More jobs the focus of Commerce Committee

(March 20, 2008) Making it easier to create jobs in Connecticut was the focal point of many proposals in the Commerce Committee this year, from expanding tax credits to boosting the redevelopment of brownfields in the state.

One of the committee’s key proposals was the expansion of the state’s job-creation tax credit program. Currently, the program applies to C-corporations that create at least 10 new net jobs in a year; they can claim a credit equal to 60% of each new employee’s state withholding tax.

This session, HB-5780 originally expanded the credit program to apply to any businesses that created at least one new job. But the bill was amended by the committee and now applies to a taxpayer who creates at least five new jobs.

The bill was approved by the Commerce Committee and was sent to the Finance Committee where it awaits action.

There has been much support behind this measure, from legislators, businesses and the governor, because most companies are not eligible for the tax credit now because they are not C corporations. Expanding the types of businesses that may be eligible for the credit would allow more companies to be able to take advantage of the tax credit and create more jobs in Connecticut.

Among other proposals approved by the committee:
• SB-400 eliminates the $250 tax on all businesses effective July 1, 2008.
• SB-399 creates a task force made up of business and legislative members to study ways in which to streamline or eliminate unnecessary and burdensome regulations on small businesses.
• HB-5584 increases funding for incumbent worker training by $5 million in order to help employers upgrade the skills of their existing workforce.
• SB-401 calls for a study of the ways in which emerging industries can be encouraged to grow in Connecticut.
• HB-5589 implements recommendations of the state’s Brownfields Task Force, providing grants for development projects, low-interest loans to brownfields purchasers, and allowing for tax credits for investigation and remediation of brownfields. (HB-5586, originally concerned brownfields remediation and redevelopment, was stripped of its initial language and the committee substituted unrelated proposals in it.)

Overall, CBIA is pleased with the Commerce Committee’s work in recognizing the value of businesses as key contributors to Connecticut’s economic growth.

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