OLR BILL ANALYSIS

sSB 221

AN ACT CONCERNING CERTAIN ECONOMIC INCENTIVES FOR RELOCATING JOBS THAT ARE OUTSIDE OF THE UNITED STATES TO THE STATE

SUMMARY:

This bill allows the economic and community development commissioner to give a preference under the “First Five Plus” program to businesses proposing projects that will relocate overseas jobs to Connecticut. Under the program, the commissioner can provide loans, tax incentives, and other forms of economic development assistance to businesses committing to create jobs and invest capital within the law's timeframes.

By law, a business, including one relocating overseas jobs to Connecticut, qualifies for First Five assistance if it commits to:

1. create at least 200 jobs within 24 months after the commissioner approves the assistance or

2. invest at least $ 25 million and create at least 200 new jobs within five years after the commissioner approved the assistance.

Under current law, the commissioner can give a preference to a:

1. manufacturer from another state or country relocating to Connecticut,

2. business relocating a corporate headquarters here, or

3. business “redevelopment project” that she believes can meet the program's job creation and investment criteria sooner.

The bill extends the commissioner's authority to give preferences to businesses relocating overseas jobs here.

The bill also reserves $ 20 million from an existing FY 13 $ 280 million economic development bond authorization for businesses that propose to relocate at least 100 overseas jobs to Connecticut. Any balance remaining in this $ 20 million reservation after FY 13 must be used to fund economic development projects.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Commerce Committee

Joint Favorable

Yea

16

Nay

0

(03/01/2012)