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Connecticut Spends $860 Million on Business Incentive Programs

It's one of dozens of states across the country that collectively spend $80.4 billion annually to lure business growth, the New York Times reports.

Connecticut spends about $241 per capita each year developing business growth, or $860 million annually, according to a report in the New York Times.

Connecticut is one of 45 states in the country that invest heavily in business development. Nationally, the country spends $80.4 billion on business incentive programs, the newspaper learned following a 10-month investigation.

Of the $860 million Connecticut spends annually on business tax incentive programs, $392 million represents some type of tax discounts, including sales tax and other tax exemptions. Another $377 million represents corporate income tax credits or reductions, while some $90 million of the annual total represents cash grants, loans or loan guarantees to businesses.

The top incentives by industry in Connecticut, the newspaper found were:

  • $218 million in Agriculture
  • $152 million in Manufacturing
  • $135 million in Technology

One of the top beneficiaries of the state's largesse is the Royal Bank of Scotland in Greenwich, which has gotten some $100 million in corporate income tax credits, rebates or reductions from Connecticut, the Times' data shows.

Wyatt December 03, 2012 at 06:14 PM
More and more corporate welfare.
David Moelling December 03, 2012 at 10:13 PM
Wyatt, this is not corporate welfare. It's Tammany hall cronyism. The cash from dedicated programs like this always makes its way back to the Politicians that started the process.
Wyatt December 03, 2012 at 10:18 PM
That is also true. The NY Times has a great story about how the money approved in these type of programs by Rick Perry ended right back in his campaign coffers.
Jim Blanchette December 07, 2012 at 10:20 PM
I also have long been convinced that this is true. Let's just look at how much money this example represents. If we can trust gaebler.com, there are 94,723 small businesses in Connecticut with employees and 322,805 total small businesses in Connecticut. If this Business incentive allocation was divided up equally among the businesses with employees, each business would receive a bit more than $9,000 from this stimulus money. If this business allocation was divided up equally among all small businesses, each business would receive a bit more than $2,600 from this stimulus money. But the tax money came from tax payers to begin with and was diluted on its way in and on its way out. Its not surprising we never see it with the growing government payroll.

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