HB 5115 Connecticut House · 2026 Regular Session

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN LOSSES INCURRED AS A RESULT OF CRYPTOCURRENCY INVESTMENT FRAUD OR WIRE FRAUD.

HB 5115 would allow Connecticut taxpayers to deduct losses from cryptocurrency investment fraud or wire fraud on their state income tax returns, effective January 1, 2027. The deduction applies only to losses that are already counted as taxable income under federal tax law. It directly affects Connecticut residents who suffered financial losses due to these specific fraud types and reported the losses on their federal tax returns. The bill adds this deduction to existing state tax provisions, creating a new category for these losses without changing other tax rules.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 10, 2026 Last action Apr 16, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Proposed Bill → Committee Bill · 3 edits

MINOR

The bill was renumbered from a proposed version to a committee bill, indicating it has been reviewed but not yet enacted. The core policy shifted from a specific tax deduction for cryptocurrency fraud losses to a comprehensive list of standard Connecticut state tax deductions. This new list includes deductions for federal tax-exempt income, Social Security benefits, and various other financial adjustments, effectively replacing the unique fraud provision with general tax code provisions.

Scope change

The bill's scope expanded from a single, specific tax break for cryptocurrency fraud victims to a broad set of standard deductions applicable to all Connecticut taxpayers.

ELIGIBILITY

Removed a specific provision allowing a tax deduction for losses resulting from cryptocurrency investment fraud or wire fraud.

Added a comprehensive list of standard deductions, including amounts for Social Security benefits and income exempt from federal taxation.

TIMELINE

Changed the effective date to January 1, 2027, and updated the bill number and committee reference.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 30, 2026

Lower · Passed

Joint Favorable

lower

Mar 3, 2026

Committee

REF. TO JOINT COMM. ON Finance, Revenue and Bonding

lower

Mar 2, 2026

Lower · Passed

DRAFTED BY COMMITTEE

lower

Feb 10, 2026

Committee

REF. TO JOINT COMM. ON Finance, Revenue and Bonding

lower

1 primary · 0 co-sponsors