The Connecticut General Assembly adjourned in June and now – 123 days later – Governor Dannel Malloy last Tuesday signed into law a two-year state budget. The governor did not adopt the budget, as passed overwhelmingly by both houses of the General Assembly, in its entirety. He exercised his line-item veto authority to eliminate appropriations in support of a proposed hospital tax. Other programs were not directly affected by the governor's line-item veto. Budget provisions of significance on the environmental front include:
The budget creates a new program supporting the remediation and reuse of properties meeting the definition of a brownfield. The newly created 7/7 Brownfields program, housed within the Connecticut Department of Economic and Community Development (DECD), will provide tax incentives for participating businesses that develop designated brownfields and other abandoned Connecticut properties. Participation in the program requires various state certifications and approvals, including the certification that the property is a qualifying brownfield or it has been underutilized or abandoned for at least 10 years. Additionally, the participating owner must commit to hiring at least 30 percent of its workforce from students enrolled in programs of study at area high schools and regional-community technical schools that were developed in response to the owner's plan identifying anticipated workforce needs and workforce training requirements. Once accepted into the 7/7 Brownfields program and following the completion of remediation, a participating owner will be eligible for tax benefits set forth in the legislation. The legislation directs DECD to adopt regulations applicable to the 7/7 Brownfields program, in consultation with the Connecticut Department of Revenue Services.
The budget legislation requires that the Connecticut Department of Energy & Environmental Protection (DEEP) review and take final action on various types of permits and authorizations within 90 days of application. If final action is not taken within this 90 days, the application will be deemed approved. Applications and authorizations listed in the legislation include, among others:
Budget Transfers/Allocations Impacting Environmental and Energy Program Funding
Budget provisions direct to the General Fund more than $175 million in funds otherwise earmarked for environmental and energy programs.
The budget creates certain bonding authorization caps, in one instance reducing proceeds from the sale of bonds potentially available to the Connecticut Green Bank for purposes of the Green Connecticut Loan Guaranty Fund program.
All of the above-mentioned provisions became effective from passage. This includes the 7/7 Brownfields program, which is applicable to taxable and income years commencing on or after January 1, 2017. Should you have any questions regarding the budget provisions discussed above, please feel free to contact any of the attorneys listed in the sidebar.
Boston attorneys William Pezzoni, Jared Ross and Justin Hannan gave a presentation on Qualified Opportunity Zones (QOZs) before Chamber of Commerce and City Economic Development members in New Bedford, MA.
On June 6, Von Sanborn will serve as the moderator at an Opportunity Zones program presented by the National Association of Corporate Directors (NACD) Connecticut Chapter and held at the Shore & Country Club in Norwalk, CT.
Day Pitney attorneys Von Sanborn and Justin Hannan will be speaking at "Qualified Opportunity Funds – A Primer for Attorneys," a program presented by the Boston Bar Association (BBA).
William Pezzoni, Jared Ross and Justin Hannan spoke at “Commercial Masterminds,” a Northeast Regional event hosted by the Keller Williams Commercial Real Estate Division on May 2 in Westford, MA.
Day Pitney Advisory
Day Pitney's representation of Cottontail Holdings LLC and Two Franklin Realty is noted in an article, "NJ Office Complex Overvalued By $15M, State Tax Court Says," published by Law360 Tax Authority.
Peter Wolfson was mentioned in an article, "Over-Capacity Crowd for Madison Historic Preservation Commission's Hearing on Proposed Movie Theater Redevelopment," published by Tapinto.net.
Kate Coffey was mentioned in an article, "Planning Board Grants Preliminary Approval for Assisted Living Facility," published by centraljersey.com.
Day Pitney Press Release
Day Pitney represented AlphaCrest Capital Management LLC (AlphaCrest), a quantitative research and technology-driven systematic trading firm based in New York, in connection with (i) the acquisition of a minority ownership interest in AlphaCrest by Brummer & Partners, an alternative investment manager based in Sweden and (ii) an investment by Brummer's BMS Multi-Strategy fund of funds in AlphaCrest Offshore Strategies Fund Ltd., an affiliated offshore feeder fund of the investment manager.