Bill > HB07008

This bill establishes a new tax credit for research and development (R&D) expenses for certain business entities, specifically pass-through entities like S corporations, partnerships, and single-member limited liability companies. The tax credit will be equal to six percent of R&D expenses paid or incurred during the taxable year, and it will be available against taxes imposed under Connecticut's chapter 229, excluding certain specific tax liabilities. The credit will be implemented starting January 1, 2026, and can be claimed by shareholders or partners of the qualifying entity. For single-member LLCs, the owner can claim the credit if they are subject to the relevant tax. The total amount of tax credits that the Commissioner of Revenue Services can allocate is capped at $5 million per fiscal year. The Commissioner is also authorized to adopt regulations to implement this new tax credit provision. The definition of "research and development expenses" will follow the existing definition in section 12-217n of Connecticut's general statutes.

Budget and Finance, Business and Industry

Commerce Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07008&which_year=2025