Connecticut Senate Bill SB00323

Connecticut 2010 Regular Session

• Introduced: 2/25/10
• Refer: 2/25/10
• Report Pass: 3/18/10
• Refer: 3/29/10
• Report Pass: 4/6/10
• Refer: 4/14/10

Caption

An Act Concerning Angel Investors And Programs Implemented By Connecticut Innovations, Incorporated.

Impact

The passage of SB00323 is expected to significantly impact Connecticut’s economic landscape by making it easier for small businesses to access the capital needed for expansion and innovation. The credit is designed to attract more angel investors, thereby fostering a vibrant ecosystem for start-ups and early-stage companies. This initiative supplements existing programs already managed by Connecticut Innovations, Incorporated, and may lead to increased job creation and economic development efforts as businesses become more viable through improved funding opportunities.

Summary

SB00323 aims to provide a tax credit for angel investors who make cash investments in qualified Connecticut businesses. This bill establishes a framework for supporting small businesses by allowing investors to receive a tax credit of 25% on their cash investments, up to $125,000 per investment. The targeted businesses must be Connecticut domiciled, have annual revenues under $5 million, employ fewer than 25 people, and must have been operating for less than ten years. By incentivizing investments in local businesses, the bill seeks to stimulate economic growth and job creation within the state.

Sentiment

The sentiment surrounding SB00323 has been predominantly positive, particularly among proponents in the business community and investment circles. Supporters argue that the bill will provide essential support to fledgling businesses and help stimulate the state's economy. Conversely, there are concerns from some critics about the effectiveness of tax credits in driving genuine business growth and whether the incentives will lead to sustainable job creation or just temporary financial relief for select businesses.

Contention

A point of contention regarding the bill involves the potential for tax credits to be claimed on modest investments and the adequacy of the criteria for businesses to qualify as 'qualified Connecticut businesses.' Critics express concern that while the intent is to promote local investment, it may result in uneven benefits where only certain sectors thrive, raising questions about equity and accessibility of funding.