Connecticut budget-implementing legislation enacted on June 23 extends the 10% corporation business tax surcharge through 2022, delays the phase-out of the capital base tax by four years, increases the research and development tax credit allowance to over two years but limits the carryforward of nonincremental research and development tax credits to 15 years, and provides a tax amnesty, among other provisions.
Businesses should model the impact of the corporation business tax surcharge extension, capital base tax extension, and R&D tax credit changes and consider the potential impact on their tax provision. The tax amnesty provides an opportunity for businesses, including those that have been contacted by the Department of Revenue Services or that are under audit, to pay liabilities subject to only 25% of the interest that otherwise would be due.
