Bill Supporting Extension of Research & Development Tax Credits for Small Businesses Approved by Senate
State Senator Joan Hartley (D-Waterbury, Naugatuck, and Middlebury), Senate Chair of the state legislature’s Manufacturing Caucus, led approval of Senate Bill 351, which now advances it to the state House of Representatives for consideration. The bill directs the Connecticut Department of Economic and Community Development, in consultation with the state Department of Revenue Services, to study the possibility of extending research and development (R&D) tax credits to pass-through entities which can include LLCs, sole proprietorships, and S-corporations. The bill advances to the state House of Representatives for consideration.
“A career in manufacturing or bioscience is a pathway to the middle-class,” said Sen. Hartley. “I appreciate the bipartisan and business community support for this bill to study a tax relief option that could be extended to support Connecticut businesses, including small-sized manufacturers and start-ups in the bioscience industry sector.”
The bill received support from advocates and business leaders representing ManufactureCT, the Connecticut Business and Industry Association’s Bioscience Growth Council, and the Greater New Haven & Quinnipiac Chambers of Commerce. They touted several benefits extending R&D tax credits to pass-through entities would have for the manufacturing and bioscience business sectors including:
- Would support the growth of small manufacturers who may not otherwise have the resources or employees to make an investment in research and development efforts
- Research funding circulating throughout the state economy
- CBIA highlighted in testimony that an analysis by the Connecticut Department of Revenue Services found that for every $1 of a research and development tax credit there is $30 invested in Connecticut
- Assist Connecticut in recruiting more bioscience businesses to the state
