House Bill No. 7268 seeks to enhance job creation in Connecticut by modifying the existing JobsCT tax rebate program. The bill repeals Section 32-7t of the general statutes and introduces new definitions for "qualified business" and "qualified FTE," which detail the criteria for businesses and employees eligible for tax rebates. Notably, the bill lowers the threshold for businesses with 75 or fewer employees, allowing them to qualify for rebates by creating and maintaining just five new full-time equivalent (FTE) positions, compared to the previous requirement of 15 or 25 FTEs under certain conditions. The bill also emphasizes the inclusion of individuals from disadvantaged backgrounds, such as veterans and those with disabilities, in the hiring process.

In addition to these changes, the bill establishes a rebate structure based on the average wages of new FTEs, with specific caps on the total rebate amount. It mandates that businesses maintain a minimum number of new FTEs to qualify and imposes a limit of $40 million on the total rebates issued in any fiscal year. The bill also introduces a new provision that allows for an additional rebate for businesses hiring individuals from concentrated poverty areas, effective January 1, 2025. The changes are set to take effect on October 1, 2025, and the tax credit will be available starting in the second year after acceptance into the program. Overall, the legislation aims to make the tax rebate program more accessible to smaller businesses while promoting job growth and economic development in the state.

Statutes affected:
Raised Bill: 32-7t
FIN Joint Favorable: 32-7t
File No. 891: 32-7t