The Manufacturing Reinvestment Account (MRA) Program is helping Connecticut-based manufacturers invest in their companies
Department of Economic and Community Development (DECD) Commissioner Catherine Smith was the speaker at our meeting January 24.
Following up on the detailed talk by Commissioner Smith we wanted to remind the Manufacturing Community of various a Connecticut state tax initiatives that members of the NHMA initiated and have been actively working on including the Manufacturing Reinvestment Account (MRA) Program
The Manufacturing Reinvestment Account (MRA) Program is helping Connecticut-based manufacturers invest in their companies. Manufacturers with 50 or fewer employees may establish a MRA with participating Connecticut banks. Eligible companies are allowed to deposit up to $100,000 annually, or 100% of their domestic gross receipts, whichever is less, on a corporation tax-deferred basis for up to five years. These accounts can be especially favorable for S-Corps and LLC's. Funds in the account are to be used for worker training or the purchase of machinery, equipment, or manufacturing facilities. Upon withdrawal, a 3.5% tax rate is assessed, regardless of a company's corporate or business structure. Any balance remaining after five years is taxed at the full rate.
Additional Small Business Tax Incentives can be found here: DECD Small Business Tax Incentives
Also plan to attend our meeting February 28 where the topic will be Assistance Programs for Business Growth. Peter Lent of DECD will be the featured speaker.