CT HB05490

Repeals and replaces Section 12-217aaa of general statutes effective July 1, 2021, to allow businesses to use accumulated research and development tax credits against state taxes in exchange for capital projects or human capital investments that generate state revenue exceeding the credit amount.

Requires the Commissioner of Economic and Community Development to establish an econometric analysis process for reviewing applications and approving only those projects or investments projected to generate state revenues exceeding the accumulated credits proposed for use.

Caps the total aggregate amount of accumulated credits used under this program and related investments at $50 million.

Mandates annual reporting to the joint standing committee on commerce including application numbers, project status, revenue generated, and projected revenue for five years after project completion.

Requires a cost-benefit study of expanding research and development tax credit eligibility to pass-through entities, with results due to the commerce committee by January 1, 2021.