House Bill No. 7268 proposes significant amendments to the JobsCT tax rebate program in Connecticut, aimed at incentivizing job creation among qualified businesses. The bill repeals Section 32-7t of the general statutes and introduces new definitions, including "Discretionary FTE," "Qualified business," and "Qualified FTE," which clarify eligibility criteria for tax rebates. Notably, the definition of "Qualified business" is expanded to include those subject to taxation under chapters 208 or 228z. The bill also outlines a streamlined application process, requiring businesses to provide projected job growth information, and tasks the commissioner of Economic and Community Development with evaluating applications based on their potential economic impact.

Additionally, the bill lowers the eligibility threshold for businesses with 75 or fewer employees, allowing them to qualify for rebates by creating and maintaining just five new FTEs, compared to the previous requirement of 25 new FTEs. It emphasizes hiring from disadvantaged backgrounds and introduces a new rebate for businesses employing individuals from concentrated poverty areas, effective January 1, 2025. The bill sets a cap on total rebates at $40 million per fiscal year and mandates that approved businesses maintain at least 25 new discretionary FTEs in the year prior to claiming rebates. The changes are set to take effect on October 1, 2025, with an estimated annual administrative cost of $137,896 and projected revenue losses for the General Fund peaking at approximately $2.1 million by FY 30.

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