Budget & Taxes

in committee · Connecticut · House Feb 4, 2026

HB 5021: AN ACT EXEMPTING CERTAIN ARTICLES OF CHILDREN'S CLOTHING FROM THE SALES AND USE TAXES.

HB 5021 exempts from state sales and use taxes any children's clothing costing less than $100. This directly affects parents, caregivers, and retailers who sell such clothing within the state. The bill modifies existing tax law to remove the tax burden on qualifying items, including standard children's apparel like shirts, pants, and dresses. It does not apply to clothing over $100 or non-clothing items, and the change takes effect upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts children's clothing under $100 from sales tax, providing direct tax relief to lower-income families purchasing essential items.95% confidence

Sub-Topics Sales Tax Tax Credits

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in committee · Connecticut · House Feb 6, 2026

HB 5066: AN ACT CONCERNING PERSONAL INCOME TAX DEDUCTIONS FOR SENIORS.

HB 5066 would adjust the income threshold for senior citizens' personal income tax deductions to automatically increase each year based on inflation. This change, affecting seniors who qualify for tax deductions, ensures the threshold keeps pace with rising living costs. The bill amends Section 12-701 of the general statutes to require this annual inflation adjustment. It directly impacts how much income seniors can earn before losing eligibility for the deduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdjusts tax deduction threshold for seniors to inflation, providing ongoing tax relief for lower-income seniors as living costs rise.95% confidence

Sub-Topics Income Tax Tags Seniors

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in committee · Connecticut · Senate Feb 4, 2026

SB 47: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

SB 47 would create a personal income tax deduction of up to $25,000 for tips or gratuities reported by workers in occupations that customarily receive tips (as defined by the IRS, such as servers or bartenders). This deduction directly affects service industry workers who declare tip income on their tax returns. The bill amends tax law to allow these taxpayers to reduce their taxable income by the amount of declared tips, potentially lowering their overall tax bill. It applies only to tips actually reported to the IRS, not unreported income.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for service workers, lowering taxable income and reducing tax burden - direct tax relief for lower/middle-income earners in tips-based occupations.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for service workers' tips, increasing take-home pay and supporting financial stability for labor force.95% confidence

Sub-Topics Income Tax

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in committee · Connecticut · House Feb 9, 2026

HB 5086: AN ACT FULLY REIMBURSING MUNICIPALITIES FOR REVENUE LOSS ASSOCIATED WITH A VETERANS PROPERTY TAX CREDIT.

HB 5086 requires the state to fully reimburse municipalities for lost property tax revenue caused by an existing veterans' property tax credit. This credit, outlined in section 12-81(83) of state law, allows veterans to reduce their property tax bill. The bill directly affects local governments (municipalities) that currently absorb this revenue loss. It shifts the cost from municipalities to the state, ensuring local budgets aren't negatively impacted by the veterans' tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesReimburses municipalities for lost tax revenue, protecting local budgets from fiscal impact of veterans' tax credit, aligning with fiscal responsibility.95% confidence ✓ VeteransSupports VeteransBill ensures veterans' existing property tax credit remains fully effective by reimbursing municipalities for lost revenue, protecting access to the benefit without burdening local budgets.95% confidence

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

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in committee · Connecticut · Senate Feb 17, 2026

SB 205: AN ACT DEDICATING A PORTION OF THE REVENUE GENERATED FROM SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE TO THE TOURISM FUND.

SB 205 requires that a portion of revenue from an additional 1% sales tax on meals sold by restaurants, caterers, and grocery stores be deposited into the state's Tourism Fund. This fund, established under existing law, will finance tourism promotion, hospitality services, arts, cultural programs, and related marketing initiatives. The bill does not alter the tax rate but redirects specific tax revenue streams toward tourism development. It directly affects how the state allocates revenue collected from the food service industry.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects existing meal tax revenue to Tourism Fund, directly funding tourism initiatives through budget allocation without increasing tax rates.95% confidence

Sub-Topics Revenue Sales Tax

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in committee · Connecticut · Senate Feb 4, 2026

SB 80: AN ACT INCREASING THE AMOUNT OF THE PERSONAL INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO STATE-ESTABLISHED 529 QUALIFIED STATE TUITION PROGRAMS.

