PA 17-244—SB 1051

Finance, Revenue and Bonding Committee

AN ACT CONCERNING CTNEXT PLANNING GRANTS-IN-AID AND INNOVATION PLACE DESIGNATION APPLICATIONS AND INVEST CT FUND TAX CREDIT TRANSFERABILITY

SUMMARY: This act allows CTNext, a Connecticut Innovations (CI) subsidiary, to accept additional rounds of applications under the innovation place program for planning grants and innovation place designations ( 1). It also allows insurance companies that hold Invest CT tax credits to sell or otherwise transfer these credits to any taxpayer, rather than just to their affiliates, and makes a conforming change ( 2 & 3).

EFFECTIVE DATE: July 1, 2017

INNOVATION PLACE APPLICATIONS

Prior law required CTNext to accept one round of applications for planning grants and innovation place designation, which it already did. The act allows CTNext to accept additional rounds of these applications, on a schedule and according to deadlines it determines. For planning grants, the act specifies that CTNext may only accept applications until the money reserved for the grants is exhausted.

PA 16-3, May Special Session, established the innovation place program to foster innovation and entrepreneurship in compact, mixed-use geographic areas with startups, growth-stage businesses, anchor institutions, and access to public transit. Entities such as corporations, municipalities, and higher education institutions may submit applications for the designation of an innovation place.

INVEST CT TAX CREDITS

Under prior law, insurance companies that earned tax credits for investing in Invest CT funds (i.e., insurance reinvestment funds) could transfer the credits only to their affiliates. The act instead allows the companies to sell or otherwise transfer all or parts of these credits to any taxpayer or taxpayers. The act requires the transferee to claim the credits in the transferee's income year in which the transferee bought, was assigned, or was otherwise transferred the credit.

By law, Invest CT credits may be claimed against the insurance premiums tax or the surplus lines brokers tax.