Connecticut 2019 Regular Session

Connecticut House Bill HB07071 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	5		General Assembly Raised Bill No. 7071
8	6		January Session, 2019
9	7		LCO No. 3666
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12	10		Referred to Committee on AGING
13	11
14	12
15	13		Introduced by:
16	14		(AGE)
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19	18
20	19		AN ACT PROVIDING AN INCOME TAX DEDUCTION FOR
21	20		INDIVIDUALS CARING FOR ELDERLY PERSONS, CHILDREN OR
22	21		DISABLED PERSONS.
23	22		Be it enacted by the Senate and House of Representatives in General
24	23		Assembly convened:
25	24
26	25		Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
27	26		section 12-701 of the general statutes is repealed and the following is 2
28	27		substituted in lieu thereof (Effective from passage and applicable to taxable 3
29	28		years commencing on or after January 1, 2019): 4
30	29		(B) There shall be subtracted therefrom: 5
31	30		(i) To the extent properly includable in gross income for federal 6
32	31		income tax purposes, any income with respect to which taxation by 7
33	32		any state is prohibited by federal law; 8
34	33		(ii) To the extent allowable under section 12-718, exempt dividends 9
35	34		paid by a regulated investment company; 10
36	35		(iii) To the extent properly includable in gross income for federal 11
37		-	income tax purposes, the amount of any refund or credit for 12
38		-	overpayment of income taxes imposed by this state, or any other state 13 Raised Bill No. 7071
	36	+	income tax purposes, the amount of any refund or credit for 12 Raised Bill No. 7071
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	41	+
	42	+	overpayment of income taxes imposed by this state, or any other state 13
45	43		of the United States or a political subdivision thereof, or the District of 14
46	44		Columbia; 15
47	45		(iv) To the extent properly includable in gross income for federal 16
48	46		income tax purposes and not otherwise subtracted from federal 17
49	47		adjusted gross income pursuant to clause (x) of this subparagraph in 18
50	48		computing Connecticut adjusted gross income, any tier 1 railroad 19
51	49		retirement benefits; 20
52	50		(v) To the extent any additional allowance for depreciation under 21
53	51		Section 168(k) of the Internal Revenue Code for property placed in 22
54	52		service after September 27, 2017, was added to federal adjusted gross 23
55	53		income pursuant to subparagraph (A)(ix) of this subdivision in 24
56	54		computing Connecticut adjusted gross income, twenty-five per cent of 25
57	55		such additional allowance for depreciation in each of the four 26
58	56		succeeding taxable years; 27
59	57		(vi) To the extent properly includable in gross income for federal 28
60	58		income tax purposes, any interest income from obligations issued by or 29
61	59		on behalf of the state of Connecticut, any political subdivision thereof, 30
62	60		or public instrumentality, state or local authority, district or similar 31
63	61		public entity created under the laws of the state of Connecticut; 32
64	62		(vii) To the extent properly includable in determining the net gain 33
65	63		or loss from the sale or other disposition of capital assets for federal 34
66	64		income tax purposes, any gain from the sale or exchange of obligations 35
67	65		issued by or on behalf of the state of Connecticut, any political 36
68	66		subdivision thereof, or public instrumentality, state or local authority, 37
69	67		district or similar public entity created under the laws of the state of 38
70	68		Connecticut, in the income year such gain was recognized; 39
71	69		(viii) Any interest on indebtedness incurred or continued to 40
72	70		purchase or carry obligations or securities the interest on which is 41
73	71		subject to tax under this chapter but exempt from federal income tax, 42
74	72		to the extent that such interest on indebtedness is not deductible in 43
75	73		determining federal adjusted gross income and is attributable to a 44 Raised Bill No. 7071
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81	78
82	79		trade or business carried on by such individual; 45
83	80		(ix) Ordinary and necessary expenses paid or incurred during the 46
84	81		taxable year for the production or collection of income which is subject 47
85	82		to taxation under this chapter but exempt from federal income tax, or 48
86	83		the management, conservation or maintenance of property held for the 49
87	84		production of such income, and the amortizable bond premium for the 50
88	85		taxable year on any bond the interest on which is subject to tax under 51
89	86		this chapter but exempt from federal income tax, to the extent that 52
90	87		such expenses and premiums are not deductible in determining federal 53
91	88		adjusted gross income and are attributable to a trade or business 54
92	89		carried on by such individual; 55
93	90		(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
94	91		person who files a return under the federal income tax as an 57
95	92		unmarried individual whose federal adjusted gross income for such 58
96	93		taxable year is less than fifty thousand dollars, or as a married 59
97	94		individual filing separately whose federal adjusted gross income for 60
98	95		such taxable year is less than fifty thousand dollars, or for a husband 61
