Connecticut House Bill HB05209

Connecticut 2010 Regular Session

• Introduced: 2/17/10
• Refer: 2/17/10
• Report Pass: 3/16/10
• Refer: 3/26/10
• Report Pass: 4/1/10
• Refer: 4/7/10

Caption

An Act Concerning Small Business Tax Credits.

Impact

The bill is designed to stimulate economic growth by supporting small businesses in creating job opportunities. By providing tax credits, it lessens the financial burden associated with hiring new employees, potentially leading to increased employment rates in the state. However, the total amount of credits granted is capped at $10 million per fiscal year, providing a finite resource for incentivizing job creation. This structure may affect how small businesses plan their hiring strategies in relation to the credits available.

Summary

House Bill 05209, concerning Small Business Tax Credits, establishes a program aimed at incentivizing small businesses to hire new employees. The bill allows qualified small businesses, defined as those with fewer than twenty-five employees, to claim tax credits for each new full-time job created. Specifically, the tax credit amounts to $208 per month for two successive income years following the hiring of a new employee. The eligibility criteria and application process are clearly outlined, with the requirement that businesses must apply to the Commissioner of Economic and Community Development before hiring new staff.

Sentiment

The overall sentiment surrounding HB 05209 appears to be positive among proponents who view it as a valuable tool for encouraging employment in a struggling economy. Supporters argue that the tax credits will aid in mitigating hiring costs for small businesses, contributing positively to the state's economic climate. However, there may be skepticism regarding the limitations of the program, specifically the cap on tax credits and the stringent eligibility requirements that could restrict access for some businesses.

Contention

Notable points of contention include the Bill's expiration of the tax credit for new hires made after January 1, 2014. Critics may argue that this limitation reduces the long-term effectiveness of the program, suggesting that continuous support might be necessary for sustained growth in employment. Additionally, the complexity of the application process could deter some small businesses from taking advantage of the credits, potentially undermining the bill's intention to stimulate job creation.