Substitute House Bill No. 6980
Substitute House Bill No. 6980
PUBLIC ACT NO. 97-295
AN ACT CONCERNING VARIOUS CHANGES TO AND REFORM
AND SIMPLIFICATION OF CORPORATION BUSINESS TAX
CREDITS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. (NEW) (a) For purposes of this
section, "fixed capital" means tangible personal
property which (1) has a class life, in years, of
more than four years, as described in Section
168(e) of the Internal Revenue Code of 1986, or
any subsequent corresponding internal revenue code
of the United States, as from time to time
amended, (2) is acquired by purchase from a person
other than a related person, (3) is not acquired
to be leased, and is not leased, to another person
or persons during the twelve full months following
its acquisition, and (4) will be held and used in
this state by a corporation in the ordinary course
of the corporation's trade or business in this
state for not less than five full years following
its acquisition. "Fixed capital" does not include
inventory, land, buildings or structures, or
mobile transportation property. With respect to a
corporation claiming a credit under this section,
a "related person" means a corporation,
partnership, association or trust controlled by
such corporation; an individual, corporation,
partnership, association or trust that is in
control of such corporation; a corporation,
partnership, association or trust controlled by an
individual, corporation, partnership, association
or trust that is in control of such corporation;
or a member of the same controlled group as such
corporation. For purposes of this section,
"control", with respect to a corporation, means
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 such corporation entitled to vote; with respect
to a trust, means ownership, directly or
indirectly, of fifty per cent or more of the
beneficial interest in the principal or income of
such trust. The ownership of stock in a
corporation, of a capital or profits interest in a
partnership 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 from time to time amended,
other than Paragraph (3) of such section.
(b) There shall be allowed a credit for any
corporation against the tax imposed under chapter
208 of the general statutes in an amount paid or
incurred by such corporation for any new fixed
capital investment during the income year in which
such fixed capital is acquired as follows: For any
income year commencing on or after January 1,
1998, and prior to January 1, 1999, equal to three
per cent of such amount paid or incurred by the
corporation during such income year; for any
income year commencing on or after January 1,
1999, and prior to January 1, 2000, equal to four
per cent of such amount paid or incurred by the
corporation during such income year; and for any
income year commencing on or after January 1,
2000, equal to five per cent of such amount paid
or incurred by the corporation during such income
year.
(c) The amount of such credit allowed to any
corporation under this section shall not exceed
the amount of tax due from such corporation under
chapter 208 of the general statutes with respect
to such income year.
(d) No corporation claiming the credit under
this section with respect to the acquisition of
fixed capital, as defined in subsection (a) of
this section, may claim a credit against any tax
under any other provision of the general statutes
with respect to the same acquisition.
(e) Any tax credit not used in the income
year during which the acquisition was made may be
carried forward for the five immediately
succeeding income years until the full credit has
been allowed.
(f) If the fixed capital on account of which
a corporation has claimed the credit allowed by
this section is not held and used in this state in
the ordinary course of the corporation's trade or
business in this state for three full years
following its acquisition as provided in
subsection (a) of this section, the corporation
shall recapture one hundred per cent of the amount
of the credit allowed under this section on its
corporation business tax return required to be
filed for the immediately succeeding income year.
If the fixed capital on account of which a
corporation has claimed the credit allowed by this
section is not held and used in this state in the
ordinary course of the corporation's trade or
business in this state for five full years
following its acquisition as provided in
subsection (a) of this section, the corporation
shall recapture fifty per cent of the amount of
the credit allowed under this section on its
corporation business tax return required to be
filed for the immediately succeeding income year.
The provisions of this subsection shall not apply
if the property that is the subject of the credit
under this section is replaced.
Sec. 2. (NEW) (a) For purposes of this
section, "human capital investment" means the
amount paid or incurred by a corporation on (1)
job training which occurs in this state for
persons who are employed in this state; (2) work
education programs in this state including, but
not limited to, programs in public high schools
and work education-diversified occupations
programs in this state; (3) worker training and
education for persons who are employed in this
state provided by institutions of higher education
in this state; (4) donations or capital
contributions to institutions of higher education
in this state for improvements or advancements of
technology, including physical plant improvements;
(5) planning, site preparation, construction,
renovation or acquisition of facilities in this
state for the purpose of establishing a day care
facility in this state to be used primarily by the
children of employees who are employed in this
state; and (6) subsidies to employees who are
employed in this state for child care to be
provided in this state.
(b) There shall be allowed a credit for any
corporation against the tax imposed under chapter
208 of the general statutes in an amount spent by
such corporation, as a human capital investment as
follows: For any income year commencing on or
after January 1, 1998, and prior to January 1,
1999, equal to three per cent of such amount paid
or incurred by the corporation during such income
year; for any income year commencing on or after
January 1, 1999, and prior to January 1, 2000,
equal to four per cent of such amount paid or
incurred by the corporation during such income
year; and for any income year commencing on or
after January 1, 2000, equal to five per cent of
such amount paid or incurred by the corporation
during such income year.
(c) The amount of credit allowed to any
corporation under this section shall not exceed
the amount of tax due from such corporation under
chapter 208 of the general statutes with respect
to such income year.
(d) No corporation claiming the credit under
this section with respect to a human capital
investment as defined in subsection (a) of this
section shall claim a credit against any tax under
any other provision of the general statutes
against any tax with respect to the same
investment.
(e) Any tax credit not used in the income
year during which the investment was made may be
carried forward for the five immediately
succeeding income years until the full credit has
been allowed.
Sec. 3. Subdivision (9) of subsection (a) of
section 12-213 of the general statutes is repealed
and the following is substituted in lieu thereof:
(9) (A) "Gross income" means gross income as
defined in the Internal Revenue Code and, in
addition, means any interest or exempt interest
dividends as defined in Section 852(b)(5) of the
Internal Revenue Code received by the taxpayer or
losses of other calendar or fiscal years,
retroactive to include all calendar or fiscal
years beginning after January 1, 1935, incurred by
the taxpayer which are excluded from gross income
for purposes of assessing the federal corporation
net income tax, and in addition, notwithstanding
any other provision of law, means interest or
exempt interest dividends as defined in said
Section 852(b)(5) of the Internal Revenue Code,
accrued on or after the application date, as
defined in section 12-242ff, with respect to any
obligation issued by or on behalf of the state,
its agencies, authorities, commissions and other
instrumentalities, or by or on behalf of its
political subdivisions and their agencies,
authorities, commissions and other
instrumentalities;
(B) "Gross income" shall not include the
amount which for federal income tax purposes is
treated as a dividend received by a domestic
United States corporation from a foreign
corporation on account of foreign taxes deemed
paid by such domestic corporation, when such
domestic corporation elects the foreign tax credit
for federal income tax purposes. [and the amount
of net gain to any taxpayer, engaged in the
business of farming in Connecticut, from the sale
or exchange of any cattle raised from birth on a
farm in this state operated by such taxpayer,
provided not less than seventy-five per cent of
such taxpayer's gross income is derived from
farming;]
Sec. 4. (NEW) (a) There is established a
Corporation Business Tax Credit Review Committee
which shall be comprised of: (1) The chairpersons
and ranking members of the joint standing
committee of the General Assembly having
cognizance of matters relating to finance, revenue
and bonding, or their designees; (2) one member
appointed by each of the following: The Governor,
the president pro tempore of the Senate, the
speaker of the House of Representatives, the
majority leader of the Senate, the majority leader
of the House of Representatives, the minority
leader of the House of Representatives and the
minority leader of the Senate; and (3) the
Commissioners of Revenue Services and Economic and
Community Development, or their designees.
(b) The committee shall study and evaluate
all the existing credits against the corporation
business tax. The study shall include, but is not
limited to, consideration of the following with
respect to each credit: (1) Has the credit
provided a benefit to the state in terms of
measurable economic development, new investments
in the state, new jobs or retention of existing
jobs, or measurable benefits for the workforce in
the state; (2) is there sufficient justification
to continue the credit as it currently exists or
is it obsolete; (3) could the credit be more
efficiently administered as part of a broad-based
credit; and (4) does the credit add unnecessary
complexity in the application, administration and
approval process for the credit. The committee
shall also engage in an analysis of the history,
rationale and estimated revenue loss as a result
of each tax credit and shall recommend revisions
necessary to change the tax by eliminating or
changing any redundant, obsolete or unnecessary
tax credit or any credit that is not providing a
measurable benefit sufficient to justify any
revenue loss to the state.
