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That’s a Wrap
Businesses point to victories as 1999 legislative session ends
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Business New Haven
6/14/99
By: BNH
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As the clock struck midnight on the 1999 session of the General Assembly June 9, business leaders expressed a measure of satisfaction with what they perceived as progress in improving the state's business climate.
Lawmakers and the administration enacted a number of measures to reduce taxes, enhance job-training opportunities and improve public education. Equally important, a host of proposals that would have increased workplace costs and placed additional burdens on businesses were rejected.
“Improvements in the business tax structure, the increased accountability of schools, increased job-training funding and support for our urban centers all continue the positive work done so far to make Connecticut more competitive in today's global economy,” concluded Kenneth O. Decko, president and CEO of the Connecticut Business & Industry Association (CBIA).
Changes to the business-tax structure included:
• An extension of the net operating loss carryforward period from five to 20 years, effective for income years beginning on or after January 1, 0000;
• Business with less than $70 million in gross annual sales will be permitted to transfer unused research-and-development tax credits to the state for 65 percent of their value;
• The hospital gross receipts tax was cut from 6.25 to 4.5 percent beginning October 1, representing a savings of some $30 million in annual hospital charges;
• Lawmakers eliminated the double taxation of sale-leaseback transactions. Henceforth if the sale and leaseback take place within 120 days, the six-percent sales tax is imposed once only.
The General Assembly also stood by such scheduled tax cuts as the corporation business tax, which will fall to 7.5 percent by next January 1. The legislators also approved a measure recognizing exemplary environmental management. The law creates a pilot program to acknowledge and reward businesses achieving a superior level of environmental performance, thus encouraging greater compliance with existing environmental regulations.
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