CURE testified before the Finance, Revenue and Bond Committee March 9 at the State Capitol in Hartford, requesting Governor Malloy eliminate a proposed change to the 2015 budget that would reduce the research and development tax credit.

The Governor’s proposal reduces the amount of tax credits that businesses can claim against their state tax liability and would significantly affect the ability of biotechnology and pharmaceutical companies to attract and utilize research and development funding in Connecticut.

Anthony Sabatelli, Partner at Dilworth IP and Chair of CURE’s Government Affairs Committee, provided testimony, stating “…research and development tax credits, which leverage the investments made in biotechnology and pharmaceutical companies, are a competitive necessity.”

The current proposal would repeal Connecticut General Statute Section 12-217zz, and would replace it with provisions drastically reducing the tax credit from 70 to 35 percent of the tax due for 2015, with other tax credit reductions in subsequent years.