Connecticut 2019 Regular Session

Connecticut House Bill HB07411 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 6797 1 of 9
4	4
5	5	General Assembly Raised Bill No. 7411
6	6	January Session, 2019
7	7	LCO No. 6797
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
16	16
17	17
18	18
19	19
20	20	AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
21	21	FOR INDIVIDUAL HEALTH INSURANCE PREMIUM PAYMENTS.
22	22	Be it enacted by the Senate and House of Representatives in General
23	23	Assembly convened:
24	24
25	25	Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
26	26	section 12-701 of the general statutes is repealed and the following is 2
27	27	substituted in lieu thereof (Effective July 1, 2019, and applicable to taxable 3
28	28	years commencing on or after January 1, 2019): 4
29	29	(B) There shall be subtracted therefrom: 5
30	30	(i) To the extent properly includable in gross income for federal 6
31	31	income tax purposes, any income with respect to which taxation by 7
32	32	any state is prohibited by federal law; 8
33	33	(ii) To the extent allowable under section 12-718, exempt dividends 9
34	34	paid by a regulated investment company; 10
35	35	(iii) To the extent properly includable in gross income for federal 11
36	36	income tax purposes, the amount of any refund or credit for 12
37	37	Raised Bill No. 7411
38	38
39	39
40	40
41	41	LCO No. 6797 2 of 9
42	42
43	43	overpayment of income taxes imposed by this state, or any other state 13
44	44	of the United States or a political subdivision thereof, or the District of 14
45	45	Columbia; 15
46	46	(iv) To the extent properly includable in gross income for federal 16
47	47	income tax purposes and not otherwise subtracted from federal 17
48	48	adjusted gross income pursuant to clause (x) of this subparagraph in 18
49	49	computing Connecticut adjusted gross income, any tier 1 railroad 19
50	50	retirement benefits; 20
51	51	(v) To the extent any additional allowance for depreciation under 21
52	52	Section 168(k) of the Internal Revenue Code for property placed in 22
53	53	service after September 27, 2017, was added to federal adjusted gross 23
54	54	income pursuant to subparagraph (A)(ix) of this subdivision in 24
55	55	computing Connecticut adjusted gross income, twenty-five per cent of 25
56	56	such additional allowance for depreciation in each of the four 26
57	57	succeeding taxable years; 27
58	58	(vi) To the extent properly includable in gross income for federal 28
59	59	income tax purposes, any interest income from obligations issued by or 29
60	60	on behalf of the state of Connecticut, any political subdivision thereof, 30
61	61	or public instrumentality, state or local authority, district or similar 31
62	62	public entity created under the laws of the state of Connecticut; 32
63	63	(vii) To the extent properly includable in determining the net gain 33
64	64	or loss from the sale or other disposition of capital assets for federal 34
65	65	income tax purposes, any gain from the sale or exchange of obligations 35
66	66	issued by or on behalf of the state of Connecticut, any political 36
67	67	subdivision thereof, or public instrumentality, state or local authority, 37
68	68	district or similar public entity created under the laws of the state of 38
69	69	Connecticut, in the income year such gain was recognized; 39
70	70	(viii) Any interest on indebtedness incurred or continued to 40
71	71	purchase or carry obligations or securities the interest on which is 41
72	72	subject to tax under this chapter but exempt from federal income tax, 42
73	73	to the extent that such interest on indebtedness is not deductible in 43
74	74	Raised Bill No. 7411
75	75
76	76
77	77
78	78	LCO No. 6797 3 of 9
79	79
80	80	determining federal adjusted gross income and is attributable to a 44
81	81	trade or business carried on by such individual; 45
82	82	(ix) Ordinary and necessary expenses paid or incurred during the 46
83	83	taxable year for the production or collection of income which is subject 47
84	84	to taxation under this chapter but exempt from federal income tax, or 48
85	85	the management, conservation or maintenance of property held for the 49
86	86	production of such income, and the amortizable bond premium for the 50
87	87	taxable year on any bond the interest on which is subject to tax under 51
88	88	this chapter but exempt from federal income tax, to the extent that 52
89	89	such expenses and premiums are not deductible in determining federal 53
90	90	adjusted gross income and are attributable to a trade or business 54
91	91	carried on by such individual; 55
92	92	(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
93	93	person who files a return under the federal income tax as an 57
