Tech Companies Celebrate Economic Development Bill

Advocates for technology companies have hailed the passage of an economic development bill agreed between the legislature and Governor Rell. The new legislation aims to promote private investment in start-up companies, and boost the study of science and math in the state. WNPR’s Harriet Jones reports.

Many of the measures in this bill grew out of the jobs growth roundtable, convened last year by House Majority Leader Denise Merrill. It includes loan forgiveness for students who take courses in green technology, life sciences and other crucial industries, and then work in the state for at least a year. It makes changes to the tax credit structure for small businesses hiring state residents for new jobs. It also establishes a $200 million fund to promote new technology companies. The cash would be used to provide matching money if mid-sized state firms can attract venture capital funding. There’s also a tax credit for so-called angel investors who put private money into small enterprises.

Democrats had hoped to end the $250 business entity tax on smaller firms, and fund that change by taxing bonuses paid to Connecticut employees of companies that received TARP money. But those provisions were not agreed to by Governor Rell and have now been carved out into a separate bill.

For WNPR, I'm Harriet Jones.