Gov. Ned Lamont’s 2026 legislative agenda touches on artificial intelligence guardrails, solar permitting, warehouse worker protections and tax relief for businesses — here’s what Connecticut companies and nonprofits need to know.
Gov. 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 expansion of Connecticut’s research-and-development 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 eliminating 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 products. Business groups have generally supported the sandbox concept as a way to encourage innovation.
Automated solar permitting
House Bill 5036 focuses on permitting delays for residential solar projects. 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 coordinator position intended to improve coordination with health and human services organizations.
The bill also includes insurance provisions intended to protect nonprofit volunteers and limit how long insurers can seek repayment of previously 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.
