Connecticut Senate Bill SB00382

Connecticut 2022 Regular Session

• Introduced: 3/9/22
• Refer: 3/9/22
• Report Pass: 4/5/22
• Refer: 4/18/22
• Report Pass: 4/25/22

Caption

An Act Concerning A Connecticut New Market Tax Credit Program.

Impact

If enacted, this bill would significantly influence state laws by enabling the CHEFA Community Development Corporation to oversee the program, manage qualified community development entities, and establish criteria for the investments made. The bill outlines specific eligible costs for businesses seeking investments, including capital for programs that benefit low-income areas, construction costs, and necessary administrative expenses. By supporting community businesses, the bill aims to improve economic conditions and create better access to goods and services for residents in these communities.

Summary

SB00382, titled 'An Act Concerning A Connecticut New Market Tax Credit Program', aims to establish a tax credit program designed to stimulate economic development in low-income communities across Connecticut. The bill is part of an initiative to provide tax credits to taxpayers who invest in community development entities that serve these communities. By allowing investments to be designated as qualified equity investments, the bill seeks to enhance access to capital for businesses operating in low-income areas and support their growth and viability.

Sentiment

The sentiment surrounding SB00382 appears to be largely positive among advocates of economic development focused on low-income communities. Proponents argue that this tax credit program will lead to job creation, enhanced access to resources, and overall improvements in community well-being. However, some advocates highlight the need for accountability and effective implementation to ensure that the benefits reach the intended populations and do not lead to exploitation or mismanagement by investors.

Contention

While the bill is generally well-received, concerns have been raised regarding the potential for insufficient tracking of how investments are utilized and whether they yield the desired community benefits. There is a call for measures to ensure transparency and accountability in the use of tax credits, particularly given that a significant amount of public money may be involved. Critics argue that without stringent oversight, the program could fail to deliver meaningful support to low-income communities and instead disproportionately benefit investors.