, with the United States government for one helicopter program specified in the assistance agreement, and (2) nine million three hundred seventy-five thousand dollars for each compliance year or seventy-five million dollars during the term of the assistance agreement if the eligible taxpayer has entered into production contracts after April 28, 2022, with the United States government for two helicopter programs specified in the assistance agreement.
(h) The commissioner shall not enter into any assistance agreement under subsection (c) of this section after January 31, 2023.
(i) The commissioner may make revisions to the terms of the assistance agreement to address a scenario where a delay, not caused by the eligible taxpayer, prevents the eligible taxpayer from entering into one or more production contracts by June 30, 2024. Such revisions may include changes to the timing of (1) the benefit period, (2) the compliance years, (3) the contract years, (4) the minimum requirements, and (5) the recapture period, and other conforming changes, provided in all cases, the project tax benefit shall be earned during the first eight years of the term of any such production contract and utilized not later than one year after the end of the benefit period.
(j) The commissioner may from time to time amend, supplement or modify the terms of the assistance agreement consistent with the provisions of this section.
(P.A. 22-4, S. 1; P.A. 23-96, S. 2.)
History: P.A. 22-4 effective April 28, 2022; P.A. 23-96 amended Subsec. (c)(3) by deleting provision re assistance agreement provide that tax benefit be utilized during the first 8 years of term of any production contract, establishing that commissioner may amend assistance agreement to provide that tax benefit be utilized within first 9 years of term of any production contract, deleting provision re no tax benefit being utilized beyond the benefit period, and establishing that no tax benefit may be utilized beyond 1 year after the end of benefit period, amended Subsec. (e)(1) by adding “one year after the end of” and amended Subsec. (i) by deleting provision re tax benefit being utilized during first 8 years of any production contract and adding provision re tax benefit being utilized not later than 1 year after end of benefit period, effective June 26, 2023.
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Sec. 32-7t. JobsCT tax rebate program. Eligibility. Applications. Rebate amount calculation. Report. (a) As used in this section:
(1) “Commissioner” means the Commissioner of Economic and Community Development;
(2) “Discretionary FTE” means an FTE that is paid qualified wages and does not meet the threshold wage requirements to be a qualified FTE but is approved by the commissioner pursuant to subdivision (4) of subsection (c) of this section;
(3) “Distressed municipality” has the same meaning as provided in section 32-9p;
(4) “Full-time equivalent” or “FTE” means the number of employees employed at a qualified business, calculated in accordance with subsection (d) of this section;
(5) “Full-time job” means a job in which an employee is required to work at least thirty-five or more hours per week. “Full-time job” does not include a temporary or seasonal job;
(6) “Intellectual disability” has the same meaning as provided in section 1-1g;
(7) “Median household income” means the median annual household income for residents in a municipality as calculated from the U.S. Census Bureau's five-year American Community Survey or another data source, at the sole discretion of the commissioner;
(8) “New employee” means a person or persons hired by the qualified business to fill a full-time equivalent position. A new employee does not include a person who was employed in this state by a related person with respect to the qualified business within twelve months prior to a qualified business's application to the commissioner for a rebate allocation notice for a job creation rebate pursuant to subsection (c) of this section;
(9) “New FTEs” means the number of FTEs that (A) did not exist in this state at the time of a qualified business's application to the commissioner for a rebate allocation notice for a job creation rebate pursuant to subsection (c) of this section, (B) are not the result of FTEs acquired due to a merger or acquisition, (C) are filled by a new employee, (D) are qualified FTEs, and (E) are not FTEs hired to replace FTEs that existed in the state after January 1, 2020. The commissioner may issue guidance on the implementation of this definition;
(10) “New FTEs created” means the number of new FTEs that the qualified business is employing at a point-in-time at the end of the relevant time period;
(11) “New FTEs maintained” means the total number of new FTEs employed throughout a relevant time period;
(12) “Opportunity zone” means a population census tract that is a low-income community that is designated as a “qualified opportunity zone” pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as amended from time to time;
(13) “Part-time job” means a job in which an employee is required to work less than thirty-five hours per week. “Part-time job” does not include a temporary or seasonal job;
(14) “Qualified business” means a person that is (A) engaged in business in an industry related to finance, insurance, manufacturing, clean energy, bioscience, technology, digital media or any similar industry, as determined by the sole discretion of the commissioner, and (B) subject to taxation under chapter 207, 208 or 228z;
(15) “Qualified FTE” means an FTE who is paid qualified wages of at least eighty-five per cent of the median household income for the location where the FTE position is primarily located, scaled in proportion to the FTE fraction, or thirty-seven thousand five hundred dollars, scaled in proportion to the FTE fraction, whichever is greater;
