Government Affairs REPORT

Hearing on Tuesday, March 7:
Tax bill will help manufacturers

(March 3, 2006) With Connecticut seeking to improve its business climate and stimulate more job growth, the legislature’s Commerce Committee is about to consider a bill that could significantly boost the state’s standing in the eyes of businesses.

SB-348 exempts manufacturing machinery and equipment from local property taxes. Legislative leaders, CBIA and the state’s business community have all identified this as one of the most important tax reforms needed to boost the state’s manufacturers.

Neighboring and other competitor states don’t impose this tax, which manufacturers say hurts their ability to remain competitive.

Connecticut manufacturers are encouraged to speak in favor of the bill when it is the subject of a public hearing before the Commerce Committee on Tuesday, March 7 at 1 p.m. in Room 1D of the Legislative Office Building in Hartford.
(For more information, contact CBIA’s Bonnie Stewart at 860-244-1900 or stewartb@cbia.com.)

Also this week, CBIA testified on SB-51, the governor’s budget bill that repeals the corporate tax surcharge in 2007 and contains new business-tax incentives for Connecticut businesses.

Among other things, the bill creates new credits for companies that add jobs or hire laid-off workers, and for the state’s burgeoning film industry; and cuts taxes on natural gas and electricity by 25%. The bill also includes the governor’s proposal to eliminate the property tax on residential vehicles.

CBIA considers the repeal of the corporate tax surcharge another major key to improving the state’s business climate — and recommends that it be eliminated for 2006 and 2007.

CBIA also testified on HB-5607 — the association asked for this measure to clarify Connecticut’s interest add-back law.

Connecticut needs tax policies that will encourage investments in new equipment and technology and that foster innovation and productivity. These investments in turn will lead to the development of new products and services — and the help the state bring in other businesses and jobs.

For more information, contact CBIA’s Bonnie Stewart at 860-244-1900 or stewartb@cbia.com.