Economic Development Related Legislation Enacted Into Law In 2006

7/11/2006

Manufacturing Machinery and Equipment Property Tax Exemption

New laws exempt all manufacturing and recycling machinery and equipment from property taxes and reimburse towns for the revenue loss after a five year phase-in.

(PA 06-83 (§§ 9-14) and PA 06-186 (§ 84), effective July 1, 2006 and applicable to assessment years starting on or after October 1, 2006)

Innovation

The legislature established new programs to (1) recruit eminent faculty to UConn, (2) create an entrepreneurial center there, (3) provide operating funds to business incubators, (4) finance early stage ventures, and (5) match federal small business research grants.

(PA 06-83 (§§ 1-7), effective July 1, 2006)

Business Advocate Office

A new law establishes a business advocate office within the Office of Policy and Management to provide information and other assistance to businesses seeking public and private assistance.

(PA 06-83 (§ 8), effective July 1, 2006)

Microenterprises

The legislature established a pilot program to help microenterprises prepare business plans, complete loan applications, and obtain financial and technical assistance from public and private agencies.

(PA 06-166, effective July 1, 2006)

Brownfield Development

The legislature authorized several new initiatives to clean up and redeveloped contaminated properties. These initiatives include establishing a Brownfield Remediation and Development Office, expanding Transfer Act exemptions, and extending clean-up funding to owners of existing manufacturing facilities.

(PA 06-184, effective July 1, 2006, except for Transfer Act exemptions, which take effect upon passage, and extending clean-up funding to current owners, which take effect October 1, 2006)

Film and Digital Media Promotion

The legislature created corporation business tax credits for companies that produce films and other types of television, video, and digital programming content in Connecticut. The credit equals 30% of the production costs incurred here. It is administered by the Connecticut Commission on Culture and Tourism.

(PA 06-83 and PA 06-186, effective July 1, 2006 and applicable to income years beginning on or after January 1, 2006)

Job Training

A new law authorizes business tax credits for companies that relocate to Connecticut, create new jobs, and fill them with Connecticut residents. The credit equals up to 25% of the state income tax withheld from the new employees' wages and applies for five years.

(PA 06-186 (§ 80), effective July 1, 2006 and applicable to income years starting on or after January 1, 2006)

Another new law authorizes a job skills training program to sustain high growth occupations and economically vital industries and help workers obtain the skills to start on or move up their career ladders. Businesses requesting training must cover at least 50% of the costs.

(PA 06-187 (§§ 14-21), effective July 1, 2006)

Displaced Workers Tax Credit

The legislature authorized business tax credits for companies that hire workers who were previously laid off because of corporate restructurings in which at least 10 Connecticut workers lost their jobs. The credit equals $ 1,500 per worker.

(PA 06-186 (§ 81), effective July 1, 2006 and applicable to income years starting on or after January 1, 2006)

Historic Structure Tax Credits

A new law authorizes up to $ 15 million annually in corporate tax credits for rehabilitating historic commercial and industrial properties for residential use. The credit equals up to 25% of the qualified rehabilitation costs, up to $ 2. 7 million. The Connecticut Commission on Culture and Tourism administers the credits.

(PA 06-186 (§ 82), effective July 1, 2006 and applicable to income years starting on or after January 1, 2006)

Urban and Industrial Sites Reinvestment Tax Credits

A new law expands the range of projects that qualify for corporate business tax credits under the Urban and Industrial Sites Reinvestment Program.

(PA 06-187 (§ 12), effective upon passage)

Nanotechnology

The legislature authorized matching grants to support students and university-business teams researching new nanotechnology products and processes.

(PA 06-187 (§§ 27 & 91), effective July 1, 2006)

Fuel Cell Economy Plan

The legislature authorized the economic and community development commissioner to prepare a plan for commercializing fuel cells and hydrogen-based technologies.

(PA 06-187 (§ 64), effective upon passage)

Agriculture Promotion

The legislature required the agriculture commissioner to plan and implement a multiyear advertising campaign to promote the state's farm products.

(PA 06-187 (§§ 65-66), effective July 1, 2006)


5/17/2006
Rebuilding Our Cities & Towns, June 7
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