Connecticut Senate Bill SB00540

Connecticut 2015 Regular Session

• Introduced: 1/22/15
• Refer: 1/22/15
• Refer: 2/11/15
• Report Pass: 3/10/15
• Report Pass: 4/30/15
• Refer: 5/8/15
• Report Pass: 5/14/15

Caption

An Act Increasing The Aggregate Cap On Insurance Reinvestment Fund Tax Credits And Renaming Such Funds Invest Ct Funds.

Impact

The passage of SB00540 is expected to have significant implications for state laws pertaining to business investments in Connecticut’s insurance sector. By raising the aggregate cap on the tax credits offered under this scheme, the state hopes to attract more insurance businesses to invest in new facilities and create jobs. Specifically, the bill outlines the requirements for businesses to gain tax credits, particularly emphasizing the need for new employment opportunities and facilities that contribute to the growth of the state’s economy.

Summary

SB00540, titled 'An Act Increasing The Aggregate Cap On Insurance Reinvestment Fund Tax Credits And Renaming Such Funds Invest CT Funds', aims to stimulate economic growth in Connecticut by increasing the tax credit cap associated with the Insurance Reinvestment Fund. This fund is designed to incentivize investments in insurance companies and businesses that create new jobs. The bill seeks to rename these funds to 'Invest CT Funds' and expand the conditions under which businesses can claim these tax credits, thus promoting job creation within the insurance industry.

Sentiment

General sentiment regarding SB00540 is largely positive among business advocates, particularly those in the insurance sector who view the legislation as a necessary step to enhance state competitiveness. Proponents argue that these incentives will not only aid in creating new jobs but also retain existing businesses. However, there are concerns regarding the effectiveness of tax credits as a tool for sustainable economic growth and debate over whether such measures disproportionately benefit larger firms over smaller local businesses.

Contention

The bill has faced some contention, primarily around the efficacy and fairness of tax incentives. Critics argue that while increasing tax credits may spur short-term job growth, it could lead to long-term dependency on state funding and tax breaks. Additionally, some fear that without stringent oversight, funds may not adequately be directed towards meaningful economic investment in the local economy or may favor larger insurance corporations at the expense of smaller entities.