Tax measures in public hearing March 11

(March 7, 2008) Tax season is in full swing — in many ways. Not only is everyone filing returns, but Connecticut businesses need to know that several tax proposals are being discussed at the state legislature.

On Tuesday, March 11, the Finance Committee will receive comments on a variety of tax matters including eliminating the business entity tax for certain companies, studying business taxes (unitary and gross receipts), adopting the governor’s tax bills, and establishing an angel tax credit.

Here’s a list with brief explanations of some of the bills that will be heard on Tuesday.

SB-28 implements the governor’s budget recommendations regarding estate and gift taxes.
SB-592 provides a tax credit to “angel investors” who make investments in very new businesses.
SB-595 extends the statutory deadline, enabling certain companies to file tax returns for tax credits for which such companies were eligible
SB-656 eliminates the business entity tax for business entities that have revenues of less than $50,000 in a year
SB-658 requires the Business Tax Credit and Tax Policy Review Committee to conduct a study of unitary reporting by corporate taxpayers.
HB-5028 implements the Governor’s budget recommendations including a property tax cap and relief for municipalities from unfunded mandates.
HB-5843 makes changes in the tax credits for the entertainment industry, to encourage digital animation production companies to build infrastructures in Connecticut.
HB-5884 requires the Business Tax Credit and Tax Policy Review Committee to conduct a study of the gross-receipts tax.

Not included in this hearing are three measures of interest to businesses, including AAC Protection of Taxpayer Data, AAC Interpretation of the Manufacturing Tax Exemption, and AAC The Taxpayer Bill of Rights.  They will be discussed at another Finance Committee public hearing.

For more information, please contact Bonnie Stewart at 860-244-1925 or stewartb@cbia.com.