Substitute House Bill No. 6980
          Substitute House Bill No. 6980

              PUBLIC ACT NO. 97-295


AN ACT CONCERNING  VARIOUS  CHANGES  TO AND REFORM
AND  SIMPLIFICATION OF  CORPORATION  BUSINESS  TAX
CREDITS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 1. (NEW)  (a)  For  purposes  of  this
section, "fixed capital"  means  tangible personal
property which (1)  has a class life, in years, of
more than four  years,  as  described  in  Section
168(e) of the  Internal  Revenue  Code of 1986, or
any subsequent corresponding internal revenue code
of  the  United  States,  as  from  time  to  time
amended, (2) is acquired by purchase from a person
other than a  related  person, (3) is not acquired
to be leased, and is not leased, to another person
or persons during the twelve full months following
its acquisition, and  (4) will be held and used in
this state by a corporation in the ordinary course
of the corporation's  trade  or  business  in this
state for not  less than five full years following
its acquisition. "Fixed  capital" does not include
inventory,  land,  buildings   or  structures,  or
mobile transportation property.  With respect to a
corporation claiming a  credit under this section,
a   "related   person"    means   a   corporation,
partnership, association or  trust  controlled  by
such  corporation;  an   individual,  corporation,
partnership,  association  or  trust  that  is  in
control  of  such   corporation;   a  corporation,
partnership, association or trust controlled by an
individual, corporation, partnership,  association
or trust that  is  in control of such corporation;
or a member  of  the same controlled group as such
corporation.  For  purposes   of   this   section,
"control", with respect  to  a  corporation, means
ownership,  directly  or   indirectly,   of  stock
possessing fifty per  cent  or  more  of the total
combined voting power  of all classes of the stock
of such corporation entitled to vote; with respect
to  a  trust,   means   ownership,   directly   or
indirectly, of fifty  per  cent  or  more  of  the
beneficial interest in  the principal or income of
such  trust.  The   ownership   of   stock   in  a
corporation, of a capital or profits interest in a
partnership  or association  or  of  a  beneficial
interest  in  a   trust  shall  be  determined  in
accordance  with  the   rules   for   constructive
ownership of stock  provided  in Section 267(c) of
the  Internal  Revenue   Code   of  1986,  or  any
subsequent corresponding internal  revenue code of
the United States,  as  from time to time amended,
other than Paragraph (3) of such section.
    (b)  There  shall  be allowed a credit for any
corporation against the tax imposed under  chapter
208  of  the general statutes in an amount paid or
incurred by such corporation  for  any  new  fixed
capital investment during the income year in which
such fixed capital is acquired as follows: For any
income  year  commencing  on  or  after January 1,
1998, and prior to January 1, 1999, equal to three
per  cent  of  such amount paid or incurred by the
corporation  during  such  income  year;  for  any
income  year  commencing  on  or  after January 1,
1999, and prior to January 1, 2000, equal to  four
per  cent  of  such amount paid or incurred by the
corporation during such income year; and  for  any
income  year  commencing  on  or  after January 1,
2000, equal to five per cent of such  amount  paid
or  incurred by the corporation during such income
year.
    (c)  The  amount of such credit allowed to any
corporation under this section  shall  not  exceed
the  amount of tax due from such corporation under
chapter 208 of the general statutes  with  respect
to such income year.
    (d)  No  corporation claiming the credit under
this section with respect to  the  acquisition  of
fixed  capital,  as  defined  in subsection (a) of
this section, may claim a credit against  any  tax
under  any other provision of the general statutes
with respect to the same acquisition.
    (e)  Any  tax  credit  not  used in the income
year during which the acquisition was made may  be
carried   forward   for   the   five   immediately
succeeding income years until the full credit  has
been allowed.
    (f)  If  the fixed capital on account of which
a corporation has claimed the  credit  allowed  by
this section is not held and used in this state in
the ordinary course of the corporation's trade  or
business  in  this  state  for  three  full  years
following   its   acquisition   as   provided   in
subsection  (a)  of  this section, the corporation
shall recapture one hundred per cent of the amount
of  the  credit  allowed under this section on its
corporation business tax  return  required  to  be
filed  for the immediately succeeding income year.
If  the  fixed  capital  on  account  of  which  a
corporation has claimed the credit allowed by this
section is not held and used in this state in  the
ordinary  course  of  the  corporation's  trade or
business  in  this  state  for  five  full   years
following   its   acquisition   as   provided   in
subsection (a) of this  section,  the  corporation
shall  recapture  fifty  per cent of the amount of
the credit  allowed  under  this  section  on  its
corporation  business  tax  return  required to be
filed for the immediately succeeding income  year.
The  provisions of this subsection shall not apply
if the property that is the subject of the  credit
under this section is replaced.
    Sec.   2.  (NEW)  (a)  For  purposes  of  this
section,  "human  capital  investment"  means  the
amount  paid  or  incurred by a corporation on (1)
job  training  which  occurs  in  this  state  for
persons  who  are employed in this state; (2) work
education programs in this  state  including,  but
not  limited  to,  programs in public high schools
and   work    education-diversified    occupations
programs  in  this  state; (3) worker training and
education for persons who  are  employed  in  this
state provided by institutions of higher education
in  this   state;   (4)   donations   or   capital
contributions  to institutions of higher education
in this state for improvements or advancements  of
technology, including physical plant improvements;
(5)  planning,  site  preparation,   construction,
renovation  or  acquisition  of facilities in this
state for the purpose of establishing a  day  care
facility in this state to be used primarily by the
children of employees who  are  employed  in  this
state;  and  (6)  subsidies  to  employees who are
employed in  this  state  for  child  care  to  be
provided in this state.
    (b)  There  shall  be allowed a credit for any
corporation against the tax imposed under  chapter
208  of the general statutes in an amount spent by
such corporation, as a human capital investment as
follows:  For  any  income  year  commencing on or
after January 1, 1998, and  prior  to  January  1,
1999,  equal to three per cent of such amount paid
or incurred by the corporation during such  income
year;  for  any income year commencing on or after
January 1, 1999, and prior  to  January  1,  2000,
equal  to  four  per  cent  of such amount paid or
incurred by the  corporation  during  such  income
year;  and  for  any  income year commencing on or
after January 1, 2000, equal to five per  cent  of
such  amount  paid  or incurred by the corporation
during such income year.
    (c)  The  amount  of  credit  allowed  to  any
corporation under this section  shall  not  exceed
the  amount of tax due from such corporation under
chapter 208 of the general statutes  with  respect
to such income year.
    (d)  No  corporation claiming the credit under
this section  with  respect  to  a  human  capital
investment  as  defined  in subsection (a) of this
section shall claim a credit against any tax under
any   other  provision  of  the  general  statutes
against  any  tax  with  respect   to   the   same
investment.
    (e)  Any  tax  credit  not  used in the income
year during which the investment was made  may  be
carried   forward   for   the   five   immediately
succeeding income years until the full credit  has
been allowed.
    Sec.  3.  Subdivision (9) of subsection (a) of
section 12-213 of the general statutes is repealed
and the following is substituted in lieu thereof:
    (9)  (A)  "Gross income" means gross income as
defined in  the  Internal  Revenue  Code  and,  in
addition,  means  any  interest or exempt interest
dividends as defined in Section 852(b)(5)  of  the
Internal  Revenue Code received by the taxpayer or
losses  of  other  calendar   or   fiscal   years,
retroactive  to  include  all  calendar  or fiscal
years beginning after January 1, 1935, incurred by
the  taxpayer which are excluded from gross income
for purposes of assessing the federal  corporation
net  income  tax, and in addition, notwithstanding
any other provision  of  law,  means  interest  or
exempt  interest  dividends  as  defined  in  said
Section 852(b)(5) of the  Internal  Revenue  Code,
accrued  on  or  after  the  application  date, as
defined in section 12-242ff, with respect  to  any
obligation  issued  by  or on behalf of the state,
its agencies, authorities, commissions  and  other
instrumentalities,  or  by  or  on  behalf  of its
political   subdivisions   and   their   agencies,
authorities,       commissions      and      other
instrumentalities;
    (B)  "Gross  income"  shall  not  include  the
amount which for federal income  tax  purposes  is
treated  as  a  dividend  received  by  a domestic
United   States   corporation   from   a   foreign
corporation  on  account  of  foreign taxes deemed
paid  by  such  domestic  corporation,  when  such
domestic corporation elects the foreign tax credit
for federal income tax purposes. [and  the  amount
of  net  gain  to  any  taxpayer,  engaged  in the
business of farming in Connecticut, from the  sale
or  exchange  of any cattle raised from birth on a
farm in this  state  operated  by  such  taxpayer,
provided  not  less  than seventy-five per cent of
such  taxpayer's  gross  income  is  derived  from
farming;]
    Sec.  4.  (NEW)  (a)  There  is  established a
Corporation Business Tax Credit  Review  Committee
which  shall be comprised of: (1) The chairpersons
and  ranking  members  of   the   joint   standing
committee   of   the   General   Assembly   having
cognizance of matters relating to finance, revenue
and  bonding,  or  their designees; (2) one member
appointed by each of the following: The  Governor,
the  president  pro  tempore  of  the  Senate, the
speaker  of  the  House  of  Representatives,  the
majority leader of the Senate, the majority leader
of the  House  of  Representatives,  the  minority
leader  of  the  House  of Representatives and the
minority  leader  of  the  Senate;  and  (3)   the
Commissioners of Revenue Services and Economic and
Community Development, or their designees.
