Connecticut House Bill HB05116

Connecticut 2010 Regular Session

• Introduced: 2/10/10
• Refer: 2/10/10

Caption

An Act Establishing Tax Credits For Angel Investors.

Impact

The implementation of HB05116 has the potential to significantly alter the landscape for startups and small businesses in Connecticut. By reducing the financial risk for angel investors through tax credits, the bill is expected to attract more investments into nascent enterprises. Additionally, establishing a capped aggregate amount of $10 million for tax credits each fiscal year ensures that the program remains manageable while still aiming to boost the local economy. The bill is designed to make Connecticut more competitive in attracting entrepreneurial investments compared to surrounding states.

Summary

House Bill 05116 aims to stimulate entrepreneurial activity in Connecticut by providing tax credits to angel investors who invest in qualified securities of Connecticut businesses. The core provision of the bill allows for a tax credit equal to 25% of an angel investor's cash investment, up to a maximum credit of $125,000. This initiative reflects a state-level effort to encourage investment in new and emerging businesses, thereby fostering economic growth and job creation within the state.

Contention

There are likely to be discussions regarding the effectiveness and distribution of the proposed tax credits, as stakeholders might raise concerns about whether these credits truly reach a diverse range of businesses. Critics may question the allocation process managed by the Commissioner of Economic and Community Development and how it might favor certain sectors over others. The overall discourse around HB05116 could also explore whether the tax incentives lead to appropriate outcomes in terms of economic growth and job creation.