Tuesday, December 6, 2011

New Law Designed to Stimulate Job Growth and Small Business in Connecticut

On October 27, 2011, Governor Malloy signed An Act Promoting Economic Growth And Job Creation In The State, House Bill No. 6801, into law. The Act does a number of things designed to jump start Connecticut business growth.

1.      Small Business Express Program. This program was created within the Connecticut Department of Economic and CommunityDevelopment (DECD), an agency already in existence to help Connecticut businesses. The Express Program will use streamlined application processes to expedite financial assistance to Connecticut businesses.  

2.      Business Entity Tax. The $250 annual BusinessEntity Tax (BET), payable by all LLCs, LLPs, limited partnerships and S Corporations organized or doing business in Connecticut, was effectively reduced by 50%. Starting January 1, 2013, the BET will be due every other year.

3.      Job Expansion Tax Credit. A new tax credit program whereby businesses will be given a tax credit for each new qualifying employee hired between January 1, 2012 and January 1, 2014. A qualifying employee is someone who (a) is receiving unemployment compensation; (b) has exhausted unemployment compensation and has not found a full time job; or (c) is receiving vocational rehabilitation services from the Bureau of Rehabilitative Services.

4.      Angel Investor Tax Credit. The existing tax credit available to Angel Investors will be modified so that the minimum investment to receive the credit is reduced from $100,000.00 to $25,000.00. The credit shall continue to be 25% of the investment, up to $250,000.00. Angel Investors are typically wealthy individuals that provide capital to business start ups. Check out "What's an Angel Investor?" from the Wall Street Journal for more information.