Guide to Connecticut’s Business Tax Credits

The Connecticut General Assembly’s nonpartisan Office of Legislative Research published the Guide to Connecticut’s Business Tax Credits Sept. 5, 2023.

Connecticut offers numerous business tax credits for various actions, including purchasing machinery and equipment, making charitable donations, conducting research, and investing in start-up businesses.

Most credits apply to the corporation business tax, and some apply to other business taxes (e.g., the insurance premiums tax). Five credits apply to the personal income tax.

The first section of the report lists the available credits, grouped by purpose (e.g., capital investment), and summarizes eligibility criteria, amount, and limits.

The second section identifies which credits apply to which taxes. The last two sections indicate whether each credit may be carried forward or carried back if the taxpayer cannot use the credit, or transferred to another taxpayer.