    (b)  The  committee  shall  study and evaluate
all the existing credits against  the  corporation
business  tax. The study shall include, but is not
limited to, consideration of  the  following  with
respect   to  each  credit:  (1)  Has  the  credit
provided a  benefit  to  the  state  in  terms  of
measurable  economic  development, new investments
in the state, new jobs or  retention  of  existing
jobs,  or measurable benefits for the workforce in
the state; (2) is there  sufficient  justification
to  continue  the credit as it currently exists or
is it obsolete;  (3)  could  the  credit  be  more
efficiently  administered as part of a broad-based
credit; and (4) does the  credit  add  unnecessary
complexity  in the application, administration and
approval process for  the  credit.  The  committee
shall  also  engage in an analysis of the history,
rationale and estimated revenue loss as  a  result
of  each  tax credit and shall recommend revisions
necessary to change  the  tax  by  eliminating  or
changing  any  redundant,  obsolete or unnecessary
tax credit or any credit that is not  providing  a
measurable   benefit  sufficient  to  justify  any
revenue loss to the state.
    (c)  The  committee  shall report its findings
and  recommendations   to   the   joint   standing
committee   of   the   General   Assembly   having
cognizance of matters relating to finance, revenue
and  bonding  no  later than January 30, 2002, and
every five years thereafter,  in  accordance  with
section 11-4a of the general statutes.
    Sec.  5.  Subsection (k) of section 12-217u of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (k)  No  taxpayer  claiming  the  credit under
this section is eligible for  the  credit  allowed
under section [12-217m] 1 OF THIS ACT.
    Sec.  6.  Subsection (74) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (74)   (A)   Sales   of   computer   and  data
processing services rendered to a customer (i)  by
a  retailer  which,  on  or  after  July  1, 1991,
acquired  the  operations  of  a  data  processing
facility from the customer, provided such customer
operated the facility for its own use or (ii) by a
retailer which, on or after July 1, 1993, acquired
the operations of  the  data  processing  facility
from the retailer described in subparagraph (A)(i)
of  this  subsection,   provided   such   customer
formerly  operated  the  facility for its own use.
(B) Sales of computer and data processing services
rendered  to a customer by a retailer which, on or
after July 1, 1995, acquired the  data  processing
operations   from   the  customer,  provided  such
customer formerly conducted such  data  processing
operations  for  its  own  use.  Sales  of and the
storage, use or other consumption of computers  or
data   processing  equipment,  when  sold  to  the
retailer described in this subparagraph  and  used
by such retailer to provide the services described
in  this  subparagraph.  The  provisions  in  this
subparagraph  shall not apply if the retailer is a
related person, as defined in section [12-217m]  1
OF  THIS  ACT, with respect to the customer or the
customer is a related person, as defined  therein,
with respect to the retailer.
    Sec.  7.  (NEW)  (a)  As used in this section,
"business  firm"   means   any   business   entity
authorized  to  do  business  in  this  state  and
subject to the corporation  business  tax  imposed
under   chapter   208  of  the  general  statutes;
"qualifying employee" means any  employee  who  is
employed  not  less than fifteen hours per week by
the same business firm and who,  at  the  time  of
being hired by such business firm, is and has been
receiving  benefits  from  the  temporary   family
assistance  program  for more than nine months and
meets other requirements that the Commissioner  of
Social   Services  may  establish  in  regulations
adopted in  accordance  with  chapter  54  of  the
general statutes.
    (b)  Any business firm which desires to hire a
qualifying employee in any income year  commencing
on  or  after  January  1,  1997, may apply to the
Commissioner of Social Services for an  allocation
of an tax credit in an amount equal to one hundred
twenty-five dollars for each full month that  such
employee is employed by such firm. The application
for a tax credit under this subsection  shall  set
forth  information  that  said  commissioner deems
necessary in  regulations  adopted  in  accordance
with chapter 54 of the general statutes.
    (c)  Applications shall be submitted annually,
before  such  expenditures  are   made,   to   the
Commissioner  of  Social Services on or after July
first but not later  than  December  thirty-first.
The  commissioner shall approve or disapprove each
application within sixty days of its submission to
the  commissioner  based  on (1) the compliance of
such  application  with  the  provisions  of  this
section,  (2) regulations adopted pursuant to this
section,  and  (3)  the  amount  of  tax   credits
remaining in the annual allotment provided in this
section for the year  involved.  The  commissioner
shall  approve  applications in the order in which
they are received  in  the  commissioner's  office
between  July  first  and December thirty-first of
each  year.  If  the  commissioner  approves   the
application  of the business firm and if the limit
for tax credit for that  year  has  not  yet  been
allocated,  the  commissioner  shall  allocate and
commit an amount of tax credits to  such  business
firm.   Any   business   firm  receiving  such  an
allocation shall, within thirty days of the end of
its  income year, submit a report on the number of
full  months  that   qualifying   employees   were
employed by such firm during such year.
    (d)  The  credit  shall  be claimed on the tax
return for the income year during which qualifying
employees  were  employed  for  full months by the
business firm. Any tax  credit  not  used  in  the
period  during  which the expenditure was made may
be  carried  forward  for  the  five   immediately
succeeding  income years until the full credit has
been allowed.
    (e)  In no event shall the total amount of all
tax credits allowed to all business firms pursuant
to  the  provisions  of  this  section  exceed one
million dollars in any one fiscal year.
    (f)  No  credit  under  subsection (c) of this
section shall be allowed, with  respect  to  wages
paid  to  any qualifying employee, to any business
firm that has previously been granted a tax credit
under  this  section with respect to wages paid to
the same employee.
    Sec.   8.   Section   12-634  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    The  Commissioner  of  Revenue  Services shall
grant a credit  against  any  tax  due  under  the
provisions  of  chapter 207, 208, 209, 210, 211 or
212 in an amount not to exceed forty per  cent  of
the  total cash amount invested during the taxable
year by the business firm in programs operated  or
created pursuant to proposals approved pursuant to
section 12-632  for  planning,  site  preparation,
construction,   renovation   or   acquisition   of
facilities for purposes of  establishing  a  child
day  care  facility  to  be  used primarily by the
children of such  business  firm's  employees  and
equipment  installed  for such facility, including
kitchen  appliances,  to  the  extent  that   such
equipment  or  appliances are necessary in the use
of such facility for purposes of child  day  care,
provided:  (1) Such facility is operated under the
authority of a license issued by the  Commissioner
of  Public  Health  in  accordance  with  sections
19a-77 to 19a-87, inclusive, (2) such facility  is
operated  without  profit  by  such  business firm
related to any charges imposed for the use of such
facility  for  purposes of child day care, and (3)
the amount of tax credit allowed any business firm
under  the  provisions  of  this  section  for any
income year may not exceed ten  thousand  dollars.
If two or more business firms share in the cost of
establishing such a facility for the  children  of
their  employees,  each  such  taxpayer  shall  be
allowed such credit in relation to the  respective
share,  paid  or incurred by such taxpayer, of the
total expenditures for the facility in such income
year.  The  commissioner  shall not grant a credit
pursuant to this section to any taxpayer  claiming
a credit for the same year pursuant to [subsection
(c) of section 17b-740] SECTION 2 OF THIS ACT.
