The civic record
Read. Follow. Verify.Connecticut creates alternative estate tax investment fund for residents
Last action · March 23, 2026: Public Hearing 03/27Sponsor: Travis Simms
Track this bill to get notified when it advances a stage. One tap to stop, anytime.
What This Bill Proposed
Beginning January 1, 2027, Connecticut residents can make a one-time investment in the newly established Connecticut Growth Investment Fund as an alternative to paying the state estate tax. The payment amount is set at 30, 40, or 50 percent of the resident's estimated .
Residents can substitute a portion of their estate tax liability with an investment in in-state businesses, with tax liability entirely extinguished if the investor survives for at least five years after making the payment.
- Connecticut Innovations is the state's strategic venture capital arm and economic development agency, created under section 32-35 of the general statutes. context
- Section 12-391 of the general statutes governs the state's estate and gift tax rates and thresholds. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Connecticut residents
Residents with estate tax exposure may elect to make a one-time investment payment in lieu of estate taxes under specific vesting and forfeiture rules.
Connecticut Innovations, Incorporated
The corporation is required to establish, manage, and report on the Connecticut Growth Investment Fund and receives an annual management fee.
Qualified Connecticut businesses
Businesses meeting principal place of business and employee domicile requirements are eligible to receive exclusive investments from the fund.
Key Facts
- Connecticut Innovations, Incorporated must establish the Connecticut Growth Investment Fund not later than January 1, 2027.
- Residents can elect to make a one-time payment of 30, 40, or 50 percent of their maximum potential estate tax exposure starting January 1, 2027.
- The fund must invest exclusively in qualified Connecticut businesses that maintain their principal place of business in the state and have at least 75 percent of employees domiciled in the state.
- Not less than 10 percent of the fund must be made available for investments in qualified businesses founded by student or faculty entrepreneurs at state higher education institutions.
Show all 10 facts
- Connecticut Innovations is entitled to an annual management fee of not more than two per cent of total assets under management.
- Ten per cent of net realized profits from investments must be remitted to the General Fund prior to any distribution to a resident, decedent's estate, or beneficiary.
- If a resident dies at least five years after making the payment, the initial payment is permanently retained by the fund, future distributions vest in the estate or beneficiaries, and the estate tax liability is extinguished.
- If a resident dies within five years of the payment, the initial amount is credited toward estate tax liability, and realized gains and preferred returns are subject to a sliding forfeiture scale.
- If a resident ceases to be a state resident, the initial payment is returned without interest within 24 months or as liquidity permits, and future distributions are forfeited.
- Connecticut Innovations must submit an annual report starting April 1, 2028, to the General Assembly's finance committee detailing business recipients, fund performance, and indirect tax revenue analysis.
Frequently Asked Questions
How much must a resident invest in the Connecticut Growth Investment Fund?
What happens to the initial payment if the investor moves out of Connecticut?
How are investments allocated for higher education entrepreneurs?
What else do you want to know?
News Coverage
Follow the record
Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in Senate committee.
Procedural history
2 actions- Mar 23, 2026Connecticut General AssemblyPublic Hearing 03/27
- Mar 20, 2026Connecticut General AssemblyCommitteeReferred to Joint Committee on Finance, Revenue and Bonding
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Estate Tax Alternative Mechanism
The bill introduces a direct investment alternative to traditional estate tax payments, channeling funds into local businesses rather than standard tax revenue.
Connected Entities
Sources
cga.ct.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 80)
- Controversy45Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
Publisher tools