(16) “Qualified wages” means wages sourced to this state pursuant to section 12-705;
(17) “Rebate period” means the calendar years in which a tax rebate provided for in this section is to be paid pursuant to a rebate allocation notice issued pursuant to subsection (c) of this section; and
(18) “Related person” means (A) a corporation, limited liability company, partnership, association or trust controlled by the qualified business, (B) an individual, corporation, limited liability company, partnership, association or trust that is in control of the qualified business, (C) a corporation, limited liability company, partnership, association or trust controlled by an individual, corporation, limited liability company, partnership, association or trust that is in control of the qualified business, or (D) a member of the same controlled group as the qualified business. For the purposes of this subdivision, “control” means (i) ownership, directly or indirectly, of stock possessing fifty per cent or more of the total combined voting power of all classes of the stock of a corporation entitled to vote, (ii) ownership, directly or indirectly, of fifty per cent or more of the capital or profits interest in a partnership, limited liability company or association, or (iii) ownership, directly or indirectly, of fifty per cent or more of the beneficial interest in the principal or income of a trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership, of a limited liability company or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Section 267(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, other than paragraph (3) of said section.
(b) There is established a JobsCT tax rebate program under which qualified businesses that create jobs in this state, in accordance with the provisions of this section, may be allowed a tax rebate, which shall be treated as a credit against the tax imposed under chapter 208 or 228z or as an offset of the tax imposed under chapter 207.
(c) (1) To be eligible to claim a rebate under this section, a qualified business shall apply to the commissioner in accordance with the provisions of this subsection. The application shall be on a form prescribed by the commissioner and may require information, including, but not limited to, the number of new FTEs to be created by the qualified business, the number of current FTEs employed by the qualified business, feasibility studies or business plans for the increased number of FTEs, projected state and local revenue that may reasonably derive as a result of the increased number of FTEs and any other information necessary to determine whether there will be net benefits to the economy of the municipality or municipalities in which the qualified business is primarily located and the state.
(2) Upon receipt of an application, the commissioner shall determine (A) whether the qualified business making the application will be reasonably able to meet the FTE hiring targets and other metrics as presented in such application, (B) whether such qualified business's proposed job growth would provide a net benefit to economic development and employment opportunities in the state, and (C) whether such qualified business's proposed job growth will exceed the number of jobs at the business that existed prior to January 1, 2020. The commissioner may require the applicant to submit additional information to evaluate an application. Each qualified business making an application shall satisfy the requirements of this subdivision, as determined by the commissioner, to be eligible for the JobsCT tax rebate program.
(3) The commissioner, upon consideration of an application and any additional information, may approve an application in whole or in part or may approve an application with amendments. If the commissioner disapproves an application, the commissioner shall identify the defects in such application and explain the specific reasons for the disapproval. The commissioner shall render a decision on an application not later than ninety days after the date of its receipt by the commissioner.
(4) The commissioner may approve an application in whole or in part by a qualified business that creates new discretionary FTEs or may approve such an application with amendments if a majority of such new discretionary FTEs are individuals who (A) because of a disability, are receiving or have received services from the Department of Aging and Disability Services; (B) are receiving employment services from the Department of Mental Health and Addiction Services or participating in employment opportunities and day services, as defined in section 17a-226, operated or funded by the Department of Developmental Services; (C) have been unemployed for at least six of the preceding twelve months; (D) have been convicted of a misdemeanor or felony; (E) are veterans, as defined in section 27-103; (F) have not earned any postsecondary credential and are not currently enrolled in a postsecondary institution or program; or (G) are currently enrolled in a workforce training program fully or substantially paid for by the employer that results in such individual earning a postsecondary credential.
(5) The commissioner may combine approval of an application with the exercise of any of the commissioner's other powers, including, but not limited to, the provision of other financial assistance.
(6) By submitting an application, a qualified business consents to the Department of Economic and Community Development's access of data compiled by other state agencies, including, but not limited to, the Labor Department, for the purposes of audit and enforcement.