SB 80 increases the state income tax deduction for contributions to state-run 529 college savings plans. It raises the deduction from $5,000 to $7,500 for individual filers and from $10,000 to $12,500 for married couples filing jointly. The bill directly affects taxpayers who contribute to these state-established tuition savings accounts. This change lowers taxable income for eligible contributors, making college savings slightly more affordable.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for 529 contributions, lowering taxable income for contributors, providing direct tax relief.95% confidence ✓ EducationSupports EducationIncreases tax deduction for 529 college savings plans, directly enhancing affordability and access to higher education funding.95% confidence

Sub-Topics Income Tax Higher Education

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in committee · Connecticut · House Feb 18, 2026

HB 5234: AN ACT ESTABLISHING A FEE ON SHORT-TERM RENTAL PROPERTIES.

HB 5234 would impose a fee on short-term rental properties (such as Airbnb listings) owned by individuals or businesses. The revenue generated from this fee would be distributed proportionally to local municipalities based on population or another specified formula. This bill directly affects property owners who rent accommodations for short periods, creating a new revenue stream for local governments to fund community services. The policy change is purely procedural, establishing the fee structure and distribution method without altering other regulations.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes fee on short-term rentals to generate revenue for local services, increasing tax revenue for municipal budgets.95% confidence

Sub-Topics Business Taxes Fees & Licensing

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in committee · Connecticut · House Apr 16, 2026

HB 5113: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR THE AMOUNT OF CANCELLED DEBT AND DEBT RELIEF RECEIVED BY A TAXPAYER FOR STUDENT LOANS, MEDICAL DEBT AND CREDIT CARD DEBT.

HB 5113 exempts Connecticut taxpayers from state income tax on forgiven amounts for student loans, medical debt, and credit card debt. The bill adds a new deduction to Connecticut's tax code, allowing taxpayers to exclude debt relief that would otherwise be taxable under federal law. This directly affects residents who receive debt settlement or relief for these specific debt types. The provision takes effect January 1, 2027, and aligns Connecticut tax treatment with federal rules for these debt forgiveness scenarios.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts forgiven debt relief from state income tax, providing tax relief to residents and aligning with federal treatment for student loans, medical debt, and credit card debt.95% confidence ✓ EducationSupports EducationBill exempts student loan debt relief from state tax, reducing financial barriers to higher education and supporting educational access.90% confidence

Sub-Topics Income Tax

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in committee · Connecticut · House Feb 6, 2026

HB 5052: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CHARITABLE CONTRIBUTIONS REPORTED ON A TAXPAYER'S FEDERAL INCOME TAX RETURN.

HB 5052 would allow Connecticut taxpayers to deduct charitable contributions they already reported on their federal income tax returns from their state personal income tax. The deduction applies only to gifts claimed on federal returns, matching the amount reported to the IRS. This would reduce the state tax burden for eligible taxpayers who itemize deductions on their federal returns. The bill does not alter federal deduction rules or create new charitable giving incentives.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces state tax burden via charitable deduction, aligning with tax relief indicators for eligible taxpayers who itemize federal deductions.95% confidence

Sub-Topics Income Tax

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in committee · Connecticut · Senate Feb 4, 2026

SB 43: AN ACT CONCERNING THE TAX CREDIT FOR MACHINERY AND EQUIPMENT.

SB 43 replaces Connecticut's existing machinery and equipment tax credit with a new 50% credit for corporations spending on such equipment installed in state facilities. It directly affects corporations that purchase and install machinery/equipment in Connecticut, removing previous employee-based restrictions. The bill requires equipment to be used in the facility for at least five years, and corporations must repay the full credit amount if this minimum use period is not met. This creates a simpler credit structure with a mandatory five-year usage requirement and repayment obligation for non-compliance.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates 50% tax credit for corporate equipment purchases, directly providing tax relief under state tax policy while modifying existing credit structure.95% confidence

Sub-Topics Business Taxes Tax Credits

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