Connecticut 2021 Regular Session

Connecticut House Bill HB05001 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
	3	+	LCO No. 165 1 of 1
3	4
4		-
5		-	LCO No. 4707 1 of 9
6		-
7		-	General Assembly Committee Bill No. 5001
	5	+	General Assembly Proposed Bill No. 5001
8	6		January Session, 2021
9		-	LCO No. ~~4707~~
	7	+	LCO No. 165
10	8
11	9
12	10		Referred to Committee on FINANCE, REVENUE AND
13	11		BONDING
14	12
15	13
16	14		Introduced by:
17		-	(FIN)
	15	+	REP. WINKLER, 56th Dist.
	16	+	REP. DOUCETTE, 13th Dist.
18	17
19	18
20	19
21		-	AN ACT INCREASING THE QUALIFYING INCOME THRESHOLD FOR
22		-	THE PENSION AND ANNU ITY INCOME DEDUCTION FOR MARRIED
23		-	INDIVIDUALS FILING JOINTLY.
	20	+
	21	+	AN ACT CONCERNING THE PENSION AND ANNUITY INCOME
	22	+	DEDUCTION FROM THE PERSONAL INCOME TAX AND THE
	23	+	QUALIFYING INCOME THRESHOLD FOR MARRIED INDIVIDUALS
	24	+	FILING JOINTLY.
24	25		Be it enacted by the Senate and House of Representatives in General
25	26		Assembly convened:
26	27
27		-	Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
28		-	section 12-701 of the general statutes is repealed and the following is 2
29		-	substituted in lieu thereof (Effective from passage and applicable to taxable 3
30		-	years commencing on or after January 1, 2021): 4
31		-	(B) There shall be subtracted therefrom: 5
32		-	(i) To the extent properly includable in gross income for federal 6
33		-	income tax purposes, any income with respect to which taxation by any 7
34		-	state is prohibited by federal law; 8
35		-	(ii) To the extent allowable under section 12-718, exempt dividends 9
36		-	paid by a regulated investment company; 10
37		-	(iii) To the extent properly includable in gross income for federal 11
38		-	income tax purposes, the amount of any refund or credit for 12
39		-	Committee Bill No. 5001
40		-
41		-
42		-	LCO No. 4707 2 of 9
43		-
44		-	overpayment of income taxes imposed by this state, or any other state 13
45		-	of the United States or a political subdivision thereof, or the District of 14
46		-	Columbia; 15
47		-	(iv) To the extent properly includable in gross income for federal 16
48		-	income tax purposes and not otherwise subtracted from federal 17
49		-	adjusted gross income pursuant to clause (x) of this subparagraph in 18
50		-	computing Connecticut adjusted gross income, any tier 1 railroad 19
51		-	retirement benefits; 20
52		-	(v) To the extent any additional allowance for depreciation under 21
53		-	Section 168(k) of the Internal Revenue Code for property placed in 22
54		-	service after September 27, 2017, was added to federal adjusted gross 23
55		-	income pursuant to subparagraph (A)(ix) of this subdivision in 24
56		-	computing Connecticut adjusted gross income, twenty-five per cent of 25
57		-	such additional allowance for depreciation in each of the four 26
58		-	succeeding taxable years; 27
59		-	(vi) To the extent properly includable in gross income for federal 28
60		-	income tax purposes, any interest income from obligations issued by or 29
61		-	on behalf of the state of Connecticut, any political subdivision thereof, 30
62		-	or public instrumentality, state or local authority, district or similar 31
63		-	public entity created under the laws of the state of Connecticut; 32
64		-	(vii) To the extent properly includable in determining the net gain or 33
65		-	loss from the sale or other disposition of capital assets for federal income 34
66		-	tax purposes, any gain from the sale or exchange of obligations issued 35
67		-	by or on behalf of the state of Connecticut, any political subdivision 36
68		-	thereof, or public instrumentality, state or local authority, district or 37
69		-	similar public entity created under the laws of the state of Connecticut, 38
70		-	in the income year such gain was recognized; 39
71		-	(viii) Any interest on indebtedness incurred or continued to purchase 40
72		-	or carry obligations or securities the interest on which is subject to tax 41
73		-	under this chapter but exempt from federal income tax, to the extent that 42
74		-	such interest on indebtedness is not deductible in determining federal 43
75		-	Committee Bill No. 5001
76		-
77		-
78		-	LCO No. 4707 3 of 9
79		-
80		-	adjusted gross income and is attributable to a trade or business carried 44
81		-	on by such individual; 45
82		-	(ix) Ordinary and necessary expenses paid or incurred during the 46
83		-	taxable year for the production or collection of income which is subject 47
84		-	to taxation under this chapter but exempt from federal income tax, or 48
85		-	the management, conservation or maintenance of property held for the 49
86		-	production of such income, and the amortizable bond premium for the 50
87		-	taxable year on any bond the interest on which is subject to tax under 51
