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HB 5147

AN ACT CONCERNING THE CAP ON RESEARCH AND DEVELOPMENT TAX CREDITS.

2025 Regular Session Introduced by Dave Yaccarino

Connecticut bill adjusts the annual cap on R&D tax credits to modify state incentives for business innovation and research activities.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#researchanddevelopment #taxcredits
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Bill Summary · HB 5147

Legislative bill overview

HB 5147 proposes to modify Connecticut's research and development (R&D) tax credit program by adjusting the cap on available credits. The bill was introduced by Representative Dave Yaccarino and was referred to the Joint Committee on Finance, Revenue and Bonding on January 14, 2025. The specific details of how the cap would be adjusted are not yet publicly available in standard legislative databases.

Why is this important

R&D tax credits are a key economic development tool states use to encourage innovation and attract technology companies. Connecticut's existing cap limits how much total credit the state will distribute annually, which directly affects whether businesses can claim full credits or face reductions. Changes to this cap influence both state budget allocations and the competitive positioning of Connecticut relative to other states offering similar incentives.

Potential points of contention

  • Budget impact: Raising the cap increases state expenditures on tax credits, while lowering it may make Connecticut less competitive for attracting innovative companies and could disadvantage existing R&D-performing businesses already relying on these credits
  • Equity concerns: Questions about whether credits disproportionately benefit large corporations versus small startups and which industries receive preference under the program
  • Economic effectiveness: Debate over whether R&D tax credits actually drive new research activity in Connecticut or primarily benefit companies that would conduct R&D regardless of tax incentives

Compiled from official sources — confirm details with the bill’s official record.

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