Connecticut Decouples from Federal Bonus Depreciation

The Connecticut Governor signed a law that includes: 1) decoupling the state corporation business tax from the domestic research and experimental federal bonus depreciation deduction for qualified production property, starting with the 2026 income year; 2) delaying conforming the state corporation business tax to recent changes in the federal deduction under P.L. 119-21 for expenditures by one year and disallowing the retroactive application of these changes for the 2022 to 2025 income years; 3) creating an income tax credit for qualifying small businesses that incur eligible research and development spending in the state; 4) replacing the current state taxes on ...