Connecticut Senate Bill SB00390

Connecticut 2013 Regular Session

• Introduced: 1/23/13
• Refer: 1/23/13
• Refer: 3/7/13
• Report Pass: 3/26/13

Caption

An Act Extending The Job Expansion Tax Credit Program.

Impact

The implications of this bill are significant for state economic policy, as it seeks to stimulate job growth amidst ongoing economic recovery efforts. By providing financial incentives for hiring, the bill is intended to enhance employment opportunities particularly for qualifying individuals, including those receiving unemployment benefits or veterans. The potential increase in new jobs could result in lower unemployment rates and a healthier economy, benefiting the state overall.

Summary

SB00390 aims to extend the Job Expansion Tax Credit Program in Connecticut, which is designed to incentivize businesses to create new full-time jobs. The bill specifies that a tax credit shall be available for each new employee hired after January 1, 2012, and before January 1, 2016. The program is particularly aimed at supporting small businesses, as the requirements for providing new jobs vary based on the size of the employer, encouraging economic growth within the state by promoting job creation in various sectors.

Sentiment

Generally, sentiment around SB00390 appears supportive, with many stakeholders acknowledging the importance of empowering businesses to hire and expand. However, there may be concerns raised about whether tax credits are sufficiently effective in encouraging sustained job creation or if these credits might disproportionately favor larger enterprises over smaller ones. The potential limitations on the overall budget for tax credits, capped at twenty million dollars per fiscal year, also raise points of contention regarding equitable access to these benefits.

Contention

A notable point of contention within the discourse around SB00390 is the balance of fostering innovation and entrepreneurship while ensuring that the state's resources are allocated efficiently. Opponents may argue that without proper oversight, tax credits could lead to practices where businesses might manipulate the system, claiming credits without genuine intentions of job creation. Moreover, the timeline for eligibility, along with the specifics of qualifying employees, raises questions about long-term impacts on the labor market.