94	94	unmarried individual whose federal adjusted gross income for such 58
95	95	taxable year is less than fifty thousand dollars, or as a married 59
96	96	individual filing separately whose federal adjusted gross income for 60
97	97	such taxable year is less than fifty thousand dollars, or for [a husband 61
98	98	and wife] persons who file a return under the federal income tax as 62
99	99	married individuals filing jointly whose federal adjusted gross income 63
100	100	for such taxable year is less than sixty thousand dollars or a person 64
101	101	who files a return under the federal income tax as a head of household 65
102	102	whose federal adjusted gross income for such taxable year is less than 66
103	103	sixty thousand dollars, an amount equal to the Social Security benefits 67
104	104	includable for federal income tax purposes; 68
105	105	(II) For taxable years commencing prior to January 1, 2019, for a 69
106	106	person who files a return under the federal income tax as an 70
107	107	unmarried individual whose federal adjusted gross income for such 71
108	108	taxable year is fifty thousand dollars or more, or as a married 72
109	109	individual filing separately whose federal adjusted gross income for 73
110	110	such taxable year is fifty thousand dollars or more, or for [a husband 74
111	111	and wife] persons who file a return under the federal income tax as 75
112	112	Raised Bill No. 7411
113	113
114	114
115	115
116	116	LCO No. 6797 4 of 9
117	117
118	118	married individuals filing jointly whose federal adjusted gross income 76
119	119	from such taxable year is sixty thousand dollars or more or for a 77
120	120	person who files a return under the federal income tax as a head of 78
121	121	household whose federal adjusted gross income for such taxable year 79
122	122	is sixty thousand dollars or more, an amount equal to the difference 80
123	123	between the amount of Social Security benefits includable for federal 81
124	124	income tax purposes and the lesser of twenty-five per cent of the Social 82
125	125	Security benefits received during the taxable year, or twenty-five per 83
126	126	cent of the excess described in Section 86(b)(1) of the Internal Revenue 84
127	127	Code; 85
128	128	(III) For the taxable year commencing January 1, 2019, and each 86
129	129	taxable year thereafter, for a person who files a return under the 87
130	130	federal income tax as an unmarried individual whose federal adjusted 88
131	131	gross income for such taxable year is less than seventy-five thousand 89
132	132	dollars, or as a married individual filing separately whose federal 90
133	133	adjusted gross income for such taxable year is less than seventy-five 91
134	134	thousand dollars, or for [a husband and wife] persons who file a return 92
135	135	under the federal income tax as married individuals filing jointly 93
136	136	whose federal adjusted gross income for such taxable year is less than 94
137	137	one hundred thousand dollars or a person who files a return under the 95
138	138	federal income tax as a head of household whose federal adjusted 96
139	139	gross income for such taxable year is less than one hundred thousand 97
140	140	dollars, an amount equal to the Social Security benefits includable for 98
141	141	federal income tax purposes; and 99
142	142	(IV) For the taxable year commencing January 1, 2019, and each 100
143	143	taxable year thereafter, for a person who files a return under the 101
144	144	federal income tax as an unmarried individual whose federal adjusted 102
145	145	gross income for such taxable year is seventy-five thousand dollars or 103
146	146	more, or as a married individual filing separately whose federal 104
147	147	adjusted gross income for such taxable year is seventy-five thousand 105
148	148	dollars or more, or for [a husband and wife] persons who file a return 106
149	149	under the federal income tax as married individuals filing jointly 107
150	150	whose federal adjusted gross income from such taxable year is one 108
151	151	Raised Bill No. 7411
152	152
153	153
154	154
155	155	LCO No. 6797 5 of 9
156	156
157	157	hundred thousand dollars or more or for a person who files a return 109
158	158	under the federal income tax as a head of household whose federal 110
159	159	adjusted gross income for such taxable year is one hundred thousand 111
160	160	dollars or more, an amount equal to the difference between the 112
161	161	amount of Social Security benefits includable for federal income tax 113
162	162	purposes and the lesser of twenty-five per cent of the Social Security 114
163	163	benefits received during the taxable year, or twenty-five per cent of the 115
164	164	excess described in Section 86(b)(1) of the Internal Revenue Code; 116
