Connecticut
New Working Group Investigates Connecticut’s $10 Billion in Tax Credits
As Connecticut lawmakers prepare for the 2025 legislative session starting Jan. 8, progressive groups are demanding billions in new spending and pushing to weaken the state’s fiscal guardrails. However, a newly formed working group, tasked with examining more than $10 billion in state tax credits, offers an alternative path. By identifying and potentially eliminating ineffective tax incentives, the group could free up significant revenue, addressing spending demands without jeopardizing the fiscal controls that keep the state’s budget in check.
Rep. Maria Horn (D-Salisbury), co-chair of the Finance, Revenue, and Bonding Committee, kicked off the first meeting of the Tax Expenditure Working Group on Monday, Dec. 9, outlining the group’s objectives.
The term “tax expenditure” might sound contradictory, but it refers to taxes the government does not collect due to exemptions, deductions, or credits. These tax breaks are designed to achieve policy goals, such as spurring economic growth through corporate tax credits or serving the public good with sales tax exemptions, without requiring direct government spending.
The Office of Fiscal Analysis (OFA) publishes a report every two years, providing insights into Connecticut’s tax expenditures. The report includes a description of each expenditure, the year it was enacted and its original purpose. It also provides the estimated fiscal impact on state and municipal budgets, projects the revenue that would result from repealing the expenditure, and estimates the number of taxpayers benefiting from it. The most recent report was released in February 2024.
“These tax expenditures are passed and then buried, unseen for years,” said Rep. Horn, as she highlighted the importance of revisiting how Connecticut hands out tax breaks.
Horn argues that these credits are “a large expenditure of tax revenue” which affects other spending priorities. She expressed confidence in the expertise of the group, emphasizing the need for both immediate adjustments and a long-term reevaluation of these policies.
She went on to explain her motivations for revisiting Connecticut’s tax expenditures, pointing to the complexity of the state’s tax code and the need for greater accountability.
“Part of it came out of when I first became Finance Chair, and I was looking at the most recent Tax Expenditure Report and trying to get my arms around a very complex tax code. Connecticut is not unique in that regard,” Rep. Horn said.
She revealed that her initial approach focused on identifying “easy wins,” but quickly realized the task was more challenging.
Rep. Horn is calling attention to two specific categories of tax expenditures as priorities for review. The first involves incentives aimed at influencing behavior or investments. To determine whether these credits should remain in place or be eliminated, she posed critical questions: “Are we clear about what it is that we were incentivizing in the first place? And did it work? Because, clearly, it’s meant to produce something. Did it happen? Should we do it a different way? Should we not be doing it at all? Is it not a responsible use of state resources?”
The second includes unused or inaccessible tax credits. “I’m hoping this will be easier as no one is using [it] either because business didn’t go in that particular direction, or because it was written in such a way that it’s just not accessible for people,” Rep. Horn said.
She called the situation “messy” and noted that unused credits still appear in research reports, unnecessarily cluttering the system. “We should probably clean that up,” she said adding that addressing these issues is crucial to ensuring Connecticut’s tax expenditures are effective and responsible.
Outgoing ranking member on the Finance Committee, Rep. Holly Cheeseman (R-East Lyme) echoed Horn’s sentiment, adding that the review comes at a critical time as Connecticut faces mounting budget pressures.
Rep. Cheeseman underscored the need to review Connecticut’s tax expenditures to assess their effectiveness, emphasizing the importance of efforts to “get a better read of the existing tax expenditures and the different tax credits.” She added, “Are they effective? Are they achieving the goals intended? If they’re not, is it because they’re simply not needed, or because they are too onerous for people to apply or understand?”
Emphasizing that these tax credits play a significant role in the state’s fiscal health, she added. “I think getting a handle on these tax expenditures, which in effect can limit our spending, is really critical to having a healthy fiscal environment in the state.”
She also suggested introducing sunset dates for tax credits to address the issue of credits being passed without an expiration and rarely revisited. “Provide some accountability,” Cheeseman said, adding that such measures would prevent these tax breaks Drawing from his experience as a tax attorney with the Department of Revenue Services (DRS), he noted that many tax credits go unclaimed despite requiring significant administrative efforts and costs for state agencies.from remaining unchecked for years, only to reappear in obscure reports.
