February 6, 2018

Malloy's revised budget affects business taxes, tax credits, XL Center

The XL Center in Hartford.

Gov. Dannel P. Malloy's revised fiscal year 2019, $20.7 billion budget proposes several changes to business taxes and tax credit programs.

The Democratic lame-duck governor also is proposing to spend $100 million to continue rehabilitating Hartford's XL Center, which is expected to go on the sales block soon. Malloy also wants to invest $16 million to construct parking to support redevelopment around Hartford's Bushnell Center for Performing Arts.

And with regard to transportation, Malloy would establish a seven-cents-per-gallon gasoline tax hike this summer, starting July 1, and add electronic tolling on highways by mid-2022. Those changes are expected to stabilize the Special Transportation Fund and support a long-term infrastructure overhaul.

Among the changes affecting the business community, Malloy would:

  • Maintain the hospital tax at FY18/FY19 levels;
  • Limit $2.5 million cap on unitary to manufacturers;
  • Add a corporate surcharge of 8 percent beginning in FY 2019;
  • Restore energy fund sweeps in FY 2019 (RGGI/Green Bank);
  • Expand bottle bill to wine and liquor at 25 cents;
  • Eliminate the $200 property tax credit;
  • Increase the hotel occupancy tax from 15 percent to 17 percent;
  • Repeal 7/7 brownfield tax credit program; and
  • Eliminate $500 credit for STEM graduates.
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