    Sec.  9.  Subsection  (a) of section 19a-1c of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)   Whenever   the  words  "Commissioner  of
Public Health and Addiction Services" are used  or
referred  to  in  the  following  sections  of the
general  statutes,  the  words  "Commissioner   of
Public   Health"  shall  be  substituted  in  lieu
thereof and  whenever  the  words  "Department  of
Public  Health and Addiction Services" are used or
referred to  in  the  following  sections  of  the
general  statutes, the words "Department of Public
Health" shall  be  substituted  in  lieu  thereof:
1-21b,  2-20a,  3-129,  4-5,  4-38c, 4-60i, 4-67e,
4a-12, 4a-16, 4a-51, 5-169,  7-22a,  7-41a,  7-42,
7-44,  7-45,  7-47a, 7-48, 7-49, 7-51, 7-52, 7-53,
7-54, 7-55, 7-56, 7-59, 7-60, 7-62a, 7-62b, 7-62c,
7-65,  7-70,  7-72,  7-73,  7-74,  7-127e,  7-504,
7-536,  8-159a,  8-206d,  8-210,   10-19,   10-71,
10-76d,  10-203, 10-204a, 10-207, 10-212, 10-212a,
10-214, 10-215d, 10-253, 10-282,  10-284,  10-292,
10a-132,  10a-132b,  10a-132c,  10a-132d, 10a-155,
10a-162a,   12-62f,   12-263a,   12-407,   12-634,
13a-175b,  13a-175ee,  13b-38n,  14-227a, 14-227c,
15-121, 15-140r, 15-140u, 16-19z,  16-32e,  16-43,
16-50c, 16-50d, 16-50j, 16-261a, 16-262l, 16-262m,
16-262n,  16-262o,   16-262q,   16a-36,   16a-36a,
16a-103,    17-585,   17a-20,   17a-52,   17a-154,
17a-219c,  17a-220,  17a-277,  17a-509,   17a-688,
17b-6, 17b-99, 17b-225, 17b-234, 17b-265, 17b-288,
17b-340,  17b-341,  17b-347,   17b-350,   17b-351,
17b-354,   17b-357,   17b-358,  17b-406,  17b-408,
17b-420,  17b-552,  17b-611,   17b-733,   17b-737,
[17b-740,]  17b-748,  17b-803,  17b-808, 17b-851a,
19a-1d, 19a-4i,  19a-6,  19a-6a,  19a-7b,  19a-7c,
19a-7d,  19a-7e,  19a-7f,  19a-7g,  19a-7h, 19a-9,
19a-10, 19a-13, 19a-14, 19a-14a, 19a-14b,  19a-15,
19a-17, 19a-17a, 19a-17m, 19a-17n, 19a-19, 19a-20,
19a-21, 19a-23, 19a-24, 19a-25,  19a-25a,  19a-26,
19a-27,  19a-28, 19a-29, 19a-29a, 19a-30, 19a-30a,
19a-32, 19a-32a, 19a-33, 19a-34,  19a-35,  19a-36,
19a-36a, 19a-37, 19a-37a, 19a-37b, 19a-40, 19a-41,
19a-42, 19a-43, 19a-44,  19a-45,  19a-47,  19a-48,
19a-49,  19a-50,  19a-51,  19a-52, 19a-53, 19a-54,
19a-55, 19a-57, 19a-58, 19a-59, 19a-59a,  19a-59b,
19a-59c,  19a-59d, 19a-60, 19a-61, 19a-69, 19a-70,
19a-71, 19a-72, 19a-73,  19a-74,  19a-75,  19a-76,
19a-79,   19a-80,  19a-82  to  19a-91,  inclusive,
19a-92a,  19a-93,   19a-94,   19a-94a,   19a-102a,
19a-103,   19a-104,   19a-105,  19a-108,  19a-109,
19a-110, 19a-110a,  19a-111,  19a-111a,  19a-111e,
19a-112a,  19a-112b,  19a-112c, 19a-113, 19a-113a,
19a-115,  19a-116,  19a-121,  19a-121a,  19a-121b,
19a-121c,  19a-121d, 19a-121e, 19a-121f, 19a-122b,
19a-123d,  19a-124,  19a-125,  19a-148,   19a-175,
19a-176,   19a-178,  19a-179,  19a-180,  19a-181a,
19a-182,  19a-183,  19a-184,   19a-186,   19a-187,
19a-195a,   19a-200,  19a-201,  19a-202,  19a-204,
19a-207,  19a-208,  19a-215,   19a-219,   19a-221,
19a-223,   19a-229,   19a-241,  19a-242,  19a-243,
19a-244,  19a-245,  19a-250,   19a-252,   19a-253,
19a-255,   19a-257,   19a-262,  19a-269,  19a-270,
19a-270a,  19a-279l,  19a-310,  19a-311,  19a-312,
19a-313,   19a-320,   19a-323,  19a-329,  19a-330,
19a-331,  19a-332,  19a-332a,  19a-333,   19a-341,
19a-401,   19a-402,   19a-406,  19a-409,  19a-420,
19a-421,  19a-422,  19a-423,   19a-424,   19a-425,
19a-426,   19a-427,  19a-428,  19a-490,  19a-490c,
19a-490d, 19a-490e, 19a-490g,  19a-491,  19a-491a,
19a-491b,  19a-492,  19a-493,  19a-493a,  19a-494,
19a-494a,  19a-495,  19a-496,  19a-497,   19a-499,
19a-500,   19a-501,  19a-503,  19a-504,  19a-504c,
19a-505, 19a-506,  19a-507a,  19a-507b,  19a-507c,
19a-507d,  19a-508,  19a-509a,  19a-512,  19a-514,
19a-515,  19a-517,  19a-518,   19a-519,   19a-520,
19a-521,   19a-521a,  19a-523,  19a-524,  19a-526,
19a-527,  19a-528,  19a-530,   19a-531,   19a-533,
19a-534a,  19a-535,  19a-535a,  19a-536,  19a-537,
19a-538,  19a-540,  19a-542,   19a-547,   19a-550,
19a-551,   19a-554,   19a-581,  19a-582,  19a-584,
19a-586,  19a-630,  19a-631,   19a-634,   19a-637,
19a-638,   19a-639,   19a-645,  19a-646,  19a-663,
19a-673, 19a-675, 20-8, 20-8a, 20-9, 20-10, 20-11,
20-11a,  20-11b,  20-12,  20-12a,  20-13,  20-13a,
20-13b,  20-13d,  20-13e,  20-14,  20-14j,  20-17,
20-18,   20-18a,  20-18b,  20-20,  20-27,  20-28a,
20-28b, 20-29, 20-37, 20-39a, 20-40, 20-45, 20-54,
20-55,  20-57, 20-58a, 20-59, 20-66, 20-68, 20-70,
20-71, 20-73, 20-73a, 20-74, 20-74a, 20-74i, 20-74
aa,   20-744d,  20-86b,  20-86c,  20-86d,  20-86f,
20-86h, 20-90, 20-92, 20-93, 20-94, 20-94a, 20-96,
20-97,   20-99,   20-99a,   20-101a,  20-102aa  to
20-102ee,  inclusive,  20-103a,  20-106,   20-107,
20-108,  20-109, 20-110, 20-114, 20-122a, 20-122b,
20-122c,  20-123a,  20-126b,   20-126h,   20-126j,
20-126k,   20-126l,   20-126o,  20-126p,  20-126q,
20-126r, 20-126u, 20-127, 20-128a, 20-129, 20-130,
20-133,   20-138a,   20-138c,   20-139a,  20-140a,
20-141, 20-143, 20-146, 20-146a,  20-149,  20-153,
20-154,  20-162n, 20-162p, 20-188, 20-189, 20-190,
20-192, 20-193, 20-195a, 20-195m, 20-195p, 20-196,
20-198,  20-199,  20-200, 20-202, 20-206, 20-206a,
20-206m, 20-206p, 20-207, 20-211, 20-212,  20-213,
20-214,  20-217,  20-218,  20-220, 20-221, 20-222,
20-222a, 20-223, 20-224, 20-226,  20-227,  20-228,
20-229,  20-231,  20-235a, 20-236, 20-238, 20-241,
20-242, 20-243, 20-247, 20-250,  20-252,  20-252a,
20-255a,  20-256,  20-258, 20-262, 20-263, 20-267,
20-268, 20-269, 20-271, 20-272, 20-341d,  20-341e,
20-341f, 20-341g, 20-341m, 20-358, 20-361, 20-365,
20-396, 20-402, 20-404,  20-406,  20-408,  20-416,
20-474 to 20-476, inclusive, 20-571, 20-578, 21-7,
21a-11,  21a-86a,   21a-86c,   21a-116,   21a-138,
21a-150,  21a-150a,  21a-150b, 21a-150c, 21a-150d,
21a-150f,  21a-150j,  21a-240,  21a-249,  21a-260,
21a-274,  21a-283,  22-6f,  22-6g,  22-6i, 22-131,
22-150, 22-152, 22-165, 22-332b,  22-344,  22-358,
22-417,  22a-29, 22a-54, 22a-65, 22a-66a, 22a-66l,
22a-66z, 22a-115,  22a-119,  22a-134g,  22a-134bb,
22a-137,  22a-163a,  22a-163i,  22a-176,  22a-191,
22a-192,  22a-208q,  22a-231,  22a-240,  22a-240a,
22a-295,   22a-300,   22a-308,  22a-337,  22a-352,
22a-354i, 22a-354k, 22a-354w, 22a-354x, 22a-354aa,
22a-355,   22a-356,  22a-358,  22a-361,  22a-363b,
22a-371,  22a-378,  22a-423,   22a-424,   22a-426,
22a-430,  22a-434a,  22a-449i,  22a-471,  22a-474,
22a-601, 25-32, 25-32b,  25-32c,  25-32d,  25-32e,
25-32f,  25-32g,  25-32h,  25-32i, 25-32k, 25-32l,
25-33, 25-33a,  25-33c,  25-33d,  25-33e,  25-33f,
25-33g,  25-33h,  25-33i,  25-33j, 25-33k, 25-33l,
25-33n,  25-34,  25-35,  25-36,  25-37a,   25-37b,
25-37c,  25-37d,  25-37e,  25-37f, 25-37g, 25-39a,
25-39b,  25-39c,  25-40,  25-43b,  25-43c,  25-46,
25-49,  25-102gg,  25-128,  25-129, 25-137, 26-22,
26-119,  26-141b,   26-192a,   26-192b,   26-192c,
26-192e,  26-236, 27-140aa, 31-23, 31-40u, 31-51u,
31-101, 31-106, 31-111a, 31-111b, 31-121a, 31-222,
31-374,  31-397,  31-398,  31-400, 31-401, 31-402,
31-403,   32-23x,   38a-180,   38a-199,   38a-214,
38a-514,   38a-539,   38a-583,  45a-743,  45a-745,
45a-749,  45a-750,   45a-757,   46a-28,   46a-126,
46b-26,   46b-68,   46b-172a,   47a-52,   52-146f,
52-146k,  52-473a,   52-557b,   53-332,   54-102a,
54-102b, 54-142k, 54-203.
