HB 5505 Summary

• Establishes a tax incentive program for eligible aerospace companies engaged in helicopter production in Connecticut, requiring certification and an assistance agreement with the Commissioner of Economic and Community Development.

• Provides sales and use tax offsets and refundable corporation business tax credits (up to $5 million per compliance year, $45 million aggregate) for companies meeting minimum requirements including employee levels (7,375-7,500 full-time employees), average wages, supplier spending ($300-470 million annually), and capital expenditures ($70.2-83.7 million annually) through June 30, 2032.

• Requires eligible taxpayers to maintain primary helicopter production facilities in Connecticut for current and future U.S. government programs, keep subsidiary headquarters in-state, and maintain diversity and workforce training programs.

• Imposes recapture obligations from July 1, 2032 through June 30, 2042 if companies fail to meet employment thresholds (6,000-7,750 targeted jobs depending on production contracts) and other requirements, with annual recapture amounts calculated as total project tax benefits divided by ten.

• Limits total program benefits to $50 million (one helicopter program) or $75 million (two programs) over the assistance agreement term, with no new agreements after January 31, 2023; approved April 28, 2022.