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PA 24-33—sHB 5300
Commerce Committee
AN ACT CONCERNING TH E INVEST CT FUND PROGRAM
SUMMARY: This act allows the Department of Economic and Community
Development (DECD) commissioner, from October 1, 2024, to September 30,
2026, to make certain additional businesses eligible for investments under the
Invest CT Fund Program. By law, program participants qualify for tax credits,
which apply to their insurance premiums and surplus lines broker taxes, 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);
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.
The act additionally allows program applicants, during the above two-year
timeframe, to request that the DECD commissioner consider a business without
principal business operations in Connecticut as an eligible business. 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 because of the investment).
The act 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 act’s authority and an analysis of the benefit to and impact
on the state from these approvals.
The act also makes conforming changes.
EFFECTIVE DATE: October 1, 2024