Connecticut Strategic Defense Investment Act Summary

• Establishes the Connecticut Strategic Defense Investment Act to provide tax incentives and grants to eligible aerospace companies engaged in helicopter production, with a 14-year project term from July 2018 through June 2032.

• Requires eligible taxpayers to meet minimum employment levels (6,500-7,000 full-time employees), aggregate payroll targets ($611-700 million annually), and supplier spend requirements ($300-470 million annually) to qualify for annual grants and tax offsets.

• Authorizes annual grants up to $2,142,857 for achieving employment, payroll, supplier spend, and capital expenditure targets, with additional performance incentive grants of $3,500 per employee exceeding employment targets, capped at $20 million aggregate.

• Permits eligible taxpayers to offset sales and use tax liability up to $5,714,143 per compliance year, not to exceed $80 million over the agreement term, with carry-forward provisions for unused offsets.

• Authorizes issuance of $140 million in state bonds between fiscal years 2017-2032 to fund the grants, with annual allocations ranging from $8.9 million to $10.5 million.