Connecticut Senate Bill SB01216

Connecticut 2011 Regular Session

• Introduced: 3/22/11
• Refer: 3/22/11
• Report Pass: 4/18/11
• Refer: 4/26/11
• Report Pass: 5/3/11
• Engrossed: 6/2/11
• Report Pass: 6/3/11
• Chaptered: 6/17/11
• Enrolled: 6/24/11
• Passed: 7/8/11

Caption

An Act Concerning The Urban Reinvestment Act And The Federal New Markets Tax Credit Program And Correcting An Effective Date.

Impact

The implementation of SB01216 is expected to influence several statutes governing tax credits and municipal development. The bill permits taxpayers who invest in eligible urban and industrial projects to receive significant tax credits, thereby facilitating increased capital flow into these sectors. Furthermore, the commissioner will play a pivotal role in determining the eligibility of projects and the credits allocated, which may lead to a more structured framework for assessing the economic viability of proposed investments.

Summary

SB01216, titled 'An Act Concerning The Urban Reinvestment Act And The Federal New Markets Tax Credit Program And Correcting An Effective Date,' aims to revamp and enhance tax credit programs associated with urban and industrial investments. Notably, this bill introduces an urban and industrial site reinvestment program that allows taxpayers to earn credits against certain taxes based on their approved investments in designated projects. This effort is intended to promote economic activity and job creation in urban areas and distressed municipalities.

Sentiment

There is a generally favorable sentiment towards SB01216 from economic development advocates who view the bill as a positive move towards revitalizing urban environments and stimulating local economies. However, some stakeholders express concerns regarding the potential for unequal benefits, suggesting that certain communities might not receive the same level of support or investment opportunities as others. The effectiveness of the bill will largely hinge on careful implementation and oversight by the relevant authorities.

Contention

Discussion surrounding SB01216 includes debates about how the bill defines 'eligible projects' and the associated criteria for investment. Questions arise about the mechanism for evaluating project viability, job creation metrics, and the potential for credits to be distributed disproportionately, leading to calls for accountability in how these credits are awarded. Additionally, provisions around the recapture of credits if projects do not meet promised outcomes could drive contention, emphasizing the need for thorough economic impact assessments.