(a) As used in this section, the following terms shall have the following meanings unless the context clearly indicates another meaning:

(1) “7/7 participant” means an eligible owner whose application submitted pursuant to subsection (c) of this section has been approved by the commissioner;

(2) “7/7 site” means the real property redeveloped and utilized or proposed to be redeveloped and utilized by a 7/7 participant in accordance with this section;

(3) “Brownfield” has the same meaning as provided in section 32-760;

(4) “Completion of the brownfield remediation” means the completed remediation of a 7/7 site by a 7/7 participant as evidenced by the filing of either a verification or interim verification that meets the requirements of section 22a-133x, 22a-133y or 22a-134;

(5) “Eligible owner” means any person, firm, limited liability company, nonprofit or for-profit corporation or other business entity that holds title to (A) a brownfield, provided such owner did not establish, create or maintain a source of pollution to the waters of the state for purposes of section 22a-432 and is not responsible pursuant to any other provision of the general statutes for any pollution or source of pollution on such brownfield; or (B) real property that has been abandoned or underutilized for ten or more years; and

(6) “Qualified expenditures” means the expenditures associated with the investigation, assessment and remediation of a brownfield, including, but not limited to: (A) Soil, groundwater and infrastructure investigation; (B) assessment; (C) remediation of soil, sediments, groundwater or surface water; (D) abatement; (E) hazardous materials or waste removal and disposal; (F) long-term groundwater or natural attenuation monitoring; (G) (i) environmental land use restrictions, (ii) activity and use limitations, or (iii) other forms of institutional control; (H) reasonable attorneys’ fees; (I) planning, engineering and environmental consulting; and (J) remedial activity to address building and structural issues, including, but not limited to, demolition, asbestos abatement, polychlorinated biphenyls removal, contaminated wood or paint removal and other infrastructure remedial activities. “Qualified expenditures” do not include expenditures funded for such investigation, assessment, remediation and development directly through other state brownfield programs administered by the commissioner.

(b) There is established within the Department of Economic and Community Development the 7/7 program. Said program shall provide incentives to businesses for redeveloping and utilizing brownfields and real property that has been abandoned or underutilized for ten or more years. Participants in said program shall be eligible for the tax incentives provided under subsections (e) to (h), inclusive, of this section.

(c) To be designated a 7/7 participant, an eligible owner shall submit to the Commissioner of Economic and Community Development an application, on forms provided by the commissioner, that shall include the following information: (1) A description of the real property such eligible owner seeks to utilize and the proposed use for such property; (2) a written certification (A) from such eligible owner stating that such property is a brownfield, or (B) from the municipality in which such property is located stating that such property has been abandoned or underutilized for ten or more years, as determined by such municipality; (3) a plan that such eligible owner shall submit to high schools in the area of the brownfield and the regional-community technical colleges that includes the anticipated workforce needs for the proposed use of such property and workforce training requirements in order to enable such schools and colleges to develop educational training programs to meet such workforce needs; (4) a commitment by the eligible owner to hire not less than thirty per cent of its workforce from students enrolled in any programs developed as a result of subdivision (3) of this subsection; (5) a written certification from the municipality in which such property is located that such municipality supports the application for the designation of such property as a 7/7 site; and (6) any other information the commissioner deems necessary. The commissioner shall approve any application that satisfies the requirements of this subsection and shall notify the Commissioner of Revenue Services whenever he or she approves the application of an eligible owner.

(d) Any 7/7 participant that seeks to redevelop and utilize a brownfield shall not be eligible for any of the benefits provided under subsections (e) to (h), inclusive, of this section until the completion of the brownfield remediation and the participant’s notification of such completion to the Commissioners of Revenue Services and Economic and Community Development and the municipality in which such brownfield is located.

(e) (1) If a 7/7 participant is subject to the tax imposed under chapter 208, the Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of said chapter in an amount equal to the total amount of tax due under said chapter for the income year that is attributable to the operations of such participant’s business located on the 7/7 site after the deduction of any other credits allowable under said chapter. The credit allowed by this subdivision shall be available in the first income year in which such participant begins business operations at such site and the succeeding six income years.

(2) If a 7/7 participant is subject to the tax imposed under chapter 229, the Commissioner of Revenue Services shall grant a credit to each member, shareholder or partner of such participant against any tax due under the provisions of said chapter, other than the liability imposed by section 12-707, in an amount equal to such member’s, shareholder’s or partner’s amount of tax due under said chapter for the taxable year that is attributable to the operations of such participant’s business located on the 7/7 site after the deduction of any other credits allowable under said chapter. The credit allowed by this subdivision shall be available in the first taxable year in which such participant begins business operations at such site and the succeeding six taxable years.

(f) (1) The taxes imposed by chapter 219 shall not apply to any item purchased by a 7/7 participant in the first seven calendar years from the date such participant initiates business operations at a 7/7 site, provided such item is purchased for use in the ordinary course of business at such site.

(2) At the time of sale, a 7/7 participant shall present to the person who makes the sale a certificate to the effect that the item is subject to such exemption. The certificate shall be signed by and bear the name and address of the purchaser. The certificate shall be substantially in such form as the Commissioner of Revenue Services prescribes.

(3) If a purchaser who presents a certificate, in accordance with subdivision (2) of this subsection, makes any use of the item other than the purpose set forth in subdivision (1) of this subsection, the use shall be deemed to be a use by the purchaser in accordance with chapter 219, as of the time the property is first used by him or her, and the item shall be taxable to such purchaser in accordance with said chapter.

(g) (1) In the case of a 7/7 participant subject to the tax imposed under chapter 208, in arriving at net income, as defined in section 12-213, in the eighth income year following such 7/7 participant’s initiation of business operations at a 7/7 site that was a brownfield and the six succeeding income years, there shall be deducted from gross income, as defined in section 12-213, an amount not to exceed eight and fifty-seven-one-hundredths per cent of the qualified expenditures associated with the remediation of such site.

(2) In the case of a 7/7 participant subject to the tax imposed under chapter 229, in the eighth income year following such 7/7 participant’s initiation of business operations at a 7/7 site that was a brownfield and the six succeeding income years, there shall be subtracted from Connecticut adjusted gross income, as defined in section 12-701, an amount not to exceed eight and fifty-seven-one-hundredths per cent of the qualified expenditures associated with the remediation of such site.

(h) Notwithstanding any provision of the general statutes or of any special act, municipal charter or home rule ordinance, for five assessment years following the date a 7/7 participant obtained a building permit to begin construction at a 7/7 site, the municipality in which such site is located shall continue to use the assessed value of such site as of the date such participant’s application was approved under subsection (c) of this section.

(i) The Commissioner of Economic and Community Development, in consultation with the Commissioner of Revenue Services, shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section.

(June Sp. Sess. P.A. 17-2, S. 168.)

History: June Sp. Sess. P.A. 17-2 effective October 31, 2017 and applicable to taxable and income years commencing on or after January 1, 2017.