Proposed language from the Manufacturing Reinvestment Account bill (HB 6584) that died in Finance Committee earlier this session was added to the Majority Leaders' Job Growth Roundtable bill (HB 6525) that passed the House on Thursday afternoon. The bill now goes to the Senate.
The bill allows a state agency-selected group of 50 small manufacturers (50 or fewer employees) to invest up to $50,000 per year for five years in a savings account to be used for reinvestment in their companies.
Deposits would be deducted from yearly gross income while withdrawals would be subject to a low rate of taxation in the year the money is used. The program applies to both C corporations and to pass-through entities such as S corporations and limited liability companies.
The Jobs Roundtable bill further expands the Innovation Network statutes to promote technology-based economic development, creates a system of networking for entrepreneurs within the network, identifies best practices for the promotion of innovation, and develops a state-wide innovation database.
The bill also allows for the creation of a “Learn Here, Live Here” incentive program that would encourage graduates of public higher education in Connecticut to invest in a first-time home buyer's account.
This measure would aid in the retention of high skilled graduates who are currently fleeing high-cost Connecticut upon completing their degrees.