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.
Day Pitney Advisory
On September 14, Patricia "Paty" Jimenez served as a panelist for the session, "Ethical Issues That Can Arise in Commercial Real Estate Transactions," at the Connecticut Bar Association's Virtual Connecticut Legal Conference.
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Day Pitney Press Release
Katharine Coffey and Christopher Stracco, both partners at Day Pitney, were quoted by Law360 in the article, "Virus Creates Opening For Office Market In NJ Suburbs."
April Condon has been elected to a three-year term as Vice Chairwoman of the Stamford Partnership, a nonprofit that focuses on improving the city's business climate and public services.
On July 15, the New Jersey Supreme Court issued its much awaited decision in Christian Mission John 3:16 v. Passaic City. The court granted certification on an appeal from the Appellate Division, which affirmed a decision of the Tax Court rejecting a property tax exemption for a church in the City of Passaic.
Craig Gianetti, a partner in Day Pitney's Real Estate & Land Use group, has been elected to serve as Chair of the Land Use Law Section of the New Jersey State Bar Association (NJSBA).