The bill is necessary because the legislature, during its special session last year, voted to reduce the credit to 50 percent and then slowly raise it back to 70 percent over a four-year period. SB 399 would restore the full credit in three years, not four.
The Chamber submitted testimony in support of this legislation last month. We believe restoring the credit to 70 percent is important because all of our neighboring states offer the credit at this level. In addition, a state study found that the R&D tax credit has an eye-opening 30-to-1 return on investment for the state's economy, making it one of the most beneficial credits of its kind.
The Finance, Revenue and Bonding Committee today voted unanimously in favor of the bill. The vote was 20-0, with one legislator absent (Rep. Tony D'Amelio of Waterbury). Members of the local legislative delegation on the committee who voted in favor of the bill were: Co-Chair Sen. Joan Hartley, R-Waterbury; Sen. Joseph Crisco, R-Woodbridge; Rep. Selim Noujaim, R-Waterbury, and Rep. Rob Sampson, R-Wolcott.
The bill still has a long way to go before it becomes law, but the unanimous, bipartisan support from the committee is a hopeful sign.