Help for small businesses is focus of Commerce Committee hearing

(March 7, 2008) Small businesses have long been economic incubators in Connecticut, and the legislature’s Commerce Committee is focusing on ways to help them grow and expand. The committee is advancing proposals that could make it easier to do business with state government, reduce business costs and help provide a more skilled workforce.

This week the committee held a public hearing on:
Elimination of the Business Entity Tax (SB-400)
One of the top priorities of the committee, this proposal would eliminate the $250 tax on limited liability companies, limited liability partnerships, limited partnerships and S corporations, effective July 1, 2008.

Regulatory relief for small businesses (SB-399)
Small businesses come under the weight of many state regulations, and the committee is looking at a way that could pare them down. This bill would create a task force of legislators and business members that would review current state regulatory requirements and find a way to streamline or eliminate the ones that are unnecessary or overly burdensome.

While the task force will primarily look at how small businesses are affected by the regulation-making process, it will also review the state’s corporate taxation system. Its recommendations are due by Jan. 1, 2010.

Job creation tax credit (HB-5780)
This proposal expands the state’s current job creation tax credit program to apply to any business that creates at least one new job. The credit may total as much as 60% of the personal or corporate income tax, depending on the type of business entity.

Under the proposal, a new job is one that:
•  Didn’t exist prior to the tax credit application
•  Is filled by someone who was not previously employed by the company during the prior 12 months.
Opening up the tax credit will enable more businesses in Connecticut to take advantage of it and ultimately stimulate more job growth in the state.

Funding for training (HB-5584)
One of the best ways to improve the workforce in Connecticut is to help current workers upgrade and sharpen their skills. To accomplish that, this bill increases funding for incumbent worker training by $5 million. It will allow employees stay up-to-date with rapidly changing technologies and processes — and it will help make sure that Connecticut’s workforce has the skills and training it needs to compete.

For more information, contact CBIA’s Jesmin Basanti at 860-244-1929 or jesmin.basanti@cbia.com. n