General Assembly Raised Bill No. 6600
January Session, 2013 LCO No. 4232
*04232_______CE_*
Referred to Committee on COMMERCE
Introduced by:
(CE)
General Assembly
Raised Bill No. 6600
January Session, 2013
LCO No. 4232
*04232_______CE_*
Referred to Committee on COMMERCE
Introduced by:
(CE)
AN ACT CONCERNING A PILOT PROGRAM FOR THE TAXATION OF PASS-THROUGH ENTITIES IN THE MANUFACTURING, BIOSCIENCE, AND ALLIED HEALTH FIELDS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2013, and applicable to taxable years commencing on or after January 1, 2013) (a) As used in this section:
(1) "Department" means the Department of Economic and Community Development;
(2) "Partner" means (A) a partner, as defined in Section 7701(a)(2) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and any reference to a partner in this section shall include a member of a limited liability company that is treated as a partnership for federal income tax purposes, or (B) an individual shareholder of an S corporation; and
(3) "Qualified business" means a business in the manufacturing, bioscience or allied health field that is treated as a partnership or S corporation for federal income tax purposes.
(b) (1) The Department of Economic and Community Development shall administer a system of tax rate vouchers for the partners of qualified businesses in the state in accordance with the provisions of this section.
(2) (A) For the taxable year commencing on January 1, 2013, a partner of a qualified business shall be eligible for a tax rate voucher that provides a reduction of one-half of one per cent in such partner's marginal rate of tax under section 12-700 of the general statutes.
(B) For the taxable year commencing on January 1, 2014, a partner of a qualified business shall be eligible for a tax rate voucher that provides a reduction of one per cent in such partner's marginal rate of tax under section 12-700 of the general statutes.
(C) For the taxable year commencing on January 1, 2015, a partner of a qualified business shall be eligible for a tax rate voucher that provides a reduction of one and one-half per cent in such partner's marginal rate of tax pursuant to section 12-700 of the general statutes.
(D) For the taxable year commencing on January 1, 2016, a partner of a qualified business shall be eligible for a tax rate voucher that provides a reduction of two per cent in such partner's marginal rate of tax under section 12-700 of the general statutes.
(c) A partner of a qualified business may apply to the Department of Economic and Community Development for a tax rate voucher on an annual basis, and shall provide with such application such information as the department may require to determine such partner's eligibility to receive a voucher pursuant to this section. The department shall charge a reasonable administrative fee sufficient to cover the department's costs to analyze applications submitted under this section.
(d) The Commissioner of Revenue Services shall reduce the marginal rate of tax under section 12-700 of the general statutes of a partner holding the tax credit voucher issued pursuant to subsections (b) and (c) of this section by the percentage specified in the voucher for the tax year in which the tax rate voucher is issued. The Department of Economic and Community Development shall provide a copy of the voucher to the Commissioner of Revenue Services upon the request of the commissioner.
(e) The Department of Economic and Community Development may, in consultation with the Commissioner of Revenue Services, adopt regulations, in accordance with chapter 54 of the general statutes, to carry out the purposes of this section.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2013, and applicable to taxable years commencing on or after January 1, 2013 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2013, and applicable to taxable years commencing on or after January 1, 2013
New section
Statement of Purpose:
To establish a pilot program providing a reduction in the tax rate of pass-through entities in the manufacturing, bioscience and allied health fields.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]