The Progressive Caucus of the state Legislature unveiled its alternative budget proposal today, downplaying the Governor’s proposed “sin taxes” and sales tax increases on household goods and services and instead pushing for a higher marginal income tax on high earners and a tax on capital […]
HB 5636 – Would have allowed manufacturers organized as pass-through entities to deduct their apprenticeship tax credit from their personal income tax.
This act, which was vetoed by Governor Malloy, would have extended the manufacturing apprenticeship tax credit to pass-through entities, thus allowing their owners and partners to claim the credit against their personal income taxes.
This bill would allow owners or shareholders of pass-through entities such as S corporations, partnerships, and limited liability companies to claim the manufacturing apprenticeship tax credit against the personal income tax and would revise the requirements for a report on existing tax credits. Under current law, entities that are unable to use manufacturing apprenticeship tax credits themselves because they are not subject to the corporation business tax may sell them to other entities that have sufficient liability to use them.
The following is an excerpt from Governor Malloy’s veto message on HB 5363 – “Allowing business tax credits to be claimed against the personal income tax would open the door for other similar proposals and increase the likelihood that the credits will result in a revenue loss to the state.”