    Sec.   10.  Section  19a-80e  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    Each  child day care center and group day care
home, as defined in section 19a-77, that is funded
by the state pursuant to section 8-210, 17b-737 [,
17b-740, 17b-741] or  17b-752  shall  provide  for
parents'  participation  in  setting goals for and
evaluating the progress of their children.
    Sec.   11.   Section   22a-9  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    The  commissioner  shall  act  as the official
agent of the state in all  matters  affecting  the
purposes of this title and sections 2-20a, 5-238a,
subsection (c) of section 7-131a, sections 7-131e,
7-131f, subsection (a) of section 7-131g, sections
7-131i, 7-131l, subsection (a) of section  10-321,
subdivisions  (51)  and  (52)  of  section  12-81,
[sections  12-217c,  12-217d,  12-252a,   12-252b,
12-258b,  12-258i,  12-265b, 12-265c,] subsections
(21) and (22) of section 12-412,  subsections  (a)
and  (b)  of  section  13a-94,  sections 13a-142a,
13b-56, 13b-57,  14-100b,  14-164c,  chapter  268,
sections  16a-103, 22-91c, 22-91e, subsections (b)
and  (c)  of  section  22a-148,  section  22a-150,
subdivisions  (2)  and  (3)  of  section  22a-151,
sections  22a-153,  22a-154,   22a-155,   22a-156,
22a-158,  chapter 446c, sections 22a-295, 22a-300,
22a-308,   22a-416,   chapters   446h   to   446k,
inclusive,  chapters  447 and 448, sections 23-35,
23-37a, 23-41, chapter 462, section 25-34, chapter
477,  subsection (b) of section 25-128, subsection
(a) of section 25-131, chapters 490  and  491  and
sections  26-257, 26-297, 26-303 and 47-46a, under
any federal laws now or hereafter  to  be  enacted
and  as  the  official  agent of any municipality,
district, region or authority or other  recognized
legal  entity  in  connection  with  the  grant or
advance of any federal or other funds  or  credits
to   the  state  or  through  the  state,  to  its
political subdivisions.
    Sec.   12.   Section  32-41q  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)   As   used   in  this  section  "critical
industry" means an  industry  that  uses  emerging
technologies,  including  but not limited to, fuel
cell  technology,  to  develop   and   manufacture
nondefense  products  for  future  sale,  has  the
potential to create or retain jobs  in  the  state
and is critical to the state economy.
    (b)  There  is  established  an  account to be
known  as  the  critical  industries   development
account,  which  shall  be  a separate, nonlapsing
account within the General Fund. The account shall
contain   any  moneys  invested  pursuant  to  the
provisions   of    this    section.    Connecticut
Innovations,  Incorporated  may use funds from the
account  to  provide   loans,   loan   guarantees,
interest  rate  subsidies  and other forms of loan
assistance to customers of businesses in  critical
industries  which  businesses  are  based  in  the
state. Connecticut Innovations,  Incorporated  may
solicit  and  receive  funds  from  any public and
private sources for the program.  Such  funds  may
include,  without limitation, federal funds, state
bond  proceeds,  private   venture   capital   and
investments  by  persons,  firms  or corporations.
Private capital investments may be made either  in
the   account  as  a  whole  or  in  one  or  more
individual technologies or projects.
    (c)  No  product  may receive assistance under
this section unless  its  manufacturer  agrees  to
enter   into  a  contract  to:  (1)  Carry  out  a
specified  percentage  of  the   development   and
manufacturing  work  for the product in the state;
and  (2)  when  subcontracting  is  required,   to
conduct  a  specified percentage of such work with
companies  based   in   the   state.   Connecticut
Innovations,  Incorporated  shall  determine  such
percentage for the purposes of this program.
    [(d)  Any  funds  invested by a corporation in
the  critical   industries   development   account
pursuant  to  this section shall be eligible for a
credit against the tax imposed by chapter  208  in
an  amount  determined  by  multiplying the amount
invested in the account  by  such  corporation  by
four  percentage points less than the average cost
of capital for development  projects  financed  by
the    Connecticut   Development   Authority,   as
determined by the authority.]
    [(e)]   (d)   Any   person  who,  or  firm  or
corporation which, invests funds in  the  critical
industries  development  account  pursuant to this
section shall receive a portion  of  the  interest
paid  and  principal repayment by the recipient of
the loan in proportion to the ratio of the  amount
of   the   investment  of  such  person,  firm  or
corporation to the total loan amount.
    [(f)]  (e)  The  Commissioner  of Economic and
Community Development  may  adopt  regulations  in
accordance  with  the  provisions of chapter 54 to
carry out the purposes of this section.
    Sec.   13.   Section   8-395  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  As  used in this section, "business firm"
means  any  business  entity  authorized   to   do
business   in   the   state  and  subject  to  the
corporation business  tax  imposed  under  chapter
208,   or  any  [insurance  company,  hospital  or
medical  services  corporation  subject   to   the
insurance companies, hospital and medical services
corporations] COMPANY SUBJECT  TO  A  tax  imposed
under  chapter  207, or any air carrier subject to
the air carriers tax imposed under chapter 209, or
any  railroad  company  subject  to  the  railroad
companies tax imposed under chapter  210,  or  any
regulated   telecommunications  service,  express,
telegraph, cable, or community antenna  television
company      subject      to     the     regulated
telecommunications  service,  express,  telegraph,
cable,  and community antenna television companies
tax imposed under  chapter  211,  or  any  utility
company  subject  to  the  utility  companies  tax
imposed  under  chapter  212.  [,  or  any  public
service  company  subject  to  the  public service
companies tax imposed under chapter 212a.]
    (b)   The  Commissioner  of  Revenue  Services
shall grant a credit against any tax due under the
provisions  of chapter 207, 208, 209, 210, 211 [,]
OR 212 [or 212a] in an amount equal to the  amount
specified   by  the  Connecticut  Housing  Finance
Authority in any tax credit voucher issued by said
authority  pursuant  to  subsection  (c)  of  this
section.
    (c)  The Connecticut Housing Finance Authority
shall administer a system of tax  credit  vouchers
within the resources, requirements and purposes of
this   section,   for   business   firms    making
contributions   to   housing  programs  developed,
sponsored or managed by a  nonprofit  corporation,
as  defined  in  subsection  (w)  of section 8-39,
which benefit low and moderate income  persons  or
families  which  have  been  approved prior to the
date of any such contribution  by  the  authority.
Such  vouchers may be used as a credit against any
of the  taxes  to  which  such  business  firm  is
subject and which are enumerated in subsection (b)
of this section. FOR INCOME YEARS COMMENCING ON OR
AFTER JANUARY 1, 1998, TO BE ELIGIBLE FOR APPROVAL
A  HOUSING  PROGRAM   SHALL   BE   SCHEDULED   FOR
COMPLETION NOT MORE THAN THREE YEARS FROM THE DATE
OF APPROVAL. EACH  PROGRAM  SHALL  SUBMIT  TO  THE
AUTHORITY  QUARTERLY  PROGRESS REPORTS AND A FINAL
REPORT UPON  COMPLETION,  IN  A  MANNER  AND  FORM
PRESCRIBED BY THE AUTHORITY. IF A PROGRAM FAILS TO
BE COMPLETED AFTER THREE YEARS, OR AT ANY TIME THE
AUTHORITY DETERMINES THAT A PROGRAM IS UNLIKELY TO
BE  COMPLETED,  THE  AUTHORITY  MAY  RECLAIM   ANY
REMAINING  FUNDS CONTRIBUTED BY BUSINESS FIRMS AND
REALLOCATE SUCH FUNDS TO ANOTHER ELIGIBLE PROGRAM.
    (d)  No  business  firm shall receive a credit
pursuant to both this section and chapter 228a  in
relation to the same contribution.
    (e)   Nothing   in   this   section  shall  be
construed to prevent two or  more  business  firms
from participating jointly in one or more programs
under the provisions of this section.  Such  joint
programs  shall be submitted, and acted upon, as a
single program by the business firms involved.
    (f)   The   sum  of  all  tax  credit  granted
pursuant to the provisions of this  section  shall
not  exceed  fifty  thousand  dollars annually per
business firm and no tax credit shall  be  granted
to  any  business  firm  for any individual amount
contributed  of  less  than  two   hundred   fifty
dollars.
    (g)  No  tax  credit  shall  be granted to any
bank, bank and trust company,  insurance  company,
trust company, national bank, savings association,
or building and  loan  association  or  any  other
business  entity for activities that are a part of
its normal course of business.
    (h)  Any  tax  credit  not  used in the period
during which the  contribution  was  made  may  be
carried   forward   or   backward   for  the  five
immediately succeeding or preceding  [calendar  or
fiscal]  INCOME  years  until  the full credit has
been allowed.
    (i)  In no event shall the total amount of all
tax credits allowed to all business firms pursuant
to  the  provisions  of  this  section  exceed one
million dollars in any one fiscal year.
    (j)  No  tax  credit  shall  be granted to any
business firm unless such firm furnishes proof  to
the  Commissioner  of  Revenue  Services  that the
amount of funds expended for contributions for the
support  of housing programs by such business firm
is not less in the year for which such  credit  is
sought  than  the  amount  expended  in  the  year
immediately preceding  the  year  for  which  such
credit is sought.
    (k)   No  organization  conducting  a  housing
program or  programs  eligible  for  funding  with
respect  to which tax credits may be allowed under
this  section  shall  be  allowed  to  receive  an
aggregate  amount  of  such  funding  for any such
program or programs in  excess  of  three  hundred
thousand dollars for any fiscal year.
