AN ACT CONCERNING THE TAX CREDIT FOR MACHINERY AND EQUIPMENT.

Plain English Breakdown

Checked against official source text during the last sync.

Tax Credit Change for Machinery and Equipment

This act changes the tax credit for machinery and equipment to fifty percent of the cost spent by corporations on such items, with conditions.

What This Bill Does

• Changes the existing tax credit for machinery and equipment.
• Creates a new tax credit that covers fifty percent of what a corporation spends on machinery and equipment in Connecticut.
• Requires the machinery or equipment to be used for at least five years after installation.
• Reclaims the full amount of the tax credit if the five-year use requirement is not met.

Who It Names or Affects

• Corporations that buy machinery and equipment for facilities in Connecticut.

Terms To Know

Tax Credit

A reduction in taxes owed to the government based on certain expenses or investments.

Recapture Provision

The requirement for a corporation to return tax credits if specific conditions, like minimum use of equipment, are not met.

Limits and Unknowns

• Does not specify the exact amount of money available for these tax credits.
• Does not mention how this change will affect small businesses or startups specifically.

Official Summary Text

To replace the current tax credit for machinery and equipment with a tax credit for fifty per cent of the amount spent by a corporation on machinery and equipment acquired for and installed in a facility in this state and including a five-year minimum use and recapture provision.

Current Bill Text

LCO No. 308 1 of 1

General Assembly Proposed Bill No. 43
February Session, 2026 LCO No. 308

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. CICARELLA, 34th Dist.

AN ACT CONCERNING THE TAX CREDIT FOR MACHINERY AND
EQUIPMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That section 12-217o of the general statutes be amended to replace the 1
current tax credit for machinery and equipment with a tax credit for fifty 2
per cent of the amount spent by a corporation, regardless of the number 3
of employees, on machinery and equipment acquired for and installed 4
in a facility in this state, provided such machinery or equipment is used 5
in such facility for a minimum of five years after installation and 6
provided further the full amount of the tax credit shall be repaid by the 7
corporation if the five-year minimum use is not met. 8
Statement of Purpose:
To replace the current tax credit for machinery and equipment with a
tax credit for fifty per cent of the amount spent by a corporation on
machinery and equipment acquired for and installed in a facility in this
state and including a five-year minimum use and recapture provision.