Connecticut Senate Bill SB00447

Connecticut 2016 Regular Session

• Introduced: 3/10/16
• Refer: 3/10/16

Caption

An Act Establishing A Tax Credit For Businesses That Hire Promise Zone Residents Or Are Located In A Promise Zone.

Impact

The implementation of SB00447 will likely have significant implications for state tax laws and local economies. It will amend existing tax regulations related to corporate income tax by introducing specific credits that incentivize hiring from economically disadvantaged regions. This structured tax reduction can attract businesses to invest in communities that otherwise might struggle economically, thereby improving the overall job market and helping to reduce poverty rates in those areas.

Summary

SB00447 is an act establishing a tax credit for businesses that hire residents from federally designated promise zones or are located within such zones. The bill provides a financial incentive of $2,500 for each new employee hired, given that the employee has been a resident of the designated area for at least 180 days prior to the hiring date. This tax credit aims to stimulate economic development in underprivileged areas by encouraging businesses to set up operations there and create job opportunities for local residents.

Contention

Despite the potential benefits of SB00447, there are notable points of contention surrounding the bill. Critics may argue that while providing tax credits to businesses is beneficial, it could also lead to a shortfall in state revenue, which could impact funding for essential services. Additionally, there may be concerns regarding the adequacy of employment support for residents of promise zones beyond just tax incentives, raising questions about how effective the bill will be in achieving its desired economic growth and job creation objectives.