The proposed bill, General Assembly Proposed Bill No. 101, seeks to amend section 12-217o of the general statutes by replacing the existing tax credit for machinery and equipment. The new provision introduces a tax credit that allows corporations to receive a credit of fifty percent of the amount spent on machinery and equipment that is acquired and installed in a facility located in the state. This credit is applicable regardless of the number of employees the corporation has.

Additionally, the bill includes a stipulation that the machinery or equipment must be used in the facility for a minimum of five years following installation. If this five-year usage requirement is not met, the corporation is required to repay the full amount of the tax credit. This amendment aims to incentivize investment in machinery and equipment while ensuring that such investments are sustained over a significant period.