OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

SB-78

AN ACT EXTENDING THE JOB EXPANSION TAX CREDIT PROGRAM.


OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

The bill, which extends the sunset on the Job Expansion Tax Credit (JET) by a year, does not result in any fiscal impact to the state or municipalities since it is anticipated that the program will exhaust the full $40 million in tax credits available under current law.

According to the Department of Economic and Community Development, approximately $17.7 million credits out of the total $40 million available have already been awarded, of which $13.5 million is for JET.1 Assuming all JET credit-eligible jobs are maintained by applicants through the program's entire 3-year credit award period, this would result in an additional $22.4 million awarded under the current program.

The Out Years

State Impact: None

Municipal Impact: None

Sources:

Department of Economic and Community Development

1 Under current law, total JET, Jobs Creation, Small Business Jobs Creation, and Vocational Rehabilitation Job Creation tax credits may not exceed $40 million in aggregate.