Connecticut HB 5571: AN ACT CONCERNING HUMAN TRAFFICKING.

Bill Text

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General Assembly Substitute Bill No. 5571
February Session, 2026

AN ACT ESTABLISHING A TAX CREDIT FOR QUALIFIED
OPERATORS AND A WORKING GROUP TO EXAMINE MARKET-
BASED SOURCING FOR CERTAIN INVESTMENT ASSETS INCOME
AND CONCERNING THE ANGEL INVESTOR TAX CREDIT AND THE
DEFINITIONS FOR CERTAIN TAX CREDITS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective from passage and applicable to income and 1
taxable years commencing on or after January 1, 2026) (a) As used in this 2
section, "qualified operator" means a party to a facility management 3
agreement with the Capital Region Development Authority established 4
pursuant to section 32-601 of the general statutes to operate the civic 5
center and coliseum complex in the city of Hartford known as 6
PeoplesBank Arena and "qualified agreement" means an agreement 7
between a qualified operator and a state agency, as defined in section 4-8
37e of the general statutes, in which the state agency commits to 9
schedule and host a minimum of fifteen events annually at the 10
PeoplesBank Arena for a term of not less than fifteen years and the 11
qualified operator agrees to operate and promote each such event at the 12
facility during the term of the agreement. 13
(b) For income and taxable years commencing on or after January 1, 14
2026, there shall be allowed a credit against the tax imposed by chapter 15
208, 228z or 229 of the general statutes, other than the liability imposed 16
by section 12-707 of the general statutes, for any income or taxable year 17

Substitute Bill No. 5571

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in which the qualified operator is a party to a qualified agreement on 18
the last day of the income or taxable year. The amount of the credit shall 19
not exceed five million dollars for any income or taxable year. The 20
aggregate amount of the credits allowed under this section shall not 21
exceed ten million dollars. 22
(c) Any qualified operator that is subject to a tax imposed under 23
chapter 208, 228z or 229 of the general statutes may apply to the 24
Department of Revenue Services, in such form and manner as 25
prescribed by the Commissioner of Revenue Services, to reserve an 26
allocation for a credit under this section. The application shall contain 27
such information as the commissioner deems necessary to verify a 28
qualified operator's eligibility for the credit under this section. If the 29
commissioner approves such application, the commissioner shall 30
provide a voucher to the qualified operator for the amount allocated. 31
(d) If the amount of the credit allowed pursuant to this section 32
exceeds the taxpayer's liability for the tax imposed under chapter 208, 33
228z or 229 of the general statutes, the Commissioner of Revenue 34
Services shall treat such excess as an overpayment and, except as 35
provided in section 12-739 or 12-742 of the general statutes, shall refund 36
the amount of such excess, without interest, to such taxpayer. 37
(e) If the taxpayer is an S corporation or an entity treated as a 38
partnership for federal income tax purposes, the credit may be claimed 39
by the taxpayer's shareholders or partners. If such taxpayer is a single 40
member limited liability company that is disregarded as an entity 41
separate from its owner, the credit may be claimed by such limited 42
liability company's owner, provided such owner is subject to the tax 43
imposed under chapter 208, 228z or 229 of the general statutes. 44
Sec. 2. (Effective from passage) (a) There is established a working group 45
to examine the issue of the state's application of market-based sourcing 46
to income from investment assets for financial institutions as it relates 47
to modern sourcing policy, economic competitiveness, support of in-48
state jobs and equitable treatment of the tax base and in-state services. 49

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(b) The working group shall consist of the following members or their 50
designees: 51
(1) The chairpersons of the joint standing committees of the General 52
Assembly having cognizance of matters relating to finance, revenue and 53
bonding and banking; 54
(2) The Commissioner of Revenue Services and the Banking 55
Commissioner; and 56
(3) The Secretary of the Office of Policy and Management. 57
(c) The working group may consult with any individuals or entities 58
relevant to or informative for the examination. 59
(d) The chairpersons of the joint standing committee of the General 60
Assembly having cognizance of matters relating to finance, revenue and 61
bonding shall serve as chairpersons of the working group and shall 62
schedule the first meeting of the working group, which shall be held not 63
later than sixty days after the effective date of this section. 64
(e) The administrative staff of the joint standing committee of the 65
General Assembly having cognizance of matters relating to finance, 66
revenue and bonding shall serve as administrative