Hartford Business Journal

HARTFORDBUSINESS.COM | FEBRUARY 23, 2026 9 POLITICS & POLICY of employers would have access to it." State law, though, caps the credit at $10 million annually, a tiny fraction of Connecti- cut's overall two-year, $55.8 billion budget. Poor promotion Labor attorney Patrick McHale, a partner at Hartford-based law firm Kainen, Escalera & McHale, said the program's lack of use may stem from a simpler problem: awareness. "I honestly don't think it's very well known," McHale said. "I don't think the state's done a very good job promoting it." Even when employees qualify, McHale said, student loan assistance is more likely to be initiated by workers than employers — something that can't happen if neither party knows the credit exists. "I really think the state just needs to make an effort," McHale said. "The state makes an effort at letting people know about all the paid leave they get, so why not make some time to promote this?" Connect with us today! 860-448-4295 NMLS #402928 With the assurance that we invest in smart tools, technology, and savvy team members to keep your business safe! ChelseaGroton.com/SafeBusiness We're here for you! Patrick McHale Lamont agenda targets taxes, AI rules, solar permits and warehouse quotas By Greg Bordonaro and David Krechevsky gbordonaro@hartfordbusiness.com G ov. Ned Lamont's 2026 legislative agenda includes a mix of budget proposals and policy initiatives that could affect Connecticut businesses and nonprofits. The measures touch on taxes, artificial intelligence, solar energy development and workplace regulations. Lamont's proposed $28.7 billion budget for the fiscal year beginning July 1 avoids major structural changes but includes several targeted revisions. The most prominent is a one-time $200 rebate for many residents, along with tax and fee adjustments that could influence business costs and investment decisions. Among them is a proposed expan- sion of Connecticut's research-and-de- velopment tax credit to pass-through entities, including limited liability companies and other businesses that do not pay the corporation tax. The administration estimates the change would deliver roughly $25 million per year in relief, addressing a longstanding concern among smaller firms. The governor also proposes elimi- nating or ending renewal fees for various occupational licenses, including those held by skilled-trade professionals such as electricians and plumbers. While primarily framed as worker relief, the move could modestly reduce expenses for contractors and related businesses. Another budget adjustment would significantly scale back a previously scheduled increase in the hospital provider tax. Hospital leaders have argued that higher tax burdens can translate into cost pressures for employers through insurance premiums. Industry officials warn that inadequate Medicaid reimbursement combined with new taxes can intensify cost-shifting across the health care system. As in prior sessions, the broader budget debate is likely to hinge on the structure of tax relief. Republican lawmakers have expressed reservations about one-time rebates, arguing that permanent tax changes would offer more predictable benefits. Democratic leaders, meanwhile, continue weighing competing priorities, including proposals for ongoing income-tax credits. AI safeguards and innovation tools Lamont's agenda includes Senate Bill 86, which seeks to establish guardrails for artificial intelligence systems while supporting industry growth. The bill would require developers of AI "companion" chatbots to implement mechanisms for identifying signs of mental-health distress and directing users to crisis resources. It also mandates periodic disclosures reminding users they are interacting with AI. The proposal also calls for expanding the state's Open Data Portal and creating a regulatory "sandbox" where companies could test AI-driven prod- ucts. Business groups have generally supported the sandbox concept as a way to encourage innovation. Automated solar permitting House Bill 5036 focuses on permit- ting delays for residential solar proj- ects. The measure would require the Department of Administrative Services to develop a statewide automated system capable of reviewing qualifying applications and issuing permits for smaller rooftop solar systems. Municipalities would be required to accept permits from the system, though towns could adopt state-compliant alternatives. Supporters argue automation could reduce project timelines and administrative costs. Warehouses productivity quotas Lamont is also reviving efforts to regulate warehouse productivity quotas through Senate Bill 92. The legislation would require large distribution centers to provide written notice of quotas, inform workers of changes and allow employees to review performance data used in evaluations. The bill would prohibit quotas that interfere with legally required breaks, and authorize civil penalties for violations. It also directs the Workers' Compensation Commission to monitor injury rates and flag facilities with unusually high levels. Nonprofit advisory board Finally, Senate Bill 87 would create a nonprofit provider advisory board and a state nonprofit policy coordi- nator position intended to improve coordination with health and human services organizations. The bill also includes insurance provisions intended to protect nonprofit Some state lawmakers, including Gov. Ned Lamont, are pushing to regulate productivity quotas in warehouses, such as those used by Amazon. HBJ File Photo volunteers and limit how long insurers can seek repayment of previ- ously approved claims. Nonprofit leaders say the changes could reduce financial uncertainty for a sector that employs more than 100,000 people statewide. Reports from HBJ Web Editor Andrew Larson and Keith Phaneuf of the CT Mirror were used in this story.

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