General Assembly
Substitute Bill No. 787
January Session, 2017
*_____SB00787FIN___042817____*
AN ACT CONCERNING REVENUE.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (Effective from passage) (a) For purposes of this section, "qualified taxpayer" means a taxpayer that: (1) Failed to file a tax return, or failed to report the full amount of tax properly due on a previously filed tax return, that was due on or before December 31, 2016; (2) voluntarily comes forward prior to receiving a billing notice or a notice from the Department of Revenue Services that an audit is being conducted in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (3) is not a party to a closing agreement with the Commissioner of Revenue Services in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (4) has not made an offer of compromise that has been accepted by the commissioner in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (5) has not protested a determination of an audit for the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (6) is not a party to litigation against the commissioner in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; and (7) makes application for a fresh start agreement in the form and manner prescribed by the commissioner.
(b) Notwithstanding the provisions of any other law, the Commissioner of Revenue Services is authorized to implement a fresh start program and may, at the commissioner's sole discretion, enter into fresh start agreements with qualified taxpayers during the period from July 1, 2017, to October 31, 2018, inclusive, except taxes imposed under chapter 222 of the general statutes shall not be eligible for a fresh start agreement. Any fresh start agreement shall provide for (1) the waiver of all penalties that may be imposed under title 12 of the general statutes, and (2) the waiver of fifty per cent of the interest related to a failure to pay any amount due to the commissioner by the date prescribed for payment. A fresh start agreement for a qualified taxpayer that has failed to file a tax return or returns may also provide for a limited look-back period.
(c) As part of any fresh start agreement, a qualified taxpayer shall: (1) Voluntarily and fully disclose on the application all material facts pertinent to such taxpayer's liability for taxes due to the commissioner; (2) file any tax returns or documents that may be required by the commissioner; (3) pay in full the tax and interest as set forth in the fresh start agreement in the form and manner prescribed by the commissioner; (4) agree to timely file any required tax returns and pay any associated tax obligations to this state for a period of three years after the date the fresh start agreement is signed by the parties to such agreement; and (5) waive, for the taxable period or periods for which the commissioner has agreed to waive penalties and interest, all administrative and judicial rights of appeal that have not run or expired.
(d) Notwithstanding the provisions of subsections (a) to (c), inclusive, of this section or of any fresh start agreement, the waiver of penalties and interest shall not be binding on the commissioner if the commissioner finds that any of the following circumstances exist: (1) The qualified taxpayer misrepresented any material fact in applying for or entering into the fresh start agreement; (2) the qualified taxpayer fails to provide any information required for any taxable period covered by the fresh start agreement on or before the due date prescribed under the terms of the fresh start agreement; (3) the qualified taxpayer fails to pay any tax, penalty or interest due in the time, form or manner prescribed under the terms of the fresh start agreement; (4) the tax reported by the qualified taxpayer for any taxable period covered by the fresh start agreement, including any amount shown on an amended tax return, understates by ten per cent or more the tax due and such taxpayer cannot demonstrate to the satisfaction of the commissioner that a good faith effort was made to accurately compute the tax; or (5) the qualified taxpayer fails to timely file any required tax returns or pay any associated tax obligations to this state, during the three-year period after the date the fresh start agreement was signed by the parties to such agreement. No payment made by a qualified taxpayer for a taxable period covered by a fresh start agreement shall be refunded to such taxpayer or credited to a taxable period other than the taxable period for which such payment was made.
Sec. 2. Subsection (e) of section 12-704e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2017):
(e)For purposes of this section, "applicable percentage" means [thirty] twenty-seven and one-half per cent. [, except (1) for the taxable year commencing on January 1, 2013, "applicable percentage" means twenty-five per cent, and (2) for taxable years commencing on or after January 1, 2014, but prior to January 1, 2017, "applicable percentage" means twenty-seven and one-half per cent.]
Sec. 3. (NEW) (Effective January 1, 2018) (a) For taxable years commencing on or after January 1, 2018, there shall be allowed a credit against the personal income tax imposed under chapter 229 of the general statutes for individuals who (1) are employed in this state, (2) receive, on or after January 1, 2018, a bachelor's, master's or doctoral degree in a science, technology, engineering or math-related field, from an institution of higher education in this or another state, and (3) (A) reside in this state, or (B) move to this state within two years after receiving such degree. Such credit shall be in the amount of five hundred dollars and may be claimed for the five successive taxable years after the date of graduation, provided the requirements under subdivisions (1) to (3), inclusive, are met in each taxable year.
(b) If the amount of the credit allowed pursuant to subsection (a) of this section exceeds the individual's liability for the personal income tax imposed under chapter 229 of the general statutes, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 of the general statutes or 12-742 of the general statutes, shall refund the amount of such excess, without interest, to the individual.
(c) Any individual claiming a credit under subsection (a) of this section shall provide any documentation required by the Commissioner of Revenue Services in a form and manner prescribed by said commissioner.
Sec. 4. Subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2019, and applicable to taxable years commencing on or after January 1, 2019):
(B)There shall be subtracted therefrom (i) to the extent properly includable in gross income for federal income tax purposes, any income with respect to which taxation by any state is prohibited by federal law, (ii) to the extent allowable under section 12-718, exempt dividends paid by a regulated investment company, (iii) the amount of any refund or credit for overpayment of income taxes imposed by this state, or any other state of the United States or a political subdivision thereof, or the District of Columbia, to the extent properly includable in gross income for federal income tax purposes, (iv) to the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in computing Connecticut adjusted gross income, any tier 1 railroad retirement benefits, (v) to the extent any additional allowance for depreciation under Section 168(k) of the Internal Revenue Code, as provided by Section 101 of the Job Creation and Worker Assistance Act of 2002, for property placed in service after December 31, 2001, but prior to September 10, 2004, was added to federal adjusted gross income pursuant to subparagraph (A)(ix) of this subdivision in computing Connecticut adjusted gross income for a taxable year ending after December 31, 2001, twenty-five per cent of such additional allowance for depreciation in each of the four succeeding taxable years, (vi) to the extent properly includable in gross income for federal income tax purposes, any interest income from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, (vii) to the extent properly includable in determining the net gain or loss from the sale or other disposition of capital assets for federal income tax purposes, any gain from the sale or exchange of obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, in the income year such gain was recognized, (viii) any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such interest on indebtedness is not deductible in determining federal adjusted gross income and is attributable to a trade or business carried on by such individual, (ix) ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject to taxation under this chapter but exempt from federal income tax, or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal adjusted gross income and are attributable to a trade or business carried on by such individual, [(x) (I) for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than sixty thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than sixty thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes; and (II) for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is sixty thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code] (x) an amount equal to the Social Security benefits includable for federal income tax purposes, (xi) to the extent properly includable in gross income for federal income tax purposes, any amount rebated to a taxpayer pursuant to section 12-746, (xii) to the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, any distribution to such beneficiary from any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state, (xiii) to the extent allowable under section 12-701a, contributions to accounts established pursuant to any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state, (xiv) to the extent properly includable in gross income for federal income tax purposes, the amount of any Holocaust victims' settlement payment received in the taxable year by a Holocaust victim, (xv) to the extent properly includable in gross income for federal income tax purposes of an account holder, as defined in section 31-51ww, interest earned on funds deposited in the individual development account, as defined in section 31-51ww, of such account holder, (xvi) to the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, as defined in section 3-123aa, interest, dividends or capital gains earned on contributions to accounts established for the designated beneficiary pursuant to the Connecticut Homecare Option Program for the Elderly established by sections 3-123aa to 3-123ff, inclusive, (xvii) to the extent properly includable in gross income for federal income tax purposes, any income received from the United States government as retirement pay for a retired member of (I) the Armed Forces of the United States, as defined in Section 101 of Title 10 of the United States Code, or (II) the National Guard, as defined in Section 101 of Title 10 of the United States Code, (xviii) to the extent properly includable in gross income for federal income tax purposes for the taxable year, any income from the discharge of indebtedness in connection with any reacquisition, after December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal Revenue Code, as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any such income was added to federal adjusted gross income pursuant to subparagraph (A)(xi) of this subdivision in computing Connecticut adjusted gross income for a preceding taxable year, (xix) to the extent not deductible in determining federal adjusted gross income, the amount of any contribution to a manufacturing reinvestment account established pursuant to section 32-9zz in the taxable year that such contribution is made, and (xx) to the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2015, ten per cent of the income received from the state teachers' retirement system, for the taxable year commencing January 1, 2016, twenty-five per cent of the income received from the state teachers' retirement system, and for the taxable year commencing January 1, 2017, and each taxable year thereafter, fifty per cent of the income received from the state teachers' retirement system.
Sec. 5. Section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018):
(a) With respect to estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be the amount of the federal credit allowable for estate, inheritance, legacy and succession taxes paid to any state or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as part of or in connection with the estate of such decedent. If real or tangible personal property of such decedent is located outside [of] this state and is subject to estate, inheritance, legacy, or succession taxes by any state or states, other than the state of Connecticut, or by the District of Columbia for which such federal credit is allowable, the amount of tax due under this section shall be reduced by the lesser of: (1) The amount of any such taxes paid to such other state or states or said district and allowed as a credit against the federal estate tax; or (2) an amount computed by multiplying such federal credit by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which such other state or states or said district have jurisdiction for estate tax purposes to the same extent to which this state would assert jurisdiction for estate tax purposes under this chapter with respect to the residents of such other state or states or said district, and (B) the denominator of which is the value of the decedent's gross estate. Property of a resident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state, tangible personal property having an actual situs in this state, and intangible personal property owned by the decedent, regardless of where it is located. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.
(b)With respect to the estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state, the amount of which shall be computed by multiplying (1) the federal credit allowable for estate, inheritance, legacy, and succession taxes paid to any state or states or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with the estate of such decedent by (2) a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes and (B) the denominator of which is the value of the decedent's gross estate. Property of a nonresident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state and tangible personal property having an actual situs in this state. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.
(c)For purposes of this section:
(1)(A)"Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, but prior to January 1, 2010. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.
(B)"Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2015, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.
(C)"Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2015, but prior to January 1, 2020, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, other than Connecticut taxable gifts that are includable in the gross estate for federal estate tax purposes of the decedent, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death. The deduction for state death taxes paid under Section 2058 of the Internal Revenue Code shall be disregarded.
(D) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2020, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent during the three-year period preceding the date of the decedent's death, but excluding (I) any taxable gifts that are includable in the gross estate for federal estate tax purposes of the decedent, (II) any taxable gifts of real estate or tangible personal property located outside this state, and (III) any taxable gifts made by a nonresident of property other than real estate or tangible personal property located within this state, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death. The deduction for state death taxes paid under Section 2058 of the Internal Revenue Code shall be disregarded.
(2)"Internal Revenue Code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, [amended,] except in the event of repeal of the federal estate tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.
(3)"Gross estate" means the gross estate, for federal estate tax purposes.
(4) "Federal basic exclusion amount" means the dollar amount published annually by the Internal Revenue Service at which a decedent would be required to file a federal estate tax return based on the value of the decedent's gross estate and federally taxable gifts.
(d)(1)(A)With respect to the estates of decedents who die on or after January 1, 2005, but prior to January 1, 2010, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2010.
(B)With respect to the estates of decedents who die on or after January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section.
(C)With respect to the estates of decedents who die on or after January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section.