    (l)   Nothing   in   this   section  shall  be
construed to prevent a business firm  from  making
any contribution to a housing program to which tax
credits may  be  applied  which  contribution  may
result  in  the  business  firm  having  a limited
equity interest in the program.
    (m)    The    Connecticut    Housing   Finance
Authority, with the approval of  the  Commissioner
of   Revenue   Services,   shall   adopt   written
procedures in accordance with section [1-21] 1-121
to  implement the provisions of this section. Such
procedures shall include  provisions  for  issuing
tax  credit  vouchers for contributions to housing
programs based on  a  system  of  ranking  housing
programs. In establishing such ranking system, the
authority shall consider the  following:  (1)  The
readiness  of  the project to be built; (2) use of
the funds to  build  or  rehabilitate  a  specific
housing  project or to capitalize a revolving loan
fund  providing   low-cost   loans   for   housing
construction,  repair or rehabilitation to benefit
persons of very low, low and moderate income;  (3)
the extent the project will benefit families at or
below twenty-five per  cent  of  the  area  median
income   and   families   with   incomes   between
twenty-five per cent and fifty  per  cent  of  the
area  median  income,  as  defined  by  the United
States   Department   of   Housing    and    Urban
Development;   (4)   evidence   of   the   general
administrative   capability   of   the   nonprofit
corporation  to  build or rehabilitate housing; [,
and] (5) evidence that any funds received  by  the
nonprofit  corporation  for  which  a  voucher was
issued were used to accomplish the goals set forth
in  the application AND WITH RESPECT TO ANY INCOME
YEAR COMMENCING ON OR AFTER JANUARY 1,  1998;  (6)
USE  OF THE FUNDS TO PROVIDE HOUSING OPPORTUNITIES
IN URBAN AREAS AND THE IMPACT  OF  SUCH  FUNDS  ON
NEIGHBORHOOD REVITALIZATION; AND (7) THE EXTENT TO
WHICH TAX CREDIT  FUNDS  ARE  LEVERAGED  BY  OTHER
FUNDS.
    (n)   Vouchers   issued  or  reserved  by  the
Department of Housing under the provisions of this
section  prior  to July 1, 1995, shall be valid on
and after July 1, 1995, to the same extent as they
would  be  valid  under  the  provisions  of  this
section in effect on June 30, 1995.
    (o)   On   or  before  October  1,  1995,  the
authority  shall  adopt  written  procedures,   in
accordance  with  section  1-121, to implement the
provisions of this section.
    (p)   THE   CREDIT  WHICH  IS  SOUGHT  BY  THE
BUSINESS FIRM SHALL FIRST BE CLAIMED  ON  THE  TAX
RETURN FOR SUCH BUSINESS FIRM'S INCOME YEAR DURING
WHICH THE CONTRIBUTION TO  WHICH  THE  TAX  CREDIT
VOUCHER RELATES WAS PAID.
    Sec.  14. Subsection (d) of section 12-217e of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (d)  The credit allowed by this section may be
claimed only by the initial occupant or  occupants
of the manufacturing facility or service facility.
The owner of the manufacturing facility or service
facility may not claim the credit unless the owner
is also  an  occupant.  The  credit  may  [not  be
claimed   before   the   first  full  income  year
following   the   issuance   of   an   eligibility
certificate,  but  may  be  claimed in such income
year and] FIRST BE CLAIMED ON THE TAX  RETURN  FOR
THE TAXPAYER'S INCOME YEAR WHICH BEGINS DURING THE
CALENDAR YEAR NEXT SUCCEEDING THE CALENDAR YEAR IN
WHICH  THE  TAXPAYER  WAS  ISSUED  AN  ELIGIBILITY
CERTIFICATE, AND MAY BE CLAIMED  in  each  of  the
following   nine  income  years.  If  within  such
period,  however,  any  facility  for   which   an
eligibility  certificate has been issued ceases to
qualify as a  manufacturing  facility  or  service
facility   or  any  occupant  of  a  manufacturing
facility or  service  facility  ceases  to  be  an
occupant, the entitlement to the credit allowed by
this section shall terminate in the income year in
which  the  qualification or occupancy ceases, and
there shall not be a pro rata application  of  the
credit to such income year.
    Sec.   15.  Section  12-217f  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    There  shall  be  allowed  a  credit  for  any
taxpayer  against  the  tax  imposed  under   this
chapter for any income year, in an amount equal to
ten per cent of wages paid DURING SUCH INCOME YEAR
by  such  taxpayer  to  a student in a public high
school employed by such taxpayer while enrolled in
a     cooperative    work    education-diversified
occupations program, established and  approved  in
accordance  with  regulations adopted by the State
Board of Education in cooperation with  the  Labor
Commissioner    and    the    Connecticut    State
Apprenticeship Council, provided in no event shall
the amount of such credit for any income year with
respect to any such student exceed  three  hundred
dollars.  A cooperative work education-diversified
occupations program is a program established in  a
public  high  school  in  a  manner and subject to
conditions prescribed in said regulations  by  the
State  Board  of  Education,  providing  alternate
periods of academic study and part-time employment
for  any  student  enrolled  in such program. Such
employment  must  provide  occupational   training
which is not available within such high school and
which can only be obtained by on-the-job training,
provided  such training must be related to a trade
approved for purposes of  apprenticeship  training
by  the Labor Commissioner in cooperation with the
Connecticut  State  Apprenticeship  Council.   The
amount  of  such credit allowed any taxpayer under
this section for any income year  may  not  exceed
the  amount  of  tax  due from such taxpayer under
this chapter with respect to such income year.
    Sec.   16.  Section  12-217g  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  There  shall  be allowed a credit for any
taxpayer  against  the  tax  imposed  under   this
chapter  for  any income year with respect to each
apprenticeship in the  [machine  tool  and  metal]
MANUFACTURING trades commenced by such taxpayer in
such  year  under   a   qualified   apprenticeship
training  program  as  described  in this section,
certified in accordance with  regulations  adopted
by  the Labor Commissioner and registered with the
Connecticut    State    Apprenticeship     Council
established    under    section   31-51b,   [which
apprenticeship exceeds the average number of  such
apprenticeships  begun by such taxpayer during the
five income years immediately preceding the income
year   with   respect  to  which  such  credit  is
allowed,] in an amount equal to four  dollars  per
hour    [of    apprenticeship   training   during]
MULTIPLIED BY THE TOTAL  NUMBER  OF  HOURS  WORKED
DURING THE INCOME YEAR BY APPRENTICES IN the first
half of a two-year term of apprenticeship and  the
first   three-quarters  of  a  four-year  term  of
apprenticeship,  provided  the  amount  of  credit
allowed  for  any income year with respect to each
such apprenticeship may not exceed  four  thousand
eight  hundred dollars or fifty per cent of actual
wages paid in such income year [for  such]  TO  AN
APPRENTICE IN THE FIRST HALF OF A TWO-YEAR TERM OF
APPRENTICESHIP OR IN THE FIRST THREE-QUARTERS OF A
FOUR-YEAR  TERM  OF  apprenticeship,  whichever is
less.
    (b)  There  shall  be allowed a credit for any
taxpayer  against  the  tax  imposed  under   this
chapter  for  any income year with respect to each
apprenticeship in  plastics  and  plastics-related
trades  commenced  by  such  taxpayer in such year
under a qualified apprenticeship training  program
as   described   in  this  section,  certified  in
accordance with regulations adopted by  the  Labor
Commissioner  and  registered with the Connecticut
State  Apprenticeship  Council  established  under
section  31-51b,  which apprenticeship exceeds the
average number of such  apprenticeships  begun  by
such   taxpayer   during  the  five  income  years
immediately preceding the income year with respect
to  which  such  credit  is  allowed, in an amount
equal to four dollars per hour [of  apprenticeship
training during] MULTIPLIED BY THE TOTAL NUMBER OF
HOURS WORKED DURING THE INCOME YEAR BY APPRENTICES
IN   the   first   half  of  a  two-year  term  of
apprenticeship and the first three-quarters  of  a
four-year  term  of  apprenticeship,  provided the
amount of credit allowed for any income year  with
respect to each such apprenticeship may not exceed
four thousand eight hundred dollars or  fifty  per
cent of actual wages paid in such income year [for
such] TO AN APPRENTICE IN  THE  FIRST  HALF  OF  A
TWO-YEAR  TERM  OF  APPRENTICESHIP OR IN THE FIRST
THREE-QUARTERS   OF   A    FOUR-YEAR    TERM    OF
apprenticeship, whichever is less.
