Connecticut House Bill HB06092

Connecticut 2013 Regular Session

• Introduced: 1/25/13
• Refer: 1/25/13

Caption

An Act Concerning The Deductibility Of Premiums Paid On Out-of-state Bonds.

Impact

The passage of HB 06092 could significantly impact how individuals invest in out-of-state municipal bonds. By allowing all taxpayers the opportunity to deduct premiums, it could encourage more people to invest in these bonds. This change may lead to an increase in the attractiveness of such investments, potentially benefiting capital flow into state projects funded by these bonds. Additionally, it could create a more equitable tax environment for taxpayers who are currently unable to take advantage of this deduction due to their trading status.

Summary

House Bill 06092 proposes to amend the tax regulations concerning the deductibility of premiums paid on out-of-state municipal bonds in Connecticut. Currently, the law allows only those who engage in bond trading as a business to deduct these premiums against their Connecticut adjusted gross income. This bill seeks to broaden the eligibility to include all taxpayers, thereby making it easier for individuals who invest in municipal bonds to benefit from this tax deduction.

Contention

One notable point of contention surrounding this bill might come from concerns about its financial implications for state tax revenues. While proponents of the bill argue that expanding the deductibility will stimulate investment, opponents may raise concerns that the loss of tax revenue could impact state budgets and funding for public services. These discussions often highlight the need to balance incentives for investment with fiscal responsibility.