Connecticut Senate Bill SB00101

Connecticut 2025 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25

Caption

An Act Concerning The Tax Credit For Machinery And Equipment.

Impact

The introduction of this bill signifies a shift towards providing more substantial financial incentives for companies that invest in new machinery and equipment. By stipulating a five-year minimum usage requirement for the machinery and equipment, the bill aims to ensure that the economic benefits are sustained over a reasonable timeframe. Additionally, there is a recapture provision, which requires companies to repay the full amount of the tax credit if they fail to meet the minimum usage condition. This aspect is intended to encourage responsible investment by corporations and to ensure that public resources are not being misused.

Summary

SB00101 proposes an amendment to the existing tax credit structure for machinery and equipment used by corporations in the state. The new bill outlines that corporations can receive a tax credit equal to fifty percent of the costs incurred for acquiring and installing machinery and equipment in their facilities. This tax credit is designed to incentivize investment in local infrastructure and promote economic growth within the state's manufacturing landscape.

Contention

One notable point of contention surrounding SB00101 may stem from the implications of providing such tax credits to corporations. Critics might argue that such policies primarily benefit larger corporations at the expense of smaller businesses and local governments that could lose potential tax revenue. Furthermore, concerns may arise regarding the sufficiency of oversight to ensure compliance with the five-year usage requirement and to verify that the machinery and equipment are indeed utilized for the intended purposes. Discussions in legislative contexts may explore the balance between fostering economic development and ensuring fair competition among businesses of differing sizes.