The proposed bill, General Assembly Proposed Bill No. 120, seeks to amend section 12-217w of the general statutes by increasing the fixed capital tax credit to twenty-five percent for new fixed capital investments for income years starting on or after January 1, 2027. Additionally, the bill aims to expand the definition of "fixed capital" to encompass nonresidential buildings and structures that are placed in service according to Section 168(e) of the Internal Revenue Code.

Furthermore, the bill includes provisions to recognize construction costs associated with nonresidential buildings or structures and improvements to land, such as water lines, electrical lines, irrigation systems, and other infrastructure, specifically in areas zoned for industrial or agricultural use. This expansion of the tax credit and its definition is intended to encourage investment in fixed capital within these sectors.