Bill Text: CT SB00023 | 2010 | General Assembly | Comm Sub
Bill Title: An Act Establishing A Qualified Small Business Job Creation Tax Credit.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2010-04-14 - Referred by Senate to Committee on Finance, Revenue and Bonding [SB00023 Detail]
Download: Connecticut-2010-SB00023-Comm_Sub.html
General Assembly |
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February Session, 2010 |
*_____SB00023CE____032310____* |
AN ACT ESTABLISHING A QUALIFIED SMALL BUSINESS JOB CREATION TAX CREDIT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage and applicable to income years commencing on or after January 1, 2010) (a) As used in this section:
(1) "Commissioner" means the Commissioner of Economic and Community Development;
(2) "Income year" means the income year or taxable year, as determined under chapter 207, 208 or 229 of the general statutes, as the case may be;
(3) "Qualified small business" means an employer, subject to tax under chapter 207, 208 or 229 of the general statutes, who employs less than twenty-five employees in Connecticut on the date of its application under subsection (c) of this section;
(4) "New employee" means a person hired after the effective date of this section by the qualified small business during its income years commencing on or after January 1, 2010, and prior to January 1, 2013, to fill a new full-time job. A new employee does not include a person who was employed in Connecticut by a related person with respect to the qualified small business during the twelve months prior to such hiring, or any person who was employed by the qualified small business in any position on the effective date of this section;
(5) "Full-time job" means a job in which an employee is required to work at least thirty-five or more hours per week. A full-time job does not include a temporary or seasonal job;
(6) "Related person" means (A) a corporation, limited liability company, partnership, association or trust controlled by the qualified small business, (B) an individual, corporation, limited liability company, partnership, association or trust that is in control of the qualified small business, (C) a corporation, limited liability company, partnership, association or trust controlled by an individual, corporation, limited liability company, partnership, association or trust that is in control of the qualified small business, or (D) a member of the same controlled group as the qualified small business; and
(7) "Control", with respect to a corporation, means ownership, directly or indirectly, of stock possessing fifty per cent or more of the total combined voting power of all classes of the stock of such corporation entitled to vote. "Control", with respect to a trust, means ownership, directly or indirectly, of fifty per cent or more of the beneficial interest in the principal or income of such trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership, limited liability company or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Section 267(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, other than Paragraph (3) of said Section 267(c).
(b) (1) There is established a qualified small business job creation tax credit program for qualified small businesses, whereby a qualified small business that hires a new employee in a new full-time job may be allowed a tax credit against the tax imposed under chapter 207, 208 or 229 of the general statutes, other than the liability imposed by section 12-707 of the general statutes.
(2) Except as otherwise provided in subdivision (3) of this subsection, the tax credit shall be in an amount equal to two thousand five hundred dollars for each new employee hired during the first six months of the income year of the qualified small business or one thousand two hundred fifty dollars for each new employee hired after the first six months, but prior to the last month, of the income year of the qualified small business.
(3) For each new employee hired during the income year of the qualified small business commencing on or after January 1, 2010, and prior to January 1, 2011, the tax credit shall be equal to two thousand five hundred dollars if the new employee is hired prior to the last month of the income year of the qualified small business.
(4) For each of the two successive income years after the new employee is hired, the tax credit shall be in an amount equal to two thousand five hundred dollars for each new employee employed for a full year.
(5) No tax credit shall be allowed for any new employee hired by a qualified small business in any income year commencing on or after January 1, 2013.
(6) Notwithstanding the provisions of subdivision (4) of this subsection, no qualified small business may claim a tax credit for any new employee that is not employed at the close of the income year of the qualified small business.
(7) The qualified small business shall claim the tax credit for the income year in which the qualified small business hires a new employee and, if eligible, the two immediately succeeding income years. Any tax credit not used in an income year shall expire.
(c) To be eligible to claim the tax credit, a qualified small business shall apply to the commissioner in accordance with the provisions of this section before hiring each new employee. The application shall be on a form provided by the commissioner and shall contain sufficient information as required by the commissioner, including the activities that the qualified small business primarily engages in, the North American Industrial Classification System code of the qualified small business, the current number of employees employed by the qualified small business as of the application date, and the name and position or job title of the new employee to be hired.
(d) (1) Upon receipt of an application, the commissioner shall render a decision on the application, in writing, not later than thirty days after the date of its receipt by the commissioner. If the commissioner approves the application of the qualified small business, the commissioner shall issue a certification letter indicating that the tax credit will be available to be claimed by the qualified small business if the qualified small business otherwise meets the requirements of this section.
(2) The total amount of tax credits granted under this section and under section 12-217ii of the general statutes, as amended by this act, shall not exceed ten million dollars in any one fiscal year.
(3) No qualified small business claiming the tax credit under this section with respect to a new employee may claim any other credit against any tax under any other provision of the general statutes with respect to the same new employee.
(e) If the qualified small business is an S corporation or an entity treated as a partnership for federal income tax purposes, the tax credit may be claimed by the shareholders or partners of the qualified small business. If the qualified small business is a single member limited liability company that is disregarded as an entity separate from its owner, the tax credit may be claimed by the limited liability company's owner. No credit allowed under this section shall exceed the amount of tax imposed by chapter 229 of the general statutes.
(f) The commissioner shall annually provide to the Commissioner of Revenue Services a list detailing all tax credits that have been approved and all qualified small businesses that have been issued a certification letter under subsection (d) of this section.
Sec. 2. Subdivision (2) of subsection (e) of section 12-217ii of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2010):
(2) The total amount of credits granted to all taxpayers under this section and section 1 of this act shall not exceed ten million dollars in any one fiscal year.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
from passage and applicable to income years commencing on or after January 1, 2010 |
New section |
Sec. 2 |
from passage and applicable to income years commencing on or after January 1, 2010 |
12-217ii(e)(2) |
Statement of Legislative Commissioners:
In section 1, grammatical and technical corrections were made to subsection (a)(4), (b) and (d) for accuracy, clarity and to reflect the intent of the committee; section 1(e) and (f) were combined and (g) was relettered accordingly for clarity and accuracy. The effective date of section 2 was changed to reflect the intent of the committee and to conform with the style of the general statutes. In section 2(2), "section 12-217ii" was changed to "this section" for accuracy.
CE |
Joint Favorable Subst.-LCO |