Bill Expands Small Business Access to Jobs Tax Rebate Program

The legislature’s Finance, Revenue, and Bonding Committee unanimously approved legislation April 24 that significantly expands small business access to the JobsCT tax rebate program.

HB 7268 makes a pivotal change to the program, extending eligibility to smaller employers with 75 or fewer employees if they hire five or more new workers.

This adjustment significantly lowers the threshold for participation, making it easier for small businesses to access the program’s financial incentives.

Launched in 2023 after being included in the state budget adopted the previous year, JobsCT provides refundable tax credits designed to incentivize private-sector job growth and employment opportunities.

It is currently available to employers who meet specific criteria, with eligible businesses able to earn a tax rebate equal to 25% of the withholding taxes from net new employees.

Employers located in distressed municipalities or opportunity zones may qualify for an enhanced rebate of 50%.

Job Creation

To participate, businesses must create a minimum of 25 new full-time equivalent positions, with salaries meeting or exceeding 85% of the median household income of the municipality where the jobs are based.

By reducing the number of new hires required for eligibility, HB 7268 empowers small businesses to expand their workforce without facing prohibitive barriers.

This change not only supports local entrepreneurs but also strengthens the state’s commitment to building a diverse and resilient economy.

Connecticut’s #economy expanded 2.6% in 2024, 23rd best in the US, despite 1.8% 4th quarter growth according to @BEA_News. “I see the GDP growth rate indicative of us not filling open #jobs,” says @ChrisDiPentima, highlighting the state’s labor shortage.https://t.co/PlKrZQg5f6

— CBIA (@CBIANews) April 1, 2025

CBIA’s Chris Davis said the bill stimulates job creation, fostering sustainable growth while making a strategic investment in employers in every community. 

“Connecticut is often described as the land of small businesses, with hundreds of thousands of small employers accounting for nearly half of all private sector employment,” he said.

“These small enterprises, however, face increasingly difficult challenges as labor costs, energy bills, regulatory expenses, and taxes continue to rise for many employers in our state.”

‘Signal’

The bill did draw opposition from the Lamont administration, with State Office of Policy and Management Secretary Jeffrey Beckham, raising concerns about its potential fiscal impact.

“The current consensus revenue forecast assumes $1 million in JobsCT rebate usage each year and this proposal would increase that revenue impact,” he told committee members at an earlier hearing.

“Approximately 50% of the job growth in the private sector over the last three years has been attributable to firms with 75 or fewer employees that would be newly eligible with this amendment.”

“HB 7268 signals that Connecticut supports creating an environment for small employers to grow and thrive.”

CBIA’s Chris Davis

Davis said that program expansion “will empower small employers to compete more effectively by allowing the investment of resources into infrastructure, innovation, and workforce development while being incentivized to create greater opportunities for Connecticut residents.”

“HB 7268 signals to entrepreneurs and investors that Connecticut supports creating an environment for small employers to grow and thrive,” he said.

The bill awaits action in the House.

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For more information, contact CBIA’s Chris Davis (860.244.1931).