(c) The committee shall report its findings
and recommendations to the joint standing
committee of the General Assembly having
cognizance of matters relating to finance, revenue
and bonding no later than January 30, 2002, and
every five years thereafter, in accordance with
section 11-4a of the general statutes.
Sec. 5. Subsection (k) of section 12-217u of
the general statutes is repealed and the following
is substituted in lieu thereof:
(k) No taxpayer claiming the credit under
this section is eligible for the credit allowed
under section [12-217m] 1 OF THIS ACT.
Sec. 6. Subsection (74) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(74) (A) Sales of computer and data
processing services rendered to a customer (i) by
a retailer which, on or after July 1, 1991,
acquired the operations of a data processing
facility from the customer, provided such customer
operated the facility for its own use or (ii) by a
retailer which, on or after July 1, 1993, acquired
the operations of the data processing facility
from the retailer described in subparagraph (A)(i)
of this subsection, provided such customer
formerly operated the facility for its own use.
(B) Sales of computer and data processing services
rendered to a customer by a retailer which, on or
after July 1, 1995, acquired the data processing
operations from the customer, provided such
customer formerly conducted such data processing
operations for its own use. Sales of and the
storage, use or other consumption of computers or
data processing equipment, when sold to the
retailer described in this subparagraph and used
by such retailer to provide the services described
in this subparagraph. The provisions in this
subparagraph shall not apply if the retailer is a
related person, as defined in section [12-217m] 1
OF THIS ACT, with respect to the customer or the
customer is a related person, as defined therein,
with respect to the retailer.
Sec. 7. (NEW) (a) As used in this section,
"business firm" means any business entity
authorized to do business in this state and
subject to the corporation business tax imposed
under chapter 208 of the general statutes;
"qualifying employee" means any employee who is
employed not less than fifteen hours per week by
the same business firm and who, at the time of
being hired by such business firm, is and has been
receiving benefits from the temporary family
assistance program for more than nine months and
meets other requirements that the Commissioner of
Social Services may establish in regulations
adopted in accordance with chapter 54 of the
general statutes.
(b) Any business firm which desires to hire a
qualifying employee in any income year commencing
on or after January 1, 1997, may apply to the
Commissioner of Social Services for an allocation
of an tax credit in an amount equal to one hundred
twenty-five dollars for each full month that such
employee is employed by such firm. The application
for a tax credit under this subsection shall set
forth information that said commissioner deems
necessary in regulations adopted in accordance
with chapter 54 of the general statutes.
(c) Applications shall be submitted annually,
before such expenditures are made, to the
Commissioner of Social Services on or after July
first but not later than December thirty-first.
The commissioner shall approve or disapprove each
application within sixty days of its submission to
the commissioner based on (1) the compliance of
such application with the provisions of this
section, (2) regulations adopted pursuant to this
section, and (3) the amount of tax credits
remaining in the annual allotment provided in this
section for the year involved. The commissioner
shall approve applications in the order in which
they are received in the commissioner's office
between July first and December thirty-first of
each year. If the commissioner approves the
application of the business firm and if the limit
for tax credit for that year has not yet been
allocated, the commissioner shall allocate and
commit an amount of tax credits to such business
firm. Any business firm receiving such an
allocation shall, within thirty days of the end of
its income year, submit a report on the number of
full months that qualifying employees were
employed by such firm during such year.
(d) The credit shall be claimed on the tax
return for the income year during which qualifying
employees were employed for full months by the
business firm. Any tax credit not used in the
period during which the expenditure was made may
be carried forward for the five immediately
succeeding income years until the full credit has
been allowed.
(e) In no event shall the total amount of all
tax credits allowed to all business firms pursuant
to the provisions of this section exceed one
million dollars in any one fiscal year.
(f) No credit under subsection (c) of this
section shall be allowed, with respect to wages
paid to any qualifying employee, to any business
firm that has previously been granted a tax credit
under this section with respect to wages paid to
the same employee.
Sec. 8. Section 12-634 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Revenue Services shall
grant a credit against any tax due under the
provisions of chapter 207, 208, 209, 210, 211 or
212 in an amount not to exceed forty per cent of
the total cash amount invested during the taxable
year by the business firm in programs operated or
created pursuant to proposals approved pursuant to
section 12-632 for planning, site preparation,
construction, renovation or acquisition of
facilities for purposes of establishing a child
day care facility to be used primarily by the
children of such business firm's employees and
equipment installed for such facility, including
kitchen appliances, to the extent that such
equipment or appliances are necessary in the use
of such facility for purposes of child day care,
provided: (1) Such facility is operated under the
authority of a license issued by the Commissioner
of Public Health in accordance with sections
19a-77 to 19a-87, inclusive, (2) such facility is
operated without profit by such business firm
related to any charges imposed for the use of such
facility for purposes of child day care, and (3)
the amount of tax credit allowed any business firm
under the provisions of this section for any
income year may not exceed ten thousand dollars.
If two or more business firms share in the cost of
establishing such a facility for the children of
their employees, each such taxpayer shall be
allowed such credit in relation to the respective
share, paid or incurred by such taxpayer, of the
total expenditures for the facility in such income
year. The commissioner shall not grant a credit
pursuant to this section to any taxpayer claiming
