Tax Changes: No Small Change for Small Manufacturers
On Wednesday I had the pleasure of visiting an outstanding manufacturing facility in central Connecticut. The company employs 69 people diverse in race, ethnicity, age, and gender.
They’re a top exporter and a supplier to high-tech OEMs within Connecticut and around the world. Being active in the global marketplace, they know the value of continuous research and development. Each year, the company commits a good portion of its budget, roughly $700,000, to R&D.
This is just the type of business Connecticut needs and the kind we should encourage to grow here.
Unfortunately, the state’s proposed budget includes revenue changes that will sock this company with a roughly $250,000 hit on its R&D tax credit. That’s a big deal for a company this size.
What will be the impact? I’m not sure, but I do know those monies would be better spent on product development, exploring new global markets, pay raises, or new hires. Any and all of those things are at risk for this small gem of a high-tech manufacturer.
We should be going in exactly the other direction and allowing this business to expand to its fullest capacity.
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