(D)With respect to the estates of decedents who die on or after January 1, 2016, but prior to January 1, 2018, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
(E) With respect to the estates of decedents who die on or after January 1, 2018, but prior to January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
(F) With respect to the estates of decedents who die on or after January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2020, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, but prior to January 1, 2020, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2020, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2020, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
(2)If real or tangible personal property of such decedent is located outside [of] this state, the amount of tax due under this section shall be reduced by an amount computed by multiplying the tax otherwise due pursuant to subdivision (1) of this subsection, without regard to the credit allowed for any taxes paid to this state pursuant to section 12-642, as amended by this act, by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate attributable to real or tangible personal property located outside of the state, and (B) the denominator of which is the value of the decedent's gross estate.
(3)For a resident estate, the state shall have the power to levy the estate tax upon real property situated in this state, tangible personal property having an actual situs in this state and intangible personal property included in the gross estate of the decedent, regardless of where it is located. The state is permitted to calculate the estate tax and levy said tax to the fullest extent permitted by the Constitution of the United States.
(e)(1)(A)With respect to the estates of decedents who die on or after January 1, 2005, but prior to January 1, 2010, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2010.
(B)With respect to the estates of decedents who die on or after January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section.
(C)With respect to the estates of decedents who die on or after January 1, 2016, but prior to January 1, 2018, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
(D) With respect to the estates of decedents who die on or after January 1, 2018, but prior to January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying the amount of tax determined using the schedule in subsection (g) of this section by a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
(E) With respect to the estates of decedents who die on or after January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying the amount of tax determined using the schedule in subsection (g) of this section by a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2020, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, but prior to January 1, 2020, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2020, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2020, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
(2)For a nonresident estate, the state shall have the power to levy the estate tax upon all real property situated in this state and tangible personal property having an actual situs in this state. The state is permitted to calculate the estate tax and levy said tax to the fullest extent permitted by the Constitution of the United States.
(f)(1)For purposes of the tax imposed under this section, the value of the Connecticut taxable estate shall be determined taking into account all of the deductions available under the Internal Revenue Code of 1986, specifically including, but not limited to, the deduction available under Section 2056(b)(7) of said code for a qualifying income interest for life in a surviving spouse.
(2)An election under said Section 2056(b)(7) may be made for state estate tax purposes regardless of whether any such election is made for federal estate tax purposes. The value of the gross estate shall include the value of any property in which the decedent had a qualifying income interest for life for which an election was made under this subsection.
(g)(1)With respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
T1
Amount of Connecticut
T2
Taxable Estate
Rate of Tax
T3
Not over $2,000,000
None
T4
Over $2,000,000
T5
but not over $2,100,000
5.085% of the excess over $0
T6
Over $2,100,000
$106,800 plus 8% of the excess
T7
but not over $2,600,000
over $2,100,000
T8
Over $2,600,000
$146,800 plus 8.8% of the excess
T9
but not over $3,100,000
over $2,600,000
T10
Over $3,100,000
$190,800 plus 9.6% of the excess
T11
but not over $3,600,000
over $3,100,000
T12
Over $3,600,000
$238,800 plus 10.4% of the excess
T13
but not over $4,100,000
over $3,600,000
T14
Over $4,100,000
$290,800 plus 11.2% of the excess
T15
but not over $5,100,000
over $4,100,000
T16
Over $5,100,000
$402,800 plus 12% of the excess
T17
but not over $6,100,000
over $5,100,000
T18
Over $6,100,000
$522,800 plus 12.8% of the excess
T19
but not over $7,100,000
over $6,100,000
T20
Over $7,100,000
$650,800 plus 13.6% of the excess
T21
but not over $8,100,000
over $7,100,000
T22
Over $8,100,000
$786,800 plus 14.4% of the excess
T23
but not over $9,100,000
over $8,100,000
T24
Over $9,100,000
$930,800 plus 15.2% of the excess
T25
but not over $10,100,000
over $9,100,000
T26
Over $10,100,000
$1,082,800 plus 16% of the excess
T27
over $10,100,000
(2)With respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2011, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
T28
Amount of Connecticut
T29
Taxable Estate
Rate of Tax
T30
Not over $3,500,000
None
T31
Over $3,500,000
7.2% of the excess
T32
but not over $3,600,000
over $3,500,000
T33
Over $3,600,000
$7,200 plus 7.8% of the excess
T34
but not over $4,100,000
over $3,600,000
T35
Over $4,100,000
$46,200 plus 8.4% of the excess
T36
but not over $5,100,000
over $4,100,000
T37
Over $5,100,000
$130,200 plus 9.0% of the excess
T38
but not over $6,100,000
over $5,100,000
T39
Over $6,100,000
$220,200 plus 9.6% of the excess
T40
but not over $7,100,000
over $6,100,000
T41
Over $7,100,000
$316,200 plus 10.2% of the excess
T42
but not over $8,100,000
over $7,100,000
T43
Over $8,100,000
$418,200 plus 10.8% of the excess
T44
but not over $9,100,000
over $8,100,000
T45
Over $9,100,000
$526,200 plus 11.4% of the excess
T46
but not over $10,100,000
over $9,100,000
T47
Over $10,100,000
$640,200 plus 12% of the excess
T48
over $10,100,000
(3)With respect to the estates of decedents dying on or after January 1, 2011, but prior to January 1, 2018, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
T49
Amount of Connecticut
T50
Taxable Estate
Rate of Tax
T51
Not over $2,000,000
None
T52
Over $2,000,000
7.2% of the excess
T53
but not over $3,600,000
over $2,000,000
T54
Over $3,600,000
$115,200 plus 7.8% of the excess
T55
but not over $4,100,000
over $3,600,000
T56
Over $4,100,000
$154,200 plus 8.4% of the excess
T57
but not over $5,100,000
over $4,100,000
T58
Over $5,100,000
$238,200 plus 9.0% of the excess
T59
but not over $6,100,000
over $5,100,000
T60
Over $6,100,000
$328,200 plus 9.6% of the excess
T61
but not over $7,100,000
over $6,100,000
T62
Over $7,100,000
$424,200 plus 10.2% of the excess
T63
but not over $8,100,000
over $7,100,000
T64
Over $8,100,000
$526,200 plus 10.8% of the excess
T65
but not over $9,100,000
over $8,100,000
T66
Over $9,100,000
$634,200 plus 11.4% of the excess
T67
but not over $10,100,000
over $9,100,000
T68
Over $10,100,000
$748,200 plus 12% of the excess
T69
over $10,100,000
(4)With respect to the estates of decedents dying on or after January 1, 2018, but prior to January 1, 2019, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
T70
Amount of Connecticut
T71
Taxable Estate
Rate of Tax
T72
Not over $2,600,000
None
T73
Over $2,600,000
7.2% of the excess
T74
but not over $3,600,000
over $2,600,000
T75
Over $3,600,000
$72,000 plus 7.8% of the excess
T76
but not over $4,100,000
over $3,600,000
T77
Over $4,100,000
$111,000 plus 8.4% of the excess
T78
but not over $5,100,000
over $4,100,000
T79
Over $5,100,000
$195,000 plus 10% of the excess
T80
but not over $6,100,000
over $5,100,000
T81
Over $6,100,000
$295,000 plus 10.4% of the excess
T82
but not over $7,100,000
over $6,100,000
T83
Over $7,100,000
$399,900 plus 10.8% of the excess
T84
but not over $8,100,000
over $7,100,000
T85
Over $8,100,000
$507,000 plus 11.2% of the excess
T86
but not over $9,100,000
over $8,100,000
T87
Over $9,100,000
$619,000 plus 11.6% of the excess
T88
but not over $10,100,000
over $9,100,000
T89
Over $10,100,000
$735,000 plus 12% of the excess
T90
over $10,100,000
(5)With respect to the estates of decedents dying on or after January 1, 2019, but prior to January 1, 2020, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
T91
Amount of Connecticut
T92
Taxable Estate
Rate of Tax
T93
Not over $3,600,000
None
T94
Over $3,600,000
7.8% of the excess
T95
but not over $4,100,000
over $3,600,000
T96
Over $4,100,000
$39,000 plus 8.4% of the excess
T97
but not over $5,100,000
over $4,100,000
T98
Over $5,100,000
$123,000 plus 10% of the excess
T99
but not over $6,100,000
over $5,100,000
T100
Over $6,100,000
$223,000 plus 10.4% of the excess
T101
but not over $7,100,000
over $6,100,000
T102
Over $7,100,000
$327,000 plus 10.8% of the excess
T103
but not over $8,100,000
over $7,100,000
T104
Over $8,100,000
$435,000 plus 11.2% of the excess
T105
but not over $9,100,000
over $8,100,000
T106
Over $9,100,000
$547,000 plus 11.6% of the excess
T107
but not over $10,100,000
over $9,100,000
T108
Over $10,100,000
$663,000 plus 12% of the excess
T109
over $10,100,000
(6)With respect to the estates of decedents dying on or after January 1, 2020, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
T110
Amount of Connecticut
T111
Taxable Estate
Rate of Tax
T112
Not over the
None
T113
federal basic exclusion amount
T114
Over the
10% of the excess over the
T115
federal basic exclusion amount
federal basic exclusion amount
T116
but not over $6,100,000
T117
Over $6,100,000
10.4% of the excess over the
T118
but not over $7,100,000
federal basic exclusion amount
T119
Over $7,100,000
10.8% of the excess over the
T120
but not over $8,100,000
federal basic exclusion amount
T121
Over $8,100,000
11.2% of the excess over the
T122
but not over $9,100,000
federal basic exclusion amount
T123
Over $9,100,000
11.6% of the excess over the
T124
but not over $10,100,000
federal basic exclusion amount
T125
Over $10,100,000
12% of the excess over the
T126
federal basic exclusion amount
(h)(1)For the purposes of this chapter, each decedent shall be presumed to have died a resident of this state. The burden of proof in an estate tax proceeding shall be upon any decedent's estate claiming exemption by reason of the decedent's alleged nonresidency.
(2)Any person required to make and file a tax return under this chapter, believing that the decedent died a nonresident of this state, may file a request for determination of domicile in writing with the Commissioner of Revenue Services, stating the specific grounds upon which the request is founded provided (A) such person has filed such return, (B) at least two hundred seventy days, but no more than three years, has elapsed since the due date of such return or, if an application for extension of time to file such return has been granted, the extended due date of such return, (C) such person has not been notified, in writing, by said commissioner that a written agreement of compromise with the taxing authorities of another jurisdiction, under section 12-395a, is being negotiated, and (D) the commissioner has not previously determined whether the decedent died a resident of this state. Not later than one hundred eighty days following receipt of such request for determination, the commissioner shall determine whether such decedent died a resident or a nonresident of this state. If the commissioner commences negotiations over a written agreement of compromise with the taxing authorities of another jurisdiction after a request for determination of domicile is filed, the one-hundred-eighty-day period shall be tolled for the duration of such negotiations. When, before the expiration of such one-hundred-eighty-day period, both the commissioner and the person required to make and file a tax return under this chapter have consented in writing to the making of such determination after such time, the determination may be made at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. The commissioner shall mail notice of his proposed determination to the person required to make and file a tax return under this chapter. Such notice shall set forth briefly the commissioner's findings of fact and the basis of such proposed determination. Sixty days after the date on which it is mailed, a notice of proposed determination shall constitute a final determination unless the person required to make and file a tax return under this chapter has filed, as provided in subdivision (3) of this subsection, a written protest with the Commissioner of Revenue Services.
