Connecticut House Bill HB05574

Connecticut 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16
• Report Pass: 3/17/16

Caption

An Act Concerning Stranded Research And Development Tax Credits.

Impact

If enacted, HB 5574 will amend state laws concerning tax credits, particularly those related to economic incentives for research and development. By allowing businesses to exchange unused tax credits for financial support of capital projects, the bill could stimulate job creation and bolster the state's economy. This approach aims to draw further investment into Connecticut by making it easier for companies to access funding for expansion and improvement initiatives.

Summary

House Bill 5574, titled 'An Act Concerning Stranded Research And Development Tax Credits', aims to facilitate the exchange of stranded tax credits held by businesses in Connecticut. The bill provides a framework where companies can convert accumulated tax credits into payments for eligible expenditures related to capital projects aimed at increasing their scale, scope, or employment. The Commissioner of Economic and Community Development will oversee the implementation of this program, determining the eligibility of projects based on their anticipated economic benefits to the state.

Sentiment

The sentiment surrounding HB 5574 appears supportive within the business community and among economic development advocates, who perceive the bill as a critical step towards enhancing the state's competitive edge. However, there may be skepticism regarding its potential effectiveness and the oversight required to ensure that these credits genuinely yield the expected economic return. Local advocacy groups might raise concerns about the prioritization of business incentives over other forms of fiscal responsibility or local needs.

Contention

Notable points of contention may stem from the criteria established for the approval of projects, as businesses will need to demonstrate that their capital investments will generate substantial economic returns exceeding the tax credits exchanged. Critics might argue that this could lead to favoritism or inadequate accountability in the distribution of public resources. The negotiation between fostering business growth and ensuring equitable benefit for the community will likely be a critical focus in discussions about the bill.