OLR Bill Analysis

SB 78

AN ACT EXTENDING THE JOB EXPANSION TAX CREDIT PROGRAM.

SUMMARY:

This bill reopens the Job Expansion Tax Credit program (JET), allowing businesses to claim credits for new jobs created before January 1, 2015. Current law allows an eligible business to claim the credit for each new job created between January 1, 2012 and December 31, 2013. By law, businesses awarded credits (1) may claim them for three years, and (2) before the current January 1, 2014 sunset date may continue to do so until the three-year period expires.

The bill does not change the existing $40 million cap on the total amount of credits that may be awarded.

EFFECTIVE DATE: July 1, 2014, and applicable to taxable and income years beginning January 1, 2014.

BACKGROUND

Job Expansion Tax Credits (JET)

Under current law, businesses creating new jobs between January 1, 2012 and December 31, 2013 qualify for a three-year credit against the insurance premium, corporation business, utility company, or personal income tax. The credit is $500 per month per new employee or $900 per month if the new employee was unemployed or is a veteran. Businesses qualify for the credit based on the size of their business and the number of people they hire.

COMMITTEE ACTION

Commerce Committee

Joint Favorable

Yea

18

Nay

0

(03/25/2014)