Connecticut 2021 Regular Session

Connecticut Senate Bill SB00274 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	7		General Assembly Committee Bill No. 274
8	8		January Session, 2021
9	9		LCO No. 2929
10	10
11	11
12	12		Referred to Committee on AGING
13	13
14	14
15	15		Introduced by:
16	16		(AGE)
17	17
18	18
19	19
20	20		AN ACT CONCERNING AN INCOME TAX DEDUCTIO N FOR THE
21	21		COST OF HOME HEALTH CARE.
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26	26		section 12-701 of the general statutes is repealed and the following is 2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 from passage and applicable to taxable 3
28	28		years commencing on or after January 1, 2021): 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 any 7
32	32		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		-	overpayment of income taxes imposed by this state, or any other state 13 Committee Bill No. 274
	37	+	overpayment of income taxes imposed by this state, or any other state 13
	38	+	of the United States or a political subdivision thereof, or the District of 14
	39	+	Committee Bill No. 274
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43	43
44		-	of the United States or a political subdivision thereof, or the District of 14
45	44		Columbia; 15
46	45		(iv) To the extent properly includable in gross income for federal 16
47	46		income tax purposes and not otherwise subtracted from federal 17
48	47		adjusted gross income pursuant to clause (x) of this subparagraph in 18
49	48		computing Connecticut adjusted gross income, any tier 1 railroad 19
50	49		retirement benefits; 20
51	50		(v) To the extent any additional allowance for depreciation under 21
52	51		Section 168(k) of the Internal Revenue Code for property placed in 22
53	52		service after September 27, 2017, was added to federal adjusted gross 23
54	53		income pursuant to subparagraph (A)(ix) of this subdivision in 24
55	54		computing Connecticut adjusted gross income, twenty-five per cent of 25
56	55		such additional allowance for depreciation in each of the four 26
57	56		succeeding taxable years; 27
58	57		(vi) To the extent properly includable in gross income for federal 28
59	58		income tax purposes, any interest income from obligations issued by or 29
60	59		on behalf of the state of Connecticut, any political subdivision thereof, 30
61	60		or public instrumentality, state or local authority, district or similar 31
62	61		public entity created under the laws of the state of Connecticut; 32
63	62		(vii) To the extent properly includable in determining the net gain or 33
64	63		loss from the sale or other disposition of capital assets for federal income 34
65	64		tax purposes, any gain from the sale or exchange of obligations issued 35
66	65		by or on behalf of the state of Connecticut, any political subdivision 36
67	66		thereof, or public instrumentality, state or local authority, district or 37
68	67		similar public entity created under the laws of the state of Connecticut, 38
69	68		in the income year such gain was recognized; 39
70	69		(viii) Any interest on indebtedness incurred or continued to purchase 40
71	70		or carry obligations or securities the interest on which is subject to tax 41
72	71		under this chapter but exempt from federal income tax, to the extent that 42
73	72		such interest on indebtedness is not deductible in determining federal 43
74		-	adjusted gross income and is attributable to a trade or business carried 44 Committee Bill No. 274
	73	+	adjusted gross income and is attributable to a trade or business carried 44
	74	+	on by such individual; 45
	75	+	Committee Bill No. 274
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80	79
81		-	on by such individual; 45
82	80		(ix) Ordinary and necessary expenses paid or incurred during the 46
83	81		taxable year for the production or collection of income which is subject 47
84	82		to taxation under this chapter but exempt from federal income tax, or 48
85	83		the management, conservation or maintenance of property held for the 49
86	84		production of such income, and the amortizable bond premium for the 50
87	85		taxable year on any bond the interest on which is subject to tax under 51
88	86		this chapter but exempt from federal income tax, to the extent that such 52
89	87		expenses and premiums are not deductible in determining federal 53
90	88		adjusted gross income and are attributable to a trade or business carried 54
91	89		on by such individual; 55
92	90		(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
93	91		person who files a return under the federal income tax as an unmarried 57
94	92		individual whose federal adjusted gross income for such taxable year is 58
95	93		less than fifty thousand dollars, or as a married individual filing 59
96	94		separately whose federal adjusted gross income for such taxable year is 60
97	95		less than fifty thousand dollars, or for a husband and wife who file a 61
98	96		return under the federal income tax as married individuals filing jointly 62
99	97		whose federal adjusted gross income for such taxable year is less than 63