a credit for the same year pursuant to [subsection
(c) of section 17b-740] SECTION 2 OF THIS ACT.
Sec. 9. Subsection (a) of section 19a-1c of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Whenever the words "Commissioner of
Public Health and Addiction Services" are used or
referred to in the following sections of the
general statutes, the words "Commissioner of
Public Health" shall be substituted in lieu
thereof and whenever the words "Department of
Public Health and Addiction Services" are used or
referred to in the following sections of the
general statutes, the words "Department of Public
Health" shall be substituted in lieu thereof:
1-21b, 2-20a, 3-129, 4-5, 4-38c, 4-60i, 4-67e,
4a-12, 4a-16, 4a-51, 5-169, 7-22a, 7-41a, 7-42,
7-44, 7-45, 7-47a, 7-48, 7-49, 7-51, 7-52, 7-53,
7-54, 7-55, 7-56, 7-59, 7-60, 7-62a, 7-62b, 7-62c,
7-65, 7-70, 7-72, 7-73, 7-74, 7-127e, 7-504,
7-536, 8-159a, 8-206d, 8-210, 10-19, 10-71,
10-76d, 10-203, 10-204a, 10-207, 10-212, 10-212a,
10-214, 10-215d, 10-253, 10-282, 10-284, 10-292,
10a-132, 10a-132b, 10a-132c, 10a-132d, 10a-155,
10a-162a, 12-62f, 12-263a, 12-407, 12-634,
13a-175b, 13a-175ee, 13b-38n, 14-227a, 14-227c,
15-121, 15-140r, 15-140u, 16-19z, 16-32e, 16-43,
16-50c, 16-50d, 16-50j, 16-261a, 16-262l, 16-262m,
16-262n, 16-262o, 16-262q, 16a-36, 16a-36a,
16a-103, 17-585, 17a-20, 17a-52, 17a-154,
17a-219c, 17a-220, 17a-277, 17a-509, 17a-688,
17b-6, 17b-99, 17b-225, 17b-234, 17b-265, 17b-288,
17b-340, 17b-341, 17b-347, 17b-350, 17b-351,
17b-354, 17b-357, 17b-358, 17b-406, 17b-408,
17b-420, 17b-552, 17b-611, 17b-733, 17b-737,
[17b-740,] 17b-748, 17b-803, 17b-808, 17b-851a,
19a-1d, 19a-4i, 19a-6, 19a-6a, 19a-7b, 19a-7c,
19a-7d, 19a-7e, 19a-7f, 19a-7g, 19a-7h, 19a-9,
19a-10, 19a-13, 19a-14, 19a-14a, 19a-14b, 19a-15,
19a-17, 19a-17a, 19a-17m, 19a-17n, 19a-19, 19a-20,
19a-21, 19a-23, 19a-24, 19a-25, 19a-25a, 19a-26,
19a-27, 19a-28, 19a-29, 19a-29a, 19a-30, 19a-30a,
19a-32, 19a-32a, 19a-33, 19a-34, 19a-35, 19a-36,
19a-36a, 19a-37, 19a-37a, 19a-37b, 19a-40, 19a-41,
19a-42, 19a-43, 19a-44, 19a-45, 19a-47, 19a-48,
19a-49, 19a-50, 19a-51, 19a-52, 19a-53, 19a-54,
19a-55, 19a-57, 19a-58, 19a-59, 19a-59a, 19a-59b,
19a-59c, 19a-59d, 19a-60, 19a-61, 19a-69, 19a-70,
19a-71, 19a-72, 19a-73, 19a-74, 19a-75, 19a-76,
19a-79, 19a-80, 19a-82 to 19a-91, inclusive,
19a-92a, 19a-93, 19a-94, 19a-94a, 19a-102a,
19a-103, 19a-104, 19a-105, 19a-108, 19a-109,
19a-110, 19a-110a, 19a-111, 19a-111a, 19a-111e,
19a-112a, 19a-112b, 19a-112c, 19a-113, 19a-113a,
19a-115, 19a-116, 19a-121, 19a-121a, 19a-121b,
19a-121c, 19a-121d, 19a-121e, 19a-121f, 19a-122b,
19a-123d, 19a-124, 19a-125, 19a-148, 19a-175,
19a-176, 19a-178, 19a-179, 19a-180, 19a-181a,
19a-182, 19a-183, 19a-184, 19a-186, 19a-187,
19a-195a, 19a-200, 19a-201, 19a-202, 19a-204,
19a-207, 19a-208, 19a-215, 19a-219, 19a-221,
19a-223, 19a-229, 19a-241, 19a-242, 19a-243,
19a-244, 19a-245, 19a-250, 19a-252, 19a-253,
19a-255, 19a-257, 19a-262, 19a-269, 19a-270,
19a-270a, 19a-279l, 19a-310, 19a-311, 19a-312,
19a-313, 19a-320, 19a-323, 19a-329, 19a-330,
19a-331, 19a-332, 19a-332a, 19a-333, 19a-341,
19a-401, 19a-402, 19a-406, 19a-409, 19a-420,
19a-421, 19a-422, 19a-423, 19a-424, 19a-425,
19a-426, 19a-427, 19a-428, 19a-490, 19a-490c,
19a-490d, 19a-490e, 19a-490g, 19a-491, 19a-491a,
19a-491b, 19a-492, 19a-493, 19a-493a, 19a-494,
19a-494a, 19a-495, 19a-496, 19a-497, 19a-499,
19a-500, 19a-501, 19a-503, 19a-504, 19a-504c,
19a-505, 19a-506, 19a-507a, 19a-507b, 19a-507c,
19a-507d, 19a-508, 19a-509a, 19a-512, 19a-514,
19a-515, 19a-517, 19a-518, 19a-519, 19a-520,
19a-521, 19a-521a, 19a-523, 19a-524, 19a-526,
19a-527, 19a-528, 19a-530, 19a-531, 19a-533,
19a-534a, 19a-535, 19a-535a, 19a-536, 19a-537,
19a-538, 19a-540, 19a-542, 19a-547, 19a-550,
19a-551, 19a-554, 19a-581, 19a-582, 19a-584,
19a-586, 19a-630, 19a-631, 19a-634, 19a-637,
19a-638, 19a-639, 19a-645, 19a-646, 19a-663,
19a-673, 19a-675, 20-8, 20-8a, 20-9, 20-10, 20-11,
20-11a, 20-11b, 20-12, 20-12a, 20-13, 20-13a,
20-13b, 20-13d, 20-13e, 20-14, 20-14j, 20-17,
20-18, 20-18a, 20-18b, 20-20, 20-27, 20-28a,
20-28b, 20-29, 20-37, 20-39a, 20-40, 20-45, 20-54,
20-55, 20-57, 20-58a, 20-59, 20-66, 20-68, 20-70,
20-71, 20-73, 20-73a, 20-74, 20-74a, 20-74i, 20-74
aa, 20-744d, 20-86b, 20-86c, 20-86d, 20-86f,
20-86h, 20-90, 20-92, 20-93, 20-94, 20-94a, 20-96,
20-97, 20-99, 20-99a, 20-101a, 20-102aa to
20-102ee, inclusive, 20-103a, 20-106, 20-107,
20-108, 20-109, 20-110, 20-114, 20-122a, 20-122b,
20-122c, 20-123a, 20-126b, 20-126h, 20-126j,
20-126k, 20-126l, 20-126o, 20-126p, 20-126q,
20-126r, 20-126u, 20-127, 20-128a, 20-129, 20-130,
20-133, 20-138a, 20-138c, 20-139a, 20-140a,
20-141, 20-143, 20-146, 20-146a, 20-149, 20-153,
20-154, 20-162n, 20-162p, 20-188, 20-189, 20-190,
20-192, 20-193, 20-195a, 20-195m, 20-195p, 20-196,
20-198, 20-199, 20-200, 20-202, 20-206, 20-206a,
20-206m, 20-206p, 20-207, 20-211, 20-212, 20-213,
20-214, 20-217, 20-218, 20-220, 20-221, 20-222,
20-222a, 20-223, 20-224, 20-226, 20-227, 20-228,
20-229, 20-231, 20-235a, 20-236, 20-238, 20-241,
20-242, 20-243, 20-247, 20-250, 20-252, 20-252a,
20-255a, 20-256, 20-258, 20-262, 20-263, 20-267,
20-268, 20-269, 20-271, 20-272, 20-341d, 20-341e,
20-341f, 20-341g, 20-341m, 20-358, 20-361, 20-365,
20-396, 20-402, 20-404, 20-406, 20-408, 20-416,
20-474 to 20-476, inclusive, 20-571, 20-578, 21-7,
21a-11, 21a-86a, 21a-86c, 21a-116, 21a-138,
21a-150, 21a-150a, 21a-150b, 21a-150c, 21a-150d,
21a-150f, 21a-150j, 21a-240, 21a-249, 21a-260,
21a-274, 21a-283, 22-6f, 22-6g, 22-6i, 22-131,
22-150, 22-152, 22-165, 22-332b, 22-344, 22-358,
22-417, 22a-29, 22a-54, 22a-65, 22a-66a, 22a-66l,
22a-66z, 22a-115, 22a-119, 22a-134g, 22a-134bb,
22a-137, 22a-163a, 22a-163i, 22a-176, 22a-191,
22a-192, 22a-208q, 22a-231, 22a-240, 22a-240a,
22a-295, 22a-300, 22a-308, 22a-337, 22a-352,
22a-354i, 22a-354k, 22a-354w, 22a-354x, 22a-354aa,
22a-355, 22a-356, 22a-358, 22a-361, 22a-363b,
22a-371, 22a-378, 22a-423, 22a-424, 22a-426,
22a-430, 22a-434a, 22a-449i, 22a-471, 22a-474,
22a-601, 25-32, 25-32b, 25-32c, 25-32d, 25-32e,
25-32f, 25-32g, 25-32h, 25-32i, 25-32k, 25-32l,
25-33, 25-33a, 25-33c, 25-33d, 25-33e, 25-33f,
25-33g, 25-33h, 25-33i, 25-33j, 25-33k, 25-33l,
25-33n, 25-34, 25-35, 25-36, 25-37a, 25-37b,
25-37c, 25-37d, 25-37e, 25-37f, 25-37g, 25-39a,
25-39b, 25-39c, 25-40, 25-43b, 25-43c, 25-46,
25-49, 25-102gg, 25-128, 25-129, 25-137, 26-22,
26-119, 26-141b, 26-192a, 26-192b, 26-192c,
26-192e, 26-236, 27-140aa, 31-23, 31-40u, 31-51u,
31-101, 31-106, 31-111a, 31-111b, 31-121a, 31-222,
31-374, 31-397, 31-398, 31-400, 31-401, 31-402,
31-403, 32-23x, 38a-180, 38a-199, 38a-214,
38a-514, 38a-539, 38a-583, 45a-743, 45a-745,
45a-749, 45a-750, 45a-757, 46a-28, 46a-126,
46b-26, 46b-68, 46b-172a, 47a-52, 52-146f,
52-146k, 52-473a, 52-557b, 53-332, 54-102a,
54-102b, 54-142k, 54-203.
