Connecticut Senate Bill SB00167

Connecticut 2020 Regular Session

• Introduced: 2/20/20
• Refer: 2/20/20

Caption

An Act Establishing A Tax Credit For Businesses That Hire Formerly Incarcerated Individuals.

Impact

The bill establishes a structured framework which requires businesses to create a specific number of new jobs to be eligible for the tax credit. Smaller businesses employing fewer than fifty workers must create at least three new jobs, while larger businesses must create five or more based on their workforce size. This stipulation is meant to ensure that the benefits of the tax credit are directed towards businesses genuinely expanding their workforce and contributing to job growth within their communities.

Summary

SB00167 proposes a tax credit for businesses that hire formerly incarcerated individuals. The bill aims to encourage employment opportunities for this demographic, which can often face significant barriers when re-entering the workforce. Specifically, the tax credit is set at nine hundred dollars per month for each new qualifying employee and applies to those hired between October 1, 2020, and October 1, 2022. The legislation is designed to incentivize businesses to create new full-time jobs, thereby contributing to economic development and reducing recidivism rates by promoting workplace reintegration.

Contention

While the intention behind SB00167 is generally seen as positive, there was some discussion surrounding potential contention points. Critics may express concerns that this tax incentive disproportionately favors certain businesses over others, or that it might not sufficiently address the broader structural barriers faced by formerly incarcerated individuals in the job market. Further, stakeholders might debate the adequacy of funding for the tax credit, as the total amount granted is capped at three million dollars per fiscal year.