    (c)  THERE  SHALL  BE ALLOWED A CREDIT FOR ANY
TAXPAYER  AGAINST  THE  TAX  IMPOSED  UNDER   THIS
CHAPTER  FOR ANY INCOME YEAR WITH RESPECT TO WAGES
PAID TO APPRENTICES IN THE CONSTRUCTION TRADES  BY
SUCH TAXPAYER IN SUCH YEAR THAT THE APPRENTICE AND
TAXPAYER  PARTICIPATE  IN  A  QUALIFIED  FOUR-YEAR
APPRENTICESHIP  TRAINING  PROGRAM, AS DESCRIBED IN
THIS SECTION, WHICH (1) IS JOINTLY ADMINISTERED BY
LABOR AND MANAGEMENT TRUSTEES, (2) IS ADMINISTERED
PURSUANT  TO  29  USC  SECTION  186(c),   (3)   IS
CERTIFIED  IN  ACCORDANCE WITH REGULATIONS ADOPTED
BY THE LABOR COMMISSIONER AND  (4)  IS  REGISTERED
WITH  THE CONNECTICUT STATE APPRENTICESHIP COUNCIL
ESTABLISHED UNDER SECTION 31-51b. THE  TAX  CREDIT
SHALL  BE  IN  AN  AMOUNT EQUAL TO TWO DOLLARS PER
HOUR MULTIPLIED  BY  THE  TOTAL  NUMBER  OF  HOURS
WORKED  DURING  THE  INCOME  YEAR  BY APPRENTICES,
PROVIDED THE AMOUNT  OF  CREDIT  ALLOWED  FOR  ANY
INCOME  YEAR  WITH RESPECT TO EACH SUCH APPRENTICE
MAY NOT EXCEED ONE THOUSAND DOLLARS OR  FIFTY  PER
CENT  OF ACTUAL WAGES PAID IN SUCH INCOME YEAR FOR
SUCH APPRENTICESHIP, WHICHEVER IS LESS.
    [(c)]  (d)  For  purposes  of  this section, a
qualified apprenticeship  training  program  shall
require  at  least four thousand but not more than
eight thousand hours  of  apprenticeship  training
for  certification  of  such apprenticeship by the
Connecticut  State  Apprenticeship  Council.   The
amount  of  credit allowed any taxpayer under this
section for any income year  may  not  exceed  the
amount  of  tax  due from such taxpayer under this
chapter with respect to such income year.
    Sec.  17. Subsection (d) of section 12-217m of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (d)  The credit allowed by this section may be
claimed only by a taxpayer which occupies the  new
facility  for which an eligibility certificate has
been issued by the commissioner and  with  respect
to   which   the   certification   required  under
subsection (e) of this section  has  been  issued.
The  credit  [may  not be claimed before the first
full income year following the  issuance  of  such
eligibility  certificate  by the commissioner, but
may be claimed in such income year and] MAY  FIRST
BE  CLAIMED  ON  THE TAX RETURN FOR THE TAXPAYER'S
INCOME YEAR WHICH BEGINS DURING THE CALENDAR  YEAR
NEXT  SUCCEEDING  THE  CALENDAR  YEAR IN WHICH THE
TAXPAYER WAS ISSUED  AN  ELIGIBILITY  CERTIFICATE,
AND  MAY  BE  CLAIMED in each of the following six
income years  as  long  as  the  certification  of
continued  eligibility  required  under subsection
(e) of this section has been  issued.  If,  within
such period, however, (1) any facility for which a
class 1 eligibility certificate  has  been  issued
ceases  at any time to occupy at least two hundred
fifty thousand square feet or the taxpayer  ceases
at  any  time  to employ at least one thousand new
employees at such facility, (2) any  facility  for
which  a  class 2 eligibility certificate has been
issued ceases to occupy at any time at least  five
hundred  thousand  square  feet  or  the  taxpayer
ceases to employ at any time at least two thousand
new  employees  at such facility, (3) any facility
for which a class 3  eligibility  certificate  has
been  issued ceases to occupy at any time at least
seven hundred fifty thousand square  feet  or  the
taxpayer  ceases  to  employ  at any time at least
three thousand new employees at such  facility  or
(4)  any  facility for which a class 4 eligibility
certificate has been issued ceases  to  occupy  at
any  time  at least one million square feet or the
taxpayer ceases to employ at  any  time  at  least
four  thousand  new  employees  at  such facility,
then, except as provided in subsection (f) of this
section,  the entitlement to the credit allowed by
this section shall terminate in the income year in
which  such  occupancy  or  employment ceases, and
there shall not be a pro rata application  of  the
credit to such income year.
    Sec.   18.  Section  12-217p  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  As  used in this section, "business firm"
means  any  business  entity  authorized   to   do
business   in   this  state  and  subject  to  the
corporation  business  tax  imposed   under   this
chapter,  or  any  [insurance company, hospital or
medical  services  corporation  subject   to   the
insurance companies, hospital and medical services
corporations] COMPANY SUBJECT  TO  A  tax  imposed
under  chapter 207, any air carrier subject to the
air carriers tax imposed under chapter 209, or any
railroad company subject to the railroad companies
tax imposed under chapter 210,  or  any  regulated
telecommunications  service,  express,  telegraph,
cable  or  community  antenna  television  company
subject   to   the   regulated  telecommunications
service, express, telegraph, cable  and  community
antenna  television  companies  tax  imposed under
chapter 211, [or  any  telecommunications  service
company  subject to the telecommunications service
company tax imposed under chapter  210a,]  or  any
utility  company  subject to the utility companies
tax imposed under  chapter  212.  [or  any  public
service  company  subject  to  the  public service
companies tax imposed under chapter 212a.]
    (b)   There  shall  be  allowed  as  a  credit
against the tax imposed by this chapter or chapter
207, 209, 210, [210a,] 211 [,] OR 212 [or 212a] in
any income year an amount equal to the amount paid
DURING  SUCH INCOME YEAR by a business firm into a
revolving loan fund established to  provide  loans
for  housing  located  in  the  state  for low and
moderate income employees of the business firm  or
any  subsidiary  thereof. Loans from any such fund
shall be spent in this state and used for (1)  the
cost   of  housing  that  is  to  be  a  principal
residence and falls within one hundred  fifty  per
cent  of  the  price  guidelines  established  for
programs administered by the  Connecticut  Housing
Finance   Authority,   including  costs  for  down
payments,  mortgage   interest   rate   buy-downs,
closing  costs  and  other  costs determined to be
eligible under written procedures adopted  by  the
Connecticut   Housing   Finance   Authority  under
subsection (c) of this section  and  (2)  payments
for  security  deposits  and  advance payments for
rental housing.
    (c)  The Connecticut Housing Finance Authority
shall adopt written procedures in accordance  with
the  provisions of section 1-121 for establishment
and operation of  employer  revolving  loan  funds
eligible  for the credit provided in this section.
Such  procedures  shall  include  provisions   for
employee  eligibility  and  shall specify expenses
for which  loans  may  be  made  and  provide  the
documentation   and  procedures  necessary  for  a
business firm to qualify for the tax credit.
    (d)  Any  business  firm  claiming  the credit
allowed by this section shall submit documentation
to  the  Commissioner of Revenue Services that the
revolving  loan   fund   complies   with   written
procedures for revolving loan funds established by
the Connecticut Housing  Finance  Authority  under
subsection (c) of this section.
    (e)   Nothing   in   this   section  shall  be
construed to prevent two or  more  business  firms
from participating jointly in one or more programs
under the provisions of this section.  Such  joint
programs  shall be submitted, and acted upon, as a
single program by the business firms involved.
    (f)  Any  business firm which desires to apply
for the  credit  allowed  by  this  section  shall
submit the documentation required under subsection
(d) of this section to the authority on or  before
November  first  of each year. The authority shall
randomly select from among all qualified  business
firms,  those  firms allowed said credit. [for the
succeeding tax year] THE CREDIT SHALL  BE  CLAIMED
ON THE TAX RETURN FOR THE INCOME YEAR DURING WHICH
THE SELECTED BUSINESS FIRM MADE PAYMENT  INTO  THE
REVOLVING  LOAN  FUND.  The  sum of all tax credit
granted pursuant to the provisions of this section
shall  not  exceed  one  hundred  thousand dollars
annually per business firm. In no event shall  the
total  amount  of  all  tax credits allowed to all
business firms pursuant to the provisions of  this
section  exceed  one  million  dollars  in any one
fiscal year.
    (g)  No  tax  credit  shall  be granted to any
bank, bank and trust company,  insurance  company,
trust company, national bank, savings association,
or building and  loan  association  or  any  other
business  entity for activities that are a part of
its normal course of business.
    (h)  Any  tax  credit  not  used in the period
during  which  the  investment  was  made  may  be
carried   forward   or   backward   for  the  five
immediately succeeding or preceding  [calendar  or
fiscal]  INCOME  years  until  the full credit has
been allowed. FOR INCOME YEARS  COMMENCING  ON  OR
AFTER  JANUARY 1, 1998, IF THE CONNECTICUT HOUSING
FINANCE AUTHORITY DETERMINES THAT SIXTY  PER  CENT
OR  MORE  OF  A  REVOLVING  LOAN FUND HAS NOT BEEN
LOANED AS PROVIDED IN THIS SECTION BY  A  BUSINESS
FIRM  ON  OR  BEFORE  THE DATE THAT IS THREE YEARS
AFTER THE DATE  THAT  A  REVOLVING  LOAN  FUND  IS
ESTABLISHED  PURSUANT  TO  THIS  SECTION  BY  SUCH
BUSINESS FIRM, THE  AUTHORITY  SHALL  NOTIFY  SUCH
FIRM  AND  THE COMMISSIONER THAT THE AUTHORITY HAS
DETERMINED THAT SIXTY PER CENT OR MORE OF THE FUND
HAS  NOT  BEEN LOANED AS PROVIDED IN THIS SECTION,
AND SUCH FIRM SHALL BE REQUIRED TO  RECAPTURE  THE
CREDITS  PREVIOUSLY GRANTED UNDER THIS SECTION, TO
THE EXTENT PROVIDED FOR IN WRITTEN  PROCEDURES  OF
THE  AUTHORITY ADOPTED UNDER SECTION 1-121, ON THE
FIRST TAX RETURN REQUIRED TO BE FILED ON OR  AFTER
THE  DATE OF SUCH NOTICE FOR A TAX IMPOSED BY THIS
CHAPTER OR CHAPTER 207, 209, 210, 210a OR 212.  IF
ANY  AMOUNT OF SUCH RECAPTURED CREDIT HAS NOT BEEN
PAID TO THE COMMISSIONER ON OR BEFORE THE DUE DATE
OR,  IF  AN  EXTENSION OF TIME TO FILE SUCH RETURN
HAS BEEN GRANTED, THE EXTENDED DUE  DATE  OF  SUCH
RETURN.  SUCH  AMOUNT  SHALL  BEAR INTEREST AT THE
RATE OF ONE PER CENT PER MONTH OR FRACTION THEREOF
FROM  SUCH  DUE  DATE  OR EXTENDED DUE DATE TO THE
DATE OF PAYMENT.
