Connecticut Senate Bill SB01055

Connecticut 2017 Regular Session

• Introduced: 4/20/17
• Refer: 4/20/17

Caption

An Act Concerning Stranded Tax Credits And Strategic Economic Development.

Impact

The legislation aims to stimulate economic activity by allowing companies to leverage stranded tax credits that they may not have used otherwise. Businesses must submit a detailed plan of their intended capital project along with an application to utilize these credits. The Commissioner will conduct an econometric analysis to ensure that the anticipated project will generate state revenue exceeding the value of the tax credits used. Moreover, this aligns with other ongoing initiatives to foster investment in Connecticut, targeting growth in strategic sectors.

Summary

Senate Bill 01055, also known as the Act Concerning Stranded Tax Credits and Strategic Economic Development, introduces a program enabling businesses to utilize accumulated tax credits against state taxes in exchange for investment in capital projects. The bill specifically seeks to incentivize projects that expand business operations, increase employment, or deliver significant economic returns to the state. Implementation is to be overseen by the Commissioner of Economic and Community Development, who will assess applications based on their potential economic impact.

Contention

While proponents argue that this bill will enhance the state's competitiveness by promoting investment and job creation, critics highlight concerns about how these tax credits could be allocated and whether they would truly lead to substantial economic benefits. There is also an apprehension about ensuring that these tax incentives do not disproportionately benefit larger corporations at the expense of smaller businesses and local economies. Transparency and accountability in how these credits are utilized will be crucial for its success and public acceptance.