The proposed bill, General Assembly Proposed Bill No. 5059, aims to establish a new tax credit for pass-through entities in Connecticut. Specifically, it introduces a credit against the personal income tax amounting to six percent of the research and development expenses that these entities incur during a taxable year. This initiative is designed to incentivize investment in research and development by providing financial relief to businesses that qualify as pass-through entities.

The bill does not include any deletions from current law but focuses solely on the insertion of the new tax credit provision. By implementing this credit, the legislation seeks to promote innovation and support the growth of businesses engaged in research and development activities within the state.