100	98		sixty thousand dollars or a person who files a return under the federal 64
101	99		income tax as a head of household whose federal adjusted gross income 65
102	100		for such taxable year is less than sixty thousand dollars, an amount 66
103	101		equal to the Social Security benefits includable for federal income tax 67
104	102		purposes; 68
105	103		(II) For taxable years commencing prior to January 1, 2019, for a 69
106	104		person who files a return under the federal income tax as an unmarried 70
107	105		individual whose federal adjusted gross income for such taxable year is 71
108	106		fifty thousand dollars or more, or as a married individual filing 72
109	107		separately whose federal adjusted gross income for such taxable year is 73
110	108		fifty thousand dollars or more, or for a husband and wife who file a 74
111	109		return under the federal income tax as married individuals filing jointly 75
112	110		whose federal adjusted gross income from such taxable year is sixty 76
113		-	thousand dollars or more or for a person who files a return under the 77 Committee Bill No. 274
	111	+	thousand dollars or more or for a person who files a return under the 77
	112	+	federal income tax as a head of household whose federal adjusted gross 78
	113	+	Committee Bill No. 274
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119	117
120		-	federal income tax as a head of household whose federal adjusted gross 78
121	118		income for such taxable year is sixty thousand dollars or more, an 79
122	119		amount equal to the difference between the amount of Social Security 80
123	120		benefits includable for federal income tax purposes and the lesser of 81
124	121		twenty-five per cent of the Social Security benefits received during the 82
125	122		taxable year, or twenty-five per cent of the excess described in Section 83
126	123		86(b)(1) of the Internal Revenue Code; 84
127	124		(III) For the taxable year commencing January 1, 2019, and each 85
128	125		taxable year thereafter, for a person who files a return under the federal 86
129	126		income tax as an unmarried individual whose federal adjusted gross 87
130	127		income for such taxable year is less than seventy-five thousand dollars, 88
131	128		or as a married individual filing separately whose federal adjusted gross 89
132	129		income for such taxable year is less than seventy-five thousand dollars, 90
133	130		or for a husband and wife who file a return under the federal income tax 91
134	131		as married individuals filing jointly whose federal adjusted gross 92
135	132		income for such taxable year is less than one hundred thousand dollars 93
136	133		or a person who files a return under the federal income tax as a head of 94
137	134		household whose federal adjusted gross income for such taxable year is 95
138	135		less than one hundred thousand dollars, an amount equal to the Social 96
139	136		Security benefits includable for federal income tax purposes; and 97
140	137		(IV) For the taxable year commencing January 1, 2019, and each 98
141	138		taxable year thereafter, for a person who files a return under the federal 99
142	139		income tax as an unmarried individual whose federal adjusted gross 100
143	140		income for such taxable year is seventy-five thousand dollars or more, 101
144	141		or as a married individual filing separately whose federal adjusted gross 102
145	142		income for such taxable year is seventy-five thousand dollars or more, 103
146	143		or for a husband and wife who file a return under the federal income tax 104
147	144		as married individuals filing jointly whose federal adjusted gross 105
148	145		income from such taxable year is one hundred thousand dollars or more 106
149	146		or for a person who files a return under the federal income tax as a head 107
150	147		of household whose federal adjusted gross income for such taxable year 108
151	148		is one hundred thousand dollars or more, an amount equal to the 109
152		-	difference between the amount of Social Security benefits includable for 110 Committee Bill No. 274
	149	+	difference between the amount of Social Security benefits includable for 110
	150	+	federal income tax purposes and the lesser of twenty-five per cent of the 111
	151	+	Committee Bill No. 274
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159		-	federal income tax purposes and the lesser of twenty-five per cent of the 111
160	156		Social Security benefits received during the taxable year, or twenty-five 112
161	157		per cent of the excess described in Section 86(b)(1) of the Internal 113
162	158		Revenue Code; 114
163	159		(xi) To the extent properly includable in gross income for federal 115
164	160		income tax purposes, any amount rebated to a taxpayer pursuant to 116
165	161		section 12-746; 117
166	162		(xii) To the extent properly includable in the gross income for federal 118
167	163		income tax purposes of a designated beneficiary, any distribution to 119
168	164		such beneficiary from any qualified state tuition program, as defined in 120
