Commerce Committee Acts on Economic Development Measures

The legislature’s Commerce Committee acted March 21 on legislation focused on spurring economic growth and promoting tourism, bioscience, and manufacturing.  

SB 379, which increases the rate of the credit refund value for research and development expenses of biotechnology companies to 100% was referred to the Finance, Revenue, and Bonding Committee.

CBIA supported this bill, emphasizing how important R&D is to biotech innovation and how effective tax credits are as an economic development tool. 

CBIA’s Ashley Zane told committee members the bill aligns Connecticut with neighboring states, including New York, which allows companies to exchange 100% of value.

“It can take up to 12 years and a $2 billion investment to bring a drug to market, realizing that about 90% will fail,” she said.

“We should be fostering a competitive business environment in our state in order to grow the industry and remain competitive.”

R&D Tax Credit

The committee also referred SB 157, which allows small business to use the research and development tax credit, to the Finance Committee. 

Currently, the credit only applies to corporations, despite the fact the vast majority of companies are organized as S Corporations, LLCs, and LLPs. 

CBIA strongly supported this bill, noting that it levels the playing field for many of the state’s smallest businesses who need to invest in R&D to stay competitive. 

PFAS Study 

The committee also referred SB  378 to the Appropriations Committee.

The bill requires the Department of Economic and Community Development to hire a licensed environmental professional to perform a background analysis on perfluoroalkyl and polyfluoroalkyl substances. 

The objective of the study, which requires $2 million in funding, is to collect samples throughout the state to produce a background data set, which may be: 

• Used by environmental professionals and the Department of Energy and Environmental Protection to make decisions regarding cleanup requirements for such substances
• Alleviate uncertainty associated with PFAS investigation and remediation
• Facilitate environmental cleanup processes and commercial activity associated with the transfer of ownership of real property

CBIA supported the bill, as uncertainty is preventing deals from happening and refinancing from occurring for many sites across the state.

Having a clear and consistent regulatory framework for these emerging compounds will reduce risk for investors, encourage economic development, and ensure proper remediation of sites.

Childcare

The committee approved SB 249, which establishes 25 childcare educator incubator programs throughout the state and eliminates the sunset date for the current program. 

CBIA supported this initiative as it offers a more holistic approach that covers towns and cities across the state. 

Connecticut currently has 40,000 childcare slots available, but a lack of certified educators has led to long wait lists in urban, suburban, and rural communities.

This issue has had a direct effect on the retention of employees, notably women, as parents are making the difficult decision to leave their jobs to care for their children.

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For more information, contact CBIA’s Ashley Zane (860.244.1169) | @AshleyZane9.