ConnecticutSB 003072026 Regular SessionSenateWALLET

AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS FOR REVISIONS TO THE COMMERCE STATUTES AND PROHIBITING SCHOLARSHIP DISPLACEMENT FOR CERTAIN STUDENTS AT PUBLIC INSTITUTIONS OF HIGHER EDUCATION.

Sponsored By: Commerce Committee

Signed by Governor

Summary

To implement the Department of Economic and Community Development's recommendations for revisions to the commerce statutes, including (1) removing references to certain Department of Economic and Community Development offices, (2) repealing or modifying certain reporting requirements, (3) repealing defunct programs, (4) addressing changes to federal funding, (5) revising the Manufacturing Innovation Fund Advisory Board membership and establishing a board absentee policy, (6) establishing a council absentee policy for the Tourism Council, (7) revising the name, charge and membership of the Minority Business Initiative Advisory Board and permitting the board to establish bylaws, (8) implementing certain revisions to the concentrated poverty statutes, and (9) rename the Small Business Express program and the small business express assistance account.

commerce

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

11 provisions identified: 8 benefits, 2 costs, 1 mixed.

Private scholarships protect students' college aid

Beginning July 1, 2026, participating public colleges cannot cut qualifying students' aid just because they receive a private scholarship. The college must participate in the Roberta B. Willis Scholarship program, and students must receive a Pell grant or Willis Scholarship. When total aid is below attendance costs, the private scholarship first covers unmet need, then reduces student loans. Student loans do not count as financial aid for this rule. Colleges can reduce aid when total aid meets or exceeds attendance costs, or when student-athlete aid limits require it.

Businesses exchange credits for reinvestment payments

Businesses with a reinvestment contract and state-certified industrial project or segment can exchange accumulated tax credits for state payments. The applicable provision caps total state payments at $375 million. Projects or segments with potential payments of $50 million or less use a separate formula, capped at $50 million overall. It pays $1 million per research component retaining at least 100 employees and investing more than $10 million in research. Capital components spending more than $1 million qualify for payments of 40% of qualifying capital costs.

New eligibility rules for business loans

Beginning July 1, 2026, Connecticut opportunity fund loans use new eligibility criteria instead of minority ownership. Applicants must operate or live in a concentrated-poverty census tract, meet the income limit, be first-time owners, or lack traditional lending access. The income limit is adjusted gross income no higher than annual area median household income. Another route covers income-qualified applicants in municipalities with at least 60,000 residents and a concentrated-poverty census tract. The commissioner must prioritize applicants in this order: concentrated-poverty tract applicants; income-qualified applicants; first-time owners or those lacking traditional lending; then the municipality-based group. Business development entities must also favor plans creating jobs maintained for at least 12 consecutive months or closing underserved communities' and individuals' capital gaps. Priority does not guarantee a loan, and these changes set no loan amount or interest rate.

Business board targets growth and wealth

The First Generation and Emerging Business Initiative Advisory Board now focuses on fair growth and building wealth across generations. It advises on business guidance, access to capital, and access to state contracts for first-generation and emerging businesses. It also runs financial-literacy and wealth-building programs. An emerging business has been registered with Connecticut's Secretary of the State for no more than five years.

Loan preference for disabled veteran businesses

Beginning July 1, 2026, Connecticut Small Business Boost applications can receive a disabled-veteran ownership preference. Qualifying veterans must own more than 50% of the business and have a Veterans Affairs disability rating of at least 30%. The commissioner can choose whether to give preference; it does not guarantee an award. The program's self-funding goal moves from July 1, 2026, to July 1, 2028. Its separate goal of keeping business defaults at 20% or less stays unchanged.

Cleanup grant recipients gain liability protection

Recipients of specified Connecticut brownfield grants gain protection under listed environmental laws for contamination present when they acquired or controlled property. They must not have caused or contributed to the contamination, must not worsen it, and must report significant hazards. If they worsen contamination, liability is limited to the worsening caused by their negligent or reckless actions. This protection does not erase responsibility for their own covered conduct.

Deadline set for clean-energy worker plan

The Connecticut Clean Economy Council must submit its worker transition plan by October 1, 2026. The plan addresses moving workers from fossil-fuel jobs to clean-economy jobs. It goes to the legislature's environment, energy and technology, and commerce committees. This deadline does not itself provide worker benefits or funding.

Larger state awards for business projects

Beginning July 1, 2026, state agencies can award larger amounts of financial assistance without a separate law. The ceiling rises from $10 million to $25 million per applicant or business project during any two-year period. Biotechnology projects move from a separate $20 million ceiling to the general $25 million ceiling. Awards above $25 million still require specific authorization by an act of the General Assembly. Agencies do not have to award the maximum.

Outside businesses gain temporary investment access

Invest CT can accept businesses whose principal operations are outside Connecticut for requests submitted October 1, 2024, through September 30, 2026. The economic development commissioner must find that approval significantly advances the program's goals. Applicants must still meet the program's other requirements. Approval remains optional, and this change sets no allocation or tax-credit amount.

Some workers face visa-fee repayment

Connecticut's ban on employment promissory notes does not cover agreements to repay employer-paid federal H-1B visa-related fees. This exception applies to employers with 26 or more employees. An employee's agreement can cover repayment of some or all of a fee paid on their behalf. The law specifies no repayment amount.

Reinvestment contracts limit business tax credits

Businesses authorized to exchange accumulated credits face limits during income years designated as an exclusion period in their reinvestment contracts. They cannot claim credits under sections 12-217j or 12-217n, or exchange credits under section 12-217ee, subject to stated exceptions. The restriction does not bar accumulated credits outside the contract's exchange or section 12-217j credits otherwise allowed by law. It does not otherwise change credits already allowed or statutory credit eligibility.

Sponsors & Cosponsors

Sponsor

  • Commerce Committee

    Affiliation unavailable

Cosponsors

  • John Santanella

    Democratic • House

  • Savet Constantine

    Democratic • House

  • Tom Delnicki

    Republican • House

  • Tony Hwang

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 0 • No: 0

Senate vote • 3/24/2026

Senate Roll Call Vote 384

Yes: 0 • No: 0

Senate vote • 3/24/2026

CE Vote Tally Sheet (Joint Favorable Substitute)

Yes: 0 • No: 0

Senate vote • 3/24/2026

Senate Roll Call Vote 385

Yes: 0 • No: 0

House vote • 3/24/2026

House Roll Call Vote 293 AS AMENDED

Yes: 0 • No: 0

Bill Text

  • Public Act No. 26-122

    5/6/2026

  • File No. 561

    4/9/2026

  • CE Joint Favorable Substitute

    3/24/2026

  • Raised Bill

    2/26/2026

  • Bill Analysis For File Copy 561

  • CE Joint Fav. Rpt

  • CE Vote Tally Sheet (Joint Favorable Substitute)

  • Fiscal Note For File Copy 561

  • Fiscal Note for Amendment LCO 6114 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 6249 (Potential Cost)

  • Fiscal Note for SB-307, As Amended by Senate "A" (LCO 6114), Senate "B" (LCO 6249)

  • House Roll Call Vote 293 AS AMENDED

  • Senate Roll Call Vote 384

  • Senate Roll Call Vote 385

  • Senate Schedule A LCO# 6114 (J)

  • Senate Schedule B LCO# 6249 (J)

  • Summary for Public Act No. 26-122

Related Bills

Back to State Legislation