CT HB05595

Repeals and replaces Section 12-217zz of the general statutes, effective July 1, 2016, for income years commencing on or after January 1, 2016.

Establishes a tiered cap system for research and development tax credits: 70% of tax due for income years 2002-2014, and 50.01% for income years 2015 onward.

Allows taxpayers with excess credits to claim aggregate credits and excess credits up to 55% (2016-2017), 60% (2017-2018), 65% (2018-2019), and 70% (2019 onward) of tax due.

Permits recipients of research and development tax credits under Section 12-217n to exceed the tiered caps if their Section 12-217n credits alone exceed the specified percentage, with an overall ceiling of 70% of tax due.

Defines "excess credits" as remaining credits available under Sections 12-217j, 12-217n, or 32-9t after tax credits are utilized under the 50.01% cap.