AN ACT CONCERNING THE FIXED CAPITAL TAX CREDIT.

SB 120 increases the state tax credit for business investments to 25% for new fixed capital projects starting in 2027. It expands eligible investments to include nonresidential buildings (aligned with federal tax rules) and infrastructure costs like water/electrical lines or irrigation systems in industrial or agricultural zones. This primarily affects businesses constructing or upgrading facilities in designated industrial or agricultural areas. The bill changes existing tax credit rules without altering other tax provisions.