The Bradley Airport Development Zone (BADZ) extends tax incentives to manufacturers and other specified businesses that develop or acquire property in the zone and create jobs.

“Given the sky high unemployment rates that Connecticut is currently suffering from I am happy we- Governor Rell and the legislature- were able to provide some tax incentives to encourage job growth and get people back to work,” said Representative Mike Alberts, the ranking member of the legislature’s Commerce Committee.

“Bradley Airport provides a great economic opportunity for Connecticut,” said Alberts. “Increased business growth in the BADZ is beneficial to the entire state as it can help jump-start our economy. I hope we can use this bill as a model for future economic growth in Connecticut. We need to provide more tax incentives for businesses rather than burdening them with more taxes.”

Alberts is Vice-President and Commercial Relationship Manager for Simsbury Bank.

The credits are available to businesses that manufacture, process or assemble raw materials or parts; perform manufacturing-related research and development; or significantly service, overhaul or rebuild industrial machines and equipment. Warehousing and motor freight businesses can qualify for the credits if they can demonstrate their business is dependent on goods shipped by air, while service companies- including information technology companies- can also qualify for credits if the can demonstrate their business is related to the airport.

The bill extends a property tax exemption equal to 80% of the assessed value of new, renovated or expanded facilities and on machinery or equipment installed as part of a development or acquisition and it is good for five years, and a 10-year corporation business tax credit on the amount of the tax attributable to the BADZ facility. The business tax credit can range from 25 percent to 50 percent, depending on how many employees at the BADZ facility are residents of the town or zone who qualify for federal job training assistance.

The legislation- SB 107, An Act Establishing a Bradley Development Zone- takes effect October1, 2011. The property tax exemptions apply to assessment years beginning on or after October 1, 2012, and the business tax exemptions apply to income years beginning on or after January 1, 2013.

What’s more, the proposal would require that Jobs Impact Statements accompany bills and amendments—a move addressing the business community’s complaint that the legislature habitually passes bills without considering how they affect employers.

“The most important thing we can do right now is work on fixing our state’s 9.2% unemployment rate and this proposal would have done that,” said Alberts, the ranking member of the legislature’s Commerce Committee. “Unfortunately, the Democrats prefer to delay this important legislation until, well, who knows when.”

Democrats voted against the proposal claiming they plan to work on a jobs package at some point in the future; however, the super-majority Democrats were short on specifics regarding what that plan might include or when it might get done.

“It’s really too bad we couldn’t get this legislation done today. There are a lot of unemployed people in Connecticut and I don’t think they really want to hear excuses and rhetoric about why we aren’t creating jobs right now,” said Alberts. “Session ends in a week- we’re running out of time.”

The Republican proposal failed 38-105.

His jobs-creation proposal included:

• Repeal of the Business Entity Tax on all businesses.
• Creates Small business revolving loan fund (direct loans only)–$25 million cap on the program.
• Job Creation Tax Credit Program—creates a tax credit for employers who employ 100 employees or less.  Employers may receive a $4,800/per employee for every hire off of unemployment.
• Requires that Jobs Impact Statements accompany bills and amendments
• Create DECD ombudsman to help streamlining the permitting process for businesses.

HARTFORD – On the last day Connecticut residents have to mail in their tax bills, House Republicans unveiled their 2011 budget that erases the $736 million deficit for 2011 without raising taxes; instead, consolidating government agencies, shrinking the public workforce and rolling back spending to 2009 levels.

You can see Rep. Alberts discuss the budget here.

The balanced plan preserves municipal and school aid, and sets aside $74.5 million to stimulate job growth. Companies that hire the unemployed can earn $17.5 million in tax credits, and the plan establishes a $25 million small business revolving loan fund, and eliminates the Business Entity Tax.

“In just a few weeks a massive budget deficit is coming- we have to deal with this now and do so without raising taxes. If we continue to ignore this impending storm we will be ill-equipped to deal with it when it comes and the pain our residents feel will be much, much worse,” said State Representative Mike Alberts (R- Woodstock). 

“All around our state people are cutting their family budgets, that’s what we have to do, scale back and make-do with less,’’ said Alberts. “This balanced budget gives a wide range of savings and concessions which have been validated by the non-partisan Office of Fiscal Analysis- so the solution to this budget crisis will be spread across the state.”

