STATE ASSISTANCE FOR MAJOR EMPLOYERS RELOCATING, EXPANDING, OR REMAINING IN CONNECTICUT

Location:
CORPORATIONS; EMPLOYMENT; STATE AID;

OLR Research Report


July 15, 2009		2009-R-0263
STATE ASSISTANCE FOR MAJOR EMPLOYERS RELOCATING, EXPANDING, OR REMAINING IN CONNECTICUT

By: Rute Pinho, Research Analyst John Rappa, Principal Analyst

You asked for a list of major employers that received state economic assistance to relocate, expand, or remain in Connecticut.

We searched Department of Economic and Community Development (DECD) and Connecticut Development Authority (CDA) annual reports and press releases for employers receiving state assistance since 2005. Because there is no universally agreed upon definition of “major employers,” we expanded the results to include all employers receiving at least $1 million in state assistance for relocating, expanding, or keeping their operations here.

Table 1 includes the (1) employer's name, (2) year in which it received the assistance or DECD or CDA announced the deal, (3) purpose of the assistance, (4) amount, (5) agency, (6) funding program, and (7) estimated number of jobs the assistance was anticipated to retain or create. (Companies are usually expected to create these jobs over the life of the loan.) Companies marked with an asterisk are also listed among Connecticut's 25 largest private sector employers in the Connecticut Business and Industry Association's Book of Lists 2008.

In general, state assistance for these employers came in the form of (1) loans, (2) business tax credits, (3) sales and use tax exemptions, (4) property tax exemptions, (5) grants, or (6) a combination of these. Many received DECD loans using Manufacturing Assistance Act (MAA) bonds funds. Several companies, including Electric Boat and Hartford Life, also qualified for assistance under CDA's sales and use tax exemption program. The table also includes Blue Sky Studios, a company attracted to the state by the film and digital animation production and infrastructure investment tax credits. Blue Sky Studios and RBS Greenwich Capital also qualified for Urban and Industrial Sites Reinvestment tax credits.

Table 1: State Assistance for Businesses Opening, Expanding, or Maintaining Facilities in Connecticut, 2005 – 2008

*Business or Project*	*Purpose*	*Year*	*State Assistance (in Millions)*	*Agency*	*Jobs To Be Created or Retained*
Blue Sky Studios, Inc.	Relocation	2008	$8.0 MAA loan $15 Digital Media Production Tax Credit $4.8 Film Infrastructure Investment Tax Credit $0.750 Sales and Use Tax Exemption	DECD (loan) Commision on Culture and Tourism (tax credits) CDA (sales and use tax exemption)	Create 300 jobs
Carling Technologies	Retention	2008	$2.0 MAA loan	DECD	Retain 150 jobs
*Electric Boat Corporation	Retention	2008	$9.9 MAA loan $6.0 enterprise zone property tax exemption $3.4 Sales and Use Tax Exemption	DECD (loan and enterprise zone benefits) CDA (sales and use tax exemption)	Retain 4,000 jobs
Greenwich Associates, LLC	Retention and Expansion	2008	$1.5. MAA loan	DECD	Retain 163 jobs, create 15 over 2 years
Goodwin College	Expansion	2007	$3.0 loan	CDA Brownfield Remediation	Retain 159 jobs, create 31
University of Hartford	Expansion	2007	$2.5 loan	CDA Brownfield Remediation	Retain 1,000 jobs