Matt Dayton, Under Secretary for Legal Affairs at the Office of Policy and Management spoke about the importance of evaluating tax credits.
“I think the most important thing we can do with these tax expenditures is to agree [to] identify whether they are working and whether anyone’s actually claiming them,” Dayton said.
Drawing from his experience as a tax attorney with the Department of Revenue Services (DRS), he noted that many tax credits go unclaimed despite requiring significant administrative efforts and costs for state agencies.
The group didn’t go into specifics during its first meeting, focusing instead on setting goals and expectations. However, Connecticut’s controversial film tax credits quickly came under the spotlight. According to the 2024 Tax Expenditure Report, these credits amount to $103 million.
The film tax credit has long faced criticism for failing to deliver financial benefits to the state. A 2019 report from the Department of Economic and Community Development (DECD) revealed that Connecticut has lost more than half a billion dollars since the program’s inception.
Former DECD Commissioner David Lehman even recommended scaling back or outright repealing the credit, adding fuel to the ongoing debate over its effectiveness.
The group could take a closer look at several questionable tax credits among the hundreds of exemptions and credits currently on the books. For instance, the exemption for dues paid to lawn bowling clubs cost less than $100,000 and benefited fewer than 245 people in fiscal year 2024. In the fiscal years 2020 and 2021, these credits amounted to $400,000, while still only directly helping fewer than 310 people.
Another example is the exemption for admission charges at Dunkin’ Donuts Park in Hartford, which cost $150,000 in fiscal year 2020 and doubled to $300,000 in 2021 — all to benefit a single taxpayer.
Then there’s the cigar tax cap, which is set at just 50 cents per cigar. This cap is estimated to cost the state $11.6 million in fiscal years 2024 and 2025, benefiting fewer than 300 people.
The group has a tough job ahead as it works through the complexities of Connecticut’s tax expenditures. Repealing credits or exemptions might not bring in as much revenue as expected, since businesses and individuals often adjust their behavior to avoid higher taxes. This means any financial boost from eliminating certain expenditures could fall short of projections. On top of that, repealing some tax incentives could function as a hidden tax hike, with the costs passed on to consumers.
At the same time, this effort presents an opportunity to address spending priorities without undermining the state’s fiscal guardrails. These guardrails have played a key role in getting Connecticut’s finances in order and weakening them to allow for new spending would be a step backward. It would reopen the door to the kind of overspending that caused deficits in the past. Instead, the focus should remain on simplifying the tax code and ensuring resources are used effectively.
Every tax exemption and credit should serve a clear purpose, deliver measurable results, and justify its existence — especially in a state grappling with the challenge of balancing fiscal discipline against ever-growing demands for more spending.
Connecticut
BUILDing Connecticut’s Capital City: Unique UConn Course Celebrates Five Years of Partnership, Collaboration, and Hartford Stories – UConn Today
On a Wednesday afternoon in late April – tucked inside a quiet brick building in Hartford’s Frog Hollow neighborhood, just a few blocks from the shining gold dome of Connecticut’s State Capitol building – a celebration took place.
On the third floor of The Lyceum – an historic site that at different times in its past housed a box manufacturing company, a punk rock dance club, and a roller-skating business – there were balloons, and there was music. Drinks and hors d’oeuvres. Smiles and handshakes and hugs passed around.
But the celebration wasn’t really about those things.
The celebration was about Hartford, and about a unique partnership with UConn that has been working for five years to uplift, support, and promote all that Hartford has to offer through creators with a new perspective on the capital city: UConn students.
Since 2021, the three-credit course BUILD Hartford, offered by the Connecticut Center for Entrepreneurship and Innovation, or CCEI, has engaged cohorts of both undergraduate and graduate students working on a real-world opportunity to hone their business storytelling skills by partnering with Hartford’s business, civic, culinary and hospitality, and entrepreneurial ecosystems.
In the last five years, about 100 UConn students have collaborated with more than 30 diverse businesses and entities in Hartford on innovative and creative social and multimedia projects aimed at supporting and promoting development in the city.
