Sec. 12-217j. Tax credit for research and experimental expenditures.
Sec. 12-217j. Tax credit for research and experimental expenditures. (a) There
shall be allowed as a credit against the tax imposed on any corporation under this chapter,
with respect to income years of such corporation commencing on or after January 1,
1994, an amount equal to twenty per cent of the amount spent by such corporation
directly on research and experimental expenditures, as defined in Section 174 of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, which are conducted in this state
and which exceeds the amount spent by such corporation during the preceding income
year of such corporation for such expenditures.
(b) (1) With respect to any income year commencing on or after January 1, 2000,
a credit or any portion of a credit that is allowed under this section but that is not used
by a taxpayer because the amount of the credit exceeds the tax due and owing by the
taxpayer shall be carried forward to each of the successive income years until such
credit, or applicable portion of the credit, is fully taken. In no case shall a credit, or any
portion of a credit, that is not used by a taxpayer be carried forward for a period of more
than fifteen years.
(2) (A) With respect to any income year commencing on or after January 1, 1997,
and prior to January 1, 2000, a credit or any portion of a credit that is allowed under
this section but that is not used by a biotechnology company because the amount of the
credit exceeds the tax due and owing by the taxpayer shall be carried forward to each
of the successive income years until such credit, or applicable portion of the credit, is
fully taken. In no case shall a credit, or any portion of a credit, that is not used by a
biotechnology company be carried forward for a period of more than fifteen years.
(B) For purposes of this subsection, "biotechnology company" means a company
engaged in the business of applying technologies, such as recombinant DNA techniques,
biochemistry, molecular and cellular biology, genetics and genetic engineering, biological cell fusion techniques, and new bioprocesses, using living organisms, or parts of
organisms, to produce or modify products, to improve plants or animals, to develop
microorganisms for specific uses, to identify targets for small molecule pharmaceutical
development, or to transform biological systems into useful processes and products.
(P.A. 92-193, S. 3, 8; P.A. 93-403, S. 1, 3; P.A. 96-252, S. 7, 8; P.A. 98-110, S. 22, 27; P.A. 03-225, S. 2.)
History: P.A. 92-193 effective July 1, 1992, and applicable to taxable years of corporations commencing on or after
January 1, 1993 (Revisor's note: In codifying public act 92-193 the words "an amount" were inserted editorially by the
Revisors in Subdiv. (1) after the words "January 1, 1994," for consistency with Subdiv. (2)); P.A. 93-403 added requirement
that research and experimental expenditures be conducted in the state, effective June 29, 1993, and applicable to taxable
years commencing on and after January 1, 1993; P.A. 96-252 authorized tax credits which are not used by biotechnology
companies to be carried forward and defined "biotechnology company", effective July 1, 1996, and applicable to income
years of corporations commencing on or after January 1, 1997; P.A. 98-110 expanded credit to all taxpayers, effective
May 19, 1998, and applicable to income years commencing on or after January 1, 2000; P.A. 03-225 divided existing
provisions into Subsecs. (a) and (b), amended Subsec. (a) to delete obsolete references and make technical changes, and
amended Subsec. (b) to add provisions re credit for biotechnology companies after January 1, 1997, and make technical
changes, effective July 9, 2003.