CT HB05319

Creates a 6% tax credit for research and development expenses paid by qualified small businesses (partnerships or S corporations with gross income not exceeding $70 million)

Caps individual business credits at $1.5 million per taxable year, with an aggregate program cap of $25 million annually

Requires the Department of Economic and Community Development to administer a voucher system, prioritizing businesses likely to grow in Connecticut or contribute to the state's economic ecosystem

Allows businesses to exchange excess credits for refunds: 90% for biotechnology businesses and 65% for other qualified small businesses

Applies to taxable years beginning on or after January 1, 2026, with research expenses conducted in Connecticut that are not funded by grants or government contracts