99	96		and wife who file a return under the federal income tax as married 62
100	97		individuals filing jointly whose federal adjusted gross income for such 63
101	98		taxable year is less than sixty thousand dollars or a person who files a 64
102	99		return under the federal income tax as a head of household whose 65
103	100		federal adjusted gross income for such taxable year is less than sixty 66
104	101		thousand dollars, an amount equal to the Social Security benefits 67
105	102		includable for federal income tax purposes; 68
106	103		(II) For taxable years commencing prior to January 1, 2019, for a 69
107	104		person who files a return under the federal income tax as an 70
108	105		unmarried individual whose federal adjusted gross income for such 71
109	106		taxable year is fifty thousand dollars or more, or as a married 72
110	107		individual filing separately whose federal adjusted gross income for 73
111	108		such taxable year is fifty thousand dollars or more, or for a husband 74
112	109		and wife who file a return under the federal income tax as married 75
113	110		individuals filing jointly whose federal adjusted gross income from 76
114	111		such taxable year is sixty thousand dollars or more or for a person who 77 Raised Bill No. 7071
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121	117		files a return under the federal income tax as a head of household 78
122	118		whose federal adjusted gross income for such taxable year is sixty 79
123	119		thousand dollars or more, an amount equal to the difference between 80
124	120		the amount of Social Security benefits includable for federal income tax 81
125	121		purposes and the lesser of twenty-five per cent of the Social Security 82
126	122		benefits received during the taxable year, or twenty-five per cent of the 83
127	123		excess described in Section 86(b)(1) of the Internal Revenue Code; 84
128	124		(III) For the taxable year commencing January 1, 2019, and each 85
129	125		taxable year thereafter, for a person who files a return under the 86
130	126		federal income tax as an unmarried individual whose federal adjusted 87
131	127		gross income for such taxable year is less than seventy-five thousand 88
132	128		dollars, or as a married individual filing separately whose federal 89
133	129		adjusted gross income for such taxable year is less than seventy-five 90
134	130		thousand dollars, or for a husband and wife who file a return under 91
135	131		the federal income tax as married individuals filing jointly whose 92
136	132		federal adjusted gross income for such taxable year is less than one 93
137	133		hundred thousand dollars or a person who files a return under the 94
138	134		federal income tax as a head of household whose federal adjusted 95
139	135		gross income for such taxable year is less than one hundred thousand 96
140	136		dollars, an amount equal to the Social Security benefits includable for 97
141	137		federal income tax purposes; and 98
142	138		(IV) For the taxable year commencing January 1, 2019, and each 99
143	139		taxable year thereafter, for a person who files a return under the 100
144	140		federal income tax as an unmarried individual whose federal adjusted 101
145	141		gross income for such taxable year is seventy-five thousand dollars or 102
146	142		more, or as a married individual filing separately whose federal 103
147	143		adjusted gross income for such taxable year is seventy-five thousand 104
148	144		dollars or more, or for a husband and wife who file a return under the 105
149	145		federal income tax as married individuals filing jointly whose federal 106
150	146		adjusted gross income from such taxable year is one hundred 107
151	147		thousand dollars or more or for a person who files a return under the 108
152	148		federal income tax as a head of household whose federal adjusted 109
153		-	gross income for such taxable year is one hundred thousand dollars or 110 Raised Bill No. 7071
	149	+	gross income for such taxable year is one hundred thousand dollars or 110
	150	+	more, an amount equal to the difference between the amount of Social 111 Raised Bill No. 7071
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160		-	more, an amount equal to the difference between the amount of Social 111
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161	156		Security benefits includable for federal income tax purposes and the 112
162	157		lesser of twenty-five per cent of the Social Security benefits received 113
163	158		during the taxable year, or twenty-five per cent of the excess described 114
164	159		in Section 86(b)(1) of the Internal Revenue Code; 115
165	160		(xi) To the extent properly includable in gross income for federal 116
166	161		income tax purposes, any amount rebated to a taxpayer pursuant to 117
167	162		section 12-746; 118
168	163		(xii) To the extent properly includable in the gross income for 119
169	164		federal income tax purposes of a designated beneficiary, any 120
170	165		distribution to such beneficiary from any qualified state tuition 121
171	166		program, as defined in Section 529(b) of the Internal Revenue Code, 122
172	167		established and maintained by this state or any official, agency or 123
173	168		instrumentality of the state; 124
174	169		(xiii) To the extent allowable under section 12-701a, contributions to 125