88		-	this chapter but exempt from federal income tax, to the extent that such 52
89		-	expenses and premiums are not deductible in determining federal 53
90		-	adjusted gross income and are attributable to a trade or business carried 54
91		-	on by such individual; 55
92		-	(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
93		-	person who files a return under the federal income tax as an unmarried 57
94		-	individual whose federal adjusted gross income for such taxable year is 58
95		-	less than fifty thousand dollars, or as a married individual filing 59
96		-	separately whose federal adjusted gross income for such taxable year is 60
97		-	less than fifty thousand dollars, or for a husband and wife who file a 61
98		-	return under the federal income tax as married individuals filing jointly 62
99		-	whose federal adjusted gross income for such taxable year is less than 63
100		-	sixty thousand dollars or a person who files a return under the federal 64
101		-	income tax as a head of household whose federal adjusted gross income 65
102		-	for such taxable year is less than sixty thousand dollars, an amount 66
103		-	equal to the Social Security benefits includable for federal income tax 67
104		-	purposes; 68
105		-	(II) For taxable years commencing prior to January 1, 2019, for a 69
106		-	person who files a return under the federal income tax as an unmarried 70
107		-	individual whose federal adjusted gross income for such taxable year is 71
108		-	fifty thousand dollars or more, or as a married individual filing 72
109		-	separately whose federal adjusted gross income for such taxable year is 73
110		-	fifty thousand dollars or more, or for a husband and wife who file a 74
111		-	return under the federal income tax as married individuals filing jointly 75
112		-	Committee Bill No. 5001
113		-
114		-
115		-	LCO No. 4707 4 of 9
116		-
117		-	whose federal adjusted gross income from such taxable year is sixty 76
118		-	thousand dollars or more or for a person who files a return under the 77
119		-	federal income tax as a head of household whose federal adjusted gross 78
120		-	income for such taxable year is sixty thousand dollars or more, an 79
121		-	amount equal to the difference between the amount of Social Security 80
122		-	benefits includable for federal income tax purposes and the lesser of 81
123		-	twenty-five per cent of the Social Security benefits received during the 82
124		-	taxable year, or twenty-five per cent of the excess described in Section 83
125		-	86(b)(1) of the Internal Revenue Code; 84
126		-	(III) For the taxable year commencing January 1, 2019, and each 85
127		-	taxable year thereafter, for a person who files a return under the federal 86
128		-	income tax as an unmarried individual whose federal adjusted gross 87
129		-	income for such taxable year is less than seventy-five thousand dollars, 88
130		-	or as a married individual filing separately whose federal adjusted gross 89
131		-	income for such taxable year is less than seventy-five thousand dollars, 90
132		-	or for a husband and wife who file a return under the federal income tax 91
133		-	as married individuals filing jointly whose federal adjusted gross 92
134		-	income for such taxable year is less than one hundred thousand dollars 93
135		-	or a person who files a return under the federal income tax as a head of 94
136		-	household whose federal adjusted gross income for such taxable year is 95
137		-	less than one hundred thousand dollars, an amount equal to the Social 96
138		-	Security benefits includable for federal income tax purposes; and 97
139		-	(IV) For the taxable year commencing January 1, 2019, and each 98
140		-	taxable year thereafter, for a person who files a return under the federal 99
141		-	income tax as an unmarried individual whose federal adjusted gross 100
142		-	income for such taxable year is seventy-five thousand dollars or more, 101
143		-	or as a married individual filing separately whose federal adjusted gross 102
144		-	income for such taxable year is seventy-five thousand dollars or more, 103
145		-	or for a husband and wife who file a return under the federal income tax 104
146		-	as married individuals filing jointly whose federal adjusted gross 105
147		-	income from such taxable year is one hundred thousand dollars or more 106
148		-	or for a person who files a return under the federal income tax as a head 107
149		-	of household whose federal adjusted gross income for such taxable year 108
150		-	Committee Bill No. 5001
151		-
152		-
153		-	LCO No. 4707 5 of 9
154		-
155		-	is one hundred thousand dollars or more, an amount equal to the 109
156		-	difference between the amount of Social Security benefits includable for 110
