University of Connecticut economists say the state could add 100,000 jobs in short order by repurposing some $2.5 billion in unused tax credits previously awarded to companies.
A separate state commission is currently examining the state”™s business tax structure, including the issue of unused or underutilized tax credits on the books. Earlier this spring, experts testified that any repurposing of those tax credits could antagonize companies that made investments on the expectation they could use them. The commission is expected to release its recommendations later this summer.
On the state”™s current trajectory, UConn”™s Connecticut Center for Economic Analysis (CCEA) predicts weak employment growth over the next two years, at between 30,000 and 35,000 jobs.
“If the $2.5 billion in tax credits currently sitting unused and unusable on balance sheets could be redeemed ”˜ex post”™ against the cost of major capital projects ”“ effectively converting what is now a liability against state tax revenue into an investment fund ”“ this approach would create nearly 10 million square feet of new advanced manufacturing, pharmaceutical, biomedical and other facilities,” the CCEA economists stated.
