Connecticut’s largest business organization has launched a campaign against plans to curtail the state’s research and development tax credit.
The R&D tax credit allows companies to recoup some of the cost of investing in research carried out in the state – it’s been important in establishing bioscience and fuel cell industries here, and it’s also extensively used by manufacturers like United Technologies. But legislators have said capping the credit is one way to help close the state’s daunting budget gap. At a press conference organized by the Connecticut Business and Industry Association, leaders from technology companies came together to protest. Paul Pescatello of CURE, the bioscience industry cluster says the change is the wrong message to send to the business community.
“We want to say – come here, come to Connecticut, you can plan your business around a stable tax policy. Instead, we’re on the brink of saying to the world – you can’t count on Connecticut, we’re not about a stable business environment where businesses can reliably plan their futures.”
Legislators who’ve proposed the change say that facing a potential $8.7b budget gap over two years, the state cannot afford to take anything off the table.