Connecticut House OKs $400M in tax credits for UTC

Published on NewsOK Modified: April 17, 2014 at 6:21 pm •  Published: April 17, 2014
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HARTFORD, Conn. (AP) — Connecticut's House of Representatives on Thursday overwhelmingly approved a deal to grant up to $400 million in tax credits to United Technologies Corp. if UTC makes up to $500 million in upgrades and expansion and hires more workers.

Gov. Dannel P. Malloy's administration recently reached the deal with the state's largest private employer, and House members passed it on a bipartisan 134-4 vote, with four Republicans in opposition.

Legislation endorsing the tentative agreement was billed as a way to ensure the headquarters for the company's helicopter and aerospace divisions would remain in the state for years to come.

The bill now moves to the Senate for final legislative action.

"Today we're sending a positive message: that we're reacting, we're ensuring that manufacturing, especially skilled manufacturing, has a place here in the state of Connecticut. And we're going to do whatever necessary to ensure that it stays that way," said House Majority Leader Joseph Aresimowicz, D-Berlin.

The deal calls for UTC to spend up to $500 million to upgrade and expand facilities at Pratt & Whitney in East Hartford, Sikorsky in Stratford and UTC Aerospace in Windsor Locks. The state must offset up to $400 million in sales and income taxes over 14 years. To take full advantage of the tax benefits, the company must hire more engineers and other workers and boost its payroll.

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