Pratt & Whitney Co. will build a new headquarters and its parent will invest as much as $4.5 billion in facilities over the next five years as part of its commitment to staying in Connecticut.
Gov. Dannel P. Malloy and United Technologies Chairman & CEO Louis Chênevert Wednesday announced an agreement under which UTC will invest up to $500 million to upgrade and expand its aerospace research, development and manufacturing facilities over the next five years.
During the same time period, UTC expects to invest up to $4 billion in research and other capital expenditures in the state. The agreement is expected to have an impact on more than 75,000 jobs in the state.
In exchange, pending legislation would allow UTC to offset future income and sales tax obligations using income tax credits from previous research and development. The bill would allow UTC to use up to $400 million in tax credits over the next 15 years it otherwise wouldn’t be able to use, if it keeps its end of the agreement.
“Connecticut has long led the world when it comes to the aerospace industry. With the agreement we are announcing today, we will ensure that we remain a leader for years to come,” Malloy said.
Specifically, the company will:
- Construct a new Pratt & Whitney corporate headquarters, which it will keep in Connecticut for a minimum of 15 years
- Construct a new Pratt & Whitney worldwide engineering center of excellence in Connecticut
- Keep Sikorsky corporate headquarters in Connecticut for a minimum of 5 years
- Create a customer training center at UTC Aerospace Systems (UTAS) in Windsor Locks
- Build new labs and infrastructure at United Technologies Research Center (UTRC)
- Invest in new research projects and capital investments at Pratt & Whitney, Sikorsky, UTAS and UTRC
Construction on the projects is expected to begin this year and continue through 2018. This agreement ensures that Connecticut will remain the center of UTC’s aerospace research and development activities and the home of Pratt & Whitney’s and Sikorsky’s headquarters for years to come, Malloy said.
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