Senator Dan Debicella (R-21) led the Republican caucus in announcing their economic growth and jobs creation proposal last week in Hartford. Senator Debicella was the primary author of the proposal, which has been endorsed by all twelve Republican senators.

“We need to not just focus on short-term stimulus, but on making Connecticut a business-friendly state,” Senator Debicella said. “If we can attract more small businesses and entrepreneurs to Connecticut, we will be able to create more solid, middle class jobs.”

Senator Debicella and the other Republican Senators announced the caucus’s 2008 pro-jobs initiative at a recent press conference held at the Legislative Office Building in Hartford.

“Among other things, our new proposal calls for building on the work we did last year by extending the job creation tax credit to all businesses, eliminating the need for DECD approval, and applying the credit annually to every net new job created. Our proposal calls for making the credit applicable to income years beginning on or after January 1, 2008,” said Senator Debicella.

Senator Debicella played a leading role in crafting last years’ Job Creation Tax Credit, which was enacted into law with bipartisan support. The 2007 legislation provides tax credits to Connecticut C-corporations that create 10 or more net new jobs in a year. Qualifying businesses approved by the state Department of Economic and Community Development (DECD) receive a tax credit equal to 60% of each new worker’s state withholding tax.

“Passing the Senate Republicans’ 2007 Job Creation Tax Credit was an excellent beginning to what will be our ongoing efforts to help Connecticut’s workers by fostering a positive business climate, “said Senator Debicella. “But it was only a first step—our plan this year will help Connecticut’s economy not only this year, but for years to come.”

Other highlights of the Senate Republicans’ 2008 Pro-Jobs Initiative include:

• Repealing the Business Entity Tax Effective January 1, 2008: Republican legislators have called for eliminating the $250 annual “tax on existing” since its inception in 2002, and will continue to call for its elimination during the upcoming legislative session.

• Bringing Business Sense to Regulation: The Senate Republicans’ 2008 proposal calls for requiring DECD to 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 a regulation is redundant, it would automatically be repealed unless the legislature’s Regulations Review Committee votes to keep it.

• Creating Next Generation Industries: The Senate Republicans’ 2008 proposal calls for extending the existing movie industry tax credit 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 sciences devices and nanotechnology. Under the proposal, companies that have not yet made a profit could trade their tax credits to profitable Connecticut companies.