All Roll Calls
Yes: 232 • No: 23
ConnecticutHB 071662025 Regular SessionHouseWALLET
AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS FOR REVISIONS TO CERTAIN COMMERCE AND TAX CREDIT STATUTES.
Sponsored By: Commerce Committee
Signed by Governor
Summary
To (1) expand the definition of taxpayer as provided in section 12-217n, (2) clarify that administrative fees under sections 12-217jj and 12-217kk are nonrefundable, (3) make the adoption of regulations under sections 12-217jj and 12-217kk permissive, (4) modify the time frame for applying for the Film Production Tax Credit voucher, and (5) modify the definition of Interactive web site as provided in section 12-217jj.
commerce
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 8 benefits, 5 costs, 0 mixed.
More employers qualify for disability hiring grants
Beginning July 1, 2025, workforce grants are open to employers, not just nonprofits, for infrastructure, program, or expansion costs. At application, at least 5% of workers must be qualifying employees with intellectual disability. They must have worked at least six months in the previous calendar year, earn at least minimum fair wage, and have competitive integrated employment. Grants reach $25,000 for qualifying workforce shares of 5% through 20%, and $75,000 for shares above 21% through 30%. No grant tier is stated for shares above 20% through 21%. Awards are competitive and depend on available funds.
Related-party deals limit small-business research credits
The 6% small-business research credit rate requires prior-year gross income of $100 million or less. The state economic development commissioner must find that transactions with a related person did not produce that result. Businesses that fail this test cannot use the 6% rate.
Business-support nonprofits can receive more help
Beginning July 1, 2025, state agencies, government entities, and private groups may support qualifying Connecticut economic-development nonprofits. Help can include money, staff, or other in-kind contributions, within available appropriations. Nonprofits must help new or prospective Connecticut companies, or share information, expertise, and resources to promote business growth. The law sets no assistance amount.
Connecticut merchandise sales can fund tourism
Beginning July 1, 2025, the state economic development department may sell Connecticut-branded merchandise and advertising space for Connecticut businesses. Creating the program is optional. All proceeds must go to the Tourism Fund.
State property gains cultural development uses
Beginning July 1, 2025, property held by the state economic development department can serve mainly as cultural or historical attractions. These uses join existing manufacturing, economic-base business, and business-support uses. The department can sell, exchange, lease, or make use agreements for the property. It must first consult affected towns and obtain approvals from Administrative Services, the state budget office, and the State Properties Review Board.
Business tax credits escape relocation penalties
Beginning July 1, 2025, tax credits administered by the state economic development department or Connecticut Innovations are excluded from relocation safeguards. Receiving those credits does not trigger the 10-year restriction on moving out of Connecticut. The related repayment requirement and 5% penalty also do not apply to that credit assistance. Other forms of state assistance remain subject to their own rules.
Research credits reach qualifying large manufacturers
For tax years beginning January 1, 2025, qualifying single-member limited liability companies gain access to Connecticut research credits. Eligibility requires more than 3,000 Connecticut employees and manufacturing expertise in mechatronics, alignment and sensor technology, and optical fabrication. The employee count includes the company and its owner. When the company is disregarded for federal taxes, its owner can claim credits only if subject to the applicable state tax. Access includes the 20% credit on qualifying Connecticut research spending above the prior income year's amount.
Transferred infrastructure credits gain audit protections
Beginning July 1, 2025, state agencies generally cannot reopen certified, transferred entertainment infrastructure credits or audit their underlying costs. An exception applies when there may be material misrepresentation or fraud. In those cases, the agencies' sole remedy is collecting the credit amount from the responsible entity.
Website producers get broader tax-credit access
For applications open or filed on or after July 1, 2025, interactive websites must exceed $500,000 in production costs per income year. Sites must mainly feature games, user apps, or animation, simulation, sound, graphics, story lines, or video made or adapted for internet distribution. Eligible companies making public-facing interactive websites are exempt from specified Connecticut activity tests. Those tests require 50% of filming days, 50% of postproduction costs, or $1 million in postproduction costs in Connecticut. The exemption does not remove the rule that credited expenses must be incurred in or used in Connecticut.
