Connecticut House Bill HB05105

Connecticut 2012 Regular Session

• Introduced: 2/16/12
• Refer: 2/16/12
• Report Pass: 3/1/12
• Report Pass: 3/9/12

Caption

An Act Concerning The Job Expansion Tax Credit Program And Individuals Receiving Certain Services From The Departments Of Mental Health And Addiction Services And Developmental Services.

Impact

If enacted, HB 5105 is expected to influence state statutes on employment and taxation significantly. It introduces a structured tax credit scheme that mandates specific conditions based on the size of the business. The act specifies that smaller companies can receive a credit for creating just one job, while larger businesses are required to create five or more jobs, making it a tailored approach to job creation across different business sizes. Furthermore, limits are placed on the total amount of tax credits available to ensure a controlled fiscal impact on the state budget.

Summary

House Bill 5105 aims to amend the Job Expansion Tax Credit Program, targeting businesses that hire new employees, specifically those who are veterans or receiving various support services. The bill allows for a tax credit for each newly hired employee, defined as someone who did not previously work in the state. The main objective of the bill is to stimulate job creation and support inclusive employment opportunities for individuals who have faced barriers to employment, particularly veterans and those receiving mental health or developmental services.

Sentiment

The sentiment surrounding HB 5105 appears to be generally positive among supporters, who argue that it will enhance employment possibilities for marginalized groups while providing economic incentives for businesses. Advocates highlight the dual benefits of bolstering the workforce and offering fiscal relief to employers. However, some concerns have been raised regarding the effectiveness of such tax credits in genuinely creating jobs and whether they will adequately reach the intended demographic of individuals in need of support.

Contention

Notable points of contention include concerns over the long-term efficacy of relying on tax credits as a mechanism for job creation and issues surrounding eligibility criteria. Some opponents argue that the bill may not lead to sustainable employment opportunities and could result in abuse of the tax credit system. Furthermore, the distinction between full-time and part-time jobs has been scrutinized, with implications on how new jobs may be classified under the law affecting the intended beneficiaries such as veterans and individuals receiving mental health and addiction services.