Connecticut Senate Bill SB00432

Connecticut 2010 Regular Session

• Introduced: 3/8/10
• Refer: 3/8/10
• Report Pass: 4/5/10
• Refer: 4/13/10
• Report Pass: 4/20/10
• Engrossed: 5/5/10
• Report Pass: 5/5/10

Caption

An Act Concerning A Review Of Tax Credits.

Impact

The anticipated impact of SB00432 is significant, as it seeks to provide a detailed analysis that could shape future tax policies. By examining the effectiveness of tax credits, state authorities can make informed decisions regarding the continuation, modification, or repeal of these incentives. Importantly, the bill emphasizes a data-driven approach, requiring reports that assess the jobs associated with tax credits, revenue generated for the state, and the overall economic impact. These evaluations could lead to adjustments that enhance the efficacy and fairness of tax credit programs, directly influencing the state's financial health and business landscape.

Summary

SB00432, titled 'An Act Concerning A Review Of Tax Credits,' aims to implement a structured process for assessing the effectiveness of tax credit and abatement programs in Connecticut. The bill mandates the Commissioner of Economic and Community Development, in collaboration with the Commissioner of Revenue Services, to conduct periodic evaluations of these programs. The goal is to ensure that the intended outcomes—primarily business retention and job creation—are being met effectively. The proposed evaluations are to occur every three years, starting from January 1, 2011, and are to include a comprehensive review of existing tax credits and their impact on the state's economy.

Sentiment

Sentiment around SB00432 appears to focus on improving accountability and transparency in government fiscal programs. Proponents argue that this bill will not only bolster economic development but also protect taxpayer interests by ensuring that tax credits deliver measurable benefits. However, critics might view the increase in reporting requirements as an administrative burden that could dissuade smaller businesses from applying for necessary incentives. Overall, the sentiment seems to lean positively towards the bill, as it aligns with broader economic goals.

Contention

A notable point of contention in discussions surrounding SB00432 is the effectiveness of tax credits in achieving their goals. Some stakeholders raise concerns that without stringent oversight and clear metrics, these credits may lead to revenue loss without fostering substantial economic growth. Additionally, the bill's requirement for detailed reporting may raise concerns among some legislators about how it affects operational processes within the Economic and Community Development Department. The spectrum of opinions reveals a robust debate on the balance between encouraging business growth and ensuring fiscal responsibility.