Connecticut House Bill HB05389

Connecticut 2021 Regular Session

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

Caption

An Act Concerning Commercial Construction Equipment.

Impact

If passed, the bill could have a substantial impact on state laws regarding taxation and property tax obligations for businesses. Specifically, it would facilitate greater alignment of the tax code with the realities of the commercial construction industry and could potentially lead to decreased financial burdens for companies engaged in construction activities. This legislative change is seen as a necessary update to ensure that the tax structure is fair and reflective of the current economic environment, particularly given the critical role construction plays in infrastructure development.

Summary

House Bill 05389 proposes an amendment to title 12 of the general statutes by including all commercial construction equipment in the schedule of depreciation for personal property. This change aims to update the tax treatment of commercial construction equipment, recognizing its importance in the broader context of business operations in the state. By adding these items to the depreciation schedule, the bill seeks to provide tax relief to businesses that rely on significant investments in such equipment, allowing them to recover costs over time through depreciation.

Contention

Some concerns may arise regarding the implications of this amendment on state revenue. Critics of changing depreciation schedules often argue that such adjustments can lead to reduced tax income for the state, which may affect public funding for various services. Additionally, those who oppose the bill may assert that providing tax breaks specifically for commercial construction equipment could create an imbalance in how different sectors are taxed, potentially favoring larger businesses over smaller local enterprises. These debates might create friction in the legislative discussions surrounding HB05389.