H.B. 5595, An Act Concerning the Research and Development Tax Credit, will allow recipients of research and development tax credits to claim up to seventy percent back from their total tax due. It is set to take effect on July 1, 2016, and will be applicable to income years commencing on or after January 1, 2016. It currently awaits a decision of whether or not to raise it to the House and Senate for consideration.
Report by Paula Antolini
March 20, 2016 5:13PM EDT
Reps. Carter and Harding Support Tax Credits for Research and Development
by Alyssa Di Rubbo
H.B. 5595, An Act Concerning the Research and Development Tax Credit, will allow recipients of research and development tax credits to claim up to seventy percent back from their total tax due. It is set to take effect on July 1, 2016, and will be applicable to income years commencing on or after January 1, 2016. It currently awaits a decision of whether or not to raise it to the House and Senate for consideration.
“At a time when so many companies across the state are restructuring their businesses or considering relocating in light of Connecticut’s budget epidemic, this bill could be the small – yet deciding – factor that keeps our economic leaders open, established and expanding in our state,” said Rep. Carter. “I don’t want to see B.I., a Connecticut leader in Bioscience, hurrying on the heels of GE.”
“Job growth in Connecticut plummeted in 2015,” said Rep. Harding. “The state didn’t even add half the amount of jobs that the Department of Labor predicted would be created last year. Where else do we have to look for proof that our economy is suffering? I will not sit by and watch my constituents slowly lose their jobs. B.I. is a strong employer in our district, and I support this initiative to credit them for their continued efforts and milestones in research and development.”
Boehringer Ingelheim is a research-driven group of companies dedicated to the discovery, development, manufacture and marketing of innovative health care products like prescription and over-the-counter medications. The local Boehringer Ingelheim Pharmaceuticals, Inc. facility is located in Ridgefield, CT but has admitted (according to the video recording of the testimony below) that if budget constraints were to become intolerable, and relocation hypothetically became necessary, other states like Virginia could easily be made an alternative to Connecticut.
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