Connecticut Senate Bill SB00723

Connecticut 2015 Regular Session

• Introduced: 1/23/15
• Refer: 1/23/15

Caption

An Act Creating Incentives For Defense Contractors To Utilize In-state Subcontractors.

Impact

Should SB00723 be enacted, it would significantly impact existing tax frameworks related to sales and research and development within the defense sector. By substituting external subcontractor services with in-state options, the state aims to retain more defense dollars domestically, thereby bolstering local businesses and potentially increasing employment opportunities within the region. This move is geared toward making Connecticut a more attractive location for defense contractors by offering financial incentives that lower operational costs.

Summary

SB00723 is a legislative proposal aimed at incentivizing defense contractors to engage in-state subcontractors and businesses for their projects. The bill seeks to amend title 12 of the Connecticut general statutes by establishing a 'Buy Connecticut' program, which would provide sales tax exemptions and research and development tax credits specifically targeted at defense contractors who employ local subcontractors. The intent behind this initiative is to stimulate economic activity within the state by ensuring that defense-related funds contribute to the local economy.

Contention

While proponents of SB00723 argue that the bill will enhance economic development and support local businesses, there may be concerns regarding its implementation. Questions may arise regarding the impact on defense contractors who rely on specialized services that might be more readily available out-of-state, thus limiting their flexibility. Critics might also point out administrative burdens introduced by the need to demonstrate compliance with the new program, potentially discouraging engagement unless the incentives adequately outweigh these challenges.