An Act Concerning Angel Investors And Programs Implemented By Connecticut Innovations, Incorporated.
Impact
The passage of SB00323 is expected to significantly impact Connecticut’s economic landscape by making it easier for small businesses to access the capital needed for expansion and innovation. The credit is designed to attract more angel investors, thereby fostering a vibrant ecosystem for start-ups and early-stage companies. This initiative supplements existing programs already managed by Connecticut Innovations, Incorporated, and may lead to increased job creation and economic development efforts as businesses become more viable through improved funding opportunities.
Summary
SB00323 aims to provide a tax credit for angel investors who make cash investments in qualified Connecticut businesses. This bill establishes a framework for supporting small businesses by allowing investors to receive a tax credit of 25% on their cash investments, up to $125,000 per investment. The targeted businesses must be Connecticut domiciled, have annual revenues under $5 million, employ fewer than 25 people, and must have been operating for less than ten years. By incentivizing investments in local businesses, the bill seeks to stimulate economic growth and job creation within the state.
Sentiment
The sentiment surrounding SB00323 has been predominantly positive, particularly among proponents in the business community and investment circles. Supporters argue that the bill will provide essential support to fledgling businesses and help stimulate the state's economy. Conversely, there are concerns from some critics about the effectiveness of tax credits in driving genuine business growth and whether the incentives will lead to sustainable job creation or just temporary financial relief for select businesses.
Contention
A point of contention regarding the bill involves the potential for tax credits to be claimed on modest investments and the adequacy of the criteria for businesses to qualify as 'qualified Connecticut businesses.' Critics express concern that while the intent is to promote local investment, it may result in uneven benefits where only certain sectors thrive, raising questions about equity and accessibility of funding.
An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.
An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.
An Act Concerning The Bonding Authority Of The Connecticut Municipal Redevelopment Authority, The Reporting Of Material Financial Obligations By State Agencies, Tax-exempt Proceeds Fund References And The Notification Of The Sale Or Lease Of Projects Financed With Bond Proceeds.
An Act Concerning The Department Of Economic And Community Development's Recommendations For Revisions To The Jobsct Program And The Commerce And Related Statutes.
An Act Implementing The Recommendations Of The Program Review And Investigations Committee Concerning Angel Investors And Programs Implemented By Connecticut Innovations, Incorporated.