The Connecticut Growth Investment Fund Act, introduced as General Assembly Raised Bill No. 512, establishes a new investment fund managed by Connecticut Innovations, Incorporated, to support qualified Connecticut businesses. Beginning January 1, 2027, residents can make a one-time investment—between thirty to fifty percent of their potential estate tax exposure—into this fund, which will exempt their estate from the state estate tax. The fund is required to invest exclusively in qualified Connecticut businesses, with a minimum of ten percent of its assets directed towards ventures founded by student or faculty entrepreneurs from state higher education institutions. Connecticut Innovations, Incorporated will charge an annual management fee of up to two percent of the fund's total assets.

The bill also modifies existing estate tax provisions under section 12-391 of the general statutes by repealing a previous clause and introducing new language that allows for estate tax exemptions for decedents who have contributed to the Connecticut Growth Investment Fund, effective for estates of decedents dying on or after January 1, 2027. It outlines conditions for retaining or crediting the initial payment against estate tax liabilities based on the timing of the resident's death. Additionally, Connecticut Innovations, Incorporated is mandated to provide annual reports on the fund's performance and its effects on tax revenue and job creation in the state. Overall, Raised Bill No. 512 aims to create a more favorable financial mechanism for taxpayers while promoting economic development in Connecticut.