(3)On or before the sixtieth day after mailing of the proposed determination, the person required to make and file a tax return under this chapter may file with the commissioner a written protest against the proposed determination in which such person shall set forth the grounds on which the protest is based. If such a protest is filed, the commissioner shall reconsider the proposed determination and, if the person required to make and file a tax return under this chapter has so requested, may grant or deny such person or the authorized representatives of such person an oral hearing.
(4)Notice of the commissioner's determination shall be mailed to the person required to make and file a tax return under this chapter and such notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided adversely to such person.
(5)The action of the commissioner on a written protest shall be final upon the expiration of one month from the date on which he mails notice of his action to the person required to make and file a tax return under this chapter unless within such period such person seeks review of the commissioner's determination pursuant to subsection (b) of section 12-395.
(6)Nothing in this subsection shall be construed to relieve any person filing a request for determination of domicile of the obligation to pay the correct amount of tax on or before the due date of the tax.
(i)The tax calculated pursuant to the provisions of this section shall be reduced in an amount equal to half of the amount invested by a decedent in a private investment fund or fund of funds pursuant to subdivision (43) of section 32-39, provided (1) any such reduction shall not exceed five million dollars for any such decedent, (2) any such amount invested by the decedent shall have been invested in such fund or fund of funds for ten years or more, and (3) the aggregate amount of all taxes reduced under this subsection shall not exceed thirty million dollars.
Sec. 6. Section 12-640 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
For [the calendar year 1991 and each year thereafter] calendar years commencing January 1, 1991, but prior to January 1, 2020, a tax computed as provided in section 12-642, as amended by this act, is hereby imposed on the transfer of property by gift during such taxable year by any individual resident or nonresident provided, for the calendar year commencing January 1, 1991, such tax shall be imposed only on those gifts which are transferred on or after September 1, 1991.
Sec. 7. Section 12-642 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to gifts made on or after January 1, 2018):
(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:
T127
Amount of Taxable Gifts
Rate of Tax
T128
Not over $25,000
1%
T129
Over $25,000
$250, plus 2% of the excess
T130
but not over $50,000
over $25,000
T131
Over $50,000
$750, plus 3% of the excess
T132
but not over $75,000
over $50,000
T133
Over $75,000
$1,500, plus 4% of the excess
T134
but not over $100,000
over $75,000
T135
Over $100,000
$2,500, plus 5% of the excess
T136
but not over $200,000
over $100,000
T137
Over $200,000
$7,500, plus 6% of the excess
T138
over $200,000
(2)With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640, as amended by this act, for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:
T139
Amount of Taxable Gifts
Rate of Tax
T140
Over $25,000
$250, plus 2% of the excess
T141
but not over $50,000
over $25,000
T142
Over $50,000
$750, plus 3% of the excess
T143
but not over $75,000
over $50,000
T144
Over $75,000
$1,500, plus 4% of the excess
T145
but not over $100,000
over $75,000
T146
Over $100,000
$2,500, plus 5% of the excess
T147
but not over $675,000
over $100,000
T148
Over $675,000
$31,250, plus 6% of the excess
T149
over $675,000
(3)With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:
T150
Amount of Taxable Gifts
Rate of Tax
T151
Not over $2,000,000
None
T152
Over $2,000,000
T153
but not over $2,100,000
5.085% of the excess over $0
T154
Over $2,100,000
$106,800 plus 8% of the excess
T155
but not over $2,600,000
over $2,100,000
T156
Over $2,600,000
$146,800 plus 8.8% of the excess
T157
but not over $3,100,000
over $2,600,000
T158
Over $3,100,000
$190,800 plus 9.6% of the excess
T159
but not over $3,600,000
over $3,100,000
T160
Over $3,600,000
$238,800 plus 10.4% of the excess
T161
but not over $4,100,000
over $3,600,000
T162
Over $4,100,000
$290,800 plus 11.2% of the excess
T163
but not over $5,100,000
over $4,100,000
T164
Over $5,100,000
$402,800 plus 12% of the excess
T165
but not over $6,100,000
over $5,100,000
T166
Over $6,100,000
$522,800 plus 12.8% of the excess
T167
but not over $7,100,000
over $6,100,000
T168
Over $7,100,000
$650,800 plus 13.6% of the excess
T169
but not over $8,100,000
over $7,100,000
T170
Over $8,100,000
$786,800 plus 14.4% of the excess
T171
but not over $9,100,000
over $8,100,000
T172
Over $9,100,000
$930,800 plus 15.2% of the excess
T173
but not over $10,100,000
over $9,100,000
T174
Over $10,100,000
$1,082,800 plus 16% of the excess
T175
over $10,100,000
(4)With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
T176
Amount of Taxable Gifts
Rate of Tax
T177
Not over $3,500,000
None
T178
Over $3,500,000
7.2% of the excess
T179
but not over $3,600,000
over $3,500,000
T180
Over $3,600,000
$7,200 plus 7.8% of the excess
T181
but not over $4,100,000
over $3,600,000
T182
Over $4,100,000
$46,200 plus 8.4% of the excess
T183
but not over $5,100,000
over $4,100,000
T184
Over $5,100,000
$130,200 plus 9.0% of the excess
T185
but not over $6,100,000
over $5,100,000
T186
Over $6,100,000
$220,200 plus 9.6% of the excess
T187
but not over $7,100,000
over $6,100,000
T188
Over $7,100,000
$316,200 plus 10.2% of the excess
T189
but not over $8,100,000
over $7,100,000
T190
Over $8,100,000
$418,200 plus 10.8% of the excess
T191
but not over $9,100,000
over $8,100,000
T192
Over $9,100,000
$526,200 plus 11.4% of the excess
T193
but not over $10,100,000
over $9,100,000
T194
Over $10,100,000
$640,200 plus 12% of the excess
T195
over $10,100,000
(5)With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2011, but prior to January 1, 2018, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
T196
Amount of Taxable Gifts
Rate of Tax
T197
Not over $2,000,000
None
T198
Over $2,000,000
7.2% of the excess
T199
but not over $3,600,000
over $2,000,000
T200
Over $3,600,000
$115,200 plus 7.8% of the excess
T201
but not over $4,100,000
over $3,600,000
T202
Over $4,100,000
$154,200 plus 8.4% of the excess
T203
but not over $5,100,000
over $4,100,000
T204
Over $5,100,000
$238,200 plus 9.0% of the excess
T205
but not over $6,100,000
over $5,100,000
T206
Over $6,100,000
$328,200 plus 9.6% of the excess
T207
but not over $7,100,000
over $6,100,000
T208
Over $7,100,000
$424,200 plus 10.2% of the excess
T209
but not over $8,100,000
over $7,100,000
T210
Over $8,100,000
$526,200 plus 10.8% of the excess
T211
but not over $9,100,000
over $8,100,000
T212
Over $9,100,000
$634,200 plus 11.4% of the excess
T213
but not over $10,100,000
over $9,100,000
T214
Over $10,100,000
$748,200 plus 12% of the excess
T215
over $10,100,000
(6)With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2019, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4) or (5) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
T216
Amount of Taxable Gifts
Rate of Tax
T217
Not over $2,600,000
None
T218
Over $2,600,000
7.2% of the excess
T219
but not over $3,600,000
over $2,600,000
T220
Over $3,600,000
$72,000 plus 7.8% of the excess
T221
but not over $4,100,000
over $3,600,000
T222
Over $4,100,000
$111,000 plus 8.4% of the excess
T223
but not over $5,100,000
over $4,100,000
T224
Over $5,100,000
$195,000 plus 10% of the excess
T225
but not over $6,100,000
over $5,100,000
T226
Over $6,100,000
$295,000 plus 10.4% of the excess
T227
but not over $7,100,000
over $6,100,000
T228
Over $7,100,000
$399,900 plus 10.8% of the excess
T229
but not over $8,100,000
over $7,100,000
T230
Over $8,100,000
$507,000 plus 11.2% of the excess
T231
but not over $9,100,000
over $8,100,000
T232
Over $9,100,000
$619,000 plus 11.6% of the excess
T233
but not over $10,100,000
over $9,100,000
T234
Over $10,100,000
$735,000 plus 12% of the excess
T235
over $10,100,000
(7)With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2019, but prior to January 1, 2020, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5) or (6) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
T236
Amount of Taxable Gifts
Rate of Tax
T237
Not over $3,600,000
None
T238
Over $3,600,000
7.8% of the excess
T239
but not over $4,100,000
over $3,600,000
T240
Over $4,100,000
$39,000 plus 8.4% of the excess
T241
but not over $5,100,000
over $4,100,000
T242
Over $5,100,000
$123,000 plus 10% of the excess
T243
but not over $6,100,000
over $5,100,000
T244
Over $6,100,000
$223,000 plus 10.4% of the excess
T245
but not over $7,100,000
over $6,100,000
T246
Over $7,100,000
$327,000 plus 10.8% of the excess
T247
but not over $8,100,000
over $7,100,000
T248
Over $8,100,000
$435,000 plus 11.2% of the excess
T249
but not over $9,100,000
over $8,100,000
T250
Over $9,100,000
$547,000 plus 11.6% of the excess
T251
but not over $10,100,000
over $9,100,000
T252
Over $10,100,000
$663,000 plus 12% of the excess
T253
over $10,100,000
(b)The tax imposed by section 12-640, as amended by this act, shall be paid by the donor. If the gift tax is not paid when due the donee of any gift shall be personally liable for the tax to the extent of the value of the gift.
(c)(1) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2016, but prior to January 1, 2018, the aggregate amount of tax imposed by section 12-640, as amended by this act, for all calendar years commencing on or after January 1, 2016, shall not exceed twenty million dollars.
(2) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2020, the aggregate amount of tax imposed by section 12-640, as amended by this act, for all calendar years commencing on or after January 1, 2016, and prior to January 1, 2020, shall not exceed fifteen million dollars.
Sec. 8. Section 12-643 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
[(a) The term "taxable gifts"] (1) "Taxable gifts" means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section 2503 and Sections 2511 to 2514, inclusive, and Sections 2516 to 2519, inclusive, of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, [amended,] less the deductions allowed in Sections 2522 to 2524, inclusive, of said Internal Revenue Code, except in the event of repeal of the federal gift tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.
[(b)] (2)In the administration of the tax under this chapter, the Commissioner of Revenue Services shall apply the provisions of Sections 2701 to 2704, inclusive, of said Internal Revenue Code. The words "secretary or his delegate" as used in the aforementioned sections of the Internal Revenue Code means the Commissioner of Revenue Services.
[(c)The term] (3) "Connecticut taxable gifts" means taxable gifts made during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2020, that are, [(1)] (A) for residents of this state, taxable gifts, wherever located, but excepting gifts of real estate or tangible personal property located outside this state, and [(2)] (B) for nonresidents of this state, gifts of real estate or tangible personal property located within this state.
Sec. 9. Subsection (a) of section 12-211a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) (1) Notwithstanding any provision of the general statutes, and except as otherwise provided in subdivision (5) of this subsection or in subsection (b) of this section, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any calendar year shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such calendar year of the taxpayer prior to the application of such credit or credits.
(2)For the calendar year commencing January 1, 2011, "type one tax credits" means tax credits allowable under section 12-217jj, as amended by this act, 12-217kk or 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
(3)For the calendar year commencing January 1, 2012, "type one tax credits" means the tax credit allowable under section 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
(4)For [the] calendar years commencing on or after January 1, 2013, [January 1, 2014, January 1, 2015, and January 1, 2016,] "type one tax credits" means the tax credit allowable under sections 12-217jj, as amended by this act, 12-217kk and 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
(5)For calendar years commencing on or after January 1, 2011, [and prior to January 1, 2017,] and subject to the provisions of subdivisions (2), (3) and (4) of this subsection, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall not exceed:
(A)If the tax credit or credits being claimed by a taxpayer are type three tax credits only, thirty per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits.
