Commerce Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5437

Title:

AN ACT ESTABLISHING A JOB CREATION INCENTIVE TAX CREDIT PROGRAM FOR THE HIRING AND RETENTION OF NEW FULL-TIME EMPLOYEES.

Vote Date:

3/22/2018

Vote Action:

Joint Favorable Substitute Change of Reference to Finance, Revenue and Bonding

PH Date:

3/20/2018

File No.:

Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.

SPONSORS OF BILL:

Commerce Committee

REASONS FOR BILL:

This Bill:

● Authorizes business tax credits for hiring new employees equal to:

10% of the wages paid to a state resident for the first 12 months on the job, excluding residents who were employed in the state by a related business within the previous 12 months

12.5% of the wages paid to a veteran or a previously unemployed person for the first 12 months on the job

● Credits apply to the corporation business, insurance premium, utility company, and personal income tax (for pass-through entities)

Effective Date: July 1, 2018 and applicable to income or taxable years beginning on or after January 1, 2018

RESPONSE FROM ADMINISTRATION/AGENCY:

None

NATURE AND SOURCES OF SUPPORT:

Rep. Bill Buckbee, House of Representatives, State of Connecticut:

● Will provide incentives for business to hire full-time employees and continue to employ them

Paul R. Pascatello, JD, PhD, Senior Counsel and Executive Director of the Connecticut Bioscience Growth Council:

● Would be a valuable economic development tool provided it can be integrated into the state's overall budgetary and fiscal policies.

● Would like to clarify bill to state whether taxpayers receive the tax credit described in the bill if they meet the stated criteria or if it is discretionary on the part of the DECD, in addition it does not appear to apply to multi-member limited liability companies, which is a common start- up enterprises organizational form

NATURE AND SOURCES OF OPPOSITION:

None

Reported by: Jessica Serrao Asst. Clerk

Date: 03/28/18