CMC Report
by Ryan Cei – NESMA Board Member
May 2026
Following is a recap of March’s CMC Legislative Report.
2026 Legislative Session: Key Wins for Connecticut Manufacturers
The 2026 legislative session delivered several important outcomes for Connecticut’s manufacturing sector, with notable progress in tax relief, workforce development, and regulatory reform.
Major Wins
- R&D Tax Credit Expansion: A new income tax credit was established for pass-through entities, benefiting small/S-Corp manufacturers engaged in research and development.
- Workforce Development: New initiatives—including educator externships, workforce navigators, work-based learning, and dual enrollment programs—aim to better align education with industry needs.
- Regulatory Relief: Expanded permitting authority is expected to streamline processes and reduce costs for businesses.
Areas of Progress
- Energy Costs: Steps were taken to incorporate economic development considerations into the state’s energy strategy and advance future energy generation programs.
- Health Insurance: Partial relief was achieved through new tax credits for small business health reimbursement arrangements, though broader reforms, specifically did not pass.
Ongoing Concerns
- State Fiscal Policy: Increased spending and adjustments to fiscal guardrails raise concerns about long-term financial stability, despite continued commitments to pension obligations.
Bottom Line Overall, the session resulted in meaningful gains for manufacturers, particularly in competitiveness and workforce alignment, though continued attention is needed on fiscal discipline and cost pressures.