(7) The commissioner shall issue a rebate allocation notice stating the maximum amount of each rebate available to an approved qualified business for the rebate period and the specific terms that such business shall meet to qualify for each rebate. Such notice shall certify to the approved qualified business that the rebates may be claimed by such business if it meets the specific terms set forth in the notice. Such terms shall include the required wage, as determined by the commissioner, such business shall pay new discretionary FTEs to qualify for the tax rebates provided in subsection (f) of this section.
(d) For the purposes of this section, the FTE of a full-time job or part-time job is based on the hours worked or expected to be worked by an employee in a calendar year. A job in which an employee worked or is expected to work one thousand seven hundred fifty hours or more in a calendar year equals one FTE. A job in which an employee worked or is expected to work less than one thousand seven hundred fifty hours equals a fraction of one FTE, where the fraction is the number of hours worked in a calendar year divided by one thousand seven hundred fifty. The commissioner shall have the discretion to adjust the calculation of FTE.
(e) (1) In each calendar year of the rebate period, a qualified business approved by the commissioner pursuant to subdivision (3) of subsection (c) of this section that employs at least twenty-five new FTEs in this state or, if at least one of the new FTEs is an individual with intellectual disability, fifteen new FTEs in this state by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed shall be allowed a rebate equal to the greater of the following amounts:
(A) The sum of:
(i) The lesser of (I) the new FTEs created in an opportunity zone or distressed municipality on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, (II) the new FTEs maintained in an opportunity zone or distressed municipality in the previous calendar year, (III) the new FTEs created by a qualified business employing at least one new FTE who is an individual with intellectual disability, or (IV) the new FTEs maintained by a qualified business employing at least one new FTE who is an individual with intellectual disability, multiplied by fifty per cent of the income tax that would be paid on the average wage of the new FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; and
(ii) The lesser of (I) the new FTEs created on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) the new FTEs maintained in a location other than an opportunity zone or distressed municipality in the previous calendar year, multiplied by twenty-five per cent of the income tax that would be paid on the average wage of the new FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; or
(B) The greater of:
(i) One thousand dollars multiplied by the lesser of (I) the new FTEs created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed; or
(ii) For tax credits earned, claimed or payable prior to January 1, 2024, two thousand dollars multiplied by the lesser of (I) the new FTEs created by December 31, 2022, or (II) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.
(2) In no event shall the rebate under this subsection exceed in any calendar year of the rebate period five thousand dollars multiplied by the lesser of (A) the new FTEs created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (B) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.
(3) In no event shall an approved qualified business receive a rebate under this subsection in any calendar year of the rebate period if such business has not maintained, in the calendar year immediately prior to the calendar year in which the rebate is being claimed, at least (A) twenty-five new FTEs, or (B) fifteen new FTEs, if at least one of the new FTEs is an individual with intellectual disability.
(f) (1) In each calendar year of the rebate period, a qualified business approved by the commissioner pursuant to subdivision (4) of subsection (c) of this section that employs at least twenty-five new discretionary FTEs in this state by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed shall be allowed a rebate equal to the sum of the amount calculated pursuant to subdivision (1) of subsection (e) of this section and the greater of the following:
(A) The sum of:
(i) The lesser of the new discretionary FTEs (I) created in an opportunity zone or distressed municipality on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) maintained in an opportunity zone or distressed municipality in the previous calendar year, multiplied by fifty per cent of the income tax that would be paid on the average wage of the new discretionary FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; and
(ii) The lesser of the new discretionary FTEs (I) created on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) maintained in a location other than an opportunity zone or distressed municipality in the previous calendar year, multiplied by twenty-five per cent of the income tax that would be paid on the average wage of the new discretionary FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; or
(B) The greater of:
(i) Seven hundred fifty dollars multiplied by the lesser of the new discretionary FTEs (I) created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed; or
(ii) For tax credits earned, claimed or payable prior to January 1, 2024, one thousand five hundred dollars multiplied by the lesser of (I) the new FTEs created by December 31, 2022, or (II) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.
(2) In no event shall the rebate under this section exceed in any calendar year of the rebate period five thousand dollars multiplied by the lesser of the new discretionary FTEs (A) created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (B) maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.
(3) In no event shall an approved qualified business receive a rebate under this subsection in any calendar year of the rebate period if such business has not maintained at least twenty-five new discretionary FTEs in the calendar year immediately prior to the calendar year in which the rebate is being claimed.