165	165	(xi) To the extent properly includable in gross income for federal 117
166	166	income tax purposes, any amount rebated to a taxpayer pursuant to 118
167	167	section 12-746; 119
168	168	(xii) To the extent properly includable in the gross income for 120
169	169	federal income tax purposes of a designated beneficiary, any 121
170	170	distribution to such beneficiary from any qualified state tuition 122
171	171	program, as defined in Section 529(b) of the Internal Revenue Code, 123
172	172	established and maintained by this state or any official, agency or 124
173	173	instrumentality of the state; 125
174	174	(xiii) To the extent allowable under section 12-701a, contributions to 126
175	175	accounts established pursuant to any qualified state tuition program, 127
176	176	as defined in Section 529(b) of the Internal Revenue Code, established 128
177	177	and maintained by this state or any official, agency or instrumentality 129
178	178	of the state; 130
179	179	(xiv) To the extent properly includable in gross income for federal 131
180	180	income tax purposes, the amount of any Holocaust victims' settlement 132
181	181	payment received in the taxable year by a Holocaust victim; 133
182	182	(xv) To the extent properly includable in gross income for federal 134
183	183	income tax purposes of an account holder, as defined in section 31-135
184	184	51ww, interest earned on funds deposited in the individual 136
185	185	development account, as defined in section 31-51ww, of such account 137
186	186	holder; 138
187	187	Raised Bill No. 7411
188	188
189	189
190	190
191	191	LCO No. 6797 6 of 9
192	192
193	193	(xvi) To the extent properly includable in the gross income for 139
194	194	federal income tax purposes of a designated beneficiary, as defined in 140
195	195	section 3-123aa, interest, dividends or capital gains earned on 141
196	196	contributions to accounts established for the designated beneficiary 142
197	197	pursuant to the Connecticut Homecare Option Program for the Elderly 143
198	198	established by sections 3-123aa to 3-123ff, inclusive; 144
199	199	(xvii) To the extent properly includable in gross income for federal 145
200	200	income tax purposes, any income received from the United States 146
201	201	government as retirement pay for a retired member of (I) the Armed 147
202	202	Forces of the United States, as defined in Section 101 of Title 10 of the 148
203	203	United States Code, or (II) the National Guard, as defined in Section 149
204	204	101 of Title 10 of the United States Code; 150
205	205	(xviii) To the extent properly includable in gross income for federal 151
206	206	income tax purposes for the taxable year, any income from the 152
207	207	discharge of indebtedness in connection with any reacquisition, after 153
208	208	December 31, 2008, and before January 1, 2011, of an applicable debt 154
209	209	instrument or instruments, as those terms are defined in Section 108 of 155
210	210	the Internal Revenue Code, as amended by Section 1231 of the 156
211	211	American Recovery and Reinvestment Act of 2009, to the extent any 157
212	212	such income was added to federal adjusted gross income pursuant to 158
213	213	subparagraph (A)(xi) of this subdivision in computing Connecticut 159
214	214	adjusted gross income for a preceding taxable year; 160
215	215	(xix) To the extent not deductible in determining federal adjusted 161
216	216	gross income, the amount of any contribution to a manufacturing 162
217	217	reinvestment account established pursuant to section 32-9zz in the 163
218	218	taxable year that such contribution is made; 164
219	219	(xx) To the extent properly includable in gross income for federal 165
220	220	income tax purposes, (I) for the taxable year commencing January 1, 166
221	221	2015, ten per cent of the income received from the state teachers' 167
222	222	retirement system, (II) for the taxable years commencing January 1, 168
223	223	2016, January 1, 2017, and January 1, 2018, twenty-five per cent of the 169
224	224	Raised Bill No. 7411
225	225
226	226
227	227
228	228	LCO No. 6797 7 of 9
229	229
230	230	income received from the state teachers' retirement system, and (III) 170
231	231	for the taxable year commencing January 1, 2019, and each taxable year 171
232	232	thereafter, fifty per cent of the income received from the state teachers' 172
233	233	retirement system or the percentage, if applicable, pursuant to clause 173
234	234	(xxi) of this subparagraph; 174
235	235	(xxi) To the extent properly includable in gross income for federal 175
236	236	income tax purposes, except for retirement benefits under clause (iv) of 176
237	237	this subparagraph and retirement pay under clause (xvii) of this 177
238	238	subparagraph, for a person who files a return under the federal income 178
