State Senator David J. Cappiello, R-Danbury, today joined his senate Republican colleagues and business leaders from throughout Connecticut to introduce a series of legislative initiatives designed to promote job growth and help to ensure Connecticut’s long-term economic security. The proposals, which build on the Job Creation Tax Credit introduced by Senate Republicans last year, would help small businesses create new jobs by eliminating counterproductive regulations, repealing the business entity tax, and attracting new “next generation” industries to Connecticut.

“There are signs that the national economy is headed towards a recession and we need to be sure that Connecticut businesses have the tools necessary to expand and create jobs that will offset any downturn to the financial market,” said Sen. Cappiello. “As someone who was brought up in a family owned business I am certainly aware of the challenges that many of our state’s small businesses experience. The initiatives that we are calling for today would provide a helping hand to Connecticut’s small businesses that will create long lasting incentives for them to invest and expand.”

Senate Republicans are working to pass the following proposals in 2008:

• Expanding the Job Creation Tax Credit to Small Businesses: Under existing law passed in 2007, the credit is available to Connecticut C-corporations that create 10 or more net new jobs in a year. Qualifying businesses approved by the Department of Community and Economic Development (DECD) receive a tax credit equal to 60% of each new worker’s state withholding tax.

Senate Republicans are working to extend the benefit to all businesses, eliminate the need for DECD approval, and apply the credit annually for every net new job created. The proposed law would take effect July 1st making the credit applicable to income years commencing on or after January 1, 2008.

• Repealing the Business Entity Tax Effective January 1, 2008: Republicans have been working to abolish the $250 annual “tax on existing” since its inception in 2002, most recently as part of the 2007 No Tax Increase Budget Proposal. A Republican amendment that included the elimination of the business entity tax failed last year on a 12-24 party-line vote in the Senate. A similar amendment failed in the House.

• Bringing Business Sense to Regulation: Over the years, a lack of oversight has resulted in a growing number of unnecessary, costly and often redundant business regulations. This has created a bureaucratic maze in which business owners have to seek multiple permit approvals from multiple uncoordinated state agencies, for the same project.

In an effort to make this process more efficient, Senate Republicans are proposing DECD conduct a cost/benefit analysis of all existing regulations every five years. When it is determined that a regulation’s societal cost outweighs its benefits, or that the regulation in question is redundant, it will automatically be repealed unless the legislature’s Regulations Review Committee votes to keep it.

• Creating Next Generation Industries in Connecticut: Senate Republicans are proposing to extend the movie industry tax credit that created “Hollywood East” to emerging industries likely to provide employment to middle class working families in Connecticut. Targeted industries could include alternative energy, environmental remediation, optics and photonics, life science devices and nanotechnology. Under the proposal, companies who have not yet made a profit may trade their tax credits to profitable Connecticut companies.