CT SB00878

Increases the nonrefundable tax credit for captive insurance companies from $7,500 to up to $15,500 for the first calendar year in which the company has tax liability, effective January 1, 2018.

Changes the Comptroller's authority from discretionary ("may") to mandatory ("shall") to transfer up to 2% of collected captive insurance tax to the Department of Economic and Community Development for industry promotion, effective July 1, 2017.

Requires the Department of Economic and Community Development to collaborate with the Insurance Department and Connecticut Captive Insurance Association to promote the captive insurance industry using transferred funds.

Requires the Insurance Commissioner to study microcaptive insurers (insurance companies eligible under 26 USC 831(b)) and report findings and recommendations to the relevant joint standing committee by January 1, 2018.

Study of microcaptive insurers must examine methods to ensure sufficient capital and ability to serve small businesses in the state.