(B)If the tax credit or credits being claimed by a taxpayer are type one tax credits and type three tax credits, but not type two tax credits, fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits, provided (i) type three tax credits shall be claimed before type one tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, and (iii) the sum of the type one tax credits and the type three tax credits being claimed may not exceed the fifty-five per cent threshold.
(C)If the tax credit or credits being claimed by a taxpayer are type two tax credits and type three tax credits, but not type one tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits, provided (i) type three tax credits shall be claimed before type two tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, and (iii) the sum of the type two tax credits and the type three tax credits being claimed may not exceed the seventy per cent threshold.
(D)If the tax credit or credits being claimed by a taxpayer are type one tax credits, type two tax credits and type three tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credits, provided (i) type three tax credits shall be claimed before type one tax credits or type two tax credits are claimed, and the type one tax credits shall be claimed before the type two tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, (iii) the sum of the type one tax credits and the type three tax credits being claimed may not exceed the fifty-five per cent threshold, and (iv) the sum of the type one tax credits, the type two tax credits and the type three tax credits being claimed may not exceed the seventy per cent threshold.
(E)If the tax credit or credits being claimed by a taxpayer are type one tax credits and type two tax credits only, but not type three tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credits, provided (i) the type one tax credits shall be claimed before type two tax credits are claimed, (ii) the type one tax credits being claimed may not exceed the fifty-five per cent threshold, and (iii) the sum of the type one tax credits and the type two tax credits being claimed may not exceed the seventy per cent threshold.
Sec. 10. Subparagraph (A) of subdivision (3) of subsection (a) of section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(3)(A)"Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For [the] state fiscal years ending on or after June 30, 2014, [June 30, 2015, June 30, 2016, and June 30, 2017,] "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued [during said years] for such motion picture, except, for [the] state fiscal years ending on or after June 30, 2015, [June 30, 2016, and June 30, 2017,] "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
Sec. 11. Section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) As used in this section:
(1)"Commissioner" means the Commissioner of Revenue Services.
(2)"Department" means the Department of Economic and Community Development.
(3)(A)"Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For the state fiscal years ending June 30, 2014, June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued during said years, except, for the state fiscal years ending June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
(B)"Qualified production" shall not include any ongoing television program created primarily as news, weather or financial market reports; a production featuring current events, other than a relocated television production, sporting events, an awards show or other gala event; a production whose sole purpose is fundraising; a long-form production that primarily markets a product or service; a production used for corporate training or in-house corporate advertising or other similar productions; or any production for which records are required to be maintained under 18 USC 2257, as amended from time to time, with respect to sexually explicit content.
(4)"Eligible production company" means a corporation, partnership, limited liability company, or other business entity engaged in the business of producing qualified productions on a one-time or ongoing basis, and qualified by the Secretary of the State to engage in business in the state.
(5)"Production expenses or costs" means all expenditures clearly and demonstrably incurred in the state in the preproduction, production or postproduction costs of a qualified production, including:
(A)Expenditures incurred in the state in the form of either compensation or purchases including production work, production equipment not eligible for the infrastructure tax credit provided in section 12-217kk, production software, postproduction work, postproduction equipment, postproduction software, set design, set construction, props, lighting, wardrobe, makeup, makeup accessories, special effects, visual effects, audio effects, film processing, music, sound mixing, editing, location fees, soundstages and any and all other costs or services directly incurred in connection with a state-certified qualified production;
(B)Expenditures for distribution, including preproduction, production or postproduction costs relating to the creation of trailers, marketing videos, commercials, point-of-purchase videos and any and all content created on film or digital media, including the duplication of films, videos, CDs, DVDs and any and all digital files now in existence and those yet to be created for mass consumer consumption; the purchase, by a company in the state, of any and all equipment relating to the duplication or mass market distribution of any content created or produced in the state by any digital media format which is now in use and those formats yet to be created for mass consumer consumption; and
(C)"Production expenses or costs" does not include the following: (i) On and after January 1, 2008, compensation in excess of fifteen million dollars paid to any individual or entity representing an individual, for services provided in the production of a qualified production and on or after January 1, 2010, compensation subject to Connecticut personal income tax in excess of twenty million dollars paid in the aggregate to any individuals or entities representing individuals, for star talent provided in the production of a qualified production; (ii) media buys, promotional events or gifts or public relations associated with the promotion or marketing of any qualified production; (iii) deferred, leveraged or profit participation costs relating to any and all personnel associated with any and all aspects of the production, including, but not limited to, producer fees, director fees, talent fees and writer fees; (iv) costs relating to the transfer of the production tax credits; (v) any amounts paid to persons or businesses as a result of their participation in profits from the exploitation of the qualified production; and (vi) any expenses or costs relating to an independent certification, as required by subsection (g) of this section, or as the department may otherwise require, pertaining to the amount of production expenses or costs set forth by an eligible production company in its application for a production tax credit.
(6)"Sound recording" means a recording of music, poetry or spoken-word performance, but does not include the audio portions of dialogue or words spoken and recorded as part of a motion picture, video, theatrical production, television news coverage or athletic event.
(7)"State-certified qualified production" means a qualified production produced by an eligible production company that (A) is in compliance with regulations adopted pursuant to subsection (k) of this section, (B) is authorized to conduct business in this state, and (C) has been approved by the department as qualifying for a production tax credit under this section.
(8)"Interactive web site" means a web site, the production costs of which (A) exceed five hundred thousand dollars per income year, and (B) is primarily (i) interactive games or end user applications, or (ii) animation, simulation, sound, graphics, story lines or video created or repurposed for distribution over the Internet. An interactive web site does not include a web site primarily used for institutional, private, industrial, retail or wholesale marketing or promotional purposes, or which contains obscene content.
(9)"Post-certification remedy" means the recapture, disallowance, recovery, reduction, repayment, forfeiture, decertification or any other remedy that would have the effect of reducing or otherwise limiting the use of a tax credit provided by this section.
(10)"Compensation" means base salary or wages and does not include bonus pay, stock options, restricted stock units or similar arrangements.
(11)"Relocated television production" means:
(A)An ongoing television program all of the prior seasons of which were filmed outside this state, and may include current events shows, except those referenced in subparagraph (B)(i) of this subdivision.
(B)An eligible production company's television programming in this state that (i) is not a general news program, sporting event or game broadcast, and (ii) is created at a qualified production facility that has had a minimum investment of twenty-five million dollars made by such eligible production company on or after January 1, 2012, at which facility the eligible production company creates ongoing television programming as defined in subparagraph (A) of this subdivision, and creates at least two hundred new jobs in Connecticut on or after January 1, 2012. For purposes of this subdivision, "new job" means a full-time job, as defined in section 12-217ii, that did not exist in this state prior to January 1, 2012, and is filled by a new employee, and "new employee" includes a person who was employed outside this state by the eligible production company prior to January 1, 2012, but does not include a person who was employed in this state by the eligible production company or a related person, as defined in section 12-217ii, with respect to the eligible production company during the prior twelve months.
(C)A relocated television production may be a state-certified qualified production for not more than ten successive income years, after which period the eligible production company shall be ineligible to resubmit an application for certification.
(b)(1)The Department of Economic and Community Development shall administer a system of tax credit vouchers within the resources, requirements and purposes of this section for eligible production companies producing a state-certified qualified production in the state.
[(1)For income years commencing on or after January 1, 2006, but prior to January 1, 2010, any eligible production company incurring production expenses or costs in excess of fifty thousand dollars shall be eligible for a credit against the tax imposed under chapter 207 or this chapter equal to thirty per cent of such production expenses or costs.]
(2) [For income years commencing on or after January 1, 2010, (A) any] Any eligible production company incurring production expenses or costs shall be eligible for a credit (A) for income years commencing on or after January 1, 2010, but prior to January 1, 2018, against the tax imposed under chapter 207 or this chapter, and (B) for income years commencing on or after January 1, 2018, against the tax imposed under chapter 207 or 211 or this chapter, as follows: (i) For any such company incurring [production] such expenses or costs of not less than one hundred thousand dollars, but not more than five hundred thousand dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to ten per cent of such [production] expenses or costs, [(B)] (ii) any such company incurring such expenses or costs of more than five hundred thousand dollars, but not more than one million dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to fifteen per cent of such [production] expenses or costs, and [(C)] (iii) any such company incurring such expenses or costs of more than one million dollars, [shall be eligible for a credit againstthe tax imposed under chapter 207 or this chapter] a credit equal to thirty per cent of such [production] expenses or costs.
(c)No eligible production company incurring an amount of production expenses or costs that qualifies for such credit shall be eligible for such credit unless on or after January 1, 2010, such company conducts (1) not less than fifty per cent of principal photography days within the state, or (2) expends not less than fifty per cent of postproduction costs within the state, or (3) expends not less than one million dollars of postproduction costs within the state.
[(d) (1)For income years commencing on or after January 1, 2009, but prior to January 1, 2010, fifty per cent of production expenses or costs shall be counted toward such credit when incurred outside the state and used within the state, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.]
[(2)] (d) For income years commencing on or after January 1, 2010, no expenses or costs incurred outside the state and used within the state shall be eligible for a credit, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.
(e)(1)On and after July 1, 2006, and for income years commencing on or after January 1, 2006, any credit allowed pursuant to this section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers, provided (A) no credit, after issuance, may be sold, assigned or otherwise transferred, in whole or in part, more than three times, (B) in the case of a credit allowed for the income year commencing on or after January 1, 2011, and prior to January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than fifty per cent of such credit in any one income year, and (C) in the case of a credit allowed for an income year commencing on or after January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than twenty-five per cent of such credit in any one income year.
(2)Notwithstanding the provisions of subdivision (1) of this subsection, any entity that is not subject to tax under this chapter or chapter 207 shall not be subject to the limitations on the transfer of credits provided in subparagraphs (B) and (C) of said subdivision (1), provided such entity owns not less than fifty per cent, directly or indirectly, of a business entity subject to tax under section 12-284b.
(3)Notwithstanding the provisions of subdivision (1) of this subsection, any qualified production that is created in whole or in significant part, as determined by the Commissioner of Economic and Community Development, at a qualified production facility shall not be subject to the limitations of subparagraph (B) or (C) of said subdivision (1). For purposes of this subdivision, "qualified production facility" means a facility (A) located in this state, (B) intended for film, television or digital media production, and (C) that has had a minimum investment of three million dollars, or less if the Commissioner of Economic and Community Development determines such facility otherwise qualifies.
(4) For income years commencing on or after January 1, 2018, any credit that is sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers pursuant to subdivision (1) of this subsection, which credit is claimed against the tax imposed under chapter 211, shall be subject to the following limits:
(A) The taxpayer may only claim ninety-five per cent of the amount of such credit entered by the department on the production tax credit voucher; and
(B) If there is common ownership of at least fifty per cent between such taxpayer and the eligible production company that sold, assigned or otherwise transferred such credit, such taxpayer may only claim ninety-two per cent of the amount of such credit entered by the department on the production tax credit voucher.
(f)(1) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, all or part of any such credit allowed under this [subsection shall] section may be claimed against the tax imposed under chapter 207 or this chapter for the income year in which the production expenses or costs were incurred, or in the three immediately succeeding income years.
