Connecticut Offers Longer Tax Window for Losses to Lure Biotech

Connecticut hopes to attract new bioscience startups with a recent corporate income tax change giving businesses more time to deduct past losses from future profits.

Businesses will have an extra decade to carry net operating losses into future years for the purpose of reducing their state tax liabilities, under a measure signed by Gov. Ned Lamont (D). Starting next January, Connecticut’s carryforward window is 30 years, significantly more generous than the 20-year period in neighboring Massachusetts and New York, two major destinations for the life sciences industry.

The update was aimed at bioscience firms and other startups that typically ...