CT HB06927

Repeals and replaces Section 12-217w of Connecticut general statutes effective January 1, 2024, creating a new tax credit structure for fixed capital investments.

Defines "fixed capital" as tangible personal property with a class life exceeding four years that is held and used in Connecticut for at least five years and excludes inventory, land, buildings, structures, and mobile transportation property.

Establishes a five percent tax credit for corporations investing in fixed capital for income years commencing January 1, 2000 or later, with credits capped at the tax due and carryforward periods of five years.

Adds a new additional five percent tax credit for corporations that own at least 80 percent of a limited liability company treated as a partnership for federal income tax purposes, beginning January 1, 2024.

Requires recapture of 100 percent of the credit if fixed capital is not held and used in Connecticut for three years, or 50 percent if not held for five years, with one percent monthly interest on unpaid recapture amounts.