Bill Text: CT SB00447 | 2016 | General Assembly | Introduced

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Bill Title: An Act Establishing A Tax Credit For Businesses That Hire Promise Zone Residents Or Are Located In A Promise Zone.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-03-14 - Public Hearing 03/18 [SB00447 Detail]

Download: Connecticut-2016-SB00447-Introduced.html

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General Assembly		Raised Bill No. 447
February Session, 2016		LCO No. 2916
		*02916_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)

AN ACT ESTABLISHING A TAX CREDIT FOR BUSINESSES THAT HIRE PROMISE ZONE RESIDENTS OR ARE LOCATED IN A PROMISE ZONE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016) (a) There shall be allowed as a credit against the tax imposed on any corporation under chapter 208 of the general statutes an amount equal to two thousand five hundred dollars for each new employee hired prior to the last month of the income year, provided such employee is a resident of a federally designated promise zone. For the purposes of this section, "resident" means a person who is domiciled in such zone for a period of not less than one hundred eighty days preceding the date of hire by such corporation.

(b) A credit allowed under subsection (a) of this section that is not used by a corporation may be carried forward to each of the successive income years until such credit is fully taken. In no case shall a credit that is not used be carried forward for a period of more than five years.

Sec. 2. (NEW) (Effective July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016) (a) For the purposes of this section, "qualifying corporation" means a corporation that owns a facility; and "facility" means a facility acquired or developed on or after January 1, 2016, and located in a federally designated promise zone.

(b) (1) For any income year commencing on or after January 1, 2016, and prior to January 1, 2017, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to one hundred per cent of that portion of such tax which is allocable to a facility.

(2) For any income year commencing on or after January 1, 2017, and prior to January 1, 2018, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to ninety-five per cent of that portion of such tax which is allocable to a facility.

(3) For any income year commencing on or after January 1, 2018, and prior to January 1, 2019, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to ninety per cent of that portion of such tax which is allocable to a facility.

(4) For any income year commencing on or after January 1, 2019, and prior to January 1, 2020, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to eighty-five per cent of that portion of such tax which is allocable to a facility.

(5) For any income year commencing on or after January 1, 2020, and prior to January 1, 2021, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to eighty per cent of that portion of such tax which is allocable to a facility.

(6) For any income year commencing on or after January 1, 2021, and prior to January 1, 2022, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to seventy-five per cent of that portion of such tax which is allocable to a facility.

(7) For any income year commencing on or after January 1, 2022, and prior to January 1, 2023, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to seventy per cent of that portion of such tax which is allocable to a facility.

(8) For any income year commencing on or after January 1, 2023, and prior to January 1, 2024, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to sixty-five per cent of that portion of such tax which is allocable to a facility.

(9) For any income year commencing on or after January 1, 2024, and prior to January 1, 2025, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to sixty per cent of that portion of such tax which is allocable to a facility.

(10) For any income year commencing on or after January 1, 2025, and prior to January 1, 2026, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to fifty-five per cent of that portion of such tax which is allocable to a facility.

(11) For any income year commencing on or after January 1, 2026, there shall be allowed as a credit for any qualifying corporation against the tax imposed under chapter 208 of the general statutes in an amount equal to fifty per cent of that portion of such tax which is allocable to a facility.

(c) A credit allowed under subsection (a) of this section that is not used by a corporation may be carried forward to each of the successive income years until such credit is fully taken. In no case shall a credit that is not used be carried forward for a period of more than five years.

This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016	New section
Sec. 2	July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016	New section

Statement of Purpose:

To allow a credit against the corporation income tax for each resident of a federally designated promise zone hired and for any business that acquires or develops a facility in such zone on or after January 1, 2016.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]