Connecticut HB 6632: AN ACT CONCERNING THE INVEST CT FUND PROGRAM.

Bill Text

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General Assembly Raised Bill No. 6632
January Session, 2021 LCO No. 4914

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
(FIN)

AN ACT CONCERNING THE INVEST CT FUND PROGRAM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 38a-88a of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2021): 2
(a) As used in this section: 3
(1) "Facility" means an insurance business facility; 4
(2) "Insurance business" means a business with a North American 5
Industry Classification System code of 524113 to 524298, inclusive, that 6
is engaged in the business of insuring risks or of providing services 7
necessary to the business of insuring risks; 8
(3) "New job" means a job that did not exist in the business of a subject 9
insurance business in this state prior to the subject insurance business's 10
application to the commissioner for an eligibility certificate under this 11
section for a new facility and that is filled by a new employee, but does 12
not include a job created when an employee is shifted from an existing 13

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location of the subject insurance business in this state to a new facility; 14
(4) "New employee" means a person who resides in Connecticut and 15
is hired by a subject insurance business to fill a position for a new job or 16
a person shifted from an existing location of the subject insurance 17
business outside this state to a new facility in this state, provided (A) in 18
no case shall the total number of new employees allowed for purposes 19
of this credit exceed the total increase in the taxpayer's employment in 20
this state, which increase shall be the difference between (i) the number 21
of employees employed by the subject insurance business in this state at 22
the time of application for an eligibility certificate to the commissioner 23
plus the number of new employees who would be eligible for inclusion 24
under the credit allowed under this section without regard to this 25
calculation, and (ii) the highest number of employees employed by the 26
subject insurance business in this state in the year preceding the subject 27
insurance business's application for an eligibility certificate to the 28
commissioner, and (B) a person shall be deemed to be a "new employee" 29
only if such person's duties in connection with the operation of the 30
facility are on a regular, full-time, or equivalent thereof, and permanent 31
basis; 32
(5) "New facility" means a facility [which] that (A) is acquired by, 33
leased to, or constructed by, a subject insurance business on or after the 34
date of the subject insurance business's application to the commissioner 35
for an eligibility certificate under this section, unless, upon application 36
of the subject insurance business and upon good and sufficient cause 37
shown, the commissioner waives the requirement that such activity take 38
place after the application, and (B) was not in service or use during the 39
one-year period immediately prior to the date of the subject insurance 40
business's application to [said] the commissioner for an eligibility 41
certificate under this section, unless upon application of the subject 42
insurance business and upon good and sufficient cause shown, the 43
commissioner consents to waiving the one-year period; 44
(6) "Related person" means (A) a corporation, limited liability 45
company, partnership, association or trust controlled by the taxpayer or 46

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subject insurance business, as the case may be, (B) an individual, 47
corporation, limited liability company, partnership, association or trust 48
that is in control of the taxpayer or subject insurance business, as the 49
case may be, (C) a corporation, limited liability company, partnership, 50
association or trust controlled by an individual, corporation, limited 51
liability company, partnership, association or trust that is in control of 52
the taxpayer or subject insurance business, as the case may be, or (D) a 53
member of the same controlled group as the taxpayer or subject 54
insurance business, as the case may be. For purposes of this section, 55
"control", with respect to a corporation, means ownership, directly or 56
indirectly, of stock possessing fifty per cent or more of the total 57
combined voting power of all classes of the stock of such corporation 58
entitled to vote. "Control", with respect to a trust, means ownership, 59
directly or indirectly, of fifty per cent or more of the beneficial interest 60
in the principal or income of such trust. The ownership of stock in a 61
corporation, of a capital or profits interest in a partnership or association 62
or of a beneficial interest in a trust shall be determined in accordance 63
with the rules for constructive ownership of stock provided in Section 64
267(c) of the Inter