175	170		accounts established pursuant to any qualified state tuition program, 126
176	171		as defined in Section 529(b) of the Internal Revenue Code, established 127
177	172		and maintained by this state or any official, agency or instrumentality 128
178	173		of the state; 129
179	174		(xiv) To the extent properly includable in gross income for federal 130
180	175		income tax purposes, the amount of any Holocaust victims' settlement 131
181	176		payment received in the taxable year by a Holocaust victim; 132
182	177		(xv) To the extent properly includable in gross income for federal 133
183	178		income tax purposes of an account holder, as defined in section 31-134
184	179		51ww, interest earned on funds deposited in the individual 135
185	180		development account, as defined in section 31-51ww, of such account 136
186	181		holder; 137
187	182		(xvi) To the extent properly includable in the gross income for 138
188	183		federal income tax purposes of a designated beneficiary, as defined in 139
189	184		section 3-123aa, interest, dividends or capital gains earned on 140
190		-	contributions to accounts established for the designated beneficiary 141 Raised Bill No. 7071
	185	+	contributions to accounts established for the designated beneficiary 141
	186	+	pursuant to the Connecticut Homecare Option Program for the Elderly 142 Raised Bill No. 7071
191	187
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197		-	pursuant to the Connecticut Homecare Option Program for the Elderly 142
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198	192		established by sections 3-123aa to 3-123ff, inclusive; 143
199	193		(xvii) To the extent properly includable in gross income for federal 144
200	194		income tax purposes, any income received from the United States 145
201	195		government as retirement pay for a retired member of (I) the Armed 146
202	196		Forces of the United States, as defined in Section 101 of Title 10 of the 147
203	197		United States Code, or (II) the National Guard, as defined in Section 148
204	198		101 of Title 10 of the United States Code; 149
205	199		(xviii) To the extent properly includable in gross income for federal 150
206	200		income tax purposes for the taxable year, any income from the 151
207	201		discharge of indebtedness in connection with any reacquisition, after 152
208	202		December 31, 2008, and before January 1, 2011, of an applicable debt 153
209	203		instrument or instruments, as those terms are defined in Section 108 of 154
210	204		the Internal Revenue Code, as amended by Section 1231 of the 155
211	205		American Recovery and Reinvestment Act of 2009, to the extent any 156
212	206		such income was added to federal adjusted gross income pursuant to 157
213	207		subparagraph (A)(xi) of this subdivision in computing Connecticut 158
214	208		adjusted gross income for a preceding taxable year; 159
215	209		(xix) To the extent not deductible in determining federal adjusted 160
216	210		gross income, the amount of any contribution to a manufacturing 161
217	211		reinvestment account established pursuant to section 32-9zz in the 162
218	212		taxable year that such contribution is made; 163
219	213		(xx) To the extent properly includable in gross income for federal 164
220	214		income tax purposes, (I) for the taxable year commencing January 1, 165
221	215		2015, ten per cent of the income received from the state teachers' 166
222	216		retirement system, (II) for the taxable years commencing January 1, 167
223	217		2016, January 1, 2017, and January 1, 2018, twenty-five per cent of the 168
224	218		income received from the state teachers' retirement system, and (III) 169
225	219		for the taxable year commencing January 1, 2019, and each taxable year 170
226	220		thereafter, fifty per cent of the income received from the state teachers' 171
227	221		retirement system or the percentage, if applicable, pursuant to clause 172
228		-	(xxi) of this subparagraph; 173 Raised Bill No. 7071
	222	+	(xxi) of this subparagraph; 173
	223	+	(xxi) To the extent properly includable in gross income for federal 174 Raised Bill No. 7071
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235		-	(xxi) To the extent properly includable in gross income for federal 174
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	228	+
236	229		income tax purposes, except for retirement benefits under clause (iv) of 175
237	230		this subparagraph and retirement pay under clause (xvii) of this 176
238	231		subparagraph, for a person who files a return under the federal income 177
239	232		tax as an unmarried individual whose federal adjusted gross income 178
240	233		for such taxable year is less than seventy-five thousand dollars, or as a 179
241	234		married individual filing separately whose federal adjusted gross 180
242	235		income for such taxable year is less than seventy-five thousand dollars, 181
243	236		or as a head of household whose federal adjusted gross income for 182
244	237		such taxable year is less than seventy-five thousand dollars, or for a 183
245	238		husband and wife who file a return under the federal income tax as 184
246	239		married individuals filing jointly whose federal adjusted gross income 185
247	240		for such taxable year is less than one hundred thousand dollars, (I) for 186
248	241		the taxable year commencing January 1, 2019, fourteen per cent of any 187
249	242		pension or annuity income, (II) for the taxable year commencing 188