Sec. 10. Section 19a-80e of the general
statutes is repealed and the following is
substituted in lieu thereof:
Each child day care center and group day care
home, as defined in section 19a-77, that is funded
by the state pursuant to section 8-210, 17b-737 [,
17b-740, 17b-741] or 17b-752 shall provide for
parents' participation in setting goals for and
evaluating the progress of their children.
Sec. 11. Section 22a-9 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The commissioner shall act as the official
agent of the state in all matters affecting the
purposes of this title and sections 2-20a, 5-238a,
subsection (c) of section 7-131a, sections 7-131e,
7-131f, subsection (a) of section 7-131g, sections
7-131i, 7-131l, subsection (a) of section 10-321,
subdivisions (51) and (52) of section 12-81,
[sections 12-217c, 12-217d, 12-252a, 12-252b,
12-258b, 12-258i, 12-265b, 12-265c,] subsections
(21) and (22) of section 12-412, subsections (a)
and (b) of section 13a-94, sections 13a-142a,
13b-56, 13b-57, 14-100b, 14-164c, chapter 268,
sections 16a-103, 22-91c, 22-91e, subsections (b)
and (c) of section 22a-148, section 22a-150,
subdivisions (2) and (3) of section 22a-151,
sections 22a-153, 22a-154, 22a-155, 22a-156,
22a-158, chapter 446c, sections 22a-295, 22a-300,
22a-308, 22a-416, chapters 446h to 446k,
inclusive, chapters 447 and 448, sections 23-35,
23-37a, 23-41, chapter 462, section 25-34, chapter
477, subsection (b) of section 25-128, subsection
(a) of section 25-131, chapters 490 and 491 and
sections 26-257, 26-297, 26-303 and 47-46a, under
any federal laws now or hereafter to be enacted
and as the official agent of any municipality,
district, region or authority or other recognized
legal entity in connection with the grant or
advance of any federal or other funds or credits
to the state or through the state, to its
political subdivisions.
Sec. 12. Section 32-41q of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this section "critical
industry" means an industry that uses emerging
technologies, including but not limited to, fuel
cell technology, to develop and manufacture
nondefense products for future sale, has the
potential to create or retain jobs in the state
and is critical to the state economy.
(b) There is established an account to be
known as the critical industries development
account, which shall be a separate, nonlapsing
account within the General Fund. The account shall
contain any moneys invested pursuant to the
provisions of this section. Connecticut
Innovations, Incorporated may use funds from the
account to provide loans, loan guarantees,
interest rate subsidies and other forms of loan
assistance to customers of businesses in critical
industries which businesses are based in the
state. Connecticut Innovations, Incorporated may
solicit and receive funds from any public and
private sources for the program. Such funds may
include, without limitation, federal funds, state
bond proceeds, private venture capital and
investments by persons, firms or corporations.
Private capital investments may be made either in
the account as a whole or in one or more
individual technologies or projects.
(c) No product may receive assistance under
this section unless its manufacturer agrees to
enter into a contract to: (1) Carry out a
specified percentage of the development and
manufacturing work for the product in the state;
and (2) when subcontracting is required, to
conduct a specified percentage of such work with
companies based in the state. Connecticut
Innovations, Incorporated shall determine such
percentage for the purposes of this program.
[(d) Any funds invested by a corporation in
the critical industries development account
pursuant to this section shall be eligible for a
credit against the tax imposed by chapter 208 in
an amount determined by multiplying the amount
invested in the account by such corporation by
four percentage points less than the average cost
of capital for development projects financed by
the Connecticut Development Authority, as
determined by the authority.]
[(e)] (d) Any person who, or firm or
corporation which, invests funds in the critical
industries development account pursuant to this
section shall receive a portion of the interest
paid and principal repayment by the recipient of
the loan in proportion to the ratio of the amount
of the investment of such person, firm or
corporation to the total loan amount.
[(f)] (e) The Commissioner of Economic and
Community Development may adopt regulations in
accordance with the provisions of chapter 54 to
carry out the purposes of this section.
Sec. 13. Section 8-395 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this section, "business firm"
means any business entity authorized to do
business in the state and subject to the
corporation business tax imposed under chapter
208, or any [insurance company, hospital or
medical services corporation subject to the
insurance companies, hospital and medical services
corporations] COMPANY SUBJECT TO A tax imposed
under chapter 207, or any air carrier subject to
the air carriers tax imposed under chapter 209, or
any railroad company subject to the railroad
companies tax imposed under chapter 210, or any
regulated telecommunications service, express,
telegraph, cable, or community antenna television
company subject to the regulated
telecommunications service, express, telegraph,
cable, and community antenna television companies
tax imposed under chapter 211, or any utility
company subject to the utility companies tax
imposed under chapter 212. [, or any public
service company subject to the public service
companies tax imposed under chapter 212a.]
(b) The Commissioner of Revenue Services
shall grant a credit against any tax due under the
provisions of chapter 207, 208, 209, 210, 211 [,]
OR 212 [or 212a] in an amount equal to the amount
specified by the Connecticut Housing Finance
Authority in any tax credit voucher issued by said
authority pursuant to subsection (c) of this
section.
(c) The Connecticut Housing Finance Authority
shall administer a system of tax credit vouchers
within the resources, requirements and purposes of
this section, for business firms making
contributions to housing programs developed,
sponsored or managed by a nonprofit corporation,
as defined in subsection (w) of section 8-39,
which benefit low and moderate income persons or
families which have been approved prior to the
date of any such contribution by the authority.
Such vouchers may be used as a credit against any
of the taxes to which such business firm is
subject and which are enumerated in subsection (b)
of this section. FOR INCOME YEARS COMMENCING ON OR
AFTER JANUARY 1, 1998, TO BE ELIGIBLE FOR APPROVAL
A HOUSING PROGRAM SHALL BE SCHEDULED FOR
COMPLETION NOT MORE THAN THREE YEARS FROM THE DATE
OF APPROVAL. EACH PROGRAM SHALL SUBMIT TO THE
AUTHORITY QUARTERLY PROGRESS REPORTS AND A FINAL
REPORT UPON COMPLETION, IN A MANNER AND FORM
PRESCRIBED BY THE AUTHORITY. IF A PROGRAM FAILS TO
BE COMPLETED AFTER THREE YEARS, OR AT ANY TIME THE
AUTHORITY DETERMINES THAT A PROGRAM IS UNLIKELY TO
BE COMPLETED, THE AUTHORITY MAY RECLAIM ANY
REMAINING FUNDS CONTRIBUTED BY BUSINESS FIRMS AND
REALLOCATE SUCH FUNDS TO ANOTHER ELIGIBLE PROGRAM.
(d) No business firm shall receive a credit
pursuant to both this section and chapter 228a in
relation to the same contribution.
(e) Nothing in this section shall be
construed to prevent two or more business firms
from participating jointly in one or more programs
under the provisions of this section. Such joint
programs shall be submitted, and acted upon, as a
single program by the business firms involved.
(f) The sum of all tax credit granted
pursuant to the provisions of this section shall
not exceed fifty thousand dollars annually per
business firm and no tax credit shall be granted
to any business firm for any individual amount
contributed of less than two hundred fifty
dollars.
(g) No tax credit shall be granted to any
bank, bank and trust company, insurance company,
trust company, national bank, savings association,
or building and loan association or any other
business entity for activities that are a part of
its normal course of business.
(h) Any tax credit not used in the period
during which the contribution was made may be
carried forward or backward for the five
immediately succeeding or preceding [calendar or
fiscal] INCOME years until the full credit has
been allowed.
(i) In no event shall the total amount of all
tax credits allowed to all business firms pursuant
to the provisions of this section exceed one
million dollars in any one fiscal year.
