A bill before state lawmakers would create a new tax credit aimed at supporting events at Hartford’s PeoplesBank Arena, a move that could help secure a long-term commitment from the University of Connecticut to continue playing basketball and hockey games in the city.
The legislation also would make several changes to existing business and investment tax incentives, including updates to credits for angel investors, research and development and farm investments.
Raised Bill 5571, before the Finance, Revenue and Bonding Committee, would allow up to $10 million in tax credits for an operator of the downtown arena that enters into a long-term agreement with a state agency to host events at the facility.
To qualify, the operator would need to commit to hosting at least 15 events annually for a minimum of 15 years. The credit would be capped at $5 million per year and could be refunded if it exceeds the taxpayer’s liability.
The arena is operated by Los Angeles-based Oak View Group under an agreement with the Capital Region Development Authority. Under a deal approved in 2024, Oak View Group committed $20 million toward renovations and upgrades to the roughly 16,000-seat venue in exchange for a 20-year extension of its management contract and the ability to retain the first $4 million in annual profits.
In testimony submitted to the finance committee, Capital Region Development Authority Executive Director David Steuber said the bill could help secure a longer-term commitment from the University of Connecticut to continue playing basketball and hockey games at the arena.
He said the provision could lead to an additional 15-year agreement, on top of UConn’s existing five-year lease, potentially extending the university’s presence at the venue through fiscal year 2046.
UConn’s presence at the arena has historically been governed by shorter-term agreements. In 2023, the university’s Board of Trustees approved a roughly $1.55 million deal to continue playing basketball and hockey games at the venue, part of a broader off-campus strategy that costs the athletic department millions annually. At the time, university officials and state leaders also navigated periodic tensions over the cost of playing in Hartford and the school’s long-term commitment to the venue.
In addition to playing games at the PeoplesBank Arena, which recently underwent $145 million in renovations, UConn men’s and women’s basketball teams play home games at Gampel Pavilion in Storrs, which is about to undergo its own $99 million renovation.
Meanwhile, the men’s hockey team also plays games in Storrs at the 2,600-seat, $70 million Toscano Family Ice Forum, which debuted in 2023.
In separate testimony, UConn Director of Athletics David Benedict said the school already plays a major role in driving events at the PeoplesBank Arena through its partnership with arena operator Oak View Group and the Capital Region Development Authority.
UConn hosts 15 regular-season men’s and women’s basketball games and four men’s hockey games annually at the arena, drawing visitors who spend money at local businesses, he said.
“Games bring people downtown, and that activity translates directly into economic growth and tax revenue for both the city and the State,” Benedict said.
He added that UConn Athletics generated about $287 million in economic output during the 2024-25 season, including spending tied to events that attract visitors to Hartford.
Steuber said the arena has drawn about 350,000 visitors to downtown Hartford across 61 events since reopening in October 2025 following a renovation.
That activity generates millions of dollars annually for nearby restaurants, bars and retail businesses, he said.
Other proposed changes
The bill also establishes a working group to examine how Connecticut applies “market-based sourcing” to investment income for financial institutions — an issue tied to tax competitiveness and how multistate firms allocate income. The group, made up of state officials and legislative leaders, would report its findings by Jan. 1, 2027.
It also revises the state’s angel investor tax credit, which provides incentives for investments in early-stage Connecticut businesses. The credit would remain at 25% of an investment — or 40% for certain cannabis businesses — with a cap of $500,000 per investor, while updating eligibility criteria for participating companies.
The bill updates the definition of research and experimental expenditures used in calculating the state’s R&D tax credit to align with federal standards, and modifies eligibility requirements for a tax credit tied to farm investments.
Finally, it repeals an outdated tax provision.
