HB 5127 Summary: JobsCT Tax Rebate Program

• Establishes a JobsCT tax rebate program effective July 1, 2022, allowing qualified businesses in finance, insurance, manufacturing, clean energy, bioscience, technology, and digital media to claim tax rebates for job creation.

• Requires businesses to create at least 25 new full-time equivalent (FTE) positions with qualified wages (at least 85% of median household income or $37,500, whichever is greater) to be eligible for rebates.

• Offers rebates up to $5,000 per new FTE annually, with higher rebate rates (50% of income tax) for jobs in opportunity zones or distressed municipalities versus 25% for other locations; provides additional rebates for "discretionary FTEs" (lower-wage workers meeting specific criteria).

• Limits total rebates to $40 million annually across all businesses, with $10 million reserved specifically for discretionary FTE rebates; businesses can receive rebates for up to 7 consecutive calendar years.

• Requires businesses to maintain hiring targets and report annually; forfeits remaining rebate allocations if a business fails to maintain 25 new FTEs for two consecutive years, unless the commissioner finds mitigating circumstances like recession.