Connecticut's 2025 Legislative Session: What It Means for Your Business
The gavel came down at midnight on May 6th, bringing Connecticut's 2025 legislative session to a close. It was a session of real wins, notable disappointments, and several new laws that will require your attention. Here's what the Greater New Haven business community needs to know.
A Win Worth Celebrating: Tweed New Haven Airport
The most significant economic development victory of the session was the passage of the legislative package supporting the Tweed New Haven Airport expansion. This clears a major path forward for an 84,000 square-foot terminal, a runway extension, and infrastructure investments that will meaningfully strengthen our region's connectivity and long-term competitiveness. The Chamber was proud to advocate for this outcome alongside our members, and we're grateful it crossed the finish line.
R&D Tax Credits Now Available to More Businesses
Tucked into the budget package was an important win for our innovation and manufacturing sectors: an expanded research and development tax credit (HB 5319) offering a 6% credit on qualifying R&D expenses for companies with annual gross income under $70 million. If your business invests in research and development, this is worth a close look with your tax advisor.
A Missed Opportunity: Association Health Plans
For another consecutive session, the association health plans bill failed to advance out of committee. This legislation would have allowed trade associations to offer small business members access to more affordable, self-funded health coverage — a practical solution to a real problem. Healthcare costs continue to outpace inflation, and small employers are feeling it acutely. The Chamber remains committed to this issue and will continue pushing for it in 2027.
New Laws That Could Impact Your Business
SB 298 — Warehouse Worker Productivity Quotas Already signed by Governor Lamont back in March, SB 298 is the most far-reaching business-related measure of the session. Passed through an emergency certification process that bypassed normal committee hearings, this 121-page bill places sweeping new restrictions on how large warehouse and distribution employers may set and track worker productivity quotas. The law takes effect July 1, 2026, with written quota disclosure requirements due by August 1. If you operate a warehouse or distribution center with 250 or more employees at a single location — or 1,000 or more across multiple sites — compliance is not optional.
HB 5003 — Workforce and Labor Mandates This 90-page workforce bill passed both chambers and is heading to the Governor's desk. It includes some welcome workforce development provisions, but also a collection of significant mandates: a ban on employment promissory notes for all employers regardless of size, a major expansion of the successor employer statute with penalties of up to $500 per employee per day, and new cannabis licensing conditions tied to labor peace agreements. Employers should review this legislation carefully with legal counsel.
SB 5 — AI and Online Safety Senate Bill 5 passed both chambers and awaits the Governor's signature. The Chamber joined other business organizations in urging caution. We support efforts to protect children online and establish responsible guardrails for AI — but we remain concerned that the compliance requirements, particularly for small businesses using AI tools in hiring or operations, could create disproportionate burdens and put Connecticut companies at a disadvantage relative to competitors in other states. We will monitor implementation closely and advocate for workable rules.
The Budget and Connecticut's Fiscal Guardrails The $28.1 billion budget passed with bipartisan support, but it came with a cost: modifications to the fiscal guardrails that have helped keep Connecticut financially stable since 2017. The new budget includes exceptions to the spending cap and surplus rules that fiscal watchdogs warn could set the stage for instability in future years. Business owners should be aware that this year's deficit pressures could resurface in future sessions as tax or regulatory proposals.
Looking Ahead
With the session behind us, attention now turns to November — when all 187 legislative seats will be on the ballot. The Chamber will be active throughout the summer and fall, hosting candidate forums across our region. Stay tuned for dates and details.
Your voice made a difference this session. Thank you for your engagement and advocacy. We'll keep fighting for a policy environment where Greater New Haven businesses can grow and thrive.
