NOTICE: We know many Connecticut businesses are struggling as they deal with the effects of COVID-19. We appreciate their perseverance and know they share our commitment to keeping our residents healthy. The state, working with its federal partners, has several programs and initiatives in place to assist businesses during this difficult period. For specific questions related to small business, email the Joint Information Center at COVID19.JIC@ct.gov, or call the DECD small business hotline at 860-500-2333. Individuals can call 2-1-1 for more information. For the most updated information, check ct.gov/coronavirus.com

Accumulated R&D Tax Credit Expansion Program

Overview

Does your business have a capital project, either planned or underway, that will increase employment, expand your business or generate substantial returns to the state economy? If so, you may be able to accumulate your unused tax credits until they can better benefit you.     


Eligibility

To be considered for this program, your business must have more than $500,000 of Connecticut R&D tax credits on your balance sheet without the ability to utilize them in the next two years. Your business must also:

  • be located in Connecticut;
  • employ more than 10 people.

As part of your application, you will need to submit a plan to DECD for expansion or innovation. That plan must show how your project will: 

  • generate at least 50 new jobs in Connecticut; and/or
  • require capital expenditures of $5 million or greater.

How to Apply

Both the Department of Economic and Community Development and the Department of Revenue Services will review your application for this program. As part of their evaluation, they will be considering: 

  • your completed application;
  • your five-year growth plan, which should include detailed budgets for operating expenses and capital expenditures;
  • your anticipated employee growth over the plan period, including expected annual salary and benefits;
  • a verification of the level of qualified accumulated credits that you’re requesting to utilize.

Before you’re allowed to offset taxes, you’ll get written approval for a specified amount of tax abatement over a specified period of time. Please note: credits may not be utilized until 2020 and they may not be sold or assigned. 

Forms

Accumulated Tax Credit Expansion Program Application

Contact

For additional information or questions, contact Barbara Fernandez at (860) 500-2325 or via email at Barbara.Fernandez@ct.gov.