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 the corporation fails to meet this five-year usage requirement, it will be required to repay the full amount of the tax credit received. This amendment aims to incentivize long-term investment in machinery and equipment by corporations operating within the state while ensuring accountability through the recapture provision.