Commerce Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-78

Title:

AN ACT EXTENDING THE JOB EXPANSION TAX CREDIT PROGRAM.

Vote Date:

3/25/2014

Vote Action:

Joint Favorable

PH Date:

2/27/2014

File No.:

SPONSORS OF BILL:

Commerce Committee

REASONS FOR BILL:

This bill reopens the Job Expansion Tax Credit program (JET) to businesses creating new jobs and sets the sunset date at January 1, 2015, as under current law the deadline expired January 1, 2014. By law, businesses awarded credits may claim them for three years, and those awarded credits before the current January 1, 2014 sunset date, may continue to do so until the three-year period expires. The effective date is January 1, 2014 and is applicable to taxable and income years beginning on or after January 1, 2014. This bill seeks to encourage job growth within the state of Connecticut.

RESPONSE FROM ADMINISTRATION/AGENCY:

None

NATURE AND SOURCES OF SUPPORT:

Senator John McKinney: Senator McKinney submitted testimony that the JET program “unfortunately…only applied to jobs created from January 1, 2012 to January 1st of this year”. He states that the program has “helped to create 1,856 new jobs and as of September 2013 the program has only issued $5.6 million worth of credit, well below the total $40 million dollar cap established by the legislature”. “With the state of Connecticut's economic recovery and the stagnant growth in the job market”, he suggests that the JET program be extended until the $40 million limit originally allocated is reached.

NATURE AND SOURCES OF OPPOSITION:

None

Reported by: Mark Vanderhoof, Assistant Clerk

Date: 3-26-14