Developing Views 2026 – Vol. 5

Artificial Intelligence (AI) looms large as an issue businesses large and small are addressing at varying capacities, and while AI is still vastly different things to different types of businesses, it is something everyone pretty much uniformly believes will be part of business operations and developments going forward.

With questions surrounding artificial intelligence (AI) regulation, including uncertainty about the effects that a recent federal executive order may have on states, in its current “short” session,” the Connecticut General Assembly may consider various proposals related to AI. These proposals could include, among other things, requiring businesses to make certain disclosures when consumers are interacting with AI.

The 2026 Connecticut General Assembly session, which opened Feb 4 and runs until May 6, also features other business-focused legislation targeting tax relief, R&D credit expansion, and economic growth. Key proposals include enhancing bioscience tax credits, reducing corporate taxes, lowering business costs, and addressing workforce development to improve state competitiveness.

Major business-related bills and issues for 2026 include:
SB 51 (R&D Tax Credits): Increases the R&D tax credit exchange rate to 100% for biotechnology companies.
SB 106 (Corporation Business Tax): Aims to sunset the corporation business tax surcharge.
SB 2 (Business Costs): Focuses on lowering costs for businesses and reducing associated consumer costs.
HB 5005 (Tax & Economic Development): Addresses double taxation for wholesalers and proposes reducing the corporation business tax rate to 6%.
SB 157 (Data Privacy): Requires businesses to obtain written consent before storing customer payment information.
Workforce & Development: Expansion of the “Learn Here, Live Here” program and increased funding for the Connecticut Bioscience Innovation Fund.
Energy & Regulation: Continued focus on energy costs, fiscal guardrails, and potential AI regulation.

More on that…

To expand on that a bit, according to the nonpartisan Office of Legislative Research:

During the 2025 session, the legislature considered HB 7008, which would have allowed the members or owners of PTEs (e.g., S Corporations, partnerships, and limited liability companies) to claim a tax credit for the PTE’s R&D expenses. Current law allows only C-corporations to claim the R&D tax credit against the corporation business tax, for which PTEs generally are not liable.

A similar bill, SB 157, was also considered in 2024. As the legislature explores ways to grow Connecticut’s economy and attract more businesses to the state, the General Assembly may choose to consider similar proposals.

With the state’s aging workforce, certain trades and jobs face a growing shortage of workers. The legislature may consider additional strategies to promote these trades and occupations to students throughout secondary education and postsecondary opportunities, including through pipelines that connect the two.

The legislature may also consider expanding opportunities and incentives for job training and career advancement, such as through industry partnerships, work-based learning, and apprenticeship programs.

In 2026, the legislature may take up the issue of expanding access to more affordable insurance coverage through multiple employer welfare arrangements (MEWAs) or Association Health Plans (AHP). In practice, a MEWA generally allows smaller businesses to join together to offer health insurance and other benefits to each business’s employees and their dependents depending on whether the companies form a bona fide association that offers an AHP.

Given the impending health insurance affordability issue, the legislature could consider similar proposals again in 2026.

In closing, Newtown’s elected State Representatives Mitch Bolinsky and Martin Foncello recently issued an informative e-newsletter encouraging participation in matters of significance to you – whether you own or represent a business, or are a concerned citizen.

There are several ways for you to make a difference, and make your voice heard. You can find details about the bills under consideration by visiting each legislative committee’s page on the General Assembly’s website.

Hearings will be open to the public and held at the Legislative Office Building and/or virtually. In most cases, the lawmakers explained that a hearing link will take you to a public YouTube Channel for that committee. Each committee has their own YouTube Channel.

You can also watch the proceedings of the House of Representatives, the State Senate, and most committee public hearings and meetings on CT-N.

Being heard in Hartford

There are a few ways you can submit testimony:

In Writing – A form to submit written testimony, online, can be filled out by clicking a link on the left-hand side of each committee webpage.

Live Testimony – Most committees are hosting hybrid meetings, meaning you can testify in-person, in Hartford, or via Zoom from your computer. You can register to testify by clicking on ‘public hearing agendas’ and selecting the date of the hearing. On each agenda there will be a link to a form to register to speak.

Get more information on submitting testimony HERE. Bill status information is available on the General Assembly’s website – www.cga.ct.gov.

Submitted by Newtown ECD Director John Voket