Table 1: -Continued-

*Business or Project*	*Purpose*	*Year*	*State Assistance (in Millions)*	*Agency*	*Jobs To Be Created or Retained*
Swiss Army Brands, Inc	Retention and Expansion	2007	$1.5 MAA loan $0.650 Sales and Use Tax Exemption	DECD (loan) CDA (sales and use tax exemption)	Retain 150 jobs
FuelCell Energy	Expansion	2008	$4.0 loan	CDA	Create 100 jobs over 3 years
Unilever United States	Retention and Expansion	2008	$3 loan	DECD	Retain 660 jobs, create 116
Aero-Craft, LLC	Expansion	2007	$1.5 MAA loan	DECD	Retain 52 jobs; create 40
Hartford Provision Company	Retention and Expansion	2007	$1.5 MAA loan	DECD	Retain 114 jobs; create 67
ING Life Insurance and Annuity Company	Retention	2006 & 2007	$3.1 Sales and Use Tax Exemption $9.9 MAA loan (2007)	CDA DECD	Retain 1,686 jobs, create 100 Retains 1,700
UST Inc.	New Construction	2007	$0.5 Sales and Use Tax Exemption	CDA	Retain 341 jobs
*Aetna Life Insurance Company	New Construction	2007	Sales and Use Tax Exemption	CDA	Retain 7,000 jobs, create 400
The Lee Company	New construction	2007	$0.5 Sales and Use Tax Exemption	CDA	Retain 767 jobs, create 80
AKDO Intertrade, Inc.	New construction	2007	$1.0 Loan	CDA	Retain 62 jobs, create 13

Table 1:-Continued-

*Business or Project*	*Purpose*	*Year*	*State Assistance (in Millions)*	*Agency*	*Jobs To Be Created or Retained*
Carwild Corporation	New construction	2007	$1.0 loan	CDA	Retain 30 jobs, create 4
Cabela's	New construction	2006	$9.5 Tax Incremental Financing Loan	CDA
*Travelers Indemnity Company	Renovation and expansion	2006	$2.0 Sales and Use Tax Exemption	CDA	Retain 6,639 jobs, create 500
RBS Greenwich Capital	New construction	2006	Up to $100 Urban and Industrial Sites Tax Credits $9.0 Sales and Use Tax Exemption	DECD (tax credits) CDA (sales and use tax exemption)	Create 600 jobs; relocate 550 from NY
Hartford Life	Expansion	2007	$4.8 Sales and Use Tax Exemption	CDA	Create 300 jobs over 5 years
Pez Manufacturing, Inc.	Expansion and Retention	2006	$2 loan	DECD	Retain 127 jobs, creates 20 in 5 years
Polylok, Inc.	Expansion and Retention	2006	$1 loan	DECD	Retain 39 jobs, create 20
Walgreen Eastern Co., Inc.	New Construction	2006	$1.5 MAA loan $2 grant to Town of Windsor for business assistance program $1.5 grant for customized training program $6.0 Sales and Use Tax Exemption	DECD CDA	Create up to 550 jobs

Table 1:-Continued-

*Business or Project*	*Purpose*	*Year*	*State Assistance (in Millions)*	*Agency*	*Jobs To Be Created or Retained*
TRUMPF Inc.	New Construction	2006	$0.570 Sales and Use Tax Exemption	CDA	Retain 464 jobs, create 50

* Company listed among Connecticut's 25 largest private sector employers in the Connecticut Business and Industry Association's Book of Lists 2008

Sources: CDA Legislative Annual Report Year End June 30, 2008 , DECD Annual Report for Fiscal Year 2007-2008, and DECD press releases

HYPERLINKS

OLR Report 2007-R-0447, Legislative History of the Economic Development and Manufacturing Assistance Act, http://www.cga.ct.gov/2007/rpt/2007-R-0447.htm.

OLR Report 2006-R-0609, Sales and Use Tax Relief Program, http://www.cga.ct.gov/2006/rpt/2006-R-0609.htm.

OLR Report 2008-R-0410, Film Industry Tax Credits, http://www.cga.ct.gov/2006/rpt/2006-R-0609.htm.

OLR Report 2008-R-0625, Urban and Industrial Sites Reinvestment Program, http://www.cga.ct.gov/2008/rpt/2008-R-0625.htm.

DECD's Program Overview for the Job Creation Tax Credit Program, http://www.ct.gov/ecd/lib/ecd/new_jobs_creation_tax_credit_slipsheet.pdf, last visited July 10, 2009.

DECD's Annual Report for Fiscal Year 2007-2008, http://www.ct.gov/ecd/lib/ecd/decd_annual_report/decd_annual_report_for_fiscal_year_2007-2008.pdf, last visited July 10, 2009.

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