Martin M. Looney

Williams, Looney, LeBeau Laud New Laws Taking Effect January 1st Aimed at Growing Jobs

New hire tax credits, student loan forgiveness for green tech jobs among new laws

Members of the Senate Democrat Caucus today highlighted several new laws that go into effect Sunday, January 1, 2012 aimed at growing jobs, rewarding small businesses that hire new employees and helping recent college graduates employed in green technology.

This past October, the legislature passed a bipartisan jobs bill, An Act Promoting Economic Growth and Job Creation in the State (Public Act No. 11-1). The bill streamlined and replaced three existing tax credit programs with a Job Expansion Tax Credit (JET). Beginning January 1st, employers can claim a tax credit of $500 for up to three years for employees hired between January 1, 2012 and December 31, 2013. The credit increases to $900/month if the individual hired is a military veteran, unemployed or disabled.

“As we enter a new year our, goal remains finding ways to help small businesses expand and create jobs, cut red tape, and put Connecticut residents back to work,” said Senate President Pro Tem Donald E. Williams, Jr. (D-Brooklyn). “The Job Expansion Tax Credit will make it easier for Connecticut small business to hire new employees.”

Businesses with 50 or fewer employees qualify for the credit if they create at least one new job; those with 51 to 100 employees, if they create at least five; and those with more than 100 employees, at least 10.

“This is perfect timing for this new job tax credit to take effect,” said state Senator Gary D. LeBeau (D-East Hartford), who is Senate Chairman of the Commerce Committee. “A lot of companies are on the edge of considering hiring new workers —especially in manufacturing—and this new tax credit could be a factor in that decision-making.”

To be eligible under the program, the job must require a new employee to work at least 35 hours per week for at least 48 weeks per calendar year or 20 hours per week for at least 48 weeks per calendar year if the employee is receiving vocational rehabilitation services.

Additionally, in an effort to promote green jobs and reduce the financial burden of recent college graduates, a new program for loan forgiveness for college graduates in ‘green’ studies will take effect New Year’s Day. The loan forgiveness program is one aspect of the Democratic Majority Leader’s Roundtable jobs bill that was passed in 2010. As a result, $3 million is available in loan forgiveness grants to any Connecticut resident who graduated on or after May 1, 2010 from a state college or university with a bachelor’s degree in a field related to the promotion of clean energy, renewable energy or energy efficiency; reducing greenhouse gases or carbon emissions; or inventing, designing and applying chemical products and processes to eliminate the use and generation of hazardous substances. The family contribution for the most recent full academic year cannot exceed $35,000, and students are eligible for a maximum loan of $2,500 per year for up to four years.

“Our goal is to position Connecticut to weather the global economic downturn and position the state to be a national leader in environmentally sound innovations, therefore, we must have a well trained and technologically sophisticated workforce,” said Senate Majority Leader, Martin Looney (D-New Haven). “By reducing the financial burden on students and families we can provide incentives for our state’s promising young graduates to prepare for careers in a new, green economy.”