Connecticut House Bill HB06758

Connecticut 2015 Regular Session

• Introduced: 2/9/15
• Refer: 2/9/15
• Report Pass: 2/19/15
• Refer: 2/27/15
• Report Pass: 3/5/15
• Refer: 3/17/15
• Report Pass: 4/30/15
• Refer: 5/8/15

Caption

An Act Establishing A Tax Credit For Businesses That Hire Recent Graduates Of Institutions Of Higher Education Located In Connecticut.

Impact

The bill's implementation is anticipated to have positive repercussions on the state's employment landscape by encouraging businesses to create new jobs for young graduates. Small businesses with fewer than 50 employees are required to create at least one new job to benefit from the credit, while those with more employees must create a minimum number of new jobs based on their size. This initiative aims to make hiring graduates more financially feasible for businesses, potentially resulting in a boost to the local economy.

Summary

House Bill 06758 establishes a tax credit program aimed at incentivizing businesses in Connecticut to hire recent graduates from institutions of higher education. Starting January 1, 2017, eligible taxpayers can receive a credit against various state taxes for each qualifying employee they hire. To qualify, the new hire must be a recent graduate who has completed their education within the last three years and must be filling a new full-time position that did not previously exist within the company.

Sentiment

Overall, the sentiment surrounding HB 06758 is largely favorable among business advocates and educational institutions. Supporters view the tax credit as a strategic measure to reduce youth unemployment and foster closer ties between businesses and local graduates. However, some concern exists regarding the effectiveness of tax credits as a long-term solution for employment issues, with critics suggesting that reliance on tax incentives may not be sustainable or equitable in the longer term.

Contention

Notable points of contention surrounding the bill include the adequacy of the funding allocated for the tax credits, which is capped at one million dollars per fiscal year. Questions have also arisen about the real impact of the tax incentives on job creation and whether they effectively address other employment barriers faced by recent graduates. While the intent behind the legislation is to boost employment, the discussion reflects a broader debate on the role of government in incentivizing private sector job creation.