Connecticut House Bill HB05437

Connecticut 2018 Regular Session

• Introduced: 3/7/18
• Refer: 3/7/18
• Report Pass: 3/22/18

Caption

An Act Establishing A Job Creation Incentive Tax Credit Program For The Hiring And Retention Of New Full-time Employees.

Impact

The implementation of HB 05437 is expected to have a positive impact on state laws governing employment and economic incentives. By offering financial incentives to businesses, the bill seeks to spur job growth and reduce unemployment. The tax credits can amount to ten percent of wages for new employees and twelve and a half percent for qualifying or veteran employees, potentially lowering the overall tax burden for participating employers and creating a more favorable economic landscape.

Summary

House Bill 05437 aims to establish a Job Creation Incentive Tax Credit Program specifically designed for the hiring and retention of new full-time employees in Connecticut. This bill stipulates that employers who hire new qualifying or veteran employees are eligible for tax credits based on wages paid during the initial year of employment. To be eligible, businesses must apply for certification from the Commissioner of Economic and Community Development, and the program is set to commence on July 1, 2018, applying to the income years starting January 1, 2018.

Sentiment

The sentiment around HB 05437 has generally been supportive, particularly among business leaders and some lawmakers who view it as a critical measure to stimulate job growth in the state. Supporters argue that the bill will lead to better employment opportunities and encourage local businesses to expand. However, there are concerns from some groups about the effectiveness of tax incentives in driving long-term employment growth, indicating a conversation around the sustainability of such programs.

Contention

Notable points of contention include the limitations on the credit, such as disallowing claims for employees who are owners or closely related to the business, which has raised questions about fairness and access to benefits for all workers. Additionally, critics of the bill have expressed concerns that it may favor certain types of employers while neglecting broader economic issues affecting job seekers. The effectiveness of the program in genuinely creating new jobs versus simply shifting existing employees to qualify for the credits remains a point of debate among stakeholders.