Researcher: TA Page 1 4/30/24
OLR Bill Analysis
sHB 5300 (as amended by House "A")*
AN ACT CONCERNING THE INVEST CT FUND PROGRAM.
SUMMARY
This bill allows applicants for the Invest CT tax credit, from October
1, 2024, to September 30, 2026, to request that the Department of
Economic and Community Development (DECD) commissioner
consider a business without principal operations in Connecticut as an
eligible business for investments under the program. The commissioner
may approve the request if he determines that it would significantly
advance the program’s objectives. An applicant must apply to the
commissioner as he prescribes and meet other program requirements
(e.g., submit a business plan describing the amount of capital to be
invested in an eligible business and the number of jobs expected to be
created or retained).
The bill requires the DECD commissioner to report to the Commerce
Committee by January 1, 2026 (covering October 1, 2024, to September
30, 2025), and January 1, 2027 (covering October 1, 2025, to September
30, 2026). The reports must include a list of applicants whose requests
were approved by the commissioner under the bill’s authority and an
analysis of the benefit to and impact on the state from these approvals.
The bill also makes conforming changes.
By law, the Invest CT credits apply to the insurance premiums and
surplus lines brokers tax, and investors qualify for them by investing in
eligible businesses through state-certified Invest CT funds. Under
existing law, an eligible business has the following:
1. its principal business operations in Connecticut (i.e., at least 80%
of its employees reside in the state or at least 80% of its payroll is
paid to people living in the state), 2024HB-05300-R01-BA.DOCX
Researcher: TA Page 2 4/30/24
2. fewer than 250 employees at the time of the investment, and
3. no more than $10 million in net income in the previous year.
*House Amendment “A” requires the applicant, rather than the
eligible business, to meet other program requirements when applying
to the commissioner.
EFFECTIVE DATE: October 1, 2024
COMMITTEE ACTION
Commerce Committee
Joint Favorable Substitute
Yea 24 Nay 0 (03/22/2024)