Two proposals heard by the legislature’s Commerce Committee this week are designed to boost Connecticut’s manufacturers.
One expands an existing capital investment program—making it more attractive to more manufacturers—and the second contains Gov. Malloy’s proposal to create and fund an Advanced Manufacturing Advisory Council.
Expanding Manufacturers’ Fund
The state Department of Economic and Community Development (DECD) currently funds a Manufacturers Reinvestment Account (MRA) that’s designed to encourage manufacturers to invest in their operations in Connecticut.
Currently under the MRA, small manufacturers (50 or fewer employees) have very modest tax breaks on funds drawn from the account to invest in machinery, equipment, facilities, or workforce training.
It’s a good program that hasn’t yet reached its potential.
SB 232 improves it in two ways, by:
- Expanding the MRA to more manufacturers by opening it to manufacturers with more than 50 employees
- Allowing manufacturers to make tax-free withdrawals withdraw from this reinvestment fund
These changes will help more manufacturers reinvest in their companies and create a stronger base for Connecticut’s economy.
Creating Advanced Manufacturing Council
A second initiative (HB 5041), driven by the governor’s office, creates an Advanced Manufacturing Advisory Council with a budget of $25 million to support Connecticut’s manufacturers.
The council will be appointed by legislators and charged with directing the funding and support to Connecticut’s manufacturing economy.
This initiative is designed to support innovation, growth, and workforce development in Connecticut’s manufacturing economy.