Connecticut in Top 10 States for R&D Spending

The Bureau of Economic Analysis (BEA) has recently released a report examining R&D spending across the nation. The report, the first of its kind, has shown Connecticut ranks in the top 10 states for R&D spending.

The state spent 2.7% of its GDP on R&D-type activities in 2021 – the year of analysis. For the state, a 2.7% spend represents more than $7.9 billion – an increase of 22% over the previous year and up 44% since 2017. This shows a continuous growth in R&D investments, despite the hard times faced since the onset of the COVID-19 pandemic.

In Connecticut, businesses accounted for 92% of R&D value added, with universities and colleges contributing 5% and 3% for state and local government.

The state’s manufacturing sector was responsible for $3.67 billion in activity in 2021 (46%), while professional, scientific, and technical services contributed $3.3 billion (42%).

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.