AN ACT ESTABLISHING A SMALL BUSINESS TAX CREDIT.

Labor Small Business Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. Vincent J. Candelora, 86th Dist.
Last action: 2026-02-04
Official status: Referred to Joint Committee on Finance, Revenue and Bonding
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on how the tax credit will be claimed or verified.

Small Business Tax Credit Act

This act establishes a new tax credit of $2,080 per full-time equivalent employee for small businesses as defined by the U.S. Small Business Administration.

What This Bill Does

Establishes a tax credit of $2,080 per full-time equivalent employee for small businesses.
Defines 'small business' using criteria set by the U.S. Small Business Administration (SBA).
Amends existing state laws to include this new tax credit.

Who It Names or Affects

Small businesses as defined by the SBA.
The state government, which will administer and fund the tax credit.

Terms To Know

Tax Credit: A reduction in the amount of taxes a business or individual has to pay.
Full-time Equivalent Employee (FTE): A measure used by businesses and governments to account for part-time work as full-time employment. It helps calculate benefits, taxes, and other obligations based on full-time equivalents.

Limits and Unknowns

The bill does not specify how the tax credit will be claimed or verified.
It is unclear what happens if a small business employs part-time workers instead of full-time employees.

Bill History

2026-02-04 Connecticut General Assembly
Referred to Joint Committee on Finance, Revenue and Bonding

Official Summary Text

To establish a tax credit for small businesses of two thousand eighty dollars per full-time equivalent employee.

Current Bill Text

Read the full stored bill text

LCO No. 290 1 of 1

General Assembly Proposed Bill No. 5008
February Session, 2026 LCO No. 290

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. CANDELORA V., 86th Dist.
REP. O'DEA, 125th Dist.
REP. RUTIGLIANO, 123rd Dist.
REP. ACKERT, 8th Dist.
REP. ZUPKUS, 89th Dist.
REP. ZAWISTOWSKI, 61st Dist.
REP. CARNEY, 23rd Dist.

AN ACT ESTABLISHING A SMALL BUSINESS TAX CREDIT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That title 12 of the general statutes be amended to establish a tax 1
credit for small businesses, as defined by the United States Small 2
Business Administration, of two thousand eighty dollars per full -time 3
equivalent employee. 4
Statement of Purpose:
To establish a tax credit for small businesses of two thousand eighty
dollars per full-time equivalent employee.