    Sec.   19.  Section  17b-740  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  As  used  in section 12-634, this section
and sections 17b-741 and 17b-742, "business  firm"
means   any   business  entity  authorized  to  do
business  in  the  state  and   subject   to   the
corporation  business  tax  imposed  under chapter
208,  or  any  [insurance  company,  hospital   or
medical   services   corporation  subject  to  the
insurance companies, hospital and medical services
corporations]  COMPANY  SUBJECT  TO  A tax imposed
under chapter 207, or any air carrier  subject  to
the air carriers tax imposed under chapter 209, or
any  railroad  company  subject  to  the  railroad
companies  tax  imposed  under chapter 210, or any
express, telegraph, telephone, cable or  community
antenna television company subject to the express,
telegraph, telephone, cable and community  antenna
television  companies  tax  imposed  under chapter
211, or any utility company subject to the utility
companies tax imposed under chapter 212. [, or any
public  service  company  subject  to  the  public
service companies tax imposed under chapter 212a.]
    (b)   Any   business  firm  which  desires  to
provide subsidies to its employees for  child  day
care   from   registered  or  licensed  providers,
providers giving day care in the child's home or a
relative  of  the  child  giving  day  care in the
relative's home, approved by the  Commissioner  of
Social  Services  pursuant  to  this  section, may
apply to the Commissioner of Social  Services  for
an  allocation  for  a  tax credit in an amount as
provided in section 17b-741. The application for a
tax  credit  under this subsection shall set forth
information the commissioner  deems  necessary  in
regulations adopted in accordance with chapter 54.
    (c)  Any business firm which desires to pay or
incur  expenditures  in  any   income   year   for
planning,    site    preparation,    construction,
renovation or acquisition of  facilities  for  the
purposes of establishing a child day care facility
on or  off  site  and  purchasing  and  installing
equipment  for permanent use within or immediately
adjacent  to  such  facility,  including   kitchen
appliances,  to  the extent that such equipment or
appliances  are  necessary  in  the  use  of  such
facility for purposes of child day care, may apply
to the Commissioner  of  Social  Services  for  an
allocation  for  a  tax  credit  in  an  amount as
provided in section  17b-741,  provided  (1)  such
facility  is  operated  under  the  authority of a
license  issued  by  the  Commissioner  of  Public
Health  in accordance with sections 19a-77, 19a-79
to  19a-87,  inclusive,  (2)  such   facility   is
operated  without profit or is operated for profit
by such taxpayer related to  any  charges  imposed
for the use of such facility for purposes of child
day care and (3) the amount of tax credit  allowed
any   taxpayer   under   the  provisions  of  this
subsection for any  income  year  may  not  exceed
twenty  thousand dollars. If two or more taxpayers
share in the cost of establishing such a  facility
for  the  children  of  their employees, each such
taxpayer shall be allowed such credit in  relation
to  the respective share, paid or incurred by such
taxpayer,  of  the  total  expenditures  for   the
facility  in  such  income  year. No business firm
which regularly engages  in  the  construction  or
operation  of  child  day care facilities shall be
eligible for any tax credit under  the  provisions
of this subsection.
    (d)  Any business firm which desires to pay or
incur  expenditures  in  any   income   year   for
providing   parent   education   programs  to  its
employees may apply to the Commissioner of  Social
Services  for an allocation for a tax credit in an
amount of forty  per  cent  of  the  total  amount
invested  during [the taxable] SUCH INCOME year by
the business firm for such  classes.  Such  parent
education  programs  shall  consist  of  providing
information and advice to parents on their child's
language,  cognitive, social and motor development
and to provide  referrals  for  parents  who  need
special  assistance  or services. Such tax credits
shall only be  available  after  tax  credits  for
child    care   subsidies   are   exhausted.   The
application for a tax credit under this subsection
shall set forth the cost of such training programs
provided  to  the  employees  and  the  number  of
employees participating in such classes.
    (e)  The  Commissioner  of Social Services, in
consultation  with  the  Labor  Commissioner,  the
Commissioners of Revenue Services and Economic and
Community   Development   and   business   related
organizations,  including, but not limited to, the
chambers  of  commerce,  shall  develop  marketing
strategies  to  educate  and attract businesses to
access tax  credits  available  pursuant  to  this
section.
    (f)  Applications  shall  be  submitted to the
Commissioner  of  Social  Services  after  October
first  of the year before such expenditures are to
be made and on or before June first of the year in
which  such  expenditures  are  to  be  made.  The
commissioner  shall  approve  or  disapprove  each
application within sixty days of its submission to
the commissioner based on (1)  the  compliance  of
such  application  with  the  provisions  of  this
section,  (2)  regulations  adopted  pursuant   to
section 17b-742, and (3) the amount of tax credits
remaining in the annual allotment provided in this
section  for  the  year involved. The commissioner
shall first approve applications under  subsection
(b)  of  this  section  which  give  preference to
low-income workers in accordance with  regulations
adopted   pursuant  to  section  17b-742.  If  the
commissioner  approves  the  application  of   the
business  firm and if the limit for tax credit for
that  year  has  not  yet  been   allocated,   the
commissioner  shall  allocate  and  commit to such
business  firm  an  amount  of  tax  credits   not
exceeding  the  estimated  amount  which  will  be
expended during the FIRM'S current  or  subsequent
INCOME  year  by  such  firm on eligible child day
care expenditures.  Any  business  firm  receiving
such  an  allocation  shall, within thirty days of
the end of [the] ITS INCOME year, submit a  report
on  its actual expenditures under this section for
such year.
    (g)  THE  CREDIT  SHALL  BE CLAIMED ON THE TAX
RETURN FOR THE INCOME YEAR DURING WHICH A BUSINESS
FIRM TO WHICH TAX CREDITS HAVE BEEN ALLOCATED MADE
ELIGIBLE EXPENDITURES. Any tax credit not used  in
the  period  during which the expenditure was made
may be carried forward [or backward] for the  five
immediately  succeeding  [or preceding calendar or
fiscal] INCOME years until  the  full  credit  has
been allowed.
    (h)  In no event shall the total amount of all
tax credits allowed to all business firms pursuant
to  the  provisions  of  this  section  exceed two
million dollars in any one fiscal year.
    (i)  No  credit  under  subsection (c) of this
section shall be allowed for any taxpayer who  has
been  granted  a  tax  credit  for  the  same year
pursuant to section 12-634.