(2) For production tax credit vouchers issued on or after July 1, 2015, all or part of any such credit [shall] may be claimed against (A) the tax imposed under chapter 207 or this chapter, or (B) for income years commencing on or after January 1, 2018, the tax imposed under chapter 207 or 211 or this chapter, for the income year in which the production expenses or costs were incurred, or in the five immediately succeeding income years.
(3) Any production tax credit allowed under this subsection shall be nonrefundable.
(g)(1)An eligible production company shall apply to the department for a tax credit voucher on an annual basis, but not later than ninety days after the first production expenses or costs are incurred in the production of a qualified production, and shall provide with such application such information as the department may require to determine such company's eligibility to claim a credit under this section. No production expenses or costs may be listed more than once for purposes of the tax credit voucher pursuant to this section, or pursuant to section 12-217kk or 12-217ll, and if a production expense or cost has been included in a claim for a credit, such production expense or cost may not be included in any subsequent claim for a credit.
(2)Not later than ninety days after the end of the annual period, or after the last production expenses or costs are incurred in the production of a qualified production, an eligible production company shall apply to the department for a production tax credit voucher, and shall provide with such application such information and independent certification as the department may require pertaining to the amount of such company's production expenses or costs. Such independent certification shall be provided by an audit professional chosen from a list compiled by the department. If the department determines that such company is eligible to be issued a production tax credit voucher, the department shall enter on the voucher the amount of production expenses or costs that has been established to the satisfaction of the department and the amount of such company's credit under this section. The department shall provide a copy of such voucher to the commissioner, upon request.
(3)The department shall charge a reasonable administrative fee sufficient to cover the department's costs to analyze applications submitted under this section.
(h)If an eligible production company sells, assigns or otherwise transfers a credit under this section to another taxpayer, the transferor and transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. If such transferee sells, assigns or otherwise transfers a credit under this section to a subsequent transferee, such transferee and such subsequent transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. The notification after each transfer shall include the credit voucher number, the date of transfer, the amount of such credit transferred, the tax credit balance before and after the transfer, the tax identification numbers for both the transferor and the transferee, and any other information required by the department. Failure to comply with this subsection will result in a disallowance of the tax credit until there is full compliance on the part of the transferor and the transferee, and for a second or third transfer, on the part of all subsequent transferors and transferees. The department shall provide a copy of the notification of assignment to the commissioner upon request.
(i)Any eligible production company that submits information to the department that it knows to be fraudulent or false shall, in addition to any other penalties provided by law, be liable for a penalty equal to the amount of such company's credit entered on the production tax credit [certificate] voucher issued under this section.
(j)No tax credits transferred pursuant to this section shall be subject to a post-certification remedy, and the department and the commissioner shall have no right, except in the case of possible material misrepresentation or fraud, to conduct any further or additional review, examination or audit of the expenditures or costs for which such tax credits were issued. The sole and exclusive remedy of the department and the commissioner shall be to seek collection of the amount of such tax credits from the entity that committed the fraud or misrepresentation.
(k)The department, in consultation with the commissioner, shall adopt regulations, in accordance with the provisions of chapter 54, as may be necessary for the administration of this section.
Sec. 12. Subdivision (62) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(62) (A)Sales of any of the services enumerated in subparagraph (I), (K) or (L) of subdivision (2) of subsection (a) of section 12-407 that are rendered for a business entity affiliated with the business entity rendering such service in such manner that (i) either business entity in such transaction owns a controlling interest in the other business entity, or (ii) a controlling interest in each business entity in such transaction is owned by the same person or persons or business entity or business entities.
(B)For purposes of this subdivision, (i) "business entity" means a corporation, trust, estate, partnership, limited partnership, limited liability partnership, limited liability company, single member limited liability company, sole proprietorship, nonstock corporation or a federally-recognized Indian tribe; (ii) "controlling interest" means, in the case of a business entity that is a corporation, ownership of stock possessing [one hundred] at least eighty per cent of the total combined voting power of all classes of stock entitled to vote or [one hundred] at least eighty per cent of the total value of shares of all classes of stock of such corporation; in the case of a business entity that is a trust or estate, ownership of a beneficial interest of one hundred per cent in such trust or estate; in the case of a business entity that is a partnership, limited partnership or limited liability partnership, ownership of one hundred per cent of the profits interest or capital interest in such partnership, limited partnership or limited liability partnership; in the case of a limited liability company with more than one member, ownership of [one hundred] at least eighty per cent of the profits interest, capital interest or membership interests in such limited liability company; in the case of a business entity that is a sole proprietorship or single member limited liability company, ownership of such sole proprietorship or single member limited liability company; in the case of a business entity that is a nonstock corporation with voting members, control of one hundred per cent of all voting membership interests in such corporation; and in the case of a business entity that is a nonstock corporation with no voting members, control of one hundred per cent of the board of directors of such corporation; (iii) whether a controlling interest in a business entity is owned shall be determined in accordance with Section 267 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, provided where a controlling interest is owned in a business entity other than a stock corporation, the term "stock" as used in said Section 267 of the Internal Revenue Code means, in the case of a partnership, limited partnership, limited liability partnership or limited liability company treated as a partnership for federal income tax purposes, the profits interest or capital interest in such partnership, in the case of a business entity that is a trust or estate, the beneficial interests in such trust or estate, and in the case of a business entity that is a nonstock corporation, the voting membership interests in such corporation, or if it has no voting members, the control of the board of directors; (iv) a business entity has "control of" the board of directors of a nonstock corporation if one hundred per cent of the voting members of the board of directors are either representatives of, including ex-officio directors, or persons appointed by such business entity, or "control of" one hundred per cent of the voting membership interests in a nonstock corporation if one hundred per cent of the voting membership interests are held by the business entity or by representatives of, including ex-officio members, or persons appointed by such business entity.
Sec. 13. (NEW) (Effective July 1, 2017) (a) As used in this section:
(1) "Accumulated credits" means the amount of credits allowed, in accordance with the provisions of section 12-217n of the general statutes, that have not been taken through an applicant's last income year completed prior to the date of an application submitted as provided in subsection (b) of this section.
(2) "Commissioner" means the Commissioner of Economic and Community Development.
(b) The commissioner shall establish and administer a program to allow businesses in the state to utilize accumulated credits against the tax imposed under chapters 208 and 219 of the general statutes in exchange for capital projects, planned or underway, in the state that propose to (1) expand the scale or scope of such business, (2) increase employment at such business, or (3) generate a substantial return to the state economy. A business seeking to utilize accumulated credits under this section shall submit to the commissioner, on forms provided by the commissioner, an application that shall include, but not be limited to: (A) A detailed plan outlining the capital project, (B) the term of such project, (C) the estimated costs of such project, and (D) the amount of accumulated credits the business proposes it be allowed to utilize under this section. The commissioner shall perform an econometric analysis of each application and shall only approve an application if he or she determines that such project will generate revenues for the state that exceed the amount of the accumulated credits proposed to be utilized. The amount of such accumulated credits shall be subject to confirmation, in accordance with the provisions of title 12 of the general statutes, by the Commissioner of Revenue Services in consultation with the commissioner.
(c) The commissioner shall determine, in consultation with the Commissioner of Revenue Services, when such accumulated credits may be utilized by the business, provided the commissioner shall not approve the utilization of the accumulated credits until the capital project under subsection (b) of this section generates revenues for the state that exceed the amount of the accumulated credits proposed to be utilized.
(d) The commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.
(e) Not later than July 1, 2018, and annually thereafter, the commissioner shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and finance. Such report shall include (1) information on the number of applications received and the number of applications approved under this section, (2) the status of the capital projects associated with such approved applications, (3) the amount of accumulated credits that are proposed to be utilized under this section, and (4) (A) the amount and type of state revenue generated in connection with each such capital project to date, and (B) the projected amount and type of such revenue for the five succeeding fiscal years after completion of such capital project.
Sec. 14. (NEW) (Effective July 1, 2017) (a) (1) As used in this section, (A) "accumulated credits" means credits allowed under sections 12-217j and 12-217n of the general statutes that have not been taken through the last income year completed prior to the date of an auction under this section, (B) "commissioner" means the Commissioner of Economic and Community Development, and (C) "chief executive officer" means the chief executive officer of Connecticut Innovations, Incorporated.
(2) The commissioner, in consultation with the Commissioner of Revenue Services and the chief executive officer, shall hold a Technical Education Cooperative (TEC) initiative tax credit auction and an innovation investment fund tax credit auction, at such time and as frequently as the commissioner deems appropriate and effective, to allow taxpayers with accumulated credits to utilize such credits in exchange for making an investment as provided under subsections (b) and (c) of this section.
(3) The commissioner shall specify, in consultation with the chief executive officer, for each tax credit auction, the deadline for submitting a bid and the information required to be included with such bid. Each bidder shall submit a sealed bid and the commissioner shall select, in consultation with the chief executive officer, the winning bid or bids based upon the amounts of accumulated credits the bidder proposes to exchange, the amounts the bidder proposes to invest for such exchange and any other criteria the commissioner and the chief executive officer deem appropriate to evaluate the bids, taking into consideration the total amount of investments sought, if any, from each auction.
(4) Credits allowed under this section may be claimed against the taxes imposed under chapters 207 and 219 of the general statutes and section 12-263b of the general statutes, as amended by this act, with respect to the following income years of the taxpayer: (A) With respect to the income year in which the taxpayer made the investment required under this section and the two next succeeding income years, zero per cent; and (B) with respect to the third full income year succeeding the year in which the taxpayer made the investment required under this section and the four next succeeding income years, twenty per cent.
(5) The total amount of accumulated credits exchanged in the aggregate under this section shall not exceed fifty million dollars.
(b) (1) The commissioner, in consultation with the chief executive officer, shall hold a TEC initiative tax credit auction, for which the minimum bid shall be eighty cents for each dollar of accumulated credit. The commissioner shall deposit the amount received from the auction in the TEC initiative account established pursuant to subsection (d) of this section.
(2) The commissioner shall administer, in consultation with the chief executive officer, the TEC initiative account to provide funding and expand education and training opportunities as set forth in this subdivision in order to prepare the state's workforce to fill existing and anticipated manufacturing jobs and increase the number of state high school and community college graduates with training and experience in manufacturing, computer programming, information technology and data management. Components of the TEC initiative shall include, but not be limited to:
(A) Providing funds to expand and enhance, in consultation with the Connecticut Center for Advanced Technology, Incorporated, manufacturing technology support programs and services offered to manufacturers in the state;
(B) Providing funds to expand to additional schools in the state, in consultation with the Connecticut Center for Advanced Technology, Incorporated, programs to engage and encourage students to consider a technical education as a highly successful and desirable career path;
(C) Building new, proactive partnerships with employers and manufacturers in the state by (i) establishing employer-led job pipeline initiatives in each workforce development board region in the state to match open jobs with qualified workers identified by such board, (ii) providing funds to support the Subsidized Training and Employment program established pursuant to section 31-3pp of the general statutes and apprenticeship programs in the state, and (iii) providing funds to expand adult education programs and classes for workers seeking new skills for new careers; and
(D) Providing grants to partnerships between (i) local school districts, technical schools or community colleges, and (ii) private businesses, that are seeking to establish a technical education program or to expand the capacity of a technical education program at a public high school, technical school or community college. Preference for awarding grants under this subdivision shall be given to applications that include private matching funds.