The hallmarks of the savings:

• $58 million in line item cuts to 2009 levels;
• $64 million in early retirement for state workers;
• $10 million in state agency consolidations;
• $6.4 million to shed state office leases; 
• $20 million in privatization of state functions;
• $150 million in state worker concessions, including wage freezes, furlough days and health care;
• $3.8 million in legislative pay cuts, elimination of franked mail and travel.

The budget also makes significant investments in job creation and retirement security:

• $200 million in previously cancelled contributions to state employee pensions;
• Elimination of the Business Entity Tax to save companies $32 million;
• Creation of the Small Business Revolving Loan Fund of $25 million;
• Jobs Creation Tax Credit of $3.5 million.

Republicans outlined a variety of small and large potential savings in the state work force. For example, if all state workers agree to freeze wages for one year it would save $183 million, one furlough days results in a $9 million savings.

“This recession has put more than 100,000 Connecticut residents out of work and families everywhere are struggling to get by,” Alberts said. “We simply can’t afford any more job-killing and family hurting taxes- it’s time to apply some common sense principles, deal with our spending problem and do it now.”

Alberts and his Republican Colleagues called upon Democrats to immediately come together and work in a bi-partisan manner and work toward a reasonable solution.

The deficit mitigation plan, which passed the House today, does not include any tax hikes or direct cuts to municipal aid that Republicans have consistently opposed and eliminates only the current $350 budget gap.   

“This is a start but, I must say, the Democrats were awfully slow to come around,” said Alberts. “Republicans have been urging Democrat leadership to deal with this deficit since they passed their budget last September. Maybe if we dealt with this back then we wouldn’t be forced to take money out of the Rainy Day Fund.” 

Included in the plan is language that will provide relief to hunters and fishermen by significantly reducing the fees they are required to pay the state.

“I am happy we were able to provide some relief to hunters and fishermen- this was something very important to the people in my district,” said Rep. Alberts. “Last year’s increase made the fees exhorbitantly high so I’m glad were could get them down to something a bit more reasonable.”

What the plan does not reduce is the $700 million deficit that is already projected for the next fiscal year which begins on July 1st.

“In just a few short months a new deficit kicks in- and this one is much bigger. We need to start dealing with it immediately- with additional cuts and efficiencies, not taxes. The Democrats raised taxes by $1.2 billion last year and, with unemployment at 9%, we can’t sustain any more taxes.”

Alberts said the Republicans are prepared to vote to eliminate the projected deficit for the 2011-12 budget. The budget hole, he said, can be filled with targeted spending reductions, government efficiencies and no tax hikes.

“The Democrats caved this time- and closed the deficit without taxes. But, let’s not forget, earlier this month they proposed more taxes and more spending. We intend to keep the pressure on them and prove there are alternatives to additional taxes.”

The plan passed the House with a near unanimous vote and will likely face action in the Senate later this week.

Luckily, (as CBIA notes here) the legislature’s Commerce Committee has been one bastion of hope for businesses in our state. State Representative Mike Alberts (R- Brookley, Eastford, Hampton, Pomfret, Woodstock) is one of the Ranking Members on the Commerce Committee and helped usher the pro-business legislation through.

Some of the measures include, creating a more efficient state regulatory process, tax incentives for small businesses, expanding opportunities for small and micro businesses, supporting initiatives that promote business and finding ways to create and sustain more jobs right here.

Now these bills must move through other legislative committees for consideration. Representative Alberts will keep tabs on these bills and will try to see them pass into law.

One proposal put forth by the House Republicans would streamline the permitting and approval process within the Department of Economic and Community Development by allowing the DECD to prioritize economic development projects that create jobs.

“I hear from clients all the time that Connecticut is an ugly place to do business because of the regulatory landscape,” said Rep. Mike Alberts,  “The state needs to make it easier to start and maintain a business.”

Read the full article at the Hartford Business Journal website.

To see a video clip click here.

Citing a recent letter to Gov. M. Jodi Rell in which State Comptroller Nancy Wyman projected a fiscal year 2010 General Fund deficit of $513.3 million, Rep. Alberts offered ideas to the legislature to cut spending and bring the state’s financial house back to order.  Ideas used by your family for years.

Those ideas are:

1. Don’t spend more than you make.

2. Borrow only what you can afford to pay back.

3. If it’s not broken, don’t fix it, and if it’s not working, get rid of it.

4. The more government tries to do, the less it does well.

5. We should have all the government we need, but only the government we need.