A win-win for employer, employee

Get a job, get a tax credit for your employer.

That's a great deal for both sides, and it's all part of an effort to jumpstart Connecticut's jobs-lagging economy.

The new Job Expansion Tax Credit - it's known as JET - allows eligible businesses in Connecticut to receive tax credits of up to $500 per month for each new full-time job that's created. And, if the new employee is receiving vocational rehabilitation services from the Bureau of Rehabilitative Services, getting unemployment benefits or is a veteran employee, then the tax credit is increased to $900 per month.

"This is a great program, and I expect it will produce significant job growth in the state," says Tony Sheridan, president and chief executive officer of the Chamber of Commerce of Eastern Connecticut. "But we need to get the word out about the program."

Sheridan says his chamber has been pushing for job creation. "This is a significant piece of legislation that came out of the special session (this past year to create jobs and stimulate the economy). This is the fruit of some very hard work by Gov. Malloy and his administration," he says.

And, says the chamber executive, the state tax credits will "take the edge" off of hiring decisions by many employers. The JET tax credits are available for each new employee hired between Jan. 1 of this year and prior to Jan. 1, 2014 - for a period of three years. The credits can be applied against insurance premium taxes, corporation business taxes, utilities company taxes or income taxes. There are also special thresholds to qualify for these new tax credits for hiring: firms with fewer than 50 employees must hire at least one new full-time worker; firms with 50 to 100 employees must hire at least five new full-time workers, and firms with more than 100 employees must hire at least 10 new full-time workers.

Lindy Lee Gold, a senior specialist with the state Department of Economic and Community Development overseeing the new tax-credit-for-hiring program, says her agency has been flooded with applications. "Which is fabulous," she says enthusiastically, "because people are chomping at the bit, they're so very excited about this program."

She says the state did offer past tax-credit legislation, but it was a less generous program, and "it did not inspire nearly the excitement it has this time."

Gold says the added state tax incentive for hiring a veteran, combined with federal legislation for hiring vets, have made many employers reconsider their hiring capabilities. "We have employers who are absolutely seeking veterans to hire," she says.

Connecticut's economy could use a boost in job creation. Over the past five months, the state's jobless rate has been falling slightly, but there's plenty more room for improvement. And the New London and Norwich labor markets showed more job losses over the past year compared with Connecticut's other larger labor markets. Our loss of 3,600 jobs was second only to the New Haven area, which lost 4,000 jobs this past year. Other labor markets, including the Hartford area, showed job growth.

Southeastern Connecticut, which once led this state in job creation, fueled largely by the former growth of the region's two mega-casinos, hasn't seen that kind of activity in some time. Continued layoffs and restructuring at Pfizer Inc. have led to downsizings at its remaining Groton research campus, the casinos also have trimmed their work forces and small- and mid-sized businesses, which are so vital to job creation, have been reluctant to hire. The Groton-based Electric Boat shipyard has been hiring engineers, which is good news for our regional economy, but talk of defense cutbacks may pare some of those gains.

Employers large and small who are interested in taking advantage of these new tax credits for hiring can find a new JET application on the economic and community development agency's website at www.decd.org. Or if you have questions or need additional information, call Gold at (860) 270-8073 or via email at Lindylee.gold@ct.gov.

Gold says state officials have been traveling across Connecticut marketing the entire package of legislation that came out of last year's special-jobs session in the legislature. "We're working full steam, with a lot of energy and enthusiasm," says Gold. "We've finally been given the tools that we need for this, and the public's excitement is really palpable."

Anthony Cronin is The Day's business editor.

Anthony Cronin