157		-	federal income tax purposes and the lesser of twenty-five per cent of the 111
158		-	Social Security benefits received during the taxable year, or twenty-five 112
159		-	per cent of the excess described in Section 86(b)(1) of the Internal 113
160		-	Revenue Code; 114
161		-	(xi) To the extent properly includable in gross income for federal 115
162		-	income tax purposes, any amount rebated to a taxpayer pursuant to 116
163		-	section 12-746; 117
164		-	(xii) To the extent properly includable in the gross income for federal 118
165		-	income tax purposes of a designated beneficiary, any distribution to 119
166		-	such beneficiary from any qualified state tuition program, as defined in 120
167		-	Section 529(b) of the Internal Revenue Code, established and 121
168		-	maintained by this state or any official, agency or instrumentality of the 122
169		-	state; 123
170		-	(xiii) To the extent allowable under section 12-701a, contributions to 124
171		-	accounts established pursuant to any qualified state tuition program, as 125
172		-	defined in Section 529(b) of the Internal Revenue Code, established and 126
173		-	maintained by this state or any official, agency or instrumentality of the 127
174		-	state; 128
175		-	(xiv) To the extent properly includable in gross income for federal 129
176		-	income tax purposes, the amount of any Holocaust victims' settlement 130
177		-	payment received in the taxable year by a Holocaust victim; 131
178		-	(xv) To the extent properly includable in gross income for federal 132
179		-	income tax purposes of an account holder, as defined in section 31-133
180		-	51ww, interest earned on funds deposited in the individual 134
181		-	development account, as defined in section 31-51ww, of such account 135
182		-	holder; 136
183		-	(xvi) To the extent properly includable in the gross income for federal 137
184		-	income tax purposes of a designated beneficiary, as defined in section 138
185		-	Committee Bill No. 5001
186		-
187		-
188		-	LCO No. 4707 6 of 9
189		-
190		-	3-123aa, interest, dividends or capital gains earned on contributions to 139
191		-	accounts established for the designated beneficiary pursuant to the 140
192		-	Connecticut Homecare Option Program for the Elderly established by 141
193		-	sections 3-123aa to 3-123ff, inclusive; 142
194		-	(xvii) To the extent properly includable in gross income for federal 143
195		-	income tax purposes, any income received from the United States 144
196		-	government as retirement pay for a retired member of (I) the Armed 145
197		-	Forces of the United States, as defined in Section 101 of Title 10 of the 146
198		-	United States Code, or (II) the National Guard, as defined in Section 101 147
199		-	of Title 10 of the United States Code; 148
200		-	(xviii) To the extent properly includable in gross income for federal 149
201		-	income tax purposes for the taxable year, any income from the discharge 150
202		-	of indebtedness in connection with any reacquisition, after December 151
203		-	31, 2008, and before January 1, 2011, of an applicable debt instrument or 152
204		-	instruments, as those terms are defined in Section 108 of the Internal 153
205		-	Revenue Code, as amended by Section 1231 of the American Recovery 154
206		-	and Reinvestment Act of 2009, to the extent any such income was added 155
207		-	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 156
208		-	this subdivision in computing Connecticut adjusted gross income for a 157
209		-	preceding taxable year; 158
210		-	(xix) To the extent not deductible in determining federal adjusted 159
211		-	gross income, the amount of any contribution to a manufacturing 160
212		-	reinvestment account established pursuant to section 32-9zz in the 161
213		-	taxable year that such contribution is made; 162
214		-	(xx) To the extent properly includable in gross income for federal 163
215		-	income tax purposes, (I) for the taxable year commencing January 1, 164
216		-	2015, ten per cent of the income received from the state teachers' 165
217		-	retirement system, (II) for the taxable years commencing January 1, 166
218		-	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 167
219		-	received from the state teachers' retirement system, and (III) for the 168
220		-	taxable year commencing January 1, 2021, and each taxable year 169
221		-	thereafter, fifty per cent of the income received from the state teachers' 170
222		-	Committee Bill No. 5001
223		-
224		-
225		-	LCO No. 4707 7 of 9
226		-
227		-	retirement system or the percentage, if applicable, pursuant to clause 171
228		-	(xxi) of this subparagraph; 172
229		-	(xxi) To the extent properly includable in gross income for federal 173
230		-	income tax purposes, except for retirement benefits under clause (iv) of 174