(j) No tax credit shall be granted to any
business firm unless such firm furnishes proof to
the Commissioner of Revenue Services that the
amount of funds expended for contributions for the
support of housing programs by such business firm
is not less in the year for which such credit is
sought than the amount expended in the year
immediately preceding the year for which such
credit is sought.
(k) No organization conducting a housing
program or programs eligible for funding with
respect to which tax credits may be allowed under
this section shall be allowed to receive an
aggregate amount of such funding for any such
program or programs in excess of three hundred
thousand dollars for any fiscal year.
(l) Nothing in this section shall be
construed to prevent a business firm from making
any contribution to a housing program to which tax
credits may be applied which contribution may
result in the business firm having a limited
equity interest in the program.
(m) The Connecticut Housing Finance
Authority, with the approval of the Commissioner
of Revenue Services, shall adopt written
procedures in accordance with section [1-21] 1-121
to implement the provisions of this section. Such
procedures shall include provisions for issuing
tax credit vouchers for contributions to housing
programs based on a system of ranking housing
programs. In establishing such ranking system, the
authority shall consider the following: (1) The
readiness of the project to be built; (2) use of
the funds to build or rehabilitate a specific
housing project or to capitalize a revolving loan
fund providing low-cost loans for housing
construction, repair or rehabilitation to benefit
persons of very low, low and moderate income; (3)
the extent the project will benefit families at or
below twenty-five per cent of the area median
income and families with incomes between
twenty-five per cent and fifty per cent of the
area median income, as defined by the United
States Department of Housing and Urban
Development; (4) evidence of the general
administrative capability of the nonprofit
corporation to build or rehabilitate housing; [,
and] (5) evidence that any funds received by the
nonprofit corporation for which a voucher was
issued were used to accomplish the goals set forth
in the application AND WITH RESPECT TO ANY INCOME
YEAR COMMENCING ON OR AFTER JANUARY 1, 1998; (6)
USE OF THE FUNDS TO PROVIDE HOUSING OPPORTUNITIES
IN URBAN AREAS AND THE IMPACT OF SUCH FUNDS ON
NEIGHBORHOOD REVITALIZATION; AND (7) THE EXTENT TO
WHICH TAX CREDIT FUNDS ARE LEVERAGED BY OTHER
FUNDS.
(n) Vouchers issued or reserved by the
Department of Housing under the provisions of this
section prior to July 1, 1995, shall be valid on
and after July 1, 1995, to the same extent as they
would be valid under the provisions of this
section in effect on June 30, 1995.
(o) On or before October 1, 1995, the
authority shall adopt written procedures, in
accordance with section 1-121, to implement the
provisions of this section.
(p) THE CREDIT WHICH IS SOUGHT BY THE
BUSINESS FIRM SHALL FIRST BE CLAIMED ON THE TAX
RETURN FOR SUCH BUSINESS FIRM'S INCOME YEAR DURING
WHICH THE CONTRIBUTION TO WHICH THE TAX CREDIT
VOUCHER RELATES WAS PAID.
Sec. 14. Subsection (d) of section 12-217e of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) The credit allowed by this section may be
claimed only by the initial occupant or occupants
of the manufacturing facility or service facility.
The owner of the manufacturing facility or service
facility may not claim the credit unless the owner
is also an occupant. The credit may [not be
claimed before the first full income year
following the issuance of an eligibility
certificate, but may be claimed in such income
year and] FIRST BE CLAIMED ON THE TAX RETURN FOR
THE TAXPAYER'S INCOME YEAR WHICH BEGINS DURING THE
CALENDAR YEAR NEXT SUCCEEDING THE CALENDAR YEAR IN
WHICH THE TAXPAYER WAS ISSUED AN ELIGIBILITY
CERTIFICATE, AND MAY BE CLAIMED in each of the
following nine income years. If within such
period, however, any facility for which an
eligibility certificate has been issued ceases to
qualify as a manufacturing facility or service
facility or any occupant of a manufacturing
facility or service facility ceases to be an
occupant, the entitlement to the credit allowed by
this section shall terminate in the income year in
which the qualification or occupancy ceases, and
there shall not be a pro rata application of the
credit to such income year.
Sec. 15. Section 12-217f of the general
statutes is repealed and the following is
substituted in lieu thereof:
There shall be allowed a credit for any
taxpayer against the tax imposed under this
chapter for any income year, in an amount equal to
ten per cent of wages paid DURING SUCH INCOME YEAR
by such taxpayer to a student in a public high
school employed by such taxpayer while enrolled in
a cooperative work education-diversified
occupations program, established and approved in
accordance with regulations adopted by the State
Board of Education in cooperation with the Labor
Commissioner and the Connecticut State
Apprenticeship Council, provided in no event shall
the amount of such credit for any income year with
respect to any such student exceed three hundred
dollars. A cooperative work education-diversified
occupations program is a program established in a
public high school in a manner and subject to
conditions prescribed in said regulations by the
State Board of Education, providing alternate
periods of academic study and part-time employment
for any student enrolled in such program. Such
employment must provide occupational training
which is not available within such high school and
which can only be obtained by on-the-job training,
provided such training must be related to a trade
approved for purposes of apprenticeship training
by the Labor Commissioner in cooperation with the
Connecticut State Apprenticeship Council. The
amount of such credit allowed any taxpayer under
this section for any income year may not exceed
the amount of tax due from such taxpayer under
this chapter with respect to such income year.
Sec. 16. Section 12-217g of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There shall be allowed a credit for any
taxpayer against the tax imposed under this
chapter for any income year with respect to each
apprenticeship in the [machine tool and metal]
MANUFACTURING trades commenced by such taxpayer in
such year under a qualified apprenticeship
training program as described in this section,
certified in accordance with regulations adopted
by the Labor Commissioner and registered with the
Connecticut State Apprenticeship Council
established under section 31-51b, [which
apprenticeship exceeds the average number of such
apprenticeships begun by such taxpayer during the
five income years immediately preceding the income
year with respect to which such credit is
allowed,] in an amount equal to four dollars per
hour [of apprenticeship training during]
MULTIPLIED BY THE TOTAL NUMBER OF HOURS WORKED
DURING THE INCOME YEAR BY APPRENTICES IN the first
half of a two-year term of apprenticeship and the
first three-quarters of a four-year term of
apprenticeship, provided the amount of credit
allowed for any income year with respect to each
such apprenticeship may not exceed four thousand
eight hundred dollars or fifty per cent of actual
wages paid in such income year [for such] TO AN
APPRENTICE IN THE FIRST HALF OF A TWO-YEAR TERM OF
APPRENTICESHIP OR IN THE FIRST THREE-QUARTERS OF A
FOUR-YEAR TERM OF apprenticeship, whichever is
less.
(b) There shall be allowed a credit for any
taxpayer against the tax imposed under this
chapter for any income year with respect to each
apprenticeship in plastics and plastics-related
trades commenced by such taxpayer in such year
under a qualified apprenticeship training program
as described in this section, certified in
accordance with regulations adopted by the Labor
Commissioner and registered with the Connecticut
State Apprenticeship Council established under
section 31-51b, which apprenticeship exceeds the
average number of such apprenticeships begun by
such taxpayer during the five income years
immediately preceding the income year with respect
to which such credit is allowed, in an amount
equal to four dollars per hour [of apprenticeship
training during] MULTIPLIED BY THE TOTAL NUMBER OF
HOURS WORKED DURING THE INCOME YEAR BY APPRENTICES
IN the first half of a two-year term of
apprenticeship and the first three-quarters of a
four-year term of apprenticeship, provided the
amount of credit allowed for any income year with
respect to each such apprenticeship may not exceed
four thousand eight hundred dollars or fifty per
cent of actual wages paid in such income year [for
such] TO AN APPRENTICE IN THE FIRST HALF OF A
TWO-YEAR TERM OF APPRENTICESHIP OR IN THE FIRST
THREE-QUARTERS OF A FOUR-YEAR TERM OF
apprenticeship, whichever is less.
