ANNOUNCEMENT 20 Sep 2016
The incentives are contingent on meeting certain goals.
NUMBER OF INTERVENTIONS
On September 20, 2016 Governor Dannel P. Malloy of Connecticut and Lockheed Martin announced an agreement to keep the Sikorsky Aircraft headquarters in Connecticut and to increase investments in in-state suppliers. (Sikorsky was purchased by Lockheed Martin from United Technologies in 2015.) Under the deal, Sikorsky will build nearly 200 CH-53K King Stallion Helicopters in Connecticut for the United States Navy until at least 2032. In exchange for Lockheed’s commitments, the state will provide financial incentives totaling up to $220 million over the term of the agreement. These include annual grants of up to $8.57 million over the term of the agreement by meeting certain benchmarks with respect to jobs, utilizing in-state suppliers, and other criteria. If Lockheed exceeds the target level employment by 100 to 550 jobs in any given year of the agreement, it will be eligible for a performance incentive grant of up to $1.9 million, for a total of up to $20 million. The Connecticut General Assembly approved the deal on September 28, 2016.
The deal further provides that sales and use taxes maybe exempted up to $5.7 million per year over the term of the agreement.