AN ACT CONCERNING THE TAX CREDIT FOR MACHINERY AND EQUIPMENT.

Plain English Breakdown

Checked against official source text during the last sync.

New Rules for Machinery Tax Credits

This bill replaces the current tax credit with one equal to fifty percent of money spent by corporations on machinery installed in a state facility, provided it is used there for at least five years.

What This Bill Does

• Replaces the current tax credit with one equal to fifty percent of the amount spent by a corporation on new machinery and equipment.
• Requires that the machinery or equipment be acquired for and installed in a facility located within this state.
• Mandates that corporations must use the machinery in that same facility for at least five years after installation.
• Orders corporations to pay back the full tax credit amount if they stop using the machinery before the five-year period ends.

Who It Names or Affects

• Corporations of any size, regardless of how many employees they have.
• Businesses that buy and install machinery or equipment in facilities within this state.

Terms To Know

Tax Credit

An amount a business can subtract from the taxes it owes to the government.

Recapture Provision

A rule that requires getting money back if certain conditions are not met for a set time.

Limits and Unknowns

• The bill text does not state the exact date this law will start.
• The source material does not explain how much tax credit was available under the old rules before this change.

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.