(g) (1) Notwithstanding the provisions of subdivisions (3) and (4) of subsection (c) of this section, the commissioner may not approve an application in whole or in part if the full amount of rebates that such applicant may be paid pursuant to subsection (e) or (f) of this section would result in the aggregate amount of rebates issued to all approved qualified businesses under this section exceeding forty million dollars in any fiscal year.
(2) Notwithstanding the provisions of subdivision (4) of subsection (c) of this section, the commissioner may not approve an application in whole or in part if the full amount of rebates that such applicant may be paid pursuant to subsection (f) of this section would result in the aggregate amount of rebates issued pursuant to subsection (f) of this section exceeding fifteen million dollars in any fiscal year.
(h) (1) A rebate under this section may be granted to an approved qualified business for not more than seven successive calendar years. A rebate shall not be granted until at least twenty-four months after the commissioner's approval of a qualified business's application.
(2) An approved qualified business that has fewer than twenty-five new FTEs or, if at least one of the new FTEs is an individual with intellectual disability, fewer than fifteen new FTEs, created in each of two consecutive calendar years or, if such business is approved by the commissioner pursuant to subdivision (4) of subsection (c) of this section, fewer than twenty-five new discretionary FTEs in each of two consecutive calendar years shall forfeit all remaining rebate allocations, unless the commissioner recognizes mitigating circumstances of a regional or national nature, including, but not limited to, a recession.
(i) Not later than January thirty-first of each year during the rebate period, each approved qualified business shall provide information to the commissioner regarding the number of new FTEs or new discretionary FTEs created or maintained during the prior calendar year and the qualified wages of such new employees. Any information provided under this subsection shall be subject to audit by the Department of Economic and Community Development.
(j) Not later than March fifteenth of each year during the rebate period, the Department of Economic and Community Development shall issue the approved qualified business a rebate voucher that sets forth the amount of the rebate, as calculated pursuant to subsections (e) and (f) of this section, and the taxable year against which such rebate may be claimed. The approved qualified business shall claim such rebate as a credit against the taxes due under chapter 208 or 228z or as an offset of the tax imposed under chapter 207. The commissioner shall annually provide to the Commissioner of Revenue Services a report detailing all rebate vouchers that have been issued under this section.
(k) Beginning on January 1, 2023, and annually thereafter, the commissioner, in consultation with the office of the State Comptroller and the Auditors of Public Accounts, shall submit a report to the Office of Policy and Management on the expenses of the JobsCT tax rebate program and the number of FTEs and discretionary FTEs created and maintained.
(l) Not later than January 1, 2024, the commissioner shall post, on the Department of Economic and Community Development's Internet web site, information on the JobsCT tax rebate program established under this section, including, but not limited to, information concerning tax rebates available for qualified businesses that, in accordance with the provisions of this section, employ individuals with intellectual disability in this state.
(P.A. 22-118, S. 420; P.A. 23-38, S. 3; 23-96, S. 1; 23-137, S. 61.)
History: P.A. 22-118 effective July 1, 2022, and applicable to taxable years commencing on or after January 1, 2023; P.A. 23-38 made a technical change in Subsec. (c)(4)(F); P.A. 23-96 redefined “rebate period” in Subsec. (a)(16), amended Subsec. (c)(6) by eliminating requirement re commissioner entering into contract with approved qualified businesses that includes consent re access of data, inserting provision re qualified businesses consenting by submitting an application and deleting provision re qualified businesses consenting to wage required to be paid to qualify for tax rebates and amended Subsec. (c)(7) by deleting “Upon signing a contract with an approved qualified business,”, changing “available to such business” to “available to an approved qualified business”, adding provision re rebate allocation notice including wage required to be paid to qualify for tax rebates and made technical changes throughout, effective June 26, 2023; P.A. 23-137 amended Subsec. (a) by defining “intellectual disability” in new Subdiv. (6), redesignating existing Subdivs. (6) to (17) as Subdivs. (7) to (18), amended Subsec. (e)(1) by adding provision re certain businesses that employ at least 15 new FTEs allowed rebate if at least 1 of the new FTEs is individual with intellectual disability, amended Subsec. (e)(1)(A)(i) by making a technical and conforming change, adding subclause (III) re new FTEs created by qualified business employing at least 1 new FTE who is individual with intellectual disability and adding subclause (IV) re new FTEs maintained by qualified business employing at least 1 new FTE who is individual with intellectual disability, amended Subsec. (e)(3) by adding Subpara. (A) designator, adding Subpara. (B) re no rebate shall be received if approved qualified business has not maintained at least 15 new FTEs, if at least 1 of the new FTEs is individual with intellectual disability and making technical and conforming changes, amended Subsec. (g)(2) by replacing “ten” with “fifteen”, amended Subsec. (h)(2) by adding provision re approved qualified business that has fewer than 15 new FTEs created, if at least 1 of the new FTEs is individual with intellectual disability, shall forfeit remaining rebate allocations and added Subsec. (l) re commissioner post information on JobsCT tax rebate program on Internet web site, effective January 1, 2024, and applicable to taxable years commencing on or after January 1, 2024.
