OLR Bill Analysis

sSB 1058

AN ACT CONCERNING COMMUNITY ECONOMIC DEVELOPMENT.

SUMMARY:

This bill establishes a credit against the corporation and other business taxes for firms that (1) operate a business facility in a distressed municipality, (2) are independently owned and operated, (3) employ fewer than 50 full-time employees, at least 40% of when reside in the municipality where the facility operates, and (4) have gross annual sales of less than $ 5 million. The credit is (1) 100% of the firm's tax liability with respect to its first taxable year after the eligible date; (2) 75% of its liability for its next taxable year; and (3) 50% of its liability for the third year. In addition to the corporation tax, the credit applies against the insurance companies, air carriers, railroads, cable TV company, utility companies, and limited liability corporation taxes.

The bill allows the municipalities that have contracts with the Connecticut Resources Recovery Authority (CRRA) to annually dispose of a minimum amount of municipal solid waste through the Mid-Connecticut Project to form a project oversight committee. They can do so by a vote (a resolution) by the legislative body of municipalities that constitute (1) a majority of these municipalities, and (2) more than 50% of the annual minimum solid waste tonnage committed by the project municipalities under contracts with the CRRA. The resolution must specify the committee's membership and appropriate rules of procedure.

Under the bill, the committee must approve or reject any proposed CRRA capital expenditure that exceeds $ 3 million dollars, or any decision that may have a fiscal impact on the Mid-Connecticut Project that equals or exceeds $ 3 million in the aggregate.

If the eligible municipalities establish the oversight committee, CRRA may not, without its approval, (1) expend or commit to expend more than $ 3 million for a capital expenditure or (2) take any action that may have a fiscal impact on the project that equals or exceeds $ 3 million in the aggregate. But the bill does not limit CRRA's right to comply with the provisions of any existing contract with or for the benefit of the owners or holders of any CRRA bonds or other obligations. In addition, the bill specifies that it may not be construed to alter, impair, diminish, or otherwise affect the rights of the owners or holders.

EFFECTIVE DATE: The tax credit is effective upon passage and applicable to income years of corporations starting on or after January 1, 2009; the CRRA provisions are effective October 1, 2009.

COMMITTEE ACTION

Planning and Development Committee

Joint Favorable Substitute Change of Reference

Government Administration and Elections Committee

Joint Favorable