Connecticut Senate Bill SB00073

Connecticut 2022 Regular Session

• Introduced: 2/15/22
• Refer: 2/15/22

Caption

An Act Restoring The Rate Of The Credit Against The Affected Business Entity Tax.

Impact

If enacted, SB00073 would notably impact state tax laws by increasing the percentage rate at which business entities are credited against the affected business entity tax. By reinstating the higher credit rate, the bill is expected to enhance the financial viability of businesses that qualify under this tax provision. This change could effectively lead to an increase in state revenue collections in the long term, due to enhanced business sustainability and potential growth resulting from increased cash flow within the affected entities.

Summary

SB00073, titled 'An Act Restoring the Rate of the Credit Against the Affected Business Entity Tax,' seeks to amend chapter 228z of the general statutes to restore the credit against the affected business entity tax to ninety-three and one-hundredths percent. This restoration aims to alleviate the tax burden on certain business entities, thereby providing economic relief to potentially impacted groups. The bill is positioned as a response to previous legislative changes that may have reduced this tax credit, affecting the overall financial health of small businesses within the state.

Contention

The discussions surrounding SB00073 may involve points of contention over the potential economic implications of reinstating the tax credit. Proponents may argue that this law fosters a supportive business environment and encourages entrepreneurship, while opponents might assert that such tax credits could strain state revenue or disproportionately favor certain business types over others. The debate could center on whether the benefits of revitalized business activity outweigh the costs to state revenue and whether alternative fiscal policies would be more equitable.