House Bill No. 6932, introduced by the Committee on Finance, Revenue and Bonding, seeks to amend Section 12-217ee of the general statutes, with an effective date of July 1, 2023. The bill's primary objective is to enhance the credit refund value for specific expenditures by biotechnology companies. It proposes to increase the refund value from sixty-five percent to eighty percent for qualified small biotechnology companies that are eligible for a credit under section 12-217j or section 12-217n but are unable to utilize it due to the absence of tax liability. The bill outlines the application process for the credit refund, the circumstances under which the Commissioner of Revenue Services may reject the credit refund, and defines what constitutes a "qualified small business" and a "biotechnology company."

The fiscal impact statement attached to the bill forecasts a General Fund revenue loss of $1.1 million annually starting in FY 24 due to the proposed changes. The bill specifies that the increased cash refund applies to qualifying small biotechnology companies for R&D and research and experimental (R&E) tax credits, enhancing the refund rate from 65% to 80% of the credit amount. It retains the existing refund cap of $1.5 million per company for each income year and permits qualified small businesses to carry forward unused credits instead of requesting a cash refund. Additionally, the bill makes technical adjustments and defines a "biotechnology company" as one that utilizes certain technologies for a variety of purposes, including product development and biological transformation. The bill has been favorably reviewed by the Finance, Revenue and Bonding Committee.

Statutes affected:
Raised Bill: 12-217ee
FIN Joint Favorable: 12-217ee
File No. 718: 12-217ee