The Connecticut General Assembly mandated that the Department of Economic and Community Development and the Department of Revenue Services prepare a report every three years in order to assess the economic and fiscal impact of the state’s tax credit and abatement programs. This study used the REMI Policy Insight model to analyze the tax credit programs that were in effect for calendar years 1995 through 2007 inclusive. Each tax credit, abatement, and exemption program was evaluated individually for its impact on jobs and its fiscal return to the state. The top three claim amounts and number of claims were for Connecticut’s 5% Fixed Capital Investment Tax Credit, the Electronic Data Processing tax credit, and the Research & Development tax credit. This report included historical and quantitative details about each tax credit, tax abatement and exemption program and the economic modeling used to obtain their economic and fiscal impacts.
