Connecticut House Bill HB05389

Connecticut 2010 Regular Session

• Introduced: 2/25/10
• Refer: 2/25/10
• Report Pass: 3/23/10
• Refer: 4/1/10
• Report Pass: 4/8/10
• Refer: 4/13/10

Caption

An Act Concerning The Department Of Economic And Community Development's Recommendations For Tax Credits To Promote Job Creation.

Impact

If adopted, HB 05389 would amend state tax laws to establish a job creation tax credit program. This program would allow taxpayers who create at least ten new full-time jobs to claim tax credits proportionate to the number of employees hired. The fiscal cap of ten million dollars on total credits granted per fiscal year seeks to ensure that the state's financial exposure remains manageable while providing a framework to encourage significant job growth.

Summary

House Bill 05389, titled 'An Act Concerning the Department of Economic and Community Development's Recommendations for Tax Credits to Promote Job Creation', proposes a structured tax credit program aimed at incentivizing job creation within Connecticut. The bill outlines eligibility criteria for taxpayers seeking tax credits in connection with the creation of new full-time jobs. Specifically, credits can be extended for new employees filled by taxpayers who did not exist before the application for these incentives, thus focusing on reducing unemployment and stimulating economic growth in the state.

Sentiment

The sentiment around the bill appears favorable, particularly among proponents who emphasize the importance of creating a robust economic environment. Supporters include business associations and economic development advocates who argue that such incentives are critical for stimulating investment and job creation, particularly in challenging economic conditions. Conversely, skeptics may express concerns regarding the efficacy, oversight, and long-term impacts of such tax credits on state revenue and local economies.

Contention

Notable points of contention surrounding HB 05389 center on the administration of the tax credit application process and the subsequent monitoring of job creation metrics. Critics may question the potential for misuse of the credits and the standards used to evaluate whether the new job creation would indeed stimulate net economic benefits. Additionally, debates may arise about the allocation of state resources to such tax incentives, considering alternative methods for addressing unemployment and fostering economic vitality.