Connecticut House Bill HB05417

Connecticut 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

An Act Reestablishing The Job Expansion Tax Credit Program.

Impact

If enacted, HB05417 would amend existing state statutes to reinstate the tax credit program that allows qualified businesses to receive tax benefits for employing additional personnel. This reestablishment is expected to positively impact state laws by fostering a more favorable business climate, thereby encouraging recruitment and retention of employees. This could lead to a more dynamic labor market, potentially reducing unemployment rates in the state.

Summary

House Bill 05417 aims to reestablish the Job Expansion Tax Credit Program, which is designed to incentivize businesses to create new jobs within the state. This bill is a legislative effort to promote economic growth by offering tax reductions to companies that expand their workforce and operations. By doing so, the bill seeks to enhance job opportunities for residents and stimulate local economies, particularly in areas that may be facing economic challenges.

Contention

The proposal may face some contention among lawmakers, as some parties argue it could disproportionately benefit larger corporations at the potential expense of smaller businesses that may not qualify for the same incentives. Critics may also raise concerns over the effectiveness of such tax credits in genuinely creating new jobs versus merely subsidizing existing employment levels. There is an ongoing debate about the long-term sustainability of these incentives and whether they provide a cost-effective solution for economic development.