State program
Connecticut Research and Experimental Expenditures Credit
Two complementary credits: an incremental credit on increased research spending and a non-incremental credit on total research expenses.
Program Overview
Connecticut is unusual in offering both an incremental research credit and a non-incremental credit computed on gross research and development expenditures. The non-incremental credit uses a graduated rate scale that rises with spending, reaching a top tier for the largest research programs, and small businesses may exchange unused credits with the state for a cash refund at a discounted rate. This exchange provision makes Connecticut particularly attractive to loss-making biotechnology and advanced manufacturing companies.
Eligibility
C corporations subject to Connecticut corporation business tax with research expenses conducted in Connecticut. The credit exchange is limited to qualified small businesses meeting gross-income thresholds.
Benefits
Reduces Connecticut corporation business tax; qualified small businesses may exchange unused credits for a cash refund equal to 65% of the credit value.
Schedule a Teleconference
A scoping conversation clarifies exposure, open IDRs, and whether readiness or active defense is the priority.