Commerce Committee Approves Three Measures to Help #MoveCTUp
According to CNBC, there are some things that Connecticut does well, and some things we don’t do so well.
In an effort to improve Connecticut’s economic competitiveness and move up in the various state economic rankings, CBIA supports the CT20x17 campaign and working on a number of measures we believe could help.
This week the Commerce Committee approved a number of bills, but three of particular interest to the employer community include measures that are easily linked to categories within CNBC’s state economic competitiveness rakings. They include:
SB 1017 Modifies the manufacturing apprenticeship tax credit for pass-through entities by allowing the credit to be applied against sales taxes due to the state or sold to other entities where they can be applied against gross earnings and certain other taxes, not just the Business Corporation Tax.
Manufacturers need a steady supply of skilled talent–and the clock’s ticking. That’s because the average age of manufacturing employees in Connecticut is nearly 60 years old and there aren’t enough skilled replacements in sight.
CNBC ranks Connecticut 32nd when it comes to workforce. That’s an area where we can, and must, do better.
Lawmakers can help head off the talent crisis by adopting SB 1017 and therefore making the state’s apprenticeship tax credit workable for many of our small and midsize manufacturers.
SB 323, which would raise the cap from $5 million to $10 million on the state’s neighborhood assistance tax credit program. The program funds municipal and tax exempt organizations through a tax credit for businesses making cash contributions to nonprofits.
Most are unaware of it, but the Connecticut Neighborhood Assistance Act (NAA) has helped make the state a better place to live and work. Numerous recipients scattered throughout the state are bringing enjoyment to communities and improving our quality of life.
According to CNBC, Connecticut placed 14th when it comes to quality of life. Like access to capital, this is one of our better national rankings, but we can do better.
SB 540 modifies the state’s insurance reinvestment tax credit by lifting its overall cap by $50 million. The Insurance Reinvestment Tax Credit Program provides a 100% insurance premiums tax credit to insurance companies that invest with approved fund managers who provide financing to eligible Connecticut businesses.
According to CNBC, Connecticut placed in a tie for seventh place when it comes to access to capital. That’s one of our better national rankings, but we can do better.
This program has worked very well for Connecticut, encouraging investments in biopharma, aerospace, and more–all of which are economic drivers and can help make Connecticut’s economy stronger and better.
CBIA thanks the Commerce Committee for unanimously approving these forward-looking tax proposals and encourages the legislature to follow suit.
For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 | firstname.lastname@example.org | @CBIAbonnie
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