CT R&D tax credit best in U.S. — but only if …

By Bill Claffey, tax attorney and partner at the accounting firm Fiondella, Milone and LaSaracina LLP (FML)

The Connecticut R&D tax credit allows corporations to reduce their tax liability or even be refunded for investments in research and development, The credit is the strongest in the country, and just got expanded in the latest legislative session.

That is a positive development, but is just the latest in a six-year yo-yo of decreasing, increasing, decreasing and now increasing again the percent of tax liability the R&D credit can offset and the value it can bring to a business in Connecticut. The tax credit’s ability to lure companies to the state and keep them here is only as strong as the trust business leaders have in it to stay stable.