    Sec.  20. Subsection (b) of section 17b-112 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  For purposes of this subsection, "family"
means one or more individuals  who  apply  for  or
receive  assistance  together  under  the  aid  to
families  with  dependent  children  program.  The
commissioner  shall  seek waivers from federal law
to modify the existing research and  demonstration
programs  authorized pursuant to subsection (a) of
this section for the purpose of creating a  single
state-wide   research  and  demonstration  program
effective no earlier than January  1,  1996.  Such
waivers  shall include, but not be limited to, the
following provisions:
    (1)  To limit benefits of a family to a period
of twenty-one months. Families  exempt  from  such
time limited benefits include, but are not limited
to: (A) A family with a needy  caretaker  relative
who  is  incapacitated  or  of an advanced age, as
defined by the commissioner, if there is no  other
nonexempt caretaker relative in the household; (B)
a family with a needy caretaker  relative  who  is
needed  in  the  home because of the incapacity of
another member of the household, if  there  is  no
other   nonexempt   caretaker   relative   in  the
household; (C) a family with a caretaker  relative
who  is  not legally responsible for the dependent
children in the household if such relative's needs
are  not  considered  in calculating the amount of
the  benefit  and  there  is  no  other  nonexempt
caretaker  relative in the household; (D) a family
with a caretaker relative caring for a  child  who
is  under one year of age and who was born no more
than ten months after the  family's  enrolment  if
there  is no other nonexempt caretaker relative in
the household; (E) a family  with  a  pregnant  or
postpartum  caretaker  relative if a physician has
indicated that such relative is unable to work and
there  is no other nonexempt caretaker relative in
the household;  (F)  a  family  with  a  caretaker
relative  determined  by  the  commissioner  to be
unemployable  and  there  is  no  other  nonexempt
caretaker relative in the household; and (G) minor
parents attending  and  satisfactorily  completing
high school or high school equivalency programs;
    (2)  To  enhance  the  department's ability to
provide child care benefits to  current  and  past
recipients  of  the aid to families with dependent
children who  are  employed  and  extend  Medicaid
eligibility  for  two years for a family which has
lost  eligibility  for  aid   to   families   with
dependent  children  while  employed or who become
employed within six months  of  having  lost  such
eligibility;
    (3)  To  simplify  and  streamline eligibility
rules and procedures in the aid to  families  with
dependent  children  program,  the  JOBS  program,
child  support,  child  care,  Medicaid  and  food
stamps;
    (4)  To  enhance the commissioner's ability to
collect child support payments, except such waiver
shall   not   include   guaranteed  child  support
payments;
    (5)  To  provide that a person subject to time
limited benefits pursuant to  subdivision  (1)  of
this  subsection receive priority consideration in
the JOBS program established in section 17b-680 in
ways  which  shall  best  facilitate  such  person
becoming and staying employed;
    (6)    To    assist   families   in   becoming
self-sufficient   and   reward   achievement    in
education  by  modifying  treatment  of income and
resources;
    (7)  To  disregard  earned income for a family
subject to  time  limited  benefits,  pursuant  to
subdivision  (1)  of  this  subsection,  up to the
federal poverty  level  and  to  render  a  family
exceeding   such   level  ineligible  for  aid  to
families with dependent children;
    (8)  To  provide that a person arriving in the
state, applying  for  benefits  from  the  aid  to
families  with  dependent children program for the
first year of such person's residency, be eligible
to  receive  ninety  per cent of the benefit level
for which he qualifies;
    (9)  To allow a person subject to time limited
benefits, pursuant  to  subdivision  (1)  of  this
subsection,   to  petition  the  commissioner  for
six-month  extensions  of   such   benefits.   The
commissioner may grant such extensions to a person
who has made a good faith effort  to  comply  with
the  requirements  of  the  aid  to  families with
dependent children program and despite such effort
is  unable  to  obtain or retain employment or has
encountered  circumstances  including,   but   not
limited  to, domestic violence or physical harm to
such  person's  children  or  other  circumstances
beyond such person's control. Such person shall be
notified  by  the  department  of  his  right   to
petition for such extensions. Upon the granting of
such petition, such person,  in  cooperation  with
the  department,  shall  develop (A) an employment
development   plan   designed   to    result    in
self-sufficiency and (B) a child achievement plan,
for such person's child, designed for such  person
to  monitor school attendance, enroll in preschool
programs and monitor immunization;
    (10)  To  limit  the increase in benefits to a
family for an infant born after  the  initial  ten
months  of  participation  in  the aid to families
with dependent children program to an amount equal
to  fifty  per  cent  of  the  average incremental
difference  between  the  amounts  paid  for  each
family size; AND
    [(11)  To  create  a  pilot program to issue a
recipient of benefits from  the  aid  to  families
with  dependent  children  program an "opportunity
certificate". For purposes of this subdivision, an
"opportunity  certificate"  means a voucher in the
amount of fifteen hundred dollars to be used by  a
recipient     to    negotiate    for    employment
opportunities. The commissioner may encourage such
recipient  to  undertake  employment  in preschool
child care programs, child day care centers, group
day  care  homes and family day care homes. Such a
certificate shall be redeemable for credit against
a  tax imposed by chapters 207 to 212a, inclusive,
214, 214a, 219 to 227, inclusive, and 228d to 229,
inclusive; and
    (12)]  (11)  To  implement  a disqualification
penalty  for  failure  to  cooperate  with   fraud
prevention  efforts  developed  by  the department
including,  but  not  limited  to,   a   biometric
identifier system or photographic identification.
    Sec.   21.   Notwithstanding   the  repeal  of
subparagraphs (G) and (H) of  subdivision  (2)  of
subsection   (a)   of   section  12-214,  sections
12-217c,  12-217d,  12-252a,   12-252b,   12-258b,
12-258c,  12-265b,  12-265c  and  17b-740  of  the
general statutes, any taxpayer  or  business  firm
eligible  for a tax credit pursuant to any of said
sections  may  carry  any  remaining  tax   credit
forward  to any income year commencing on or after
January  1,  1998,  as  the  provisions   of   the
appropriate  section  would  have allowed prior to
said repeal.
    Sec. 22. Subsection (a) of section 3 of public
act  97-292  is  repealed  and  the  following  is
substituted in lieu thereof:
    (a)  The  provisions of section 38a-88a of the
general statutes, revision  of  1958,  revised  to
January   1,   1997,   shall  apply  to  any  fund
established prior to June 1, 1997, or to any  fund
which  is  formed  on  or  after  June 1, 1997, in
connection  with  a  memorandum  of  understanding
executed  by  and  among  the  fund  manager,  the
investors  [,]  AND  EITHER  the  Commissioner  of
Revenue    Services   [and]   OR   the   Insurance
Commissioner prior to June 1, 1997.
    Sec.  23.  Section   12-217i  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) There shall  be  allowed  a credit for any
taxpayer against the  tax imposed by this chapter,
chapter 209, 210, 211 or 212 in any income year or
calendar quarter, as  the  case may be, commencing
prior to January  1,  [1998]  2000,  in  an amount
equal  to  ten   per   cent   of   the  amount  of
expenditures paid or  incurred  during such income
year or such  quarter, as the case may be, for the
incremental cost of  purchasing a vehicle which is
exclusively powered by a clean alternative fuel.
    (b) There shall  be  allowed  a credit for any
taxpayer against the  tax  imposed by this chapter
in any income  year commencing on or after January
1, 1994, and  prior  to January 1, [1999] 2000, in
an amount equal to fifty per cent of the amount of
expenditures,  other  than   those   described  in
subsection (a) of  this  section, paid or incurred
during  such income  year  directly  for  (1)  the
construction   of   any    filling    station   or
improvements to any  existing  filling  station in
order to provide compressed natural gas, liquified
petroleum gas or  liquified  natural  gas; (2) the
purchase and installation  of conversion equipment
incorporated into or  used  in converting vehicles
powered by any  other fuel to either exclusive use
of clean alternative  fuel  or  dual  use  of such
other  fuel  and   a   clean   alternative   fuel,
including, but not  limited to, storage cylinders,
cylinder brackets, regulated  mixers, fill valves,
pressure regulators, solenoid valves, fuel gauges,
electronic ignitions and alternative fuel delivery
lines,   if   such   converted   vehicles,   after
conversion,  meet  generally  accepted  standards,
including, but not  limited  to, the standards set
by the American Gas Association, the National Fire
Protection  Association,  the   American  National
Standards  Institute,  the   American  Society  of
Testing  Materials  or  the  American  Society  of
Mechanical  Engineers; or  (3)  the  purchase  and
installation  of equipment  incorporated  into  or
used  in  a   compressed  natural  gas,  liquefied
petroleum gas or  liquified natural gas filling or
electric recharging station  for  vehicles powered
by a clean  alternative  fuel,  including, but not
limited   to,  compressors,   storage   cylinders,
associated framing, tubing  and  fittings,  valves
and fuel poles and fuel delivery lines.
    (c) If the  amount  of  any credit provided in
this section exceeds  the  amount of tax otherwise
payable in the income year or calendar quarter, as
the case may  be,  in  which  such expenditure was
paid or incurred,  the  balance of any such credit
remaining  may  be  taken  in  any  of  the  three
succeeding  income  years   or  twelve  succeeding
calendar  quarters,  respectively.   Any  taxpayer
allowed such a  tax credit against the tax imposed
under this chapter,  chapter  209, 210, 211 or 212
shall not be  allowed  such credit under more than
one of said  chapters.  As  used  in  this section
"clean  alternative fuel"  shall  mean  compressed
natural gas, liquified  petroleum  gas,  liquified
natural gas or  electricity  when  used as a motor
vehicle fuel and "incremental cost" shall mean the
difference between the purchase price of a vehicle
which   is  exclusively   powered   by   a   clean
alternative fuel and  the manufacturer's suggested
retail  price of  a  comparably  equipped  vehicle
which is not so powered.
    Sec. 24. Sections  12-217c,  12-217d, 12-217f,
12-217k,  12-217m,  12-252a,   12-252b,   12-258b,
12-258c, 12-265b, 12-265c,  17b-740,  17b-741  and
17b-742 of the general statutes are repealed.
    Sec. 25. This  act  shall take effect from its
passage, except that  (1)  sections 4, 8 and 13 to
20, inclusive, shall  be applicable to tax returns
filed for (A)  income  years of corporations under
chapter 208 of  the  general  statutes  and of air
carriers under chapter 209 of the general statutes
commencing  on  or  after  January  1,  1997,  (B)
calendar  years  of   insurance   companies  under
chapter  207 of  the  general  statutes,  railroad
companies  under  chapter   210   of  the  general
statutes  and  express,   telegraph,   cable   and
community  antenna  television   system  companies
under  chapter  211   of   the   general  statutes
commencing on or  after  January  1, 1997, and (C)
calendar  quarters  of   utility  companies  under
chapter 212 of  the general statutes commencing on
or after January 1, 1997, and (2) sections 1 to 6,
inclusive, 8 to 12, inclusive, and sections 21 and
24 shall be  applicable to income years commencing
on or after January 1, 1998.

Approved July 8, 1997