Budget & Taxes (Income Tax)

in committee · Connecticut · Senate Feb 4, 2026

SB 73: AN ACT ESTABLISHING A NONREFUNDABLE PERSONAL INCOME TAX CREDIT FOR THE PURCHASE OF A GUN SAFE.

This bill establishes a nonrefundable personal income tax credit of up to $150 for individuals who purchase a gun safe for personal use. The credit reduces the amount of state income tax owed but cannot result in a refund if the credit exceeds the tax liability. It directly affects individual taxpayers who buy gun safes, providing a tax benefit for this specific purchase. The policy change creates a new tax incentive without altering firearm regulations or safety standards.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit (reducing tax liability) for gun safe purchases, providing direct tax relief under state tax policy.95% confidence

Sub-Topics Income Tax Sales Tax Tax Credits

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in committee · Connecticut · House Feb 11, 2026

HB 5186: AN ACT CONCERNING THE AFFECTED BUSINESS ENTITY TAX AND THE CREDIT RELATED THERETO AND ESTABLISHING A SURCHARGE ON THE AMOUNT OF FEDERAL QUALIFIED BUSINESS INCOME DEDUCTIONS CLAIMED BY CERTAIN FILERS.

HB 5186 adjusts Connecticut's affected business entity tax and related credits for businesses claiming federal qualified business income deductions. It adds a 1% surcharge on the business entity tax and a 10% surcharge on federal deductions claimed by filers in the highest tax bracket. The bill also modifies tax credits: reducing the credit to 83.6% for high-bracket filers while increasing it to 93.01% for lower-bracket filers. These changes directly impact businesses using federal pass-through income deductions, particularly those in Connecticut's top tax rate category.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes surcharges on high-bracket filers' federal deductions while increasing credits for lower-bracket entities, promoting progressive tax fairness and closing loopholes for wealthy businesses.90% confidence

Sub-Topics Business Taxes Fees & Licensing Income Tax

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in committee · Connecticut · House Apr 15, 2026

HB 5304: AN ACT CONCERNING LONG-TERM CARE INSURANCE PREMIUM RATES.

This bill (HB 5304) is mislabeled in its title; it does not address long-term care insurance premiums. Instead, it amends Connecticut’s income tax code by repealing and replacing a specific subsection (12-701(a)(20)(B)) that details allowable adjustments to gross income for tax calculation. The key provision adds detailed deductions for items like Social Security benefits (based on income thresholds), state bond interest, and certain federal tax refunds. It directly affects Connecticut taxpayers who itemize deductions under state law, particularly those with income subject to federal tax exemptions. The changes apply to taxable years starting January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdds tax deductions for Social Security benefits, state bond interest, and federal tax refunds, providing relief to taxpayers. Directly amends income tax code.85% confidence

Sub-Topics Income Tax

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in committee · Connecticut · House Feb 4, 2026

HB 5009: AN ACT INCREASING AND EXPANDING THE PROPERTY TAX CREDIT AGAINST THE PERSONAL INCOME TAX FOR A PRIMARY RESIDENCE OR MOTOR VEHICLE.

HB 5009 increases Connecticut's property tax credit for primary residences and motor vehicles by raising the maximum credit from $300 to $1,000 annually. It expands eligibility by increasing the income thresholds taxpayers must meet to qualify for the credit, as outlined in Section 12-704c of state law. This bill directly affects Connecticut homeowners and vehicle owners who pay property tax on their primary residence or vehicle and meet the updated income requirements. The key change simplifies access to the credit for more residents by lowering the income barrier while significantly boosting the maximum benefit amount.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases property tax credit from $300 to $1,000 and expands eligibility, providing direct tax relief to homeowners and vehicle owners meeting income thresholds, aligning with tax relief indicators.90% confidence

Sub-Topics Income Tax Property Tax Tax Credits

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in committee · Connecticut · Senate Feb 4, 2026

SB 69: AN ACT ELIMINATING THE EARNED INCOME TAX CREDIT.

SB 69 would eliminate Connecticut's Earned Income Tax Credit (EITC) by repealing the statute (section 12-704e) that created the program. This change would directly affect low-to-moderate income working individuals and families, particularly those with children, who currently qualify for the credit. The bill's key mechanism is the simple repeal of the existing law, removing the eligibility and calculation rules for the credit. As a result, qualifying residents would no longer receive this refundable tax credit, reducing their annual tax refund or increasing their tax liability. The bill does not create new provisions but removes the current program.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates EITC, a refundable tax credit for low-income working families, directly reducing financial support for this group.95% confidence ✗ Labor & EmploymentOpposes Labor & EmploymentEliminates EITC, a refundable tax credit for low-income workers, reducing financial support for qualifying families. Directly weakens worker benefits.95% confidence

Sub-Topics Income Tax Tax Credits

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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 Feb 4, 2026

HB 5017: AN ACT CONCERNING THE PROPERTY TAX CREDIT AGAINST THE PERSONAL INCOME TAX FOR A PRIMARY RESIDENCE OR MOTOR VEHICLE.

HB 5017 would double Connecticut's property tax credit for primary residences and motor vehicles, making the credit twice as large for eligible residents. It directly affects Connecticut taxpayers who own a primary home or vehicle and pay property taxes. The bill amends Section 12-704c of the tax code to double both the maximum credit amount and the income limits determining eligibility. This change would take effect under current law without creating new programs or altering tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesDoubles property tax credit for homeowners/vehicle owners, reducing income tax burden. Direct tax relief aligns with middle-income support indicators in Budget & Taxes policy.95% confidence

Sub-Topics Income Tax Property Tax Tax Credits

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in committee · Connecticut · House Feb 4, 2026

HB 5012: AN ACT ELIMINATING THE QUALIFYING INCOME THRESHOLDS FOR THE PERSONAL INCOME TAX DEDUCTIONS FOR SOCIAL SECURITY BENEFITS.

HB 5012 eliminates income limits that previously restricted who could deduct Social Security benefits from their state personal income tax. It directly affects residents receiving Social Security benefits who file state tax returns, removing the requirement that their income must fall below a certain threshold to qualify for this deduction. The bill amends Section 12-701 of the general statutes to remove these qualifying income thresholds entirely. This change means more Social Security recipients will automatically qualify for the tax deduction regardless of their income level.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates income thresholds for Social Security tax deductions, providing tax relief to beneficiaries (often lower/middle income retirees).95% confidence

Sub-Topics Income Tax

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in committee · Connecticut · House Apr 16, 2026

HB 5115: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for fraud victims, reducing state tax revenue through relief for affected residents, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax

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in committee · Connecticut · House Feb 6, 2026

HB 5057: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

HB 5057 would allow workers who report tips to their employers to deduct the full amount of those declared tips from their taxable income when filing personal income taxes. This directly affects service industry workers, such as servers and bartenders, who receive tips as part of their earnings. The bill amends tax code to create a specific deduction for "tips or gratuities declared by a taxpayer," reducing the income subject to tax. It applies only to tips already reported to employers, not unreported tips, and does not change how tips are taxed at the employer level.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax deduction for reported tips, reducing taxable income for service workers. Direct tax relief for lower-income earners in service industry, aligning with tax relief indicators.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAllows service workers to deduct reported tips from taxable income, reducing tax burden and increasing net earnings for tip-dependent workers.90% confidence

Sub-Topics Income Tax Labor Standards Minimum Wage

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