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Sec. 32-7u. JobsCT tax rebates. Claims by affected business entities. Credit available to members of affected business entities. As used in this section, “affected business entity” and “member” have the same meanings as provided in subsection (a) of section 12-699. An affected business entity that receives a rebate under section 32-7t shall claim such rebate as a credit against the tax due under chapter 228z. If the amount of the rebate allowed pursuant to section 32-7t exceeds the liability for the tax imposed under chapter 228z, the Commissioner of Revenue Services shall treat such excess as an overpayment and shall refund the amount of such excess, without interest, to the taxpayer. With respect to an affected business entity granted a rebate pursuant to section 32-7t, the credit available to the members of such entity pursuant to subdivision (1) of subsection (f) of section 12-699 shall be based upon the amount of tax due under chapter 228z from such entity prior to the application of the rebate granted pursuant to section 32-7t and any other payments made against such tax due.
(P.A. 22-118, S. 421; P.A. 23-204, S. 365.)
History: P.A. 22-118 effective July 1, 2022, and applicable to taxable years commencing on or after January 1, 2023; P.A. 23-204 replaced reference to Sec. 12-699(g)(1) with reference to Sec. 12-699(f)(1), effective January 1, 2024, and applicable to taxable years commencing on or after January 1, 2024.
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Sec. 32-7v. Workforce development program re grants to nonprofit organizations that employ individuals with intellectual disability. Application. (a)(1) The Commissioner of Economic and Community Development shall, within available resources, establish a workforce development program to provide grants to nonprofit organizations that employ individuals with intellectual disability, as defined in section 1-1g. Such grants shall be awarded for infrastructure expenditures, start-up costs or expansion costs.
(2) Any nonprofit organization that employs, at the time of application, a workforce of which not less than ten per cent consists of individuals with intellectual disability, as defined in section 1-1g, may apply for a grant under the program.
(3) Grants awarded pursuant to this section shall not exceed:
(A) Twenty-five thousand dollars per nonprofit organization employing a workforce of which between ten and thirty per cent, inclusive, consists of individuals with intellectual disability; and
(B) Seventy-five thousand dollars per nonprofit organization employing a workforce of which more than thirty per cent consists of individuals with intellectual disability.
(b) The Department of Economic and Community Development may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate the program established pursuant to this section.
(c) The commissioner shall prescribe the form and manner of the application and such application procedure shall include a competitive award process.
(P.A. 23-137, S. 63.)
History: P.A. 23-137 effective July 1, 2023.
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Sec. 32-7w. Bond authorization for grants to nonprofit organizations that employ individuals with an intellectual disability. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate one million dollars.
(b) The proceeds of the sale of such bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development for the purpose of providing grants to nonprofit organizations that employ individuals with an intellectual disability, as defined in section 1-1g, pursuant to section 32-7v, provided the department may retain not more than ten per cent of such proceeds for the costs incurred by the department in administering such grant program.
(c) All provisions of section 3-20, or the exercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section. Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization that is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Such bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
(P.A. 23-205, S. 98.)
History: P.A. 23-205 effective July 1, 2023.
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Sec. 32-7x. Grant program for eligible projects within high poverty-low opportunity census tracts. (a) As used in this section, “high poverty-low opportunity census tract” means a United States census tract in which thirty per cent or more of the residents within such census tract have incomes below the federal poverty level, according to the most recent five-year United States Census Bureau American Community Survey.
