HB 5465 - Connecticut Aerospace Reinvestment Act

• Establishes a program allowing eligible taxpayers in the industrial sector to exchange accumulated research and development tax credits for state payments based on certified industrial reinvestment projects involving at least $100 million in eligible expenditures over five years.

• Requires eligible taxpayers to employ at least 15,000 people in Connecticut, have spent at least $200 million annually on research and development for the prior five years, and have at least $400 million in accumulated credits to qualify.

• Payments are calculated using weighted factors based on maintenance or increases in: engineer employment levels, overall employment levels, payroll levels, and research and development/capital expenditures, with different formulas for projects exceeding $200 million versus those under $50 million.

• Caps total state payments at $400 million overall, with annual payment limits of $20 million per year for the first five years and $33.33 million annually thereafter; individual projects over $200 million capped at $375 million and smaller projects at $50 million.

• Prohibits taxpayers from claiming research and development tax credits under sections 12-217j and 12-217n during the reinvestment contract exclusion period and terminates the program on June 30, 2015 regarding new contract approvals.