Connecticut House Bill HB05061

Connecticut 2020 Regular Session

• Introduced: 2/11/20
• Refer: 2/11/20

Caption

An Act Increasing The Cap On Research And Development Credits.

Impact

If enacted, the bill is expected to have a significant positive impact on state laws related to taxation and economic development. By increasing the cap on research and development credits, the bill could encourage more businesses to allocate resources toward innovation, which may foster job creation and technological advancements in the state. It aligns with other initiatives aimed at making the state a more attractive location for businesses engaged in high-tech and research-based industries.

Summary

House Bill 05061 proposes to amend Title 12 of the general statutes to increase the cap on research and development credits from fifty percent to seventy percent for taxpayers claiming this credit during an income year. The primary aim of the bill is to incentivize businesses to invest more in research and development activities, thereby enhancing innovation and competitiveness within the state. By raising the cap, the legislation seeks to provide companies with greater financial relief, potentially leading to increased expenditures in research-oriented projects.

Contention

The discussions surrounding HB05061 may introduce diverse viewpoints concerning the implications of boosting tax credits for research and development. Advocates argue that these incentives are crucial for stimulating economic growth and encouraging businesses to innovate, but some critics might express concerns about the long-term fiscal impact of reducing tax revenue. They may point out potential challenges in justifying the increased expenditure on such tax credits without tracking measurable economic benefits.