Budget & Taxes (Business Taxes)

in committee · Connecticut · Senate Feb 17, 2026

SB 207: AN ACT EXEMPTING OVERTIME INCOME FROM THE PERSONAL INCOME TAX.

SB 207 would exempt overtime pay from personal income tax, directly affecting employees who earn overtime wages. The bill amends tax law to remove the amount earned through overtime work from taxable income calculations. This means workers would pay no state income tax on earnings from hours worked beyond their regular schedule. The policy change simplifies tax treatment for overtime income without altering the tax rate for regular wages.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts overtime pay from state income tax, providing direct tax relief for workers earning overtime wages.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts overtime pay from state income tax, increasing workers' take-home pay for overtime hours without changing wage rates or benefits.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax Labor Standards

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in committee · Connecticut · House Feb 4, 2026

HB 5020: AN ACT CONCERNING THE SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE.

HB 5020 eliminates a 1% additional sales and use tax on meals sold by restaurants, caterers, and grocery stores. The bill amends tax code to remove this specific tax rate, directly affecting businesses that sell prepared food. Key provision: the tax change applies to all meals sold by these establishments, regardless of whether they're dine-in, takeout, or delivered. This policy change simplifies the tax structure for these businesses without altering other tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates 1% sales tax on meals, providing business tax relief and simplifying tax structure without altering other rates.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Connecticut · Senate Feb 4, 2026

SB 44: AN ACT CONCERNING THE QUALIFYING INCOME THRESHOLDS FOR THE SOCIAL SECURITY BENEFITS DEDUCTION FROM THE PERSONAL INCOME TAX.

SB 44 increases the income thresholds for taxpayers to claim the full deduction of Social Security benefits from their state personal income tax. Specifically, it raises the limit to under $100,000 for unmarried individuals and those filing separately, and under $150,000 for heads of households and married couples filing jointly. This change directly affects state taxpayers who receive Social Security benefits and file income tax returns. The bill modifies the existing deduction rules by expanding the income range where the full benefit is applied, without altering the deduction amount itself. It does not change the tax rate or eligibility for the deduction, only the income level at which the full deduction applies.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases income thresholds for Social Security benefits tax deduction, providing tax relief to middle-income taxpayers filing under the new limits.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Connecticut · House Feb 4, 2026

HB 5024: AN ACT CONCERNING THE SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE.

HB 5024 eliminates a 1% sales tax on meals sold by restaurants, caterers, and grocery stores in Connecticut. The bill amends state law to remove this additional tax from the standard sales tax rate applied to qualifying food purchases. This change directly affects businesses operating as eating establishments, caterers, or grocery stores that sell prepared meals. The legislation aims to reduce the tax burden on these specific food service providers by removing the separate 1% surcharge. The bill is currently under review by the Finance, Revenue and Bonding Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates 1% sales tax on meals, providing tax relief to restaurants, caterers, and grocery stores.90% confidence

Sub-Topics Business Taxes Fees & Licensing Sales Tax

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signed · Connecticut · Senate May 26, 2026

SB 1: AN ACT MAKING ADJUSTMENTS TO THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2027, MAKING DEFICIENCY APPROPRIATIONS FOR THE FISCAL YEAR ENDING JUNE 30, 2026, AUTHORIZING AND ADJUSTING BONDS OF THE STATE AND CONCERNING PROVISIONS RELATING TO REVENUE, SCHOOL CONSTRUCTION AND OTHER ITEMS TO IMPLEMENT THE STATE BUDGET.

This bill removes sales tax on clothing under $100, school supplies, and appliances, and eliminates a 1% tax on meals sold by grocery stores. It creates new tax credits for homeowners (increasing the existing credit), caregivers of elderly or disabled family members, and renters earning $75,000 or less for primary residence costs. These changes directly lower tax burdens for Connecticut residents, particularly lower- and middle-income households. The bill modifies sales tax rules and expands income tax credits to improve affordability.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves sales tax on essentials and adds credits for lower/middle-income households, reducing tax burden per bill summary.95% confidence ✓ EducationSupports EducationRemoves sales tax on school supplies, directly reducing costs for families and supporting educational access for students.85% confidence ✓ HousingSupports HousingBill creates tax credits for renters earning $75k or less for primary residence costs, directly reducing housing costs and advancing affordability for lower-income households.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits Property Taxes

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 · House Feb 10, 2026

HB 5116: AN ACT REDUCING THE RATE OF THE SALES AND USE TAXES.

HB 5116 would reduce the state's sales and use tax rate from its current level to 6% by amending Chapter 219 of the general statutes. This change would directly affect all consumers purchasing taxable goods and services, as well as businesses collecting and remitting these taxes. The bill's key provision is the specific rate reduction to 6%, replacing the existing tax rate in the law. This is a straightforward policy change to lower the tax burden for everyday transactions.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces sales tax rate from current level to 6%, providing direct tax relief to consumers and businesses per bill summary.95% confidence

Sub-Topics Business Taxes Procurement Sales Tax

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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 · House Feb 9, 2026

HB 5095: AN ACT EXEMPTING PET GROOMING SERVICES FROM THE SALES AND USE TAXES.

HB 5095 would remove sales tax from pet grooming services, directly affecting pet groomers and pet owners who pay for these services. The bill amends the state tax code (chapter 219) to exempt pet grooming as a taxable service, meaning businesses would no longer collect sales tax on this specific service. This change would lower costs for customers seeking pet grooming and simplify tax compliance for service providers. The bill focuses solely on the tax treatment of pet grooming, with no other policy changes or broader implications outlined.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts pet grooming from sales tax, providing direct tax relief to consumers and simplifying compliance for businesses, aligning with tax relief indicators for middle-income services.90% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Connecticut · Senate Feb 10, 2026

SB 106: AN ACT EXEMPTING DOG GROOMING SERVICES FROM THE SALES AND USE TAXES.

SB 106 would remove the sales and use tax from dog grooming services in the state. This change directly affects dog groomers (who would pay less tax on their services) and pet owners (who would pay less for grooming). The bill achieves this by amending the state tax code to specifically exempt dog grooming services from the standard sales tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts dog grooming services from sales tax, providing direct tax relief per bill's explicit language.90% confidence

Sub-Topics Business Taxes Sales Tax

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