Connecticut House Bill HB05174

Connecticut 2012 Regular Session

• Introduced: 2/16/12
• Refer: 2/16/12

Caption

An Act Concerning A Tax Credit For Businesses Relocating To This State And Purchasing Property Here.

Impact

If enacted, HB 05174 will amend the general statutes related to business taxation and real estate transactions. The introduction of this tax credit is expected to attract more businesses to purchase property and establish themselves in Connecticut. This legislative move could have significant implications for local economic conditions, potentially leading to increased employment rates and economic activity in the state. However, the effectiveness of the bill in achieving its objectives would largely depend on how appealing the tax credit is perceived by companies considering relocation.

Summary

House Bill 05174, introduced by Representatives Cafero, Klarides, and Candelora, aims to incentivize out-of-state companies to relocate to Connecticut by providing a tax credit. This tax credit will equal the amount of the state portion of the real estate conveyance tax paid by sellers of commercial properties that are purchased by these companies. The intent behind this bill is to encourage businesses to set up operations in Connecticut, thereby contributing to economic growth and job creation within the state.

Contention

While the bill is designed to promote business growth, it may face critiques related to the implications for state revenue and equity in taxation. Opponents might argue that providing tax incentives primarily to out-of-state companies could detract from funding essential services within Connecticut. Additionally, there may be concerns about whether the state can adequately measure the actual benefits derived from such tax credits, specifically in terms of long-term job creation and economic stability. As discussions proceed, stakeholders will likely debate the balance between attracting businesses and ensuring fair taxation practices for local entities.