Budget & Taxes (Tax Incentives)

in committee · Connecticut · House Feb 10, 2026

HB 5112: AN ACT EXEMPTING FROM THE PERSONAL INCOME TAX THE AMOUNT OF STATE AND FEDERAL DEBT RELIEF RECEIVED BY A TAXPAYER FOR STUDENT LOANS AND MEDICAL DEBT.

HB 5112 exempts taxpayers from state personal income tax on debt relief received for student loans or medical debt. It directly affects individuals who have had these debts forgiven by state or federal programs. The bill amends tax law to exclude the amount of debt relief (from both state and federal sources) from taxable income. This creates a concrete policy change: taxpayers no longer owe state income tax on forgiven student or medical debt amounts.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts forgiven student/medical debt from state income tax, providing direct tax relief to affected taxpayers and reducing state tax revenue burden.95% confidence

Sub-Topics Debt & Bonds Income Tax Tax Incentives

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in committee · Connecticut · Senate Feb 4, 2026

SB 61: AN ACT ESTABLISHING A VOLUNTARY EMPLOYER PAYROLL TAX AND A PERSONAL INCOME TAX CREDIT FOR CERTAIN EMPLOYEES.

SB 61 creates a voluntary payroll tax that employers may choose to pay, paired with a personal income tax credit for eligible employees. Employers who opt to participate in this program would pay the tax, and their qualifying employees would receive a corresponding tax credit on their state income tax returns. The bill specifically targets certain employees of participating employers, though it does not detail eligibility criteria in the provided text. This establishes a direct financial benefit for employees through the tax credit mechanism, contingent on employer participation.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for employees, reducing their state income tax burden - direct tax relief for targeted group.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employees, directly increasing disposable income as a financial benefit aligned with worker wage support.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Connecticut · Senate Feb 17, 2026

SB 206: AN ACT EXEMPTING THE COST OF HEADSTONES UP TO A CERTAIN AMOUNT FROM THE SALES AND USE TAXES.

SB 206 exempts up to $2,500 of the cost of a headstone from state sales and use taxes. This directly affects individuals purchasing headstones for gravesites, reducing their out-of-pocket expenses. The bill amends tax law to exclude the first $2,500 spent on headstones from taxable sales, applying to all eligible headstone purchases. It creates a specific sales tax exemption for this item without altering broader tax policies.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts headstone costs up to $2,500 from sales tax, providing direct tax relief for individuals purchasing burial markers.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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in committee · Connecticut · House Feb 6, 2026

HB 5059: AN ACT ESTABLISHING A RESEARCH AND DEVELOPMENT TAX CREDIT FOR PASS-THROUGH ENTITIES.

HB 5059 creates a 6% tax credit against personal income tax for pass-through entities (such as S-corporations, partnerships, and sole proprietorships) that incur research and development expenses. The credit directly applies to business owners who pay personal income tax, reducing their tax liability by 6% of qualifying R&D costs. Key provisions require businesses to pay or incur eligible R&D expenses during a taxable year to claim the credit. This policy change lowers the tax burden for small businesses and entrepreneurs investing in innovation, without altering tax rates or creating new regulations.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 6% tax credit for small business R&D expenses, reducing tax liability for pass-through entities (aligned with tax relief for middle-income business owners)90% confidence ✓ TechnologySupports TechnologyTax credit for R&D expenses directly incentivizes technology innovation and development, aligning with funding/support indicators for tech advancement.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Connecticut · Senate Feb 4, 2026

SB 40: AN ACT ESTABLISHING A TAX CREDIT FOR EDUCATIONAL ACCESS AND OPPORTUNITY SCHOLARSHIPS.

SB 40 establishes a state tax credit for individuals and businesses that donate to nonprofit organizations providing educational access and opportunity scholarships. The credit would allow donors to reduce their state income tax liability by a portion of their donation amount, directly incentivizing private funding for scholarship programs. This bill primarily affects taxpayers who make qualifying donations and the nonprofits administering these scholarships, without specifying credit percentages or donation limits. The legislation aims to expand private support for educational opportunities through tax incentives, as stated in its purpose.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit providing tax relief to donors, incentivizing private funding for education scholarships, directly addressing tax policy and fiscal management.90% confidence ✓ EducationSupports EducationBill creates tax incentives for donations to scholarship programs, directly expanding educational access and opportunity through private funding mechanisms.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives School Choice Student Financial Aid

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in committee · Connecticut · House Feb 6, 2026

HB 5068: AN ACT CONCERNING REIMBURSEMENTS TO MUNICIPALITIES FOR REVENUE LOSS ASSOCIATED WITH A VETERANS PROPERTY TAX CREDIT.