(b) The Secretary of the Office of Policy and Management shall compile a list of high poverty-low opportunity census tracts in the state and the municipalities in which such census tracts are located and shall, not later than July 31, 2023, submit such list to the General Assembly in accordance with the provisions of section 11-4a. The secretary shall post such list to the Internet web site of the Office of Policy and Management and shall review and update such list as necessary. Whenever the secretary updates such list, the secretary shall submit such updated list to the General Assembly in accordance with the provisions of section 11-4a.
(c) (1) The Commissioner of Economic and Community Development shall establish a grant program to fund eligible projects within high poverty-low opportunity census tracts. An eligible project shall seek to reduce concentrated poverty within such tracts and the effects of such poverty, including, but not limited to, the lower lifetime income of residents within such tracts, the lower lifetime income expectations of future generations within such tracts, increased crime and risk of incarceration for residents within such tracts and educational deficiencies within such tracts. An eligible project includes:
(A) Construction, renovation or rehabilitation of mixed-income rental housing and owner-occupied housing, in order to retain individuals and families of different income levels and to increase the percentage of owner-occupied housing within such census tract or tracts;
(B) The establishment or improvement of workforce development programs, including, but not limited to, programs that partner with organizations to identify unemployed or underemployed individuals and at-risk youth residing in such census tracts, identify workforce training opportunities and other resources for such individuals and link such individuals with the appropriate training and resources that will increase the skills and earning potential of such individuals; and
(C) Construction, renovation or rehabilitation of public infrastructure, in order to support and improve the private investment opportunities, quality of life and public safety within such census tract or tracts.
(2) Beginning on January 1, 2024, and not later than January 1, 2030, each municipality in which a high poverty-low opportunity census tract is located may apply to the commissioner, in a form and manner prescribed by the commissioner, to receive a grant for an eligible project or any combination of eligible projects. An application may target one high poverty-low opportunity census tract or more than one such census tract if such census tracts are geographically contiguous or within reasonable proximity of each other. An applicant shall not be prohibited from filing more than one application for different high poverty-low opportunity census tracts or groups of such census tracts.
(d) (1) Not later than January 1, 2024, the commissioner shall establish criteria for the awarding of grants as described in subdivision (2) of this subsection, requirements for documents and information as described in subdivision (3) of this subsection and deadlines for submitting applications and revised and modified applications under subsection (e) of this section. The commissioner shall post such criteria, requirements and deadlines on the Internet web site of the Department of Economic and Community Development, notify each municipality in which a high poverty-low opportunity census tract is located of such posting and promote the availability of the grant program established by this section in each high poverty-low opportunity census tract.
(2) Criteria for the awarding of grants pursuant to this section shall include, but need not be limited to:
(A) The likelihood that a proposal will reduce adult or child poverty within a high poverty-low opportunity census tract;
(B) The likelihood that a proposal will reduce the likelihood that children currently residing within a high poverty-low opportunity census tract will live in poverty after reaching adulthood;
(C) The likelihood that a proposal will produce persistent and meaningful improvements in residents' wealth, financial security, employability or quality of life beyond the duration of the proposal;
(D) The feasibility of the initiatives in a proposal and the demonstrated or perceived capacity to execute upon the scope of work in a proposal, including, but not limited to, adequate staffing levels of entities involved with the proposal; and
(E) The interconnectivity and mutual reinforcement among all proposed initiatives in the same high poverty-low opportunity census tract area or areas, such as providing workforce training programs to parents of children enrolled in a supported early childhood program.
(3) Requirements for documents and information to be submitted by municipalities to evaluate applications shall include, but need not be limited to:
(A) A description of how the proposal intends to address each type of eligible project described in subparagraphs (A) to (C), inclusive, of subdivision (1) of subsection (c) of this section, and whether there are existing projects or programs to address such eligible projects;
(B) A description of each initiative within the proposal, which may include multiple simultaneous initiatives, and how each initiative will meet one of the criteria established pursuant to subdivision (2) of this subsection;
(C) A description of sufficient efforts, as determined by the commissioner, to engage residents of the high poverty-low opportunity census tract in formulating a proposal;
(D) For an initiative that is an eligible project described in subparagraph (B) of subdivision (1) of subsection (c) of this section, a description of the municipality's consultations with the regional workforce development board that serves the municipality regarding the development of such project and efforts to coordinate such project with the board's activities;
(E) A description of each organization that will participate in an eligible project described in subparagraph (B) of subdivision (1) of subsection (c) of this section, and information on each organization's commitment to provide continuous, sustained engagement with residents of such tract throughout the project;
(F) A description of the entity or organization responsible for coordinating the implementation of each component of the application and overseeing the various projects and programs outlined in such application;
(G) A description of plans for ongoing engagement with residents of such census tracts and solicitation of feedback on the progress of a proposal during its implementation; and
(H) A description of plans to provide residents of such tract with opportunities to become involved in implementation of a proposal.
