Connecticut Gov. Dannel Malloy signed an agreement for major defense contractor United Technologies Corp. to invest up to $500 million to upgrade and expand its aerospace research, development and manufacturing facilities in the state over five years.
During that period, UTC expects to invest up to $4 billion in research and other capital expenditures in Connecticut.
Malloy said the agreement will not require any state borrowing or payments.
UTC, among other measures, will construct a new Pratt & Whitney corporate headquarters, which it will keep in Connecticut for at least 15 years; keep Sikorsky corporate headquarters in Connecticut for at least five; create a customer training center at UTC Aerospace Systems in Windsor Locks; and build new labs and infrastructure at its research center.
The legislation will enable UTC to exchange roughly $20 million per year of previously earned but unused tax credits to finance the construction, up to a maximum of $400 million. The exchanged credits will be offset with tax reductions over 14 years, with the final amount based on the company's level of jobs, wages and investments.