HB 5068 requires the state to reimburse municipalities 50% of the revenue they lose when granting veterans a property tax exemption under Section 12-81(83) of state law. This directly affects local governments that administer the veterans property tax credit program, covering the cost of lost property tax revenue. The bill establishes a clear reimbursement mechanism where the state funds half of the revenue shortfall caused by the exemption. It aims to offset the financial burden on municipalities without altering the existing veterans tax credit eligibility or administration rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates state reimbursement of 50% revenue loss to municipalities from veterans tax exemptions, directly funding local governments to offset fiscal impact of tax policy, aligning with fiscal responsibility and funding support.85% confidence ✓ VeteransSupports VeteransBill reimburses municipalities 50% for lost revenue from veterans' property tax exemptions, ensuring continued access to tax benefits without local financial burden.95% confidence

Sub-Topics Debt & Bonds Property Tax Tax Incentives Memorials & Recognition Veteran Housing

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in committee · Connecticut · House Mar 18, 2026

HB 5286: AN ACT CONCERNING A MUNICIPAL TAX ABATEMENT FOR SURVIVING DOMESTIC PARTNERS OF POLICE OFFICERS, FIREFIGHTERS AND EMERGENCY MEDICAL TECHNICIANS.

HB 5286 allows municipalities to create property tax abatement programs for surviving domestic partners of police officers, firefighters, and emergency medical technicians who die while on duty. The bill replaces existing law (which only covered surviving spouses) to explicitly include domestic partners, as defined by local ordinance, who own and live in the property as their primary residence. Municipalities would need to adopt specific ordinances to implement this tax relief, effective October 1, 2026. This policy directly affects eligible surviving domestic partners of covered first responders in communities that choose to adopt the program.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax abatement (relief) for specific groups, aligning with tax relief indicators under Budget & Taxes.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Connecticut · House Feb 9, 2026

HB 5087: AN ACT ESTABLISHING PERSONAL INCOME TAX DEDUCTIONS FOR TIPS OR GRATUITIES AND OVERTIME PAY.

HB 5087 would create a state-level personal income tax deduction for taxpayers who earn tips or overtime pay, mirroring the existing federal tax treatment for these income types. It directly affects workers in service industries (like restaurants or hospitality) who receive tips or earn overtime, as well as other earners with these income streams. The bill would amend tax law to allow these specific income categories to be deducted when calculating taxable income, similar to how they are treated federally. This policy change simplifies tax filing for affected workers by aligning state deductions with federal rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates state tax deduction for tips/overtime (mirroring federal treatment), reducing taxable income for service industry workers. This provides direct tax relief for lower/middle income earners in affected industries.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax deduction for tips/overtime, increasing take-home pay for service workers, directly supporting wage benefits under Labor & Employment policies.92% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Labor Standards Minimum Wage

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in committee · Connecticut · House Mar 12, 2026

HB 5319: AN ACT CONCERNING A RESEARCH AND DEVELOPMENT TAX CREDIT FOR SMALL BUSINESSES.

HB 5319 creates a 6% state tax credit for qualified small businesses based on their eligible research and development (R&D) expenses, directly affecting S corporations, partnerships, and single-member LLCs with gross income under $70 million. Businesses must apply for a pre-approved "tax credit voucher" to reserve credit capacity (capped at $1.5 million per business and $25 million total annually) before incurring expenses. The credit reduces state tax liability, and any excess can be partially refunded (90% for biotech businesses, 65% for others). This policy aims to incentivize R&D investment by making tax credits accessible without upfront cash costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 6% R&D tax credit reducing state tax liability for small businesses, providing direct tax relief under specified caps.95% confidence ✓ TechnologySupports TechnologyProvides 6% R&D tax credit for small businesses, directly funding technology innovation and development through financial incentives.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Connecticut · Senate Feb 4, 2026

SB 56: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR PUBLIC BENEFIT CHARGES PAID BY TAXPAYERS ON THEIR UTILITY BILLS.

SB 56 would create a personal income tax deduction for taxpayers who pay "public benefit charges" on their utility bills (such as electricity or gas). This deduction applies to the total amount paid annually for these specific charges. Taxpayers would subtract this amount from their taxable income when filing state taxes. The bill directly affects individual taxpayers with utility bills that include these public benefit fees, reducing their overall tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for utility public benefit charges, reducing taxable income and lowering tax liability for individual taxpayers, aligning with tax relief indicators.92% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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