“BUILD Hartford is a hands-on UConn course that turns digital storytelling into real support for Hartford’s businesses,” says Rory McGloin, CCEI’s associate director of entrepreneurial communication and research and the course’s instructor. “Students produce videos, social campaigns, and strategic content while working side-by-side with restaurants, shops, and entertainment venues right here in the downtown area.”
Fresh Perspectives
Just below the surface, there’s more to Hartford than its moniker – the Insurance Capital of the World – would suggest.
The city’s metro region is home to six major industries, and the city itself is home to more than 122,000 people – and its population is growing, increasing more than 2% since the 2020 U.S. Census.
Beyond the Hartford metro’s powerhouse industries, like the insurance, aerospace, and health sectors, is a thriving business climate bolstered by a diverse and educated workforce, an innate appreciation for arts and culture, and an ecosystem of innovation and support for start-up and second-stage companies.
But without storytelling, says McGloin, how will people know about it?
“It’s pretty simple – you’ve got to tell a story,” he says. “Because you can read all the advertisements and billboards all over the state. But if you have a good friend and they told you that they got a good cup of coffee across the street, you can get a great slice of pizza down the road, there’s a cool new retail shop on Pratt Street, then you go check it out.”
And that’s where UConn’s student come in, offering fresh perspectives from both traditional and nontraditional students, all with their own diverse backgrounds and life experiences, some from Connecticut – but many not.
Participating students range from fine arts and digital media majors, to communication and business students, to MBA and MFA candidates, but they all work toward the goal of gaining valuable life and career skills and building their own portfolios while contributing research, branding, storytelling, and exposure for Hartford businesses and civic organizations.
“And that’s what this course is about. We set a mission, we talk about our tactics, we learn what a story is, and then the students are in charge of figuring out how to get the job done,” McGloin says. “And they show up, and they present, and they reap the benefits, along with the community and business partners we get a chance to work with.”
A Little Bit of Everything
Karlas Felix ’26 MA didn’t grow up in Connecticut, and she didn’t know a lot about Hartford before coming to the state for college, first her undergraduate studies at Wesleyan and now UConn, where she’s a first-year communication master’s student.
But what drew the New York native to BUILD Hartford was the opportunity it offered to learn while stepping outside of a classroom setting.
“When I heard about the course, I thought it was the perfect opportunity for me to explore making digital content, and to learn about companies, but also to learn what I like to do and develop my voice in the workplace,” she says. “Because I want to make the most of my degree. Not just get in classes, but also get experiences.”
This year, she was part of a BUILD team partnered with Real Art Ways, a multidisciplinary nonprofit arts organization in Hartford that supports contemporary artists, and she got to collaborate not only with her fellow students but also with the marketing professionals within the organization.
“We came up with a storyboard,” Felix says. “We came up with a noun – the noun was art. We wanted to talk about art in Hartford, and we developed a story around how we could do that. How can we show that?”
They built their story through on-site interviews at Real Art Ways, and created a composed six-minute final video that brings the audience inside where art lives – here, in Hartford.
Felix has signed on to take the BUILD course again next year, and she says she’s taking the course multiple times because even though she’s based in Storrs, it’s worth the trip to Hartford to take part in a real-world experience that “gets you out of your seat.”
“Do you want a course that’s hands-on, or do you want to sit in a lecture?” she asks. “Do you want something that you can actually use and apply? Do you want to learn more about yourself, and even develop the language for networking? If you want an opportunity to get real experience, this is where to get it – this is where you’re supposed to be. You get a little bit of everything.”
Start Yesterday
In its first five years, BUILD Hartford was supported by Shari Cantor ’81 (BUS) and Michael Cantor ’80 (ENG) ’83 JD, but the program has since expanded to also include a BUILD Hartford Fellowship, supported by the state of Connecticut Department of Economic and Community Development’s Office of Statewide Marketing and Tourism.
The fellowship offers an immersive experience where undergraduate and graduate UConn students can engage directly with Hartford’s hospitality, entertainment, and food service sectors.
Abigail Robinson ’25 (CLAS/SFA) ’26 MA participated in the BUILD program before becoming a BUILD Fellow this past academic year. The communication master’s student, a New Hampshire native who majored in digital media and design as well as communication as an undergraduate, says that she was a passionate storyteller even as a child.
