In a move to help small business owners in Connecticut save money. Gov. Ned Lamont announced a proposed increase in business tax credits Wednesday, saying they are vital to the state’s economy.
There’s a lot of work that goes into a small business, and Welden Hardware in Simsbury is no different. Owner Melissa Brett puts her heart and soul into the store.
“So, a lot of the times when we have our own issues and stuff, we’re the last ones who will get paid. Our staff will get paid. The bills will get paid, but we’re the last ones to get paid,” she said.
Come tax season, keeping the finances in order is tedious.
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“It’s a lot of work being a small business. We have our own personal stuff, but we are also responsible for everything in the business so it kind of doubly affects us," Brett said.
But there could be relief on the horizon. Lamont announced plans to restore the pass-through entity tax credit, which would allow small business owners to get a larger tax credit on their personal returns.
The governor said small businesses are crucial to Connecticut’s economy.
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“That is the engine of economic growth. That is the engine of economic opportunity,” Lamont said.
State House Republicans are supportive of the move, saying now is the time to help small business owners.
“We’re seeing inflationary costs for food and for services. Businesses are faced with healthcare increases, insurance increases,” Rep. Vincent Candelora of North Branford said.
The Connecticut Business and Industry Association hailed the proposal, saying it helps 120,000 businesses in the state save $60 million.
“This is one that will have a lot of impact across the state of Connecticut, across many different industries,” Eric Gjede, CBIA’s vice president of public policy, said.
This means potentially thousands for an individual business. Brett said that’s a lot of money that can make a difference and provide flexibility.
“We can start paying ourselves for some stuff or paying some things back, be it that way or putting it back in the business or is it giving our employees a raise,” she said.
Brett said it’s good to see the work of small businesses being appreciated.
“We’re the backbone of our communities. We’re at the fundraisers for the PTOs and we strive to be part of the community,” she said.
Further details on this plan will be revealed in the governor’s annual budget address next month.