(c) The commissioner, in consultation with the chief executive officer, shall hold an innovation investment fund tax credit auction, for which the minimum bid shall be eighty cents for each dollar of accumulated credit and the amounts received from the winning bidder or bidders shall be invested in the winning bidder's corporate venture fund, subject to the following requirements:
(1) All investments shall be made with a representative of Connecticut Innovations, Incorporated, who is a member of the corporate venture fund's investment committee;
(2) The amount invested in a corporate venture fund shall be not less than five million dollars and not more than ten million dollars;
(3) All such amounts invested shall be invested in (A) start-up businesses located in the state, or (B) spin-off companies from the bidder's research and development department;
(4) All profits from such investments shall be divided equally between the state and the bidder and the state's share shall be deposited in the General Fund; and
(5) The bidder agrees to reinvest the bidder's profits in the bidder's corporate venture fund.
(d) There is established an account to be known as the "TEC initiative account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the commissioner, in consultation with the chief executive officer, for the purposes of subsection (b) of this section.
Sec. 15. Section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) As used in this section:
(1)"Commissioner" means the Commissioner of Revenue Services.
(2)"Department" means the Department of Economic and Community Development.
(3)(A)"Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For the state fiscal years ending June 30, 2014, June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued during said years, except, for the state fiscal years ending June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
(B)"Qualified production" shall not include any ongoing television program created primarily as news, weather or financial market reports; a production featuring current events, other than a relocated television production, sporting events, an awards show or other gala event; a production whose sole purpose is fundraising; a long-form production that primarily markets a product or service; a production used for corporate training or in-house corporate advertising or other similar productions; or any production for which records are required to be maintained under 18 USC 2257, as amended from time to time, with respect to sexually explicit content.
(4)"Eligible production company" means a corporation, partnership, limited liability company, or other business entity engaged in the business of producing qualified productions on a one-time or ongoing basis, and qualified by the Secretary of the State to engage in business in the state.
(5)"Production expenses or costs" means all expenditures clearly and demonstrably incurred in the state in the preproduction, production or postproduction costs of a qualified production, including:
(A)Expenditures incurred in the state in the form of either compensation or purchases including production work, production equipment not eligible for the infrastructure tax credit provided in section 12-217kk, production software, postproduction work, postproduction equipment, postproduction software, set design, set construction, props, lighting, wardrobe, makeup, makeup accessories, special effects, visual effects, audio effects, film processing, music, sound mixing, editing, location fees, soundstages and any and all other costs or services directly incurred in connection with a state-certified qualified production;
(B)Expenditures for distribution, including preproduction, production or postproduction costs relating to the creation of trailers, marketing videos, commercials, point-of-purchase videos and any and all content created on film or digital media, including the duplication of films, videos, CDs, DVDs and any and all digital files now in existence and those yet to be created for mass consumer consumption; the purchase, by a company in the state, of any and all equipment relating to the duplication or mass market distribution of any content created or produced in the state by any digital media format which is now in use and those formats yet to be created for mass consumer consumption; and
(C)"Production expenses or costs" does not include the following: (i) On and after January 1, 2008, compensation in excess of fifteen million dollars paid to any individual or entity representing an individual, for services provided in the production of a qualified production and on or after January 1, 2010, compensation subject to Connecticut personal income tax in excess of twenty million dollars paid in the aggregate to any individuals or entities representing individuals, for star talent provided in the production of a qualified production; (ii) media buys, promotional events or gifts or public relations associated with the promotion or marketing of any qualified production; (iii) deferred, leveraged or profit participation costs relating to any and all personnel associated with any and all aspects of the production, including, but not limited to, producer fees, director fees, talent fees and writer fees; (iv) costs relating to the transfer of the production tax credits; (v) any amounts paid to persons or businesses as a result of their participation in profits from the exploitation of the qualified production; and (vi) any expenses or costs relating to an independent certification, as required by subsection (g) of this section, or as the department may otherwise require, pertaining to the amount of production expenses or costs set forth by an eligible production company in its application for a production tax credit.
(6)"Sound recording" means a recording of music, poetry or spoken-word performance, but does not include the audio portions of dialogue or words spoken and recorded as part of a motion picture, video, theatrical production, television news coverage or athletic event.
(7)"State-certified qualified production" means a qualified production produced by an eligible production company that (A) is in compliance with regulations adopted pursuant to subsection (k) of this section, (B) is authorized to conduct business in this state, and (C) has been approved by the department as qualifying for a production tax credit under this section.
(8)"Interactive web site" means a web site, the production costs of which (A) exceed five hundred thousand dollars per income year, and (B) is primarily (i) interactive games or end user applications, or (ii) animation, simulation, sound, graphics, story lines or video created or repurposed for distribution over the Internet. An interactive web site does not include a web site primarily used for institutional, private, industrial, retail or wholesale marketing or promotional purposes, or which contains obscene content.
(9)"Post-certification remedy" means the recapture, disallowance, recovery, reduction, repayment, forfeiture, decertification or any other remedy that would have the effect of reducing or otherwise limiting the use of a tax credit provided by this section.
(10)"Compensation" means base salary or wages and does not include bonus pay, stock options, restricted stock units or similar arrangements.
(11)"Relocated television production" means:
(A)An ongoing television program all of the prior seasons of which were filmed outside this state, and may include current events shows, except those referenced in subparagraph (B)(i) of this subdivision.
(B)An eligible production company's television programming in this state that (i) is not a general news program, sporting event or game broadcast, and (ii) is created at a qualified production facility that has had a minimum investment of twenty-five million dollars made by such eligible production company on or after January 1, 2012, at which facility the eligible production company creates ongoing television programming as defined in subparagraph (A) of this subdivision, and creates at least two hundred new jobs in Connecticut on or after January 1, 2012. For purposes of this subdivision, "new job" means a full-time job, as defined in section 12-217ii, that did not exist in this state prior to January 1, 2012, and is filled by a new employee, and "new employee" includes a person who was employed outside this state by the eligible production company prior to January 1, 2012, but does not include a person who was employed in this state by the eligible production company or a related person, as defined in section 12-217ii, with respect to the eligible production company during the prior twelve months.
(C)A relocated television production may be a state-certified qualified production for not more than ten successive income years, after which period the eligible production company shall be ineligible to resubmit an application for certification.
(b)(1)The Department of Economic and Community Development shall administer a system of tax credit vouchers within the resources, requirements and purposes of this section for eligible production companies producing a state-certified qualified production in the state.
[(1)For income years commencing on or after January 1, 2006, but prior to January 1, 2010, any eligible production company incurring production expenses or costs in excess of fifty thousand dollars shall be eligible for a credit against the tax imposed under chapter 207 or this chapter equal to thirty per cent of such production expenses or costs.]
(2) [For income years commencing on or after January 1, 2010, (A) any] Any eligible production company incurring production expenses or costs shall be eligible for a credit (A) for income years commencing on or after January 1, 2010, but prior to January 1, 2018, against the tax imposed under chapter 207 or this chapter, and (B) for income years commencing on or after January 1, 2018, against the tax imposed under chapter 207 or 219 or this chapter, as follows: (i) For any such company incurring [production] such expenses or costs of not less than one hundred thousand dollars, but not more than five hundred thousand dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to ten per cent of such [production] expenses or costs, [(B)] (ii) any such company incurring such expenses or costs of more than five hundred thousand dollars, but not more than one million dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to fifteen per cent of such [production] expenses or costs, and [(C)] (iii) any such company incurring such expenses or costs of more than one million dollars, [shall be eligible for a credit againstthe tax imposed under chapter 207 or this chapter] a credit equal to thirty per cent of such [production] expenses or costs.
(3) If an eligible production company elects, for income years commencing on or after January 1, 2018, to claim a credit pursuant to this subsection against the tax imposed under chapter 219, the eligible production company shall pay to the state a fee of six cents for each dollar of credit claimed. The commissioner shall deposit such fee in the TEC initiative account established pursuant to subsection (d) of section 14 of this act.
(c)No eligible production company incurring an amount of production expenses or costs that qualifies for such credit shall be eligible for such credit unless on or after January 1, 2010, such company conducts (1) not less than fifty per cent of principal photography days within the state, or (2) expends not less than fifty per cent of postproduction costs within the state, or (3) expends not less than one million dollars of postproduction costs within the state.
[(d) (1)For income years commencing on or after January 1, 2009, but prior to January 1, 2010, fifty per cent of production expenses or costs shall be counted toward such credit when incurred outside the state and used within the state, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.]
[(2)] (d) For income years commencing on or after January 1, 2010, no expenses or costs incurred outside the state and used within the state shall be eligible for a credit, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.
(e)(1)On and after July 1, 2006, and for income years commencing on or after January 1, 2006, any credit allowed pursuant to this section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers, provided (A) no credit, after issuance, may be sold, assigned or otherwise transferred, in whole or in part, more than three times, (B) in the case of a credit allowed for the income year commencing on or after January 1, 2011, and prior to January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than fifty per cent of such credit in any one income year, and (C) in the case of a credit allowed for an income year commencing on or after January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than twenty-five per cent of such credit in any one income year.
(2)Notwithstanding the provisions of subdivision (1) of this subsection, any entity that is not subject to tax under this chapter or chapter 207 shall not be subject to the limitations on the transfer of credits provided in subparagraphs (B) and (C) of said subdivision (1), provided such entity owns not less than fifty per cent, directly or indirectly, of a business entity subject to tax under section 12-284b.
(3)Notwithstanding the provisions of subdivision (1) of this subsection, any qualified production that is created in whole or in significant part, as determined by the Commissioner of Economic and Community Development, at a qualified production facility shall not be subject to the limitations of subparagraph (B) or (C) of said subdivision (1). For purposes of this subdivision, "qualified production facility" means a facility (A) located in this state, (B) intended for film, television or digital media production, and (C) that has had a minimum investment of three million dollars, or less if the Commissioner of Economic and Community Development determines such facility otherwise qualifies.
(4) Any taxpayer to which a credit allowed pursuant to this section is sold, assigned or otherwise transferred, in whole or in part, shall pay the fee set forth in subdivision (3) of subsection (b) of this section if such taxpayer elects, for income years commencing on or after January 1, 2018, to claim such credit against the tax imposed under chapter 219.
(f)(1) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, all or part of any such credit allowed under this [subsection shall] section may be claimed against the tax imposed under chapter 207 or this chapter for the income year in which the production expenses or costs were incurred, or in the three immediately succeeding income years.
(2) For production tax credit vouchers issued on or after July 1, 2015, all or part of any such credit [shall] may be claimed against (A) the tax imposed under chapter 207 or this chapter, or (B) for income years commencing on or after January 1, 2018, the tax imposed under chapter 207 or 219 or this chapter, for the income year in which the production expenses or costs were incurred, or in the five immediately succeeding income years.
(3) Any production tax credit allowed under this subsection shall be nonrefundable.
(g)(1)An eligible production company shall apply to the department for a tax credit voucher on an annual basis, but not later than ninety days after the first production expenses or costs are incurred in the production of a qualified production, and shall provide with such application such information as the department may require to determine such company's eligibility to claim a credit under this section. No production expenses or costs may be listed more than once for purposes of the tax credit voucher pursuant to this section, or pursuant to section 12-217kk or 12-217ll, and if a production expense or cost has been included in a claim for a credit, such production expense or cost may not be included in any subsequent claim for a credit.
