Sikorsky Wins $900,000 Tax Exemption Dispute

The state of Connecticut will have to pay helicopter maker Sikorsky almost a million dollars, in a dispute over a tax exemption. As WNPR’s Harriet Jones reports, the company just won a ruling in the state’s Supreme Court.

The dispute centers around tax breaks for purchases Sikorsky made between 1995 and 2002. The Stratford-based aircraft maker applied to have sales tax of more than $900,000 dollars on the purchases refunded by the state. But Connecticut officials argued that the sales tax exemption, which is granted to aerospace manufacturers didn’t apply because the equipment was bought for research and development and not directly to manufacture helicopters. But Connecticut’s supreme court ruled Thursday that the company is entitled to the refund. In a unanimous decision, the justices ruled that research and development activities are an integral part of Sikorsky’s manufacturing, and therefore the purchases qualify under the law. The state hasn’t yet commented on the ruling.

For WNPR, I'm Harriet Jones.