Connecticut Senate Bill SB00231

Connecticut 2014 Regular Session

• Introduced: 2/20/14
• Refer: 2/20/14
• Report Pass: 3/20/14
• Refer: 3/28/14
• Report Pass: 4/3/14
• Refer: 4/9/14

Caption

An Act Increasing The Cap On The Urban And Industrial Site Tax Credit And Threshold For Legislative Approval Of Financial Assistance.

Impact

The bill is expected to significantly impact state laws concerning economic incentives for businesses. By increasing the cap on tax credits, the state seeks to foster an environment conducive to investment, potentially spurring economic development and job creation. It also changes the process for obtaining legislative approval by enhancing the thresholds for financial assistance, thus allowing for quicker approvals of larger investments without needing extensive legislative oversight unless specified amounts are exceeded.

Summary

SB00231, titled An Act Increasing The Cap On The Urban And Industrial Site Tax Credit And Threshold For Legislative Approval Of Financial Assistance, aims to elevate the cap on tax credits allocated for urban reinvestment and industrial site investment projects. The bill specifies the modified percentages of tax credits that could be claimed based on the timelines of investments made. Notably, the total approved tax credits for a single investment project will increase up to eight hundred million dollars, thus encouraging larger scale investments in urban and industrial sectors.

Sentiment

The sentiment surrounding SB00231 appears to be generally positive among pro-business advocates and legislators who view the bill as a proactive measure to stimulate economic growth. Supporters assert that it addresses the pressing need for financial support in urban areas and enhances the competitiveness of Connecticut as a location for industrial operations. However, there may be some hesitation among fiscal conservatives who worry about the potential long-term implications of increased tax breaks and financial assistance on state revenue.

Contention

Key points of contention include the potential for increased reliance on state financial assistance and questions about accountability regarding how these tax credits are utilized. Critics might argue that while the plan is well-intentioned, it could lead to a less scrutinized allocation of state resources, which raises concerns about transparency and efficacy in seeing tangible economic benefits in return for these investments.