Budget & Taxes (Tax Incentives)

HB 5064 creates a $5,000 annual tax credit for farmers who donate food to charitable organizations, adjusted each year based on inflation using the consumer price index. This credit directly benefits farmers by reducing their state tax liability for food donations and supports charitable organizations receiving surplus food. The bill establishes a concrete financial incentive to encourage food donations, aiming to reduce waste while aiding food-insecure communities. It does not change existing food donation laws but provides a new tax benefit for qualifying donations.

HB 5070 reestablishes the Job Expansion Tax Credit Program by amending section 12-217pp of the general statutes. The program provides tax credits to businesses that expand their workforce, reducing their state tax liability for qualifying job growth. This bill directly affects eligible businesses by restoring a tax credit opportunity previously established under the program. The legislation focuses on concrete policy restoration without specifying eligibility details or credit amounts.

SB 2 exempts small businesses (with less than $10 million in annual revenue) from sales and use taxes on electricity and natural gas purchases. It redirects revenue from an additional 1% sales tax on meals: 50% to the state Tourism Fund and 50% to the municipalities where the meals were purchased. The bill aims to lower operating costs for small commercial and industrial businesses, which could reduce prices passed on to consumers. These changes directly affect small businesses and local governments through tax adjustments and new revenue allocation.

HB 5067 creates a personal income tax deduction for taxpayers with unreimbursed medical expenses exceeding 7.5% of their adjusted gross income. It directly affects individual taxpayers who pay out-of-pocket medical costs not covered by insurance, such as doctor visits, prescriptions, or hospital stays. The bill's key provision allows these taxpayers to subtract the amount of qualifying medical expenses above the 7.5% threshold from their taxable income. This change lowers the taxable income subject to state tax rates, potentially reducing the overall tax liability for eligible filers. The deduction applies only to expenses not reimbursed by insurance or other sources.

SB 66 would create a temporary tax deduction for workers who declare tips or gratuities on their income tax returns. It allows a deduction of up to $25,000 per year for tips earned during 2026-2028, reducing taxable income for affected workers. The deduction phases out for single filers with incomes over $150,000 and married couples filing jointly over $300,000. This policy directly impacts service industry workers who report tip income, lowering their tax burden for the specified period.