Animation credits face tighter tax limits
For calendar years beginning January 1, 2025, film and infrastructure credits count as type one credits. Digital animation credits move from type one to type three. Existing ordering rules and limits still apply, including the overall cap of 70% of tax due before credits. Type three credits alone face a 30% limit; combinations with type one face a 55% threshold and additional rules. Including type two credits can allow claims up to the 70% overall cap.
Digital animation tax-credit program ends
Effective July 1, 2025, the law repeals Connecticut's digital animation production tax-credit program. This ends the program's authorization to provide that tax benefit to eligible businesses.
Production applicants face fees and filing changes
Production-credit applications open or filed on or after July 1, 2025, carry a reasonable, nonrefundable review fee. Infrastructure-credit applications also carry this fee beginning July 1, 2025. Fees must cover state application review costs; the law sets no dollar amount. Affected production companies must apply for credit vouchers within 90 days after independent certification is complete. The deadline now runs from certification, not the last production expense.
Production companies face tighter cost rules
These rules cover production-credit applications open or filed on or after July 1, 2025. Equipment eligible for the infrastructure tax credit cannot count toward the production tax credit. Companies also cannot list a cost more than once for production or infrastructure credits. The duplicate-cost rule no longer names the separate digital animation credit.
Sponsors & Cosponsors
Sponsor
Commerce Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/24/2025
FIN Vote Tally Sheet (Joint Favorable)
Yes: 52 • No: 0
Senate vote • 3/20/2025
Senate Roll Call Vote 391
Yes: 36 • No: 0
House vote • 3/20/2025
House Roll Call Vote 283 AS AMENDED
Yes: 125 • No: 22
House vote • 3/20/2025
CE Vote Tally Sheet (Joint Favorable Substitute Change of Reference)
Yes: 19 • No: 1
Actions Timeline
Signed by the Governor
7/1/2025legislatureTransmitted by Secretary of the State to Governor
6/27/2025legislatureTransmitted to the Secretary of State
6/27/2025legislaturePublic Act 25-165
6/23/2025legislatureIn Concurrence
6/4/2025legislatureSenate Passed as Amended by House Amendment Schedule A
6/4/2025SenateSenate Adopted House Amendment Schedule A
6/4/2025SenateRules Suspended
6/4/2025legislatureSenate Calendar Number 591
6/3/2025SenateFavorable Report, Tabled for the Calendar, Senate
6/3/2025SenateTransmitted Pursuant To Joint Rule 17
6/2/2025legislatureHouse Passed as Amended by House Amendment Schedule A
6/2/2025HouseHouse Adopted House Amendment Schedule A 9916
6/2/2025HouseFile Number 885
5/12/2025legislatureHouse Calendar Number 579
5/12/2025HouseFavorable Report, Tabled for the Calendar, House
5/12/2025HouseReported Out of Legislative Commissioners' Office
5/12/2025legislatureReferred to Office of Legislative Research and Office of Fiscal Analysis 05/12/25 12:00 PM
5/5/2025legislatureFiled with Legislative Commissioners' Office
4/24/2025legislatureJoint Favorable
4/24/2025legislatureFavorable Change of Reference, Senate to Committee on Finance, Revenue and Bonding
3/26/2025legislatureFavorable Change of Reference, House to Committee on Finance, Revenue and Bonding
3/25/2025legislatureReported Out of Legislative Commissioners' Office
3/25/2025legislatureFiled with Legislative Commissioners' Office
3/20/2025legislatureJoint Favorable Substitute Change of Reference Finance, Revenue and Bonding
3/20/2025legislature
Bill Text
Public Act No. 25-165
6/2/2025
File No. 885
5/12/2025
CE Joint Favorable Substitute Change of Reference
3/20/2025
FIN Joint Favorable
3/20/2025
Raised Bill
3/6/2025
Bill Analysis For File Copy 885
Bill Analysis for HB-7166, as amended by House "A"
CE Joint Fav. Rpt
CE Vote Tally Sheet (Joint Favorable Substitute Change of Reference)
FIN Vote Tally Sheet (Joint Favorable)
Fiscal Note For File Copy 885
Fiscal Note for Amendment LCO 9916 (See Fiscal Note Details)
Fiscal Note for HB-7166, As Amended by House "A" (LCO 9916)
House Roll Call Vote 283 AS AMENDED
House Schedule A LCO# 9916 (J)
Senate Roll Call Vote 391
Summary for Public Act No. 25-165
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