Connecticut House Bill HB05357

Connecticut 2010 Regular Session

• Introduced: 2/25/10
• Refer: 2/25/10
• Report Pass: 3/18/10
• Refer: 3/26/10
• Report Pass: 4/1/10
• Refer: 4/7/10

Caption

An Act Concerning Changes To Certain Tax Credits To Enhance Their Use And To Repeal Certain Unutilized Tax Credits.

Impact

If enacted, HB 05357 will affect state laws concerning tax credits, particularly by revising the eligibility and application processes for tax credits related to job creation and business investments in manufacturing and service facilities. The bill outlines a new credit for taxpayers that create full-time jobs, increasing the potential reward for companies that contribute to employment growth in Connecticut. Such modifications are expected to align state tax policies more closely with the needs of businesses, thereby incentivizing investments and the establishment of new jobs.

Summary

House Bill 05357 aims to modify various tax credits in the state to promote economic development and job creation. The bill seeks to enhance the use of certain tax credits while repealing those that have been deemed unutilized. The changes introduced by the bill are designed to streamline processes and improve accessibility for businesses seeking tax incentives to support their growth and operations, thereby creating new jobs in the state.

Sentiment

The sentiment surrounding the bill appears supportive among business groups and economic development advocates, who argue that the adjustments in tax credits could significantly aid local businesses in hiring new employees and investing in infrastructure. However, some concerns have been raised regarding the potential impact of repealing certain tax credits that serve specific communities or sectors, suggesting a nuanced debate around which tax incentives should remain in place to ensure equitable access across various industries.

Contention

One notable point of contention within the discussions surrounding HB 05357 stems from the proposed repeal of certain unutilized tax credits. This aspect of the bill could alienate smaller entities or historically underrepresented industries that have relied on these credits for support. Additionally, the effectiveness of the new job creation tax credit program remains a subject of scrutiny; its success depends on the ability of the state to ensure that credited jobs are genuinely new and contribute significantly to the economy without displacing existing jobs.