Budget & Taxes (Business Taxes)

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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in committee · Connecticut · House Feb 11, 2026

HB 5192: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

HB 5192 would create a new personal income tax deduction for workers who declare tips or gratuities to the IRS. Specifically, it adds a deduction for the full amount of tips reported by taxpayers in their annual tax filings. This directly affects service industry workers (like servers, bartenders, and hair stylists) who receive tips as part of their income. The policy change would reduce taxable income for these workers by the amount of their declared tips, lowering their overall tax bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for service workers' tips, reducing taxable income and lowering tax burden for middle/lower income earners in the service industry.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for declared tips, reducing taxable income and lowering tax burden for service workers, directly increasing their take-home pay.95% confidence

Sub-Topics Business Taxes Income Tax Minimum Wage

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in committee · Connecticut · House Feb 10, 2026

HB 5139: AN ACT ESTABLISHING AN ESTATE TAX RECAPTURE FOR CERTAIN ESTATES AND AN ALTERNATIVE MINIMUM ESTATE TAX.

HB 5139 establishes two key estate tax provisions: (1) an estate tax recapture for estates exceeding $15 million in value, requiring additional tax payment if the effective rate falls below 2%, and (2) an alternative minimum estate tax to ensure the effective tax rate never drops below 2%. This bill directly affects high-value estates (over $15 million) by preventing tax avoidance through low effective rates. The recapture mechanism targets estates that would otherwise pay minimal tax relative to their value, while the alternative minimum tax sets a floor on the tax rate. These provisions aim to maintain revenue from large estates under the state's tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole for high-value estates by mandating minimum 2% effective tax rate, ensuring fiscal responsibility and preventing tax avoidance.95% confidence

Sub-Topics Business Taxes State Budget

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in committee · Connecticut · House Feb 9, 2026

HB 5089: AN ACT EXEMPTING OVERTIME WAGES, TIPS OR GRATUITIES AND SOCIAL SECURITY BENEFITS FROM THE PERSONAL INCOME TAX.

HB 5089 would exempt overtime wages, tips or gratuities, and Social Security benefits from the state's personal income tax. This directly affects workers who earn overtime pay, receive tips (like in restaurants), or rely on Social Security benefits as part of their income. The bill's key mechanism is amending tax law to remove these specific income sources from taxable personal income. It does not change tax rates for other income types, focusing solely on these exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts overtime, tips, and Social Security from state income tax, providing direct tax relief to lower/middle-income earners and retirees.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts overtime, tips, and Social Security from state tax, increasing net income for affected workers without altering wage structures or benefits.85% confidence

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

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in committee · Connecticut · House Feb 20, 2026

HB 5060: AN ACT CONCERNING THE APPRENTICESHIP TRAINING TAX CREDIT.

HB 5060 increases the maximum business tax credit for wages paid to apprentices in the construction trades from $4,000 to $7,500 per apprentice. This directly affects construction companies that hire apprentices, providing them with greater financial incentive to train new workers. The key provision raises the per-apprentice credit limit in the existing tax credit program. The change simplifies the policy by increasing the cap without altering eligibility rules or creating new requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases business tax credit for apprenticeship training, providing direct tax relief to construction companies under fiscal policy.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentIncreases tax credit for apprenticeship training, directly funding workforce development in construction trades and incentivizing employer-sponsored worker training.95% confidence

Sub-Topics Business Taxes Tax Credits Apprenticeships

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in committee · Connecticut · Senate Feb 4, 2026

SB 75: AN ACT ESTABLISHING A CAREGIVER TAX CREDIT AGAINST THE PERSONAL INCOME TAX.

SB 75 establishes a $500 tax credit against personal income tax for taxpayers who pay for the care of a family member aged 50+ receiving Social Security disability benefits or aged 60+ (with income limits of $200,000 for single filers and $400,000 for married couples filing jointly). The credit directly affects caregivers supporting eligible relatives while meeting federal income thresholds. Key provisions include the fixed credit amount, specific eligibility criteria for the care recipient, and the income limits for qualifying taxpayers. This bill creates a direct tax reduction for qualifying caregivers, with no additional mechanisms or funding details specified.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $500 tax credit for caregivers supporting eligible relatives, reducing tax burden for middle-income families within defined income limits.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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in committee · Connecticut · Senate Mar 23, 2026

SB 245: AN ACT ELIMINATING CERTAIN TAX INCENTIVES FOR DATA CENTERS.

SB 245 eliminates tax exemptions for new data center projects in the state by ending eligibility for tax breaks under Chapters 203 and 219 of the law. It directly affects data center owners, operators, or colocation tenants planning to establish new facilities after July 1, 2026. The bill repeals a provision allowing applications for tax exemptions, making such applications ineligible after the effective date. Existing agreements remain unaffected, as the change only prohibits new applications starting July 1, 2026. This is a procedural tax code adjustment with no new funding or programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loophole for data centers by eliminating exemptions, aligning with fiscal responsibility and closing tax breaks per indicators.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Connecticut · Senate Feb 4, 2026

SB 68: AN ACT RESTORING THE RATE OF THE CREDIT AGAINST THE AFFECTED BUSINESS ENTITY TAX.

SB 68 restores a 93.01% tax credit against the "affected business entity tax" by amending Chapter 228z of the general statutes. This bill directly affects businesses subject to the affected business entity tax by increasing the credit they can claim against their tax liability. The key provision changes the credit rate back to 93.01%, reversing a prior reduction. This is a straightforward policy adjustment to the tax code with no additional requirements or new programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores 93.01% tax credit for businesses, reducing tax liability and providing direct tax relief under Budget & Taxes policy.95% confidence

Sub-Topics Business Taxes Tax Credits

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in committee · Connecticut · Senate Feb 4, 2026

SB 39: AN ACT REQUIRING THE INDEXING OF INCOME THRESHOLDS FOR THE PERSONAL INCOME TAX.

SB 39 requires that the income thresholds for the state's personal income tax be automatically adjusted each year based on changes in the consumer price index (CPI). This means tax brackets will rise with inflation, preventing taxpayers from moving into higher tax brackets simply because their income hasn't kept pace with rising costs. The bill directly affects all individuals and households subject to the state's personal income tax by ensuring their tax liability doesn't increase due to inflation alone. The key mechanism is linking threshold adjustments directly to the CPI, creating a permanent, automatic update process without requiring new legislation each year.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents inflation-driven tax hikes for middle/lower income by indexing thresholds to CPI, providing tax relief per bill summary.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Connecticut · House Feb 4, 2026

HB 5008: AN ACT ESTABLISHING A SMALL BUSINESS TAX CREDIT.

HB 5008 establishes a $2,080 tax credit per full-time equivalent employee for small businesses meeting the U.S. Small Business Administration's definition (typically businesses with fewer than 500 employees). This credit would directly reduce the state tax liability for qualifying small businesses, providing a concrete financial incentive tied to employee count. The bill amends state tax law to implement this credit, which applies to businesses that meet federal SBA criteria. This policy change specifically targets small business employment costs without altering broader tax structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit reducing liability for small businesses, providing direct tax relief per SBA criteria.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Economic Development Small Business

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