(2)Not later than ninety days after the end of the annual period, or after the last production expenses or costs are incurred in the production of a qualified production, an eligible production company shall apply to the department for a production tax credit voucher, and shall provide with such application such information and independent certification as the department may require pertaining to the amount of such company's production expenses or costs. Such independent certification shall be provided by an audit professional chosen from a list compiled by the department. If the department determines that such company is eligible to be issued a production tax credit voucher, the department shall enter on the voucher the amount of production expenses or costs that has been established to the satisfaction of the department and the amount of such company's credit under this section. The department shall provide a copy of such voucher to the commissioner, upon request.
(3)The department shall charge a reasonable administrative fee sufficient to cover the department's costs to analyze applications submitted under this section.
(h)If an eligible production company sells, assigns or otherwise transfers a credit under this section to another taxpayer, the transferor and transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. If such transferee sells, assigns or otherwise transfers a credit under this section to a subsequent transferee, such transferee and such subsequent transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. The notification after each transfer shall include the credit voucher number, the date of transfer, the amount of such credit transferred, the tax credit balance before and after the transfer, the tax identification numbers for both the transferor and the transferee, and any other information required by the department. Failure to comply with this subsection will result in a disallowance of the tax credit until there is full compliance on the part of the transferor and the transferee, and for a second or third transfer, on the part of all subsequent transferors and transferees. The department shall provide a copy of the notification of assignment to the commissioner upon request.
(i)Any eligible production company that submits information to the department that it knows to be fraudulent or false shall, in addition to any other penalties provided by law, be liable for a penalty equal to the amount of such company's credit entered on the production tax credit [certificate] voucher issued under this section.
(j)No tax credits transferred pursuant to this section shall be subject to a post-certification remedy, and the department and the commissioner shall have no right, except in the case of possible material misrepresentation or fraud, to conduct any further or additional review, examination or audit of the expenditures or costs for which such tax credits were issued. The sole and exclusive remedy of the department and the commissioner shall be to seek collection of the amount of such tax credits from the entity that committed the fraud or misrepresentation.
(k)The department, in consultation with the commissioner, shall adopt regulations, in accordance with the provisions of chapter 54, as may be necessary for the administration of this section.
Sec. 16. Subsection (i) of section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(i) [The] With respect to the estates of decedents who die on or after January 1, 2021, the tax calculated pursuant to the provisions of this section shall be reduced in an amount equal to half of the amount invested by a decedent in a private investment fund or fund of funds pursuant to subdivision (43) of section 32-39 or in the TEC initiative or an innovation investment fund pursuant to section 14 of this act, provided (1) any such reduction shall not exceed five million dollars for any such decedent, (2) any such amount invested by the decedent shall have been invested in such fund or fund of funds for [ten] four years or more, and (3) the aggregate amount of all taxes reduced under this subsection shall not exceed thirty million dollars.
Sec. 17. Section 12-217zz of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) Notwithstanding any other provision of law, and except as otherwise provided in subsection (b) of this section and section 14 of this act, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall be as follows:
(1)For any income year commencing on or after January 1, 2002, and prior to January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(2)For any income year commencing on or after January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed fifty and one one-hundredths per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(3)Notwithstanding the provisions of subdivision (2) of this subsection, any taxpayer that possesses excess credits may utilize the excess credits as follows:
(A)For income years commencing on or after January 1, 2016, and prior to January 1, 2017, the aggregate amount of tax credits and excess credits allowable shall not exceed fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(B)For income years commencing on or after January 1, 2017, and prior to January 1, 2018, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(C)For income years commencing on or after January 1, 2018, and prior to January 1, 2019, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(D)For income years commencing on or after January 1, 2019, the aggregate amount of tax credits and excess credits allowable shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
(4)For purposes of this subsection, "excess credits" means any remaining credits available under section 12-217j, 12-217n or 32-9t after tax credits are utilized in accordance with subdivision (2) of this subsection.
(b)(1)For an income year commencing on or after January 1, 2011, and prior to January 1, 2013, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year may exceed the amount specified in subsection (a) of this section only by the amount computed under subparagraph (A) of subdivision (2) of this subsection, provided in no event may the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year exceed one hundred per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.
(2)(A)The taxpayer's average monthly net employee gain for an income year shall be multiplied by six thousand dollars.
(B)The taxpayer's average monthly net employee gain for an income year shall be computed as follows: For each month in the taxpayer's income year, the taxpayer shall subtract from the number of its employees in this state on the last day of such month the number of its employees in this state on the first day of its income year. The taxpayer shall total the differences for the twelve months in such income year, and such total, when divided by twelve, shall be the taxpayer's average monthly net employee gain for the income year. For purposes of this computation, only employees who are required to work at least thirty-five hours per week and only employees who were not employed in this state by a related person, as defined in section 12-217ii, within the twelve months prior to the first day of the income year may be taken into account in computing the number of employees.
(C)If the taxpayer's average monthly net employee gain is zero or less than zero, the taxpayer may not exceed the seventy per cent limit imposed under subsection (a) of this section.
Sec. 18. Section 12-202 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
Each domestic insurance company shall, annually, pay a tax on the total net direct premiums received by such company during the calendar year next preceding from policies written on property or risks located or resident in this state. The rate of tax on all net direct insurance premiums received (1) on [and] or after January 1, 1995, and prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent. The franchise tax imposed under this section on premium income for the privilege of doing business in the state is in addition to the tax imposed under chapter 208. In the case of any local domestic insurance company the admitted assets of which as of the end of an income year do not exceed ninety-five million dollars, eighty per cent of the tax paid by such company under chapter 208 during such income year reduced by any refunds of taxes paid by such company and granted under said chapter within such income year and eighty per cent of the assessment paid by such company under section 38a-48 during such income year shall be allowed as a credit in the determination of the tax under this chapter payable with respect to total net direct premiums received during such income year, provided [that] these two credits shall not reduce the tax under this chapter to less than zero, and provided further in the case of a local domestic insurance company [which] that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply if the total admitted assets of the local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars or, in the alternative, in the case of a local domestic insurance company [which] that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply only if total direct written premiums are derived from policies issued or delivered in Connecticut, on risk located in Connecticut and, as of the end of the income year the company and its affiliates have admitted assets minus unpaid losses and loss adjustment expenses that are also discounted for federal and state tax purposes and which for said local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars.
Sec. 19. Subsection (a) of section 12-202a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) Each health care center, as defined in section 38a-175, that is governed by sections 38a-175 to 38a-192, inclusive, shall pay a tax to the Commissioner of Revenue Services for the calendar year commencing [on] January 1, 1995, and annually thereafter [, at the rate of one and three-quarters per cent of] on the total net direct subscriber charges received by such health care center during each such calendar year on any new or renewal contract or policy approved by the Insurance Commissioner under section 38a-183. The rate of tax on the total net direct subscriber charges received (1) prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent. Such payment shall be in addition to any other payment required under section 38a-48.
Sec. 20. Subsection (b) of section 12-210 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(b)Each insurance company incorporated by or organized under the laws of any other state or foreign government and doing business in this state shall, annually, on and after January 1, 1995, pay to said [Commissioner of Revenue Services] commissioner, in addition to any other taxes imposed on such company or its agents, a tax [of one and three-quarters per cent of] on all net direct premiums received by such company in the calendar year next preceding from policies written on property or risks located or resident in this state, excluding premiums for ocean marine insurance, and, upon ceasing to transact new business in this state, shall continue to pay a tax upon the renewal premiums derived from its business remaining in force in this state at the rate [which] that was applicable when such company ceased to transact new business in this state. The rate of tax on all net direct premiums received (1) prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent.
Sec. 21. Section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) For each calendar quarter commencing on or after July 1, 2011, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. [Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.]
(b)Each hospital shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.
(c) [Notwithstanding any other provision of law, for] (1) For each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(2) For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(3) For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(4) For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(5) For each calendar quarter commencing on or after January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(d) (1) For each fiscal year commencing on or after July 1, 2017, there shall be allowed a credit against the tax imposed under this section if the difference between (A) the total amount of state and federal supplemental Medicaid payments the hospital receives in a fiscal year, and (B) the amount of tax due under this section in such fiscal year prior to the application of a tax credit or credits allowable under subsection (c) of this section, exceeds the difference between such amounts in the fiscal year ending June 30, 2017. The amount of the credit under this subsection shall be equal to the difference between the total amount of state and federal supplemental Medicaid payments the hospital would have received in a fiscal year pursuant to the applicable budget adopted by the General Assembly and the actual amount the hospital received in such fiscal year.
(2) The limits on credits under subsection (c) of this section shall not apply to credits under this subsection.
Sec. 22. (NEW) (Effective July 1, 2017) Any hospital that is exempt from federal income tax under Section 501(a) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, may enter into an agreement with the municipality in which such hospital is situated to make voluntary public service payments to such municipality in an amount equal to the real property taxes such hospital would have paid if such real property had been subject to tax.
Sec. 23. Section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) (1) For each calendar quarter commencing on or after July 1, 2011, and prior to July 1, 2020, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. [Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.]
(2) (A) For the fiscal year commencing July 1, 2020, and through the fiscal year ending June 30, 2026, the Commissioner of Social Services shall reduce each July first the amount of tax imposed under this section, in equal increments over said time period. Commencing July 1, 2026, no tax shall be imposed under this section. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship.
(B) The Commissioner of Social Services shall use, as the base amount for calculating the reduction under subparagraph (A) of this subdivision, the amount of tax imposed on the hospital under subdivision (1) of this subsection during the calendar quarters commencing July 1, 2019, and prior to July 1, 2020.
(b) [Each] Until August 1, 2026, each hospital shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.
(c)Notwithstanding any other provision of law: [, for]
(1) For each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(2) For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(3) For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(4) For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(5) For each calendar quarter commencing on or after January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
Sec. 24. Subsection (a) of section 12-541 of the general statutes is repealed and the following is substituted in lieu thereof(Effective January 1, 2018):
(a) There is hereby imposed a tax of ten per cent of the admission charge to any place of amusement, entertainment or recreation, except that no tax shall be imposed with respect to any admission charge (1) when the admission charge is less than one dollar or, in the case of any motion picture show, when the admission charge is not more than five dollars, (2) when a daily admission charge is imposed which entitles the patron to participate in an athletic or sporting activity, (3) to any event, other than events held at the stadium facility, as defined in section 32-651, if all of the proceeds from the event inure exclusively to an entity [which] that is exempt from federal income tax under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, provided such entity actively engages in and assumes the financial risk associated with the presentation of such event, (4) to any event, other than events held at the stadium facility, as defined in section 32-651, [which] that, in the opinion of the commissioner, is conducted primarily to raise funds for an entity [which] that is exempt from federal income tax under [the] said Internal Revenue Code, provided the commissioner is satisfied that the net profit [which] that inures to such entity from such event will exceed the amount of the admissions tax which, but for this subdivision, would be imposed upon the person making such charge to such event, (5) other than for events held at the stadium facility, as defined in section 32-651, paid by centers of service for elderly persons, as described in subdivision (d) of section 17a-310, (6) to any production featuring live performances by actors or musicians presented at Gateway's Candlewood Playhouse, Ocean Beach Park or any nonprofit theater or playhouse in the state, provided such theater or playhouse possesses evidence confirming exemption from federal tax under Section 501 of [the] said Internal Revenue Code, (7) to any carnival or amusement ride, (8) to any interscholastic athletic event held at the stadium facility, as defined in section 32-651, (9) if the admission charge would have been subject to tax under the provisions of section 12-542 of the general statutes, revision of 1958, revised to January 1, 1999, (10) to any event at (A) the XL Center in Hartford, or (B) the Webster Bank Arena in Bridgeport, (11) [from July 1, 2015, to June 30, 2017,] to any athletic event presented by a member team of the Atlantic League of Professional Baseball at the Ballpark at Harbor Yard in Bridgeport, (12) to any event presented at the Dunkin' Donuts Park in Hartford, [or] (13) on and after July 1, 2017, to any athletic event presented by a member team of the Atlantic League of Professional Baseball at the New Britain Stadium, or (14) to any event at the Oakdale Theatre in Wallingford. On and after July 1, 2000, the tax imposed under this section on any motion picture show shall be eight per cent of the admission charge and, on and after July 1, 2001, the tax imposed on any such motion picture show shall be six per cent of such charge.
