Connecticut Governor Ned Lamont introduced a plan to reduce taxes for businesses.
Connecticut to Lower Business Tax
Gov. Lamont suggested restoring Connecticut’s pass-through entity tax credit. This will make small business owners save money by claiming a larger credit on their personal returns. This money will be used to finance their establishments to support continuity and develop new jobs. Lamont stated that this will give small businesses assurance that they can receive the full benefit of this tax credit.
The pass-through entity tax credit will allow businesses to avoid state tax deduction limitations. These are fully deductible for federal tax purposes. The deductions for state personal income taxes are limited to $10,000.
Gov. Ned Lamont Proposes Business Tax Cuts
The CEO of the Connecticut Business & Industry Association, Chris DiPentima said that the proposal will have an immediate and positive impact. It will allow small businesses to invest tens of millions of dollars in jobs. He followed that it’s one of the critical steps needed to help Connecticut’s smaller employers compete and grow their workforce said NewsTimes.
This will put millions of dollars back into small businesses. This proposal will return the tax credit to its original level of 93.01 percent. It would also pave a way for Lamont’s proposal on the reduction in the state’s income tax rate. These proposals are the main focus of the governor’s biennial budget proposal that will be presented to the legislature next month.