Connecticut House Bill HB06181

Connecticut 2021 Regular Session

• Introduced: 1/29/21
• Refer: 1/29/21

Caption

An Act Concerning The Amount Of The Credit Allowed Against The Affected Business Entity Tax.

Impact

The potential impact of HB 06181 on state laws centers around how tax credits are structured for affected business entities. By increasing the allowed credit, the bill could relieve some financial pressure on smaller businesses that contribute significantly to the state’s economy. Such changes may simplify tax compliance and encourage reinvestment into these businesses, which is critical for job creation and economic stability in the state.

Summary

House Bill 06181 addresses the provisions of the affected business entity tax by proposing an increase in the tax credit allowable for taxpayers. Specifically, the bill suggests raising the tax credit to ninety-three and one-hundredths percent for the first one million dollars of income that is subject to this tax. This adjustment is intended to provide financial relief to small and affected business entities operating in the state, ultimately stimulating economic growth and sustainability among local enterprises.

Contention

Debate surrounding HB 06181 may arise particularly in discussions about the fairness and financial implications of changing tax credits. Proponents of the bill argue that increasing the credit is an essential step toward aiding businesses recovering from economic downturns, while opponents may express concerns about the fiscal responsibility of amending tax policy without considering long-term impacts on state revenue. Additionally, there may be discussions about whether this adjustment adequately addresses the complexities and varying sizes of affected businesses.