“In high school, I did my senior project on telling stories through photography,” Robinson says. “I was focused on telling emotion through portraiture. So, I knew when I was coming to school, applying to schools, I really wanted to be somewhere that would support me in my storytelling journey.”
One of two fellows, Robinson says her role was to essentially become an influencer on behalf of Hartford, starting with the Hartford Taste festival last June.
“It was a huge event, very hot summer day, and I really just got thrown into it,” she says. “I had to learn how to do one-on-one interviews with people, which I had maybe a little bit of experience with, but when you’re at such a big event, you really have to just start going up and being like, ‘Hi, I’m Abbie, can I have an interview?’”
She used that experience to help her jump head-first into projects involving Hartford’s historic Butler-McCook House; collaborations with Hartford Athletic and the local coffee shop, Story and Soil; and a Hartford for the Holidays campaign, launched in coordination with the Hartford Chamber of Commerce.
“Every single connection I have made has been extremely meaningful and impacted me in so many ways,” Robinson says.
But the value of BUILD isn’t only limited to what the students get out of it – the partners benefit as well, according to Ben Dubow, the executive director of Forge City Works.
One of the first local partners to agree to work with BUILD students, Forge City Works is a nonprofit organization that operates The Lyceum as well as several other social enterprises in Frog Hollow, including The Grocery on Broad Street and the Fire by Forge restaurant.
“We said ‘yes,’ because entrepreneurs often say ‘yes,’ and you led with ‘free,’” says Dubow. “But the value we got, the questions that you asked, caused us to think differently about our own businesses.
“In the real world, unlike most of the fictional world, great storytelling isn’t about creating or making up stories. It’s about finding them, and making them come alive. And these folks helped us tell our story.”
In addition to recruiting students for its next cohort, BUILD Hartford is currently searching for additional supporters and partners to be part of the ongoing collaborations between its students and the city – collaborations that current partners ringingly endorsed during the celebration at The Lyceum.
“Start tomorrow,” says Rashad Hyacenth, executive vice president of business development for Hartford Athletic, “because these students are the future, and we have some of the brightest students in the country in this program, right here. Simple as that.”
“Start tomorrow,” agrees Jennifer Accuosti, senior marketing manager for the MetroHartford Alliance. “Send that email. It’s been wonderful, and we’ll work with [BUILD Hartford] again in a heartbeat, whether that’s under the chamber, under the MetroHartford Alliance, under any of our initiatives, to tell Hartford’s story.”
“Start yesterday,” says Rachel Lenda, the state of Connecticut’s director of tourism. “We’ve invested a lot into this program on purpose, with intention. We believe in the product. We’ve seen it. And I have felt it here from these incredible young professionals who are going to be working for you in this room.
“And you’re going to be so excited to have them on your team when they do.”
All digital storytelling projects produced by BUILD Hartford students are available to view on YouTube, courtesy of the Connecticut Center for Entrepreneurship and Innovation.
For more information about BUILD Hartford and the entrepreneurial and business accelerator opportunities available through CCEI, visit ccei.uconn.edu.
Connecticut
Canadian aerospace company Bombardier launching new ‘fast track’ training program in Connecticut
WINDSOR LOCKS, Conn. (WTNH) — Bombardier, a Canadian company, is launching a new “fast track” training program in Connecticut.
The new program will expand Connecticut’s aerospace industry by creating an accelerated pathway for experienced aircraft maintenance technicians to receive new certifications and enter high-demand careers quickly.
“We know the demand for aviation technicians far exceeds the number of students we can currently prepare throughout our traditional programing alone,” Dr. Alice Pritchard, executive director of Connecticut technical education and career system, said. “Our goal is to create a sustainable workforce solution that can continue producing skilled aviation technicians for years to come.”
The program is set to start soon at the company’s service center at Bradley International Airport.
Injuries were reported in a multi-vehicle crash on Interstate 91 South in Hartford on Wednesday morning.
State police said the four-vehicle crash happened around 5:55 a.m.
The highway was briefly closed between exits 30 and 29A. It has since reopened.
According to state police, injuries were reported, but the extent is unknown.
The crash remains under investigation.
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