Hartford - Gov. Dannel P. Malloy's marquee job-creation initiative passed the state Senate Friday on a 32-4 vote and received praise from lawmakers of both parties.

The First Five program would run for two years and shower a variety of tax credits and other growth incentives on the first five businesses in each year that commit to creating at least 200 new jobs within two years, or investing at least $25 million and create 200 jobs within five years.

The mix of incentives would vary by business at the discretion of Catherine Smith, commissioner of the state Department of Economic and Community Development.

The bill also raises the state caps on business-tax credits for job creation to $20 million from $11 million and on redeveloping urban and industrial sites to $750 million from $500 million.

A "clawback" provision would allow the state to recoup tax money from companies that receive credits but later fail to meet the First Five program's targets, legislators said.

The bill now goes to the House of Representatives. The Office of Fiscal Analysis estimates that Connecticut will experience a $2.3 million loss in tax revenue over two years by extending tax credits in the bill.

Raising the cap on the state's Urban and Industrial Sites Reinvestment tax credits is forecast to cost the state $25 million annually from 2015 to 2018, and $50 million annually from 2019 to 2021.

Both Democrats and Republicans spoke favorably of the governor's program and its prospects. "Anything to stimulate job creation and business growth," said Len Suzio, R-Meriden. Sen. Gary LeBeau, D-East Hartford, called the bill an economic stimulus for Connecticut, where the 9.1 percent unemployment rate equals the national rate.

"We're not looking for retail here, we're looking for good, high-paying jobs … that can really give a boost to the Connecticut economy in a substantial long-term way," Le-Beau said.

While the program wouldn't begin until July 1, one Democratic senator says it is already having a positive effect on economic development. Sen. Ed Meyer, D-Guilford, said Norwalk is one of three U.S. sites that a European manufacturer is considering for a North American facility.

Meyer wouldn't name the company but said the facility would employee hundreds of people and that Connecticut is competing with North Carolina and Minnesota in courting the manufacturer. The main reason the firm is still in talks with state development officials is because of the incentives contained in the First Five program.

"We're in the ballgame because of this bill," Meyer said.

Senate Minority Leader John McKinney, R-Fairfield, said he would support the First Five program despite concerns that its incentive-awards process lacks legislative oversight and grants too much authority to the commissioner of economic and community development.

All New London-area representatives voted for the bill.

The governor applauded the bill's passage through the Senate. "We are sending a strong, clear message to the business community - small, medium and large - that we want your companies here and we'll work with you to make that happen," Malloy, a Democrat, said in a statement. "I urge the House to pass this legislation as soon as possible so we can start inking those First Five deals and ultimately increase it to more than just five."

j.reindl@theday.com