Sec. 25. Subsection (a) of section 7-168a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) (1) A municipality may, by ordinance, impose a surcharge on the admission charge [, as defined in subdivision (3) of section 12-540,] for any event that is held at a facility located within the municipality. The amount of such surcharge shall not exceed five per cent of the amount of admission, except that the amount of such surcharge imposed on the facility described in subdivision (12) of subsection (a) of section 12-541, as amended by this act, shall not exceed ten per cent of the amount of admission. The amount of any such surcharge shall be in addition to any tax otherwise applicable to such admission charge, except that no municipality may impose a surcharge on a facility pursuant to this section if [(1)] (A) the municipality imposes a surcharge on such facility pursuant to section 12-579, or [(2)] (B) all of the proceeds from the event inure exclusively to an entity which is exempt from federal income tax under the Internal Revenue Code, provided such entity actively engages in and assumes the financial risk associated with the presentation of such event. Any municipal ordinance adopted pursuant to this section may exclude additional events or facilities from the surcharge imposed pursuant to this section.
(2) As used in this section, "admission charge" means the amount paid, whether in the form of a ticket price, license fee, skybox, luxury suite or club seat rental charge or purchase price, or otherwise, for the right or privilege to have access to a place or location where amusement, entertainment or recreation is provided, exclusive of any charges for instruction, and including any preferred seat license fee or any other payment required in order to have the right to purchase seats or secure admission to any such place or location. Places of amusement, entertainment or recreation (A) include, but are not limited to, theaters, auditoriums where lectures and concerts are given, amusement parks, fairgrounds, race tracks, dance halls, ball parks, stadiums, amphitheaters, convention centers, golf courses, miniature golf courses, tennis courts, skating rinks, swimming pools, bathing beaches, gymnasiums, auto shows, boat shows, camping shows, home shows, dog shows and antique shows, but (B) do not include motion picture shows.
Sec. 26. Subparagraph (OO) of subdivision (37) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(OO)Car wash services, [including] excluding coin-operated car washes.
Sec. 27. Section 7-73 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) To any person performing the duties required by the provisions of the general statutes relating to registration of marriages, deaths and fetal deaths, the following fees shall be allowed: (1) For the license to marry, [ten] fifteen dollars; and (2) for issuing each burial or removal, transit and burial permit, three dollars.
(b)A [twenty-dollar] thirty-five-dollar surcharge shall be paid to the registrar for each license to marry in addition to the fee for such license established pursuant to subsection (a) of this section. The registrar shall retain one dollar from each such surcharge for administrative costs and shall forward the remainder, on or before the tenth day of the month following each calendar quarter, to the Department of Public Health. The receipts shall be deposited into an account of the State Treasurer and credited to the General Fund for further credit to a separate nonlapsing account established by the Comptroller for use by the Department of Social Services for shelter services for victims of household abuse in accordance with section 17b-850 and by the Department of Public Health for rape crisis services funded under section 19a-2a. Suchfunds shall be allocated for these purposes by the Office of Policy and Management in consultation with the Commissioners of Social Services and Public Health based on an evaluation of need, service delivery costs and availability of other funds. The Commissioners of Social Services and Public Health shall distribute such funds to the recipient organizations in accordance with such allocations not later than October fifteenth, annually. No such funds shall (1) be retained by the Office of Policy and Management, the Commissioner of Social Services or the Commissioner of Public Health for administrative purposes; or (2) supplant any state or federal funds otherwise available for such services.
Sec. 28. (Effective from passage) Each department head, as defined in section 4-5 of the general statutes, other than the Secretary of the Office of Policy and Management, shall undertake a review of the fees collected by his or her department and determine whether each fee is sufficient to cover the department's costs to collect such fee and administer the program associated with such fee. Each department head shall submit, taking such costs into consideration, any recommended fee increases to said secretary before December 1, 2017. Said secretary shall review each department head's submission and submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding not later than February 7, 2018, of any recommended increases of up to fifty per cent of any existing fee, provided the total amount of the increase in fees shall not exceed twenty million dollars.
Sec. 29. Subparagraph (K) of subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(K) [(i)] Notwithstanding the provisions of this section, for calendar months commencing on or after May 1, 2016, but prior to July 1, 2016, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l four and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, and shall transfer any accrual related to said months on or after said July 1, 2016, date; and
[(ii)For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision; and]
Sec. 30. (Effective July 1, 2017) For the fiscal years ending June 30, 2018, and June 30, 2019, the Secretary of the Office of Policy and Management shall transfer the sum of $264,900,000 in each fiscal year from the General Fund to the Municipal Revenue Sharing Fund established pursuant to section 4-66p of the general statutes.
Sec. 31. Subsection (a) of section 3-21 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) (1) No bonds, notes or other evidences of indebtedness for borrowed money payable from General Fund tax receipts of the state shall be authorized by the General Assembly or issued except such as shall not cause the aggregate amount of the total amount of bonds, notes or other evidences of indebtedness payable from General Fund tax receipts authorized by the General Assembly but which have not been issued and the total amount of such indebtedness which has been issued and remains outstanding to exceed, (A) for fiscal years commencing prior to July 1, 2019, one and six-tenths times, and (B) for fiscal years commencing on or after July 1, 2019, one and five-hundred-seventy-five-thousandths times, the total General Fund tax receipts of the state for the fiscal year in which any such authorization will become effective or in which such indebtedness is issued, as estimated for such fiscal year by the joint standing committee of the General Assembly having cognizance of finance, revenue and bonding in accordance with section 2-35.
(2) In computing such aggregate amount of indebtedness at any time, there shall be excluded or deducted, as the case may be, [(1)] (A) the principal amount of all such obligations as may be certified by the Treasurer [(A)] (i) as issued in anticipation of revenues to be received by the state during the period of twelve calendar months next following their issuance and to be paid by application of such revenue, or [(B)] (ii) as having been refunded or replaced by other indebtedness the proceeds and projected earnings on which or other funds are held in escrow to pay and are sufficient to pay the principal, interest and any redemption premium until maturity or earlier planned redemption of such indebtedness, or [(C)] (iii) as issued and outstanding in anticipation of particular bonds then unissued but fully authorized to be issued in the manner provided by law for such authorization, provided, as long as any of such obligations are outstanding, the entire principal amount of such particular bonds thus authorized shall be deemed to be outstanding and be included in such aggregate amount of indebtedness, or [(D)] (iv) as payable solely from revenues of particular public improvements, [(2)] (B) the amount which may be certified by the Treasurer as the aggregate value of cash and securities in debt retirement funds of the state to be used to meet principal of outstanding obligations included in such aggregate amount of indebtedness, [(3)] (C) every such amount as may be certified by the Secretary of the Office of Policy and Management as the estimated payments on account of the costs of any public work or improvement thereafter to be received by the state from the United States or agencies thereof and to be used, in conformity with applicable federal law, to meet principal of obligations included in such aggregate amount of indebtedness, [(4)] (D) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 1991, [(5)] (E) all authorized indebtedness to fund the program created pursuant to section 32-285, [(6)] (F) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 2002, [(7)] (G) all indebtedness authorized and issued pursuant to section 1 of public act 03-1 of the September 8 special session, [(8)] (H) all authorized indebtedness issued pursuant to section 3-62h, [(9)] (I) any indebtedness represented by any agreement entered into pursuant to subsection (b) or (c) of section 3-20a as certified by the Treasurer, provided the indebtedness in connection with which such agreements were entered into shall be included in such aggregate amount of indebtedness, and [(10)] (J) all indebtedness authorized and issued pursuant to section 3-20g. In computing the amount of outstanding indebtedness, only the accreted value of any capital appreciation obligation or any zero coupon obligation which has accreted and been added to the stated initial value of such obligation as of the date of any computation shall be included.
Sec. 32. (Effective from passage) (a) There is established a working group to analyze the efficacy of fines as a deterrent for excessive speeding. The working group shall consist of (1) the Commissioners of Revenue Services, Motor Vehicles and Emergency Services and Public Protection, or their designees, (2) the Secretary of the Office of Policy and Management or the secretary's designee, (3) the Chief State's Attorney or the Chief State's Attorney's designee, (4) the Chief Public Defender or the Chief Public Defender's designee, (5) a clerk of the Centralized Infractions Bureau designated by the Chief Court Administrator, (6) a representative of a municipal police department designated by the president of the Connecticut Police Chiefs Association, (7) a representative of the Connecticut State Police designated by the president of the Connecticut State Police Union, and (8) the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, the judiciary, public safety and transportation.
(b) The working group shall study available data related to the frequency of the imposition of fines for such violations, the percentage of such fines that are paid, the percentage of such fines that are contested, the average total amount of such fines collected in a fiscal year and the estimated costs associated with the imposition and collection of such fines, procedures used by police officers with respect to drivers who are speeding, statistical comparisons with other states and nationally and any other information or materials that may assist the working group to evaluate whether the existing fines and procedures serve a sufficiently deterrent purpose. The working group may consult with any individuals or entities the working group deems appropriate to conduct its analysis and to determine alternative methods and systems that may be considered for implementation to more effectively promote safe driving.
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
New section
Sec. 2
from passage and applicable to taxable years commencing on or after January 1, 2017
12-704e(e)
Sec. 3
January 1, 2018
New section
Sec. 4
January 1, 2019, and applicable to taxable years commencing on or after January 1, 2019
12-701(a)(20)(B)
Sec. 5
January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018
12-391
Sec. 6
January 1, 2018
12-640
Sec. 7
January 1, 2018, and applicable to gifts made on or after January 1, 2018
12-642
Sec. 8
January 1, 2018
12-643
Sec. 9
from passage
12-211a(a)
Sec. 10
from passage
12-217jj(a)(3)(A)
Sec. 11
July 1, 2017
12-217jj
Sec. 12
July 1, 2017
12-412(62)
Sec. 13
July 1, 2017
New section
Sec. 14
July 1, 2017
New section
Sec. 15
July 1, 2017
12-217jj
Sec. 16
July 1, 2017
12-391(i)
Sec. 17
July 1, 2017
12-217zz
Sec. 18
from passage
12-202
Sec. 19
from passage
12-202a(a)
Sec. 20
from passage
12-210(b)
Sec. 21
July 1, 2017
12-263b
Sec. 22
July 1, 2017
New section
Sec. 23
July 1, 2017
12-263b
Sec. 24
January 1, 2018
12-541(a)
Sec. 25
July 1, 2017
7-168a(a)
Sec. 26
July 1, 2017
12-407(a)(37)(OO)
Sec. 27
July 1, 2017
7-73
Sec. 28
from passage
New section
Sec. 29
July 1, 2017
12-408(1)(K)
Sec. 30
July 1, 2017
New section
Sec. 31
July 1, 2017
3-21(a)
Sec. 32
from passage
New section
FIN
Joint Favorable Subst.