(c) THERE SHALL BE ALLOWED A CREDIT FOR ANY
TAXPAYER AGAINST THE TAX IMPOSED UNDER THIS
CHAPTER FOR ANY INCOME YEAR WITH RESPECT TO WAGES
PAID TO APPRENTICES IN THE CONSTRUCTION TRADES BY
SUCH TAXPAYER IN SUCH YEAR THAT THE APPRENTICE AND
TAXPAYER PARTICIPATE IN A QUALIFIED FOUR-YEAR
APPRENTICESHIP TRAINING PROGRAM, AS DESCRIBED IN
THIS SECTION, WHICH (1) IS JOINTLY ADMINISTERED BY
LABOR AND MANAGEMENT TRUSTEES, (2) IS ADMINISTERED
PURSUANT TO 29 USC SECTION 186(c), (3) IS
CERTIFIED IN ACCORDANCE WITH REGULATIONS ADOPTED
BY THE LABOR COMMISSIONER AND (4) IS REGISTERED
WITH THE CONNECTICUT STATE APPRENTICESHIP COUNCIL
ESTABLISHED UNDER SECTION 31-51b. THE TAX CREDIT
SHALL BE IN AN AMOUNT EQUAL TO TWO DOLLARS PER
HOUR MULTIPLIED BY THE TOTAL NUMBER OF HOURS
WORKED DURING THE INCOME YEAR BY APPRENTICES,
PROVIDED THE AMOUNT OF CREDIT ALLOWED FOR ANY
INCOME YEAR WITH RESPECT TO EACH SUCH APPRENTICE
MAY NOT EXCEED ONE THOUSAND DOLLARS OR FIFTY PER
CENT OF ACTUAL WAGES PAID IN SUCH INCOME YEAR FOR
SUCH APPRENTICESHIP, WHICHEVER IS LESS.
[(c)] (d) For purposes of this section, a
qualified apprenticeship training program shall
require at least four thousand but not more than
eight thousand hours of apprenticeship training
for certification of such apprenticeship by the
Connecticut State Apprenticeship Council. The
amount of credit allowed any taxpayer under this
section for any income year may not exceed the
amount of tax due from such taxpayer under this
chapter with respect to such income year.
Sec. 17. Subsection (d) of section 12-217m of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) The credit allowed by this section may be
claimed only by a taxpayer which occupies the new
facility for which an eligibility certificate has
been issued by the commissioner and with respect
to which the certification required under
subsection (e) of this section has been issued.
The credit [may not be claimed before the first
full income year following the issuance of such
eligibility certificate by the commissioner, but
may be claimed in such income year and] MAY FIRST
BE CLAIMED ON THE TAX RETURN FOR THE TAXPAYER'S
INCOME YEAR WHICH BEGINS DURING THE CALENDAR YEAR
NEXT SUCCEEDING THE CALENDAR YEAR IN WHICH THE
TAXPAYER WAS ISSUED AN ELIGIBILITY CERTIFICATE,
AND MAY BE CLAIMED in each of the following six
income years as long as the certification of
continued eligibility required under subsection
(e) of this section has been issued. If, within
such period, however, (1) any facility for which a
class 1 eligibility certificate has been issued
ceases at any time to occupy at least two hundred
fifty thousand square feet or the taxpayer ceases
at any time to employ at least one thousand new
employees at such facility, (2) any facility for
which a class 2 eligibility certificate has been
issued ceases to occupy at any time at least five
hundred thousand square feet or the taxpayer
ceases to employ at any time at least two thousand
new employees at such facility, (3) any facility
for which a class 3 eligibility certificate has
been issued ceases to occupy at any time at least
seven hundred fifty thousand square feet or the
taxpayer ceases to employ at any time at least
three thousand new employees at such facility or
(4) any facility for which a class 4 eligibility
certificate has been issued ceases to occupy at
any time at least one million square feet or the
taxpayer ceases to employ at any time at least
four thousand new employees at such facility,
then, except as provided in subsection (f) of this
section, the entitlement to the credit allowed by
this section shall terminate in the income year in
which such occupancy or employment ceases, and
there shall not be a pro rata application of the
credit to such income year.
Sec. 18. Section 12-217p of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this section, "business firm"
means any business entity authorized to do
business in this state and subject to the
corporation business tax imposed under this
chapter, or any [insurance company, hospital or
medical services corporation subject to the
insurance companies, hospital and medical services
corporations] COMPANY SUBJECT TO A tax imposed
under chapter 207, any air carrier subject to the
air carriers tax imposed under chapter 209, or any
railroad company subject to the railroad companies
tax imposed under chapter 210, or any regulated
telecommunications service, express, telegraph,
cable or community antenna television company
subject to the regulated telecommunications
service, express, telegraph, cable and community
antenna television companies tax imposed under
chapter 211, [or any telecommunications service
company subject to the telecommunications service
company tax imposed under chapter 210a,] or any
utility company subject to the utility companies
tax imposed under chapter 212. [or any public
service company subject to the public service
companies tax imposed under chapter 212a.]
(b) There shall be allowed as a credit
against the tax imposed by this chapter or chapter
207, 209, 210, [210a,] 211 [,] OR 212 [or 212a] in
any income year an amount equal to the amount paid
DURING SUCH INCOME YEAR by a business firm into a
revolving loan fund established to provide loans
for housing located in the state for low and
moderate income employees of the business firm or
any subsidiary thereof. Loans from any such fund
shall be spent in this state and used for (1) the
cost of housing that is to be a principal
residence and falls within one hundred fifty per
cent of the price guidelines established for
programs administered by the Connecticut Housing
Finance Authority, including costs for down
payments, mortgage interest rate buy-downs,
closing costs and other costs determined to be
eligible under written procedures adopted by the
Connecticut Housing Finance Authority under
subsection (c) of this section and (2) payments
for security deposits and advance payments for
rental housing.
(c) The Connecticut Housing Finance Authority
shall adopt written procedures in accordance with
the provisions of section 1-121 for establishment
and operation of employer revolving loan funds
eligible for the credit provided in this section.
Such procedures shall include provisions for
employee eligibility and shall specify expenses
for which loans may be made and provide the
documentation and procedures necessary for a
business firm to qualify for the tax credit.
(d) Any business firm claiming the credit
allowed by this section shall submit documentation
to the Commissioner of Revenue Services that the
revolving loan fund complies with written
procedures for revolving loan funds established by
the Connecticut Housing Finance Authority under
subsection (c) of this section.
(e) Nothing in this section shall be
construed to prevent two or more business firms
from participating jointly in one or more programs
under the provisions of this section. Such joint
programs shall be submitted, and acted upon, as a
single program by the business firms involved.
(f) Any business firm which desires to apply
for the credit allowed by this section shall
submit the documentation required under subsection
(d) of this section to the authority on or before
November first of each year. The authority shall
randomly select from among all qualified business
firms, those firms allowed said credit. [for the
succeeding tax year] THE CREDIT SHALL BE CLAIMED
ON THE TAX RETURN FOR THE INCOME YEAR DURING WHICH
THE SELECTED BUSINESS FIRM MADE PAYMENT INTO THE
REVOLVING LOAN FUND. The sum of all tax credit
granted pursuant to the provisions of this section
shall not exceed one hundred thousand dollars
annually per business firm. In no event shall the
total amount of all tax credits allowed to all
business firms pursuant to the provisions of this
section exceed one million dollars in any one
fiscal year.
(g) No tax credit shall be granted to any
bank, bank and trust company, insurance company,
trust company, national bank, savings association,
or building and loan association or any other
business entity for activities that are a part of
its normal course of business.