169	165		Section 529(b) of the Internal Revenue Code, established and 121
170	166		maintained by this state or any official, agency or instrumentality of the 122
171	167		state; 123
172	168		(xiii) To the extent allowable under section 12-701a, contributions to 124
173	169		accounts established pursuant to any qualified state tuition program, as 125
174	170		defined in Section 529(b) of the Internal Revenue Code, established and 126
175	171		maintained by this state or any official, agency or instrumentality of the 127
176	172		state; 128
177	173		(xiv) To the extent properly includable in gross income for federal 129
178	174		income tax purposes, the amount of any Holocaust victims' settlement 130
179	175		payment received in the taxable year by a Holocaust victim; 131
180	176		(xv) To the extent properly includable in gross income for federal 132
181	177		income tax purposes of an account holder, as defined in section 31-133
182	178		51ww, interest earned on funds deposited in the individual 134
183	179		development account, as defined in section 31-51ww, of such account 135
184	180		holder; 136
185	181		(xvi) To the extent properly includable in the gross income for federal 137
186	182		income tax purposes of a designated beneficiary, as defined in section 138
187	183		3-123aa, interest, dividends or capital gains earned on contributions to 139
188	184		accounts established for the designated beneficiary pursuant to the 140
189		-	Connecticut Homecare Option Program for the Elderly established by 141 Committee Bill No. 274
	185	+	Connecticut Homecare Option Program for the Elderly established by 141
	186	+	Committee Bill No. 274
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196	191		sections 3-123aa to 3-123ff, inclusive; 142
197	192		(xvii) To the extent properly includable in gross income for federal 143
198	193		income tax purposes, any income received from the United States 144
199	194		government as retirement pay for a retired member of (I) the Armed 145
200	195		Forces of the United States, as defined in Section 101 of Title 10 of the 146
201	196		United States Code, or (II) the National Guard, as defined in Section 101 147
202	197		of Title 10 of the United States Code; 148
203	198		(xviii) To the extent properly includable in gross income for federal 149
204	199		income tax purposes for the taxable year, any income from the discharge 150
205	200		of indebtedness in connection with any reacquisition, after December 151
206	201		31, 2008, and before January 1, 2011, of an applicable debt instrument or 152
207	202		instruments, as those terms are defined in Section 108 of the Internal 153
208	203		Revenue Code, as amended by Section 1231 of the American Recovery 154
209	204		and Reinvestment Act of 2009, to the extent any such income was added 155
210	205		to federal adjusted gross income pursuant to subparagraph (A)(xi) of 156
211	206		this subdivision in computing Connecticut adjusted gross income for a 157
212	207		preceding taxable year; 158
213	208		(xix) To the extent not deductible in determining federal adjusted 159
214	209		gross income, the amount of any contribution to a manufacturing 160
215	210		reinvestment account established pursuant to section 32-9zz in the 161
216	211		taxable year that such contribution is made; 162
217	212		(xx) To the extent properly includable in gross income for federal 163
218	213		income tax purposes, (I) for the taxable year commencing January 1, 164
219	214		2015, ten per cent of the income received from the state teachers' 165
220	215		retirement system, (II) for the taxable years commencing January 1, 166
221	216		2016, to January 1, 2020, inclusive, twenty-five per cent of the income 167
222	217		received from the state teachers' retirement system, and (III) for the 168
223	218		taxable year commencing January 1, 2021, and each taxable year 169
224	219		thereafter, fifty per cent of the income received from the state teachers' 170
225	220		retirement system or the percentage, if applicable, pursuant to clause 171
226		-	(xxi) of this subparagraph; 172 Committee Bill No. 274
	221	+	(xxi) of this subparagraph; 172
	222	+	Committee Bill No. 274
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233	227		(xxi) To the extent properly includable in gross income for federal 173
234	228		income tax purposes, except for retirement benefits under clause (iv) of 174
235	229		this subparagraph and retirement pay under clause (xvii) of this 175
236	230		subparagraph, for a person who files a return under the federal income 176
237	231		tax as an unmarried individual whose federal adjusted gross income for 177
238	232		such taxable year is less than seventy-five thousand dollars, or as a 178
239	233		married individual filing separately whose federal adjusted gross 179
240	234		income for such taxable year is less than seventy-five thousand dollars, 180
241	235		or as a head of household whose federal adjusted gross income for such 181
242	236		taxable year is less than seventy-five thousand dollars, or for a husband 182