239	239	tax as an unmarried individual whose federal adjusted gross income 179
240	240	for such taxable year is less than seventy-five thousand dollars, or as a 180
241	241	married individual filing separately whose federal adjusted gross 181
242	242	income for such taxable year is less than seventy-five thousand dollars, 182
243	243	or as a head of household whose federal adjusted gross income for 183
244	244	such taxable year is less than seventy-five thousand dollars, or for [a 184
245	245	husband and wife] persons who file a return under the federal income 185
246	246	tax as married individuals filing jointly whose federal adjusted gross 186
247	247	income for such taxable year is less than one hundred thousand 187
248	248	dollars, (I) for the taxable year commencing January 1, 2019, fourteen 188
249	249	per cent of any pension or annuity income, (II) for the taxable year 189
250	250	commencing January 1, 2020, twenty-eight per cent of any pension or 190
251	251	annuity income, (III) for the taxable year commencing January 1, 2021, 191
252	252	forty-two per cent of any pension or annuity income, (IV) for the 192
253	253	taxable year commencing January 1, 2022, fifty-six per cent of any 193
254	254	pension or annuity income, (V) for the taxable year commencing 194
255	255	January 1, 2023, seventy per cent of any pension or annuity income, 195
256	256	(VI) for the taxable year commencing January 1, 2024, eighty-four per 196
257	257	cent of any pension or annuity income, and (VII) for the taxable year 197
258	258	commencing January 1, 2025, and each taxable year thereafter, any 198
259	259	pension or annuity income; 199
260	260	(xxii) The amount of lost wages and medical, travel and housing 200
261	261	expenses, not to exceed ten thousand dollars in the aggregate, incurred 201
262	262	by a taxpayer during the taxable year in connection with the donation 202
263	263	Raised Bill No. 7411
264	264
265	265
266	266
267	267	LCO No. 6797 8 of 9
268	268
269	269	to another person of an organ for organ transplantation occurring on 203
270	270	or after January 1, 2017; 204
271	271	(xxiii) To the extent properly includable in gross income for federal 205
272	272	income tax purposes, the amount of any financial assistance received 206
273	273	from the Crumbling Foundations Assistance Fund or paid to or on 207
274	274	behalf of the owner of a residential building pursuant to sections 8-442 208
275	275	and 8-443; [, and] 209
276	276	(xxiv) To the extent properly includable in gross income for federal 210
277	277	income tax purposes, the amount calculated pursuant to subsection (b) 211
278	278	of section 12-704g for income received by a general partner of a 212
279	279	venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 213
280	280	from time to time; [and] 214
281	281	(xxv) To the extent any portion of a deduction under Section 179 of 215
282	282	the Internal Revenue Code was added to federal adjusted gross income 216
283	283	pursuant to subparagraph (A)(xiv) of this subdivision in computing 217
284	284	Connecticut adjusted gross income, twenty-five per cent of such 218
285	285	disallowed portion of the deduction in each of the four succeeding 219
286	286	taxable years; and 220
287	287	(xxvi) For the taxable year commencing January 1, 2019, the amount 221
288	288	of premiums actually paid by a taxpayer in a taxable year, not to 222
289	289	exceed five thousand dollars, for an individual health insurance policy 223
290	290	providing coverage of the type specified in subdivisions (1), (2), (4), 224
291	291	(11) and (12) of section 38a-469 in this state, including a qualified 225
292	292	health plan, as defined in section 38a-1080, purchased through the 226
293	293	Connecticut Health Insurance Exchange established under section 38a-227
294	294	1081. In the case of any persons who file a return under the federal 228
295	295	income tax for a taxable year as married individuals filing a joint 229
296	296	return, the deduction allowed, in the aggregate, shall not exceed such 230
297	297	amount for a taxable year. 231
298	298	Raised Bill No. 7411
299	299
300	300
301	301
302	302	LCO No. 6797 9 of 9
303	303
304	304	This act shall take effect as follows and shall amend the following
305	305	sections:
306	306
307	307	Section 1 July 1, 2019, and
308	308	applicable to taxable years
309	309	commencing on or after
310	310	January 1, 2019
311	311	12-701(a)(20)(B)
312	312
313	313	Statement of Purpose:
314	314	To establish a personal income tax deduction for premiums paid for
315	315	individual health insurance policies.
316	316
317	317	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
318	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	319	not underlined.]
320	320