Achillion Pharmaceuticals, Inc. v. Pamela Law, Commissioner of Revenue Services, 291 Conn. 525

Summary

The Supreme Court of Connecticut held that a qualified small business may exchange a research and development tax credit for a credit refund only during the income year in which the credit was earned. The court concluded that credits carried forward from prior income years could not be exchanged for refunds under Connecticut General Statutes § 12-217ee and affirmed the judgment for the Commissioner of Revenue Services on that alternate ground.

Holdings

1. A qualified small business may exchange a research and development tax credit for a credit refund only during the income year in which the business qualifies for and earns the credit. Section 12-217ee does not authorize a refund for a credit carried forward from a prior income year.

Questions Presented

1. Whether General Statutes § 12-217ee permits a qualified small business to exchange a research and development tax credit carried forward from a prior income year for a credit refund in a subsequent income year.
2. Whether the trial court's judgment could be affirmed on the commissioner's alternate statutory interpretation ground.

Disposition

affirmed