Supporting Bioscience Innovation by Removing Major Cost Barrier

Connecticut’s biotechnology sector stands to benefit through legislation currently being reviewed by the General Assembly’s Finance, Revenue, and Bonding Committee.

HB 5443 extends the state’s sales tax exemption on electricity to biotechnology companies.

For an industry defined by high-intensity research and advanced manufacturing, this change represents a strategic investment in one of Connecticut’s most powerful economic engines. 

Biotech companies—small and large—fuel regional economies across the state, employing thousands of highly skilled workers and developing lifesaving medicines, therapies, and medical technologies used around the world.

However, these companies face some of the highest structural costs of any industry in Connecticut.

Energy Barrier

Electricity is among the most significant of those costs, particularly for facilities engaged in research, development, and biomanufacturing, where energy demanding equipment and climate-controlled environments are essential to daily operations. 

The bill exempts electricity used by biotechnology businesses when at least 75% of the power at a location supports biotech activities.

This approach recognizes the unique demands of the industry.

This approach recognizes the unique demands of the industry and brings Connecticut’s tax structure into line with longstanding exemptions already available to other manufacturers and industrial processors.

Other states across the country, including neighboring Massachusetts and New Jersey, already implemented targeted incentives or utility exemptions to attract and retain biotech and biomanufacturing companies.

As competition intensifies, Connecticut must ensure that its cost environment supports continued growth rather than pushing companies to expand elsewhere.

Competitive Edge

Reducing a major operational expense strengthens the state’s ability to retain existing firms, attract new investment, and support the creation of high quality jobs. 

For businesses deciding where to build labs, scale production, or launch new research programs, cost structure matters.

This positions Connecticut as a more compelling destination for bioscience innovation.

By easing a significant financial burden, this positions Connecticut as a more compelling destination for bioscience innovation and longterm industry expansion.

It reinforces the state’s commitment to supporting the development of new medicines, medical devices, and technologies that improve lives while driving economic opportunity. 

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For more information, contact CBIA’s Jenna Grasso (860.244.1169).