(h) Any tax credit not used in the period
during which the investment was made may be
carried forward or backward for the five
immediately succeeding or preceding [calendar or
fiscal] INCOME years until the full credit has
been allowed. FOR INCOME YEARS COMMENCING ON OR
AFTER JANUARY 1, 1998, IF THE CONNECTICUT HOUSING
FINANCE AUTHORITY DETERMINES THAT SIXTY PER CENT
OR MORE OF A REVOLVING LOAN FUND HAS NOT BEEN
LOANED AS PROVIDED IN THIS SECTION BY A BUSINESS
FIRM ON OR BEFORE THE DATE THAT IS THREE YEARS
AFTER THE DATE THAT A REVOLVING LOAN FUND IS
ESTABLISHED PURSUANT TO THIS SECTION BY SUCH
BUSINESS FIRM, THE AUTHORITY SHALL NOTIFY SUCH
FIRM AND THE COMMISSIONER THAT THE AUTHORITY HAS
DETERMINED THAT SIXTY PER CENT OR MORE OF THE FUND
HAS NOT BEEN LOANED AS PROVIDED IN THIS SECTION,
AND SUCH FIRM SHALL BE REQUIRED TO RECAPTURE THE
CREDITS PREVIOUSLY GRANTED UNDER THIS SECTION, TO
THE EXTENT PROVIDED FOR IN WRITTEN PROCEDURES OF
THE AUTHORITY ADOPTED UNDER SECTION 1-121, ON THE
FIRST TAX RETURN REQUIRED TO BE FILED ON OR AFTER
THE DATE OF SUCH NOTICE FOR A TAX IMPOSED BY THIS
CHAPTER OR CHAPTER 207, 209, 210, 210a OR 212. IF
ANY AMOUNT OF SUCH RECAPTURED CREDIT HAS NOT BEEN
PAID TO THE COMMISSIONER ON OR BEFORE THE DUE DATE
OR, IF AN EXTENSION OF TIME TO FILE SUCH RETURN
HAS BEEN GRANTED, THE EXTENDED DUE DATE OF SUCH
RETURN. SUCH AMOUNT SHALL BEAR INTEREST AT THE
RATE OF ONE PER CENT PER MONTH OR FRACTION THEREOF
FROM SUCH DUE DATE OR EXTENDED DUE DATE TO THE
DATE OF PAYMENT.
Sec. 19. Section 17b-740 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in section 12-634, this section
and sections 17b-741 and 17b-742, "business firm"
means any business entity authorized to do
business in the state and subject to the
corporation business tax imposed under chapter
208, or any [insurance company, hospital or
medical services corporation subject to the
insurance companies, hospital and medical services
corporations] COMPANY SUBJECT TO A tax imposed
under chapter 207, or any air carrier subject to
the air carriers tax imposed under chapter 209, or
any railroad company subject to the railroad
companies tax imposed under chapter 210, or any
express, telegraph, telephone, cable or community
antenna television company subject to the express,
telegraph, telephone, cable and community antenna
television companies tax imposed under chapter
211, or any utility company subject to the utility
companies tax imposed under chapter 212. [, or any
public service company subject to the public
service companies tax imposed under chapter 212a.]
(b) Any business firm which desires to
provide subsidies to its employees for child day
care from registered or licensed providers,
providers giving day care in the child's home or a
relative of the child giving day care in the
relative's home, approved by the Commissioner of
Social Services pursuant to this section, may
apply to the Commissioner of Social Services for
an allocation for a tax credit in an amount as
provided in section 17b-741. The application for a
tax credit under this subsection shall set forth
information the commissioner deems necessary in
regulations adopted in accordance with chapter 54.
(c) Any business firm which desires to pay or
incur expenditures in any income year for
planning, site preparation, construction,
renovation or acquisition of facilities for the
purposes of establishing a child day care facility
on or off site and purchasing and installing
equipment for permanent use within or immediately
adjacent to such facility, including kitchen
appliances, to the extent that such equipment or
appliances are necessary in the use of such
facility for purposes of child day care, may apply
to the Commissioner of Social Services for an
allocation for a tax credit in an amount as
provided in section 17b-741, provided (1) such
facility is operated under the authority of a
license issued by the Commissioner of Public
Health in accordance with sections 19a-77, 19a-79
to 19a-87, inclusive, (2) such facility is
operated without profit or is operated for profit
by such taxpayer related to any charges imposed
for the use of such facility for purposes of child
day care and (3) the amount of tax credit allowed
any taxpayer under the provisions of this
subsection for any income year may not exceed
twenty thousand dollars. If two or more taxpayers
share in the cost of establishing such a facility
for the children of their employees, each such
taxpayer shall be allowed such credit in relation
to the respective share, paid or incurred by such
taxpayer, of the total expenditures for the
facility in such income year. No business firm
which regularly engages in the construction or
operation of child day care facilities shall be
eligible for any tax credit under the provisions
of this subsection.
(d) Any business firm which desires to pay or
incur expenditures in any income year for
providing parent education programs to its
employees may apply to the Commissioner of Social
Services for an allocation for a tax credit in an
amount of forty per cent of the total amount
invested during [the taxable] SUCH INCOME year by
the business firm for such classes. Such parent
education programs shall consist of providing
information and advice to parents on their child's
language, cognitive, social and motor development
and to provide referrals for parents who need
special assistance or services. Such tax credits
shall only be available after tax credits for
child care subsidies are exhausted. The
application for a tax credit under this subsection
shall set forth the cost of such training programs
provided to the employees and the number of
employees participating in such classes.
(e) The Commissioner of Social Services, in
consultation with the Labor Commissioner, the
Commissioners of Revenue Services and Economic and
Community Development and business related
organizations, including, but not limited to, the
chambers of commerce, shall develop marketing
strategies to educate and attract businesses to
access tax credits available pursuant to this
section.
(f) Applications shall be submitted to the
Commissioner of Social Services after October
first of the year before such expenditures are to
be made and on or before June first of the year in
which such expenditures are to be made. The
commissioner shall approve or disapprove each
application within sixty days of its submission to
the commissioner based on (1) the compliance of
such application with the provisions of this
section, (2) regulations adopted pursuant to
section 17b-742, and (3) the amount of tax credits
remaining in the annual allotment provided in this
section for the year involved. The commissioner
shall first approve applications under subsection
(b) of this section which give preference to
low-income workers in accordance with regulations
adopted pursuant to section 17b-742. If the
commissioner approves the application of the
business firm and if the limit for tax credit for
that year has not yet been allocated, the
commissioner shall allocate and commit to such
business firm an amount of tax credits not
exceeding the estimated amount which will be
expended during the FIRM'S current or subsequent
INCOME year by such firm on eligible child day
care expenditures. Any business firm receiving
such an allocation shall, within thirty days of
the end of [the] ITS INCOME year, submit a report
on its actual expenditures under this section for
such year.
(g) THE CREDIT SHALL BE CLAIMED ON THE TAX
RETURN FOR THE INCOME YEAR DURING WHICH A BUSINESS
FIRM TO WHICH TAX CREDITS HAVE BEEN ALLOCATED MADE
ELIGIBLE EXPENDITURES. Any tax credit not used in
the period during which the expenditure was made
may be carried forward [or backward] for the five
immediately succeeding [or preceding calendar or
fiscal] INCOME years until the full credit has
been allowed.
(h) In no event shall the total amount of all
tax credits allowed to all business firms pursuant
to the provisions of this section exceed two
million dollars in any one fiscal year.
(i) No credit under subsection (c) of this
section shall be allowed for any taxpayer who has
been granted a tax credit for the same year
pursuant to section 12-634.
