Connecticut Spends $860 Million on Businesses Incentive Programs

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

The New York Times reported two Danbury firms made that list, GE, which received $4.29 million in 2001 in cash grants, loans or a loan guarantee, plus Republic Foil, which received $300,000 in loans, or a loan guarantee or cash grants.

Connecticut is one of 45 states in the country that invests 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.