250	243		January 1, 2020, twenty-eight per cent of any pension or annuity 189
251	244		income, (III) for the taxable year commencing January 1, 2021, forty-190
252	245		two per cent of any pension or annuity income, (IV) for the taxable 191
253	246		year commencing January 1, 2022, fifty-six per cent of any pension or 192
254	247		annuity income, (V) for the taxable year commencing January 1, 2023, 193
255	248		seventy per cent of any pension or annuity income, (VI) for the taxable 194
256	249		year commencing January 1, 2024, eighty-four per cent of any pension 195
257	250		or annuity income, and (VII) for the taxable year commencing January 196
258	251		1, 2025, and each taxable year thereafter, any pension or annuity 197
259	252		income; 198
260	253		(xxii) The amount of lost wages and medical, travel and housing 199
261	254		expenses, not to exceed ten thousand dollars in the aggregate, incurred 200
262	255		by a taxpayer during the taxable year in connection with the donation 201
263	256		to another person of an organ for organ transplantation occurring on 202
264	257		or after January 1, 2017; 203
265	258		(xxiii) To the extent properly includable in gross income for federal 204
266	259		income tax purposes, the amount of any financial assistance received 205
267		-	from the Crumbling Foundations Assistance Fund or paid to or on 206 Raised Bill No. 7071
	260	+	from the Crumbling Foundations Assistance Fund or paid to or on 206
	261	+	behalf of the owner of a residential building pursuant to sections 8-442 207
	262	+	and 8-443; [, and] 208 Raised Bill No. 7071
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274		-	~~behalf~~ of ~~the owner of a residential building pursuant to sections 8-442 207~~
275		-	~~and 8-443; [, and] 208~~
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	267	+
276	268		(xxiv) To the extent properly includable in gross income for federal 209
277	269		income tax purposes, the amount calculated pursuant to subsection (b) 210
278	270		of section 12-704g for income received by a general partner of a 211
279	271		venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 212
280	272		from time to time; [and] 213
281	273		(xxv) To the extent any portion of a deduction under Section 179 of 214
282	274		the Internal Revenue Code was added to federal adjusted gross income 215
283	275		pursuant to subparagraph (A)(xiv) of this subdivision in computing 216
284	276		Connecticut adjusted gross income, twenty-five per cent of such 217
285	277		disallowed portion of the deduction in each of the four succeeding 218
286	278		taxable years; [.] 219
287	279		(xxvi) To the extent not deductible in determining federal adjusted 220
288	280		gross income, ordinary and necessary expenses paid or incurred for the 221
289	281		care of any person seventy years of age or older related by blood, 222
290	282		adoption or marriage to the taxpayer during the taxable year in an 223
291	283		amount not to exceed sixty thousand dollars for the cost of full-time home 224
292	284		health care, including, but not limited to, the cost of medical supplies and 225
293	285		in-home services provided by homemaker-home health aides and other 226
294	286		home health care agency providers as such services and providers are 227
295	287		defined in section 19a-490; 228
296	288		(xxvii) To the extent not deductible in determining federal adjusted 229
297	289		gross income, ordinary and necessary expenses paid or incurred for the 230
298	290		care of a qualifying individual, as defined in Section 21(b)(1)(A) of the 231
299	291		Internal Revenue Code, in an amount not to exceed three thousand 232
300	292		dollars; and 233
301	293		(xxviii) To the extent not deductible in determining federal adjusted 234
302	294		gross income, ordinary and necessary expenses paid or incurred for the 235
303	295		care of a qualifying individual, as defined in Sections 21(b)(1)(B) and 236
304	296		21(b)(1)(C) of the Internal Revenue Code, in an amount not to exceed sixty 237
305		-	thousand dollars for the cost of full-time home health care, including, but 238 Raised Bill No. 7071
	297	+	thousand dollars for the cost of full-time home health care, including, but 238
	298	+	not limited to, the cost of medical supplies and in-home services provided 239
	299	+	by homemaker-home health aides and other home health care agency 240
	300	+	providers as such services and providers are defined in section 19a-490. 241 Raised Bill No. 7071
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312		-	not limited to, the cost of medical supplies and in-home services provided 239
313		-	by homemaker-home health aides and other home health care agency 240
314		-	providers as such services and providers are defined in section 19a-490. 241
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315	306		This act shall take effect as follows and shall amend the following
316	307		sections:
317	308
318	309		Section 1 from passage and
319	310		applicable to taxable years
320	311		commencing on or after
321	312		January 1, 2019
322	313		12-701(a)(20)(B)
323	314
324		-	AGE Joint Favorable
	315	+	Statement of Purpose:
	316	+	To provide financial relief for caregivers.
	317	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	318	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	319	+	not underlined.]
325	320