Tax Reductions incentivize businesses

Sen. Boucher moves to make JET permanent

Hartford, CT – State Senator Toni Boucher (R-Wilton) testified before the Commerce Committee in support of SB 390 AN ACT MAKING PERMANENT THE JOB EXPANSION TAX CREDIT PROGRAM. This bill was the brain child of Senator Boucher as a permanent replacement to The Job Expansion Tax Credit Program (JET) that was passed in October 2011.

“Though it would be preferable if taxes were lower for everyone, the job expansion tax credit is a small but valuable step toward improving the business climate in Connecticut,” said Sen. Boucher. “Making the credit permanent would enable more businesses to take advantage of it and create the most opportunity for citizens who are looking for work. “

This bill would replace the current JET program language by making it permanent while still retaining a cap of $20 million per fiscal year. Under the original bill, PA 11-1, businesses could only qualify for this tax credit if they created new jobs between January 1, 2012 and January 1, 2014. SB 390 removes the 2014 end date.

In order to claim the $500 to $900 per job credit businesses with 0-50 employees must have 1 new employee in the taxable year; businesses with 51-100 employees must create 5 new jobs, and businesses with 100 or more must create10 new jobs.

The savings that a small business could realize for each of these new jobs are considerable. Qualifying businesses earn a credit of $500 dollars a month for every new job created, and $900 a month if the position is filled by an employee who has not had a full time job since their unemployment benefits ran out, is a military veteran, or is receiving vocational rehabilitation services from the Bureau of Rehabilitative Services.

“Tax reductions in any form are an effective means of incentivizing businesses to grow and add new jobs. With the unemployment rate in Connecticut significantly higher than the national average, a permanent tax credit for job expansion is a change we should welcome,” added Sen. Boucher.