April 29, 2009

Paul Pescatello, president and CEO of CURE, joined economists and executives from a range of industries in a press conference organized April 27 by CBIA (the Connecticut Business and Industry Association) to warn that eliminating or diluting current Connecticut tax credits will cost the state jobs and economic growth.

"Tax credits, especially research and development credits, encourage industries to invest in Connecticut," said Paul Pescatello, president and CEO of CURE. "These incentives work. Cutting tax credits for some of Connecticut’s most valuable industries will cut down on activity in the areas policymakers had intended to bolster. It will hurt the very companies that invest in the products, building, equipment, and people of our state."

"You're either going to discourage companies from staying in Connecticut by putting a surcharge on them when profits are very hard to come by, or you're going to discourage them from relocating here," said Nicholas S. Perna, economic adviser for Webster Bank and a lecturer at Yale University.

"The biotech and pharma industries are arguably the most innovative in the country," Pescatello said, "and they are spending the most on research and development. The tax credits we promised them are part of the reason their business planning includes Connecticut. To wipe away these credits now would have a chilling effect on how they view doing future business in the state."

Press coverage of the CBIA press conference included the following:

Connecticut Public Broadcasting Network
WTNH [includes video clip]
CT News Junkie
Connecticut Post
"High-tech credits should not be cut" [Connecticut Post Editorial]
Hartford Courant
CBIA Press Release