Connecticut House Bill HB05273

Connecticut 2021 Regular Session

• Introduced: 1/22/21
• Refer: 1/22/21

Caption

An Act Establishing A Connecticut New Markets Tax Credit Program.

Impact

If passed, HB 5273 would amend existing general statutes to create a dedicated framework that encourages state-level investment in economically disadvantaged neighborhoods. Proponents of the bill assert that such a program would enhance access to capital for organizations working to uplift these communities, thereby potentially leading to improved services and opportunities for residents. The overall objective is to drive sustainable economic development and uplift communities that have historically faced economic challenges.

Summary

House Bill 5273 aims to establish a Connecticut New Markets Tax Credit program designed to incentivize investments directed toward nonprofit organizations that serve low-income communities within the state. The legislation revolves around providing tax credits for qualified investments made in the Connecticut Health and Educational Facilities Authority Community Development Corporation, which in turn would enable these nonprofits to further their developmental projects aimed at fostering economic growth in underprivileged areas.

Contention

While proponents advocate for the positive impacts of the tax credit in promoting economic development, there may be contention regarding the allocation of funds and whether such tax incentives would efficiently reach the intended communities. Critics might argue that without careful oversight and measurement, there is the potential for funds to be misallocated or for the program to inadequately meet its objectives. Stakeholders will likely debate the effectiveness of tax credits as a means of fostering economic growth and the best methods to ensure that the funding directly benefits low-income residents.