243	237		and wife who file a return under the federal income tax as married 183
244	238		individuals filing jointly whose federal adjusted gross income for such 184
245	239		taxable year is less than one hundred thousand dollars, (I) for the taxable 185
246	240		year commencing January 1, 2019, fourteen per cent of any pension or 186
247	241		annuity income, (II) for the taxable year commencing January 1, 2020, 187
248	242		twenty-eight per cent of any pension or annuity income, (III) for the 188
249	243		taxable year commencing January 1, 2021, forty-two per cent of any 189
250	244		pension or annuity income, (IV) for the taxable year commencing 190
251	245		January 1, 2022, fifty-six per cent of any pension or annuity income, (V) 191
252	246		for the taxable year commencing January 1, 2023, seventy per cent of any 192
253	247		pension or annuity income, (VI) for the taxable year commencing 193
254	248		January 1, 2024, eighty-four per cent of any pension or annuity income, 194
255	249		and (VII) for the taxable year commencing January 1, 2025, and each 195
256	250		taxable year thereafter, any pension or annuity income; 196
257	251		(xxii) The amount of lost wages and medical, travel and housing 197
258	252		expenses, not to exceed ten thousand dollars in the aggregate, incurred 198
259	253		by a taxpayer during the taxable year in connection with the donation 199
260	254		to another person of an organ for organ transplantation occurring on or 200
261	255		after January 1, 2017; 201
262	256		(xxiii) To the extent properly includable in gross income for federal 202
263	257		income tax purposes, the amount of any financial assistance received 203
264	258		from the Crumbling Foundations Assistance Fund or paid to or on 204
265		-	behalf of the owner of a residential building pursuant to sections 8-442 205 Committee Bill No. 274
	259	+	behalf of the owner of a residential building pursuant to sections 8-442 205
	260	+	Committee Bill No. 274
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271	264
272	265		and 8-443; 206
273	266		(xxiv) To the extent properly includable in gross income for federal 207
274	267		income tax purposes, the amount calculated pursuant to subsection (b) 208
275	268		of section 12-704g for income received by a general partner of a venture 209
276	269		capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 210
277	270		time; [and] 211
278	271		(xxv) To the extent any portion of a deduction under Section 179 of 212
279	272		the Internal Revenue Code was added to federal adjusted gross income 213
280	273		pursuant to subparagraph (A)(xiv) of this subdivision in computing 214
281	274		Connecticut adjusted gross income, twenty-five per cent of such 215
282	275		disallowed portion of the deduction in each of the four succeeding 216
283	276		taxable years; 217
284	277		(xxvi) To the extent not deductible in determining federal adjusted 218
285	278		gross income, ordinary and necessary expenses paid or incurred for the 219
286	279		care of any person seventy years of age or older related by blood, 220
287	280		adoption or marriage to the taxpayer during the taxable year in an 221
288	281		amount not to exceed sixty thousand dollars for the cost of full-time 222
289	282		home health care, including, but not limited to, the cost of medical 223
290	283		supplies and in-home services provided by a homemaker-companion 224
291	284		agency as defined in section 20-670 and a home health agency as defined 225
292	285		in section 19a-490; and 226
293	286		(xxvii) To the extent not deductible in determining federal adjusted 227
294	287		gross income or under any other provision of this subsection, ordinary 228
295	288		and necessary expenses paid or incurred for the care of a qualifying 229
296	289		individual, as defined in Sections 21(b)(1)(B) and 21(b)(1)(C) of the 230
297	290		Internal Revenue Code, in an amount not to exceed sixty thousand 231
298	291		dollars for the cost of full-time home health care, including, but not 232
299	292		limited to, the cost of medical supplies and in-home services provided 233
300	293		by a homemaker-companion agency as defined in section 20-670 and a 234
301		-	home health agency as defined in section 19a-490. 235 Committee Bill No. 274
	294	+	home health agency as defined in section 19a-490. 235
	295	+	Committee Bill No. 274
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308	300		This act shall take effect as follows and shall amend the following
309	301		sections:
310	302
311	303		Section 1 from passage and
312	304		applicable to taxable years
313	305		commencing on or after
314	306		January 1, 2021
315	307		12-701(a)(20)(B)
316	308
317		-	AGE Joint Favorable C/R FIN
	309	+	Statement of Purpose:
	310	+	To allow a state income tax deduction of up to sixty thousand dollars
	311	+	for the cost of full-time home health care.
	312	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	313	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	314	+	underlined.]
	315	+
	316	+	Co-Sponsors: SEN. KELLY, 21st Dist.; REP. BOLINSKY, 106th Dist.
	317	