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House Bill No. 5245

Public Act No. 04-235

AN ACT CONCERNING THE RESEARCH AND DEVELOPMENT TAX CREDIT EXCHANGE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 12-217ee of the general statutes, as amended by section 1 of public act 03-120 and section 89 of public act 03-1 of the June 30 special session, is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2002):

(a) Any taxpayer that (1) is a qualified small business, (2) qualifies for a credit under section 12-217j, as amended, or section 12-217n, and (3) cannot take such credit in the taxable year in which the credit could otherwise be taken as a result of having no tax liability under this chapter may elect to carry such credit forward under this chapter or may apply to the commissioner as provided in subsection (b) of this section to exchange such credit with the state for a credit refund equal to sixty-five per cent of the value of the credit. Any amount of credit refunded under this section shall be refunded to the taxpayer under the provisions of this chapter, except that such credit refund shall not be subject to the provisions of section 12-227. Payment of the capital base tax under section 12-219, as amended, for an income year commencing on or after January 1, 2002, [but prior to January 1, 2005,] in which year the taxpayer reports no net income, as defined in section 12-213, as amended, or payment of the minimum tax of two hundred fifty dollars under section 12-219, as amended, or 12-223c for any income year, shall not be considered a tax liability for purposes of this section.

Approved on June 8, 2004