Connecticut Gov. Ned Lamont (D) proposed updating the state tax code to reflect a new federal tax break for research expenses, as part of his planned adjustments to the budget for fiscal years 2026 and 2027.
The tax-and-spending package President Donald Trump signed last year allows businesses to immediately deduct research and experimentation costs, instead of spreading those deductions out over a period of five years. The new benefit is retroactive to cover tax years 2022 through 2024.
Lamont wants to conform to the federal change, but instead allow for the immediate expensing to begin in fiscal year 2026, ...