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SB 923

AN ACT CONCERNING THE RESEARCH AND DEVELOPMENT TAX CREDIT EXCHANGE RATE FOR BIOTECHNOLOGY COMPANIES.

2025 Regular Session Introduced by Heather Somers

Connecticut bill adjusts R&D tax credit exchange rate for biotech companies to increase investment incentives and competitive advantage in attracting life sciences research and development operations.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#biotechnology #corporationbusinesstaxcreditsforresearchanddevelopmentexpenses
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Bill Summary · SB 923

Legislative bill overview

SB 923 modifies Connecticut's research and development (R&D) tax credit program specifically for biotechnology companies by adjusting the exchange rate at which these credits can be claimed or transferred. The bill aims to make the state more competitive for biotech investment by potentially increasing the value or flexibility of R&D tax incentives available to this sector.

Why is this important

Biotechnology is a high-growth, high-skilled industry that states compete aggressively to attract. R&D tax credits are a primary tool states use to incentivize companies to locate research facilities and conduct innovation within their borders. Adjusting the credit rate could significantly impact Connecticut's ability to retain and recruit biotech firms, affecting job creation, tax revenue, and economic development in the life sciences sector.

Potential points of contention

  • Cost to state budget: Increasing credit value or flexibility reduces tax revenue; lawmakers must weigh immediate fiscal impact against long-term economic growth claims
  • Fairness across industries: Providing preferential treatment to biotech raises questions about whether other research-intensive industries (pharma, advanced manufacturing, software) should receive similar benefits
  • Effectiveness uncertainty: No clear evidence presented that exchange rate adjustments (rather than other factors) drive biotech location decisions or that benefits justify costs
  • Definition and eligibility scope: The specifics of which biotech activities qualify and how the "exchange rate" functions remain unclear from the bill title alone

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

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