Sec. 20. Subsection (b) of section 17b-112 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) For purposes of this subsection, "family"
means one or more individuals who apply for or
receive assistance together under the aid to
families with dependent children program. The
commissioner shall seek waivers from federal law
to modify the existing research and demonstration
programs authorized pursuant to subsection (a) of
this section for the purpose of creating a single
state-wide research and demonstration program
effective no earlier than January 1, 1996. Such
waivers shall include, but not be limited to, the
following provisions:
(1) To limit benefits of a family to a period
of twenty-one months. Families exempt from such
time limited benefits include, but are not limited
to: (A) A family with a needy caretaker relative
who is incapacitated or of an advanced age, as
defined by the commissioner, if there is no other
nonexempt caretaker relative in the household; (B)
a family with a needy caretaker relative who is
needed in the home because of the incapacity of
another member of the household, if there is no
other nonexempt caretaker relative in the
household; (C) a family with a caretaker relative
who is not legally responsible for the dependent
children in the household if such relative's needs
are not considered in calculating the amount of
the benefit and there is no other nonexempt
caretaker relative in the household; (D) a family
with a caretaker relative caring for a child who
is under one year of age and who was born no more
than ten months after the family's enrolment if
there is no other nonexempt caretaker relative in
the household; (E) a family with a pregnant or
postpartum caretaker relative if a physician has
indicated that such relative is unable to work and
there is no other nonexempt caretaker relative in
the household; (F) a family with a caretaker
relative determined by the commissioner to be
unemployable and there is no other nonexempt
caretaker relative in the household; and (G) minor
parents attending and satisfactorily completing
high school or high school equivalency programs;
(2) To enhance the department's ability to
provide child care benefits to current and past
recipients of the aid to families with dependent
children who are employed and extend Medicaid
eligibility for two years for a family which has
lost eligibility for aid to families with
dependent children while employed or who become
employed within six months of having lost such
eligibility;
(3) To simplify and streamline eligibility
rules and procedures in the aid to families with
dependent children program, the JOBS program,
child support, child care, Medicaid and food
stamps;
(4) To enhance the commissioner's ability to
collect child support payments, except such waiver
shall not include guaranteed child support
payments;
(5) To provide that a person subject to time
limited benefits pursuant to subdivision (1) of
this subsection receive priority consideration in
the JOBS program established in section 17b-680 in
ways which shall best facilitate such person
becoming and staying employed;
(6) To assist families in becoming
self-sufficient and reward achievement in
education by modifying treatment of income and
resources;
(7) To disregard earned income for a family
subject to time limited benefits, pursuant to
subdivision (1) of this subsection, up to the
federal poverty level and to render a family
exceeding such level ineligible for aid to
families with dependent children;
(8) To provide that a person arriving in the
state, applying for benefits from the aid to
families with dependent children program for the
first year of such person's residency, be eligible
to receive ninety per cent of the benefit level
for which he qualifies;
(9) To allow a person subject to time limited
benefits, pursuant to subdivision (1) of this
subsection, to petition the commissioner for
six-month extensions of such benefits. The
commissioner may grant such extensions to a person
who has made a good faith effort to comply with
the requirements of the aid to families with
dependent children program and despite such effort
is unable to obtain or retain employment or has
encountered circumstances including, but not
limited to, domestic violence or physical harm to
such person's children or other circumstances
beyond such person's control. Such person shall be
notified by the department of his right to
petition for such extensions. Upon the granting of
such petition, such person, in cooperation with
the department, shall develop (A) an employment
development plan designed to result in
self-sufficiency and (B) a child achievement plan,
for such person's child, designed for such person
to monitor school attendance, enroll in preschool
programs and monitor immunization;
(10) To limit the increase in benefits to a
family for an infant born after the initial ten
months of participation in the aid to families
with dependent children program to an amount equal
to fifty per cent of the average incremental
difference between the amounts paid for each
family size; AND
[(11) To create a pilot program to issue a
recipient of benefits from the aid to families
with dependent children program an "opportunity
certificate". For purposes of this subdivision, an
"opportunity certificate" means a voucher in the
amount of fifteen hundred dollars to be used by a
recipient to negotiate for employment
opportunities. The commissioner may encourage such
recipient to undertake employment in preschool
child care programs, child day care centers, group
day care homes and family day care homes. Such a
certificate shall be redeemable for credit against
a tax imposed by chapters 207 to 212a, inclusive,
214, 214a, 219 to 227, inclusive, and 228d to 229,
inclusive; and
(12)] (11) To implement a disqualification
penalty for failure to cooperate with fraud
prevention efforts developed by the department
including, but not limited to, a biometric
identifier system or photographic identification.
Sec. 21. Notwithstanding the repeal of
subparagraphs (G) and (H) of subdivision (2) of
subsection (a) of section 12-214, sections
12-217c, 12-217d, 12-252a, 12-252b, 12-258b,
12-258c, 12-265b, 12-265c and 17b-740 of the
general statutes, any taxpayer or business firm
eligible for a tax credit pursuant to any of said
sections may carry any remaining tax credit
forward to any income year commencing on or after
January 1, 1998, as the provisions of the
appropriate section would have allowed prior to
said repeal.
Sec. 22. Subsection (a) of section 3 of public
act 97-292 is repealed and the following is
substituted in lieu thereof:
(a) The provisions of section 38a-88a of the
general statutes, revision of 1958, revised to
January 1, 1997, shall apply to any fund
established prior to June 1, 1997, or to any fund
which is formed on or after June 1, 1997, in
connection with a memorandum of understanding
executed by and among the fund manager, the
investors [,] AND EITHER the Commissioner of
Revenue Services [and] OR the Insurance
Commissioner prior to June 1, 1997.
Sec. 23. Section 12-217i of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There shall be allowed a credit for any
taxpayer against the tax imposed by this chapter,
chapter 209, 210, 211 or 212 in any income year or
calendar quarter, as the case may be, commencing
prior to January 1, [1998] 2000, in an amount
equal to ten per cent of the amount of
expenditures paid or incurred during such income
year or such quarter, as the case may be, for the
incremental cost of purchasing a vehicle which is
exclusively powered by a clean alternative fuel.
(b) There shall be allowed a credit for any
taxpayer against the tax imposed by this chapter
in any income year commencing on or after January
1, 1994, and prior to January 1, [1999] 2000, in
an amount equal to fifty per cent of the amount of
expenditures, other than those described in
subsection (a) of this section, paid or incurred
during such income year directly for (1) the
construction of any filling station or
improvements to any existing filling station in
order to provide compressed natural gas, liquified
petroleum gas or liquified natural gas; (2) the
purchase and installation of conversion equipment
incorporated into or used in converting vehicles
powered by any other fuel to either exclusive use
of clean alternative fuel or dual use of such
other fuel and a clean alternative fuel,
including, but not limited to, storage cylinders,
cylinder brackets, regulated mixers, fill valves,
pressure regulators, solenoid valves, fuel gauges,
electronic ignitions and alternative fuel delivery
lines, if such converted vehicles, after
conversion, meet generally accepted standards,
including, but not limited to, the standards set
by the American Gas Association, the National Fire
Protection Association, the American National
Standards Institute, the American Society of
Testing Materials or the American Society of
Mechanical Engineers; or (3) the purchase and
installation of equipment incorporated into or
used in a compressed natural gas, liquefied
petroleum gas or liquified natural gas filling or
electric recharging station for vehicles powered
by a clean alternative fuel, including, but not
limited to, compressors, storage cylinders,
associated framing, tubing and fittings, valves
and fuel poles and fuel delivery lines.
(c) If the amount of any credit provided in
this section exceeds the amount of tax otherwise
payable in the income year or calendar quarter, as
the case may be, in which such expenditure was
paid or incurred, the balance of any such credit
remaining may be taken in any of the three
succeeding income years or twelve succeeding
calendar quarters, respectively. Any taxpayer
allowed such a tax credit against the tax imposed
under this chapter, chapter 209, 210, 211 or 212
shall not be allowed such credit under more than
one of said chapters. As used in this section
"clean alternative fuel" shall mean compressed
natural gas, liquified petroleum gas, liquified
natural gas or electricity when used as a motor
vehicle fuel and "incremental cost" shall mean the
difference between the purchase price of a vehicle
which is exclusively powered by a clean
alternative fuel and the manufacturer's suggested
retail price of a comparably equipped vehicle
which is not so powered.
Sec. 24. Sections 12-217c, 12-217d, 12-217f,
12-217k, 12-217m, 12-252a, 12-252b, 12-258b,
12-258c, 12-265b, 12-265c, 17b-740, 17b-741 and
17b-742 of the general statutes are repealed.
Sec. 25. This act shall take effect from its
passage, except that (1) sections 4, 8 and 13 to
20, inclusive, shall be applicable to tax returns
filed for (A) income years of corporations under
chapter 208 of the general statutes and of air
carriers under chapter 209 of the general statutes
commencing on or after January 1, 1997, (B)
calendar years of insurance companies under
chapter 207 of the general statutes, railroad
companies under chapter 210 of the general
statutes and express, telegraph, cable and
community antenna television system companies
under chapter 211 of the general statutes
commencing on or after January 1, 1997, and (C)
calendar quarters of utility companies under
chapter 212 of the general statutes commencing on
or after January 1, 1997, and (2) sections 1 to 6,
inclusive, 8 to 12, inclusive, and sections 21 and
24 shall be applicable to income years commencing
on or after January 1, 1998.
Approved July 8, 1997