231		-	this subparagraph and retirement pay under clause (xvii) of this 175
232		-	subparagraph, for a person who files a return under the federal income 176
233		-	tax as an unmarried individual whose federal adjusted gross income for 177
234		-	such taxable year is less than seventy-five thousand dollars, or as a 178
235		-	married individual filing separately whose federal adjusted gross 179
236		-	income for such taxable year is less than seventy-five thousand dollars, 180
237		-	or as a head of household whose federal adjusted gross income for such 181
238		-	taxable year is less than seventy-five thousand dollars, or for a husband 182
239		-	and wife who file a return under the federal income tax as married 183
240		-	individuals filing jointly whose federal adjusted gross income for such 184
241		-	taxable year is less than [one hundred thousand] one hundred fifty 185
242		-	thousand dollars, (I) for the taxable year commencing January 1, 2019, 186
243		-	fourteen per cent of any pension or annuity income, (II) for the taxable 187
244		-	year commencing January 1, 2020, twenty-eight per cent of any pension 188
245		-	or annuity income, (III) for the taxable year commencing January 1, 189
246		-	2021, forty-two per cent of any pension or annuity income, (IV) for the 190
247		-	taxable year commencing January 1, 2022, fifty-six per cent of any 191
248		-	pension or annuity income, (V) for the taxable year commencing 192
249		-	January 1, 2023, seventy per cent of any pension or annuity income, (VI) 193
250		-	for the taxable year commencing January 1, 2024, eighty-four per cent of 194
251		-	any pension or annuity income, and (VII) for the taxable year 195
252		-	commencing January 1, 2025, and each taxable year thereafter, any 196
253		-	pension or annuity income; 197
254		-	(xxii) The amount of lost wages and medical, travel and housing 198
255		-	expenses, not to exceed ten thousand dollars in the aggregate, incurred 199
256		-	by a taxpayer during the taxable year in connection with the donation 200
257		-	to another person of an organ for organ transplantation occurring on or 201
258		-	after January 1, 2017; 202
259		-	Committee Bill No. 5001
260		-
261		-
262		-	LCO No. 4707 8 of 9
263		-
264		-	(xxiii) To the extent properly includable in gross income for federal 203
265		-	income tax purposes, the amount of any financial assistance received 204
266		-	from the Crumbling Foundations Assistance Fund or paid to or on 205
267		-	behalf of the owner of a residential building pursuant to sections 8-442 206
268		-	and 8-443; 207
269		-	(xxiv) To the extent properly includable in gross income for federal 208
270		-	income tax purposes, the amount calculated pursuant to subsection (b) 209
271		-	of section 12-704g for income received by a general partner of a venture 210
272		-	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 211
273		-	time; and 212
274		-	(xxv) To the extent any portion of a deduction under Section 179 of 213
275		-	the Internal Revenue Code was added to federal adjusted gross income 214
276		-	pursuant to subparagraph (A)(xiv) of this subdivision in computing 215
277		-	Connecticut adjusted gross income, twenty-five per cent of such 216
278		-	disallowed portion of the deduction in each of the four succeeding 217
279		-	taxable years. 218
280		-	This act shall take effect as follows and shall amend the following
281		-	sections:
282		-
283		-	Section 1 from passage and
284		-	applicable to taxable years
285		-	commencing on or after
286		-	January 1, 2021
287		-	12-701(a)(20)(B)
288		-
	28	+	That section 12-701 of the general statutes be amended to increase the 1
	29	+	qualifying income threshold, from less than one hundred thousand 2
	30	+	dollars to less than one hundred fifty thousand dollars, for the pension 3
	31	+	and annuity income deduction from the personal income tax for married 4
	32	+	individuals filing jointly, for taxable years commencing on or after 5
	33	+	January 1, 2021. 6
289	34		Statement of Purpose:
290	35		To increase the qualifying income threshold for the pension and annuity
291		-	income deduction for married individuals filing jointly, to twice the
292		-	amount of the qualifying income threshold for unmarried individuals.
293		-	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
294		-	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
295		-	underlined.]
296		-
297		-	Co-Sponsors: REP. WINKLER, 56th Dist.; REP. DOUCETTE, 13th Dist.
298		-	REP. CHAFEE, 33rd Dist.
299		-
300		-	H.B. 5001
301		-	Committee Bill No. 5001
302		-
303		-
304		-	LCO No. 4707 9 of 9
305		-
306		-
307		-
	36	+	income deduction from the personal income tax for married individuals
	37	+	filing jointly, to twice the amount of the qualifying income threshold for
	38	+	an unmarried individual.