(e) (1) The department shall review and evaluate each application submitted and shall work with the applicant municipality to revise the application if the department believes such revisions will improve or strengthen the application. The department shall assist an applicant in identifying and applying for funding under other programs in order to maximize the amount of funding available for an applicant, including seeking funding under section 4-66c. For a proposal for an eligible project described in subparagraph (A) of subdivision (1) of subsection (c) of this section, the commissioner shall evaluate such project in consultation with the Commissioner of Housing and the Commissioner of Housing shall assist the applicant with obtaining funding for such project through programs operated by the Department of Housing.
(2) The commissioner shall submit to the Governor all applications that are deemed to satisfy the requirements of subsection (d) of this section. The Governor shall review such applications and may approve or disapprove an application or return an application to the commissioner for modifications. If an application is returned to the commissioner, the commissioner shall work with the applicant to modify the application and shall resubmit such application with modifications to the Governor. If the Governor approves an application, the Governor shall make a grant award from bond proceeds under section 32-7y, provided the Governor may use funds from other bond proceeds authorized for the general purposes described in subparagraphs (A) to (C), inclusive, of subdivision (1) of subsection (c) of this section for such grants. Grants awarded under this section shall be for a period of three years, and in an amount sufficient to carry out the objectives of the application, but not less than five hundred thousand dollars. Each application that the Governor approves shall be considered at a State Bond Commission meeting not later than two months after the date the application was approved by the Governor.
(f) At the conclusion of the initial grant period, the commissioner shall evaluate the municipality's progress toward reducing the number of residents within the applicable high poverty-low opportunity census tract who have incomes below the federal poverty level to less than thirty per cent of the residents of such tract. Such evaluation shall consider, among other factors, any change in the percentage of residents within such census tract who have incomes below the federal poverty level, and whether the actions taken pursuant to such grant during the initial grant period: (1) May reasonably result in a future reduction in the percentage of residents within such census tract who have incomes below the federal poverty level, (2) have resulted in a reduction in child poverty within such census tract, (3) may reasonably result in a future reduction in child poverty within such census tract, or (4) may reasonably decrease the likelihood that children who are currently living within such census tract will have incomes below the federal poverty level after they reach adulthood. Upon a determination by the commissioner that reasonable progress has been made, the municipality shall be eligible for subsequent grants under this section, provided at the conclusion of each subsequent grant period of three years, each applicant municipality shall be subject to an evaluation and determination under this subsection prior to being eligible to apply for a subsequent grant. An application for a subsequent grant and the awarding of a subsequent grant shall be in accordance with the provisions of subsections (c) to (e), inclusive, of this section.
(g) Not later than August 1, 2024, and annually thereafter until August 1, 2029, the commissioner shall submit a report, in accordance with the provisions of section 11-4a, to the General Assembly, that includes the municipalities that submitted applications and that were awarded grants under this section in the prior fiscal year, a description of each purpose and eligible project a municipality awarded a grant under this section is seeking to accomplish or undertaking, a progress report, if applicable, for each such purpose or eligible project and any other information the commissioner deems relevant.
(P.A. 23-205, S. 101.)
History: P.A. 23-205 effective July 1, 2023.
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Sec. 32-7y. Bond authorization for high poverty-low opportunity census tract grant program. (a) For the purposes described in subdivision (b) of this subsection, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate three hundred million dollars, provided fifty million dollars shall be effective each fiscal year for the fiscal years commencing July 1, 2023, to July 1, 2028, inclusive.
(b) The proceeds of the sale of such bonds, to the extent of the amount stated in subdivision (a) of this subsection, shall be used by the Department of Economic and Community Development for the purpose of the high poverty-low opportunity census tract grant program established pursuant to section 32-7x.
(c) All provisions of section 3-20, or the exercise of any right or power granted thereby, that are not inconsistent with the provisions of this subsection are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section. Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization that is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Such bonds issued pursuant to this subsection shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
(P.A. 23-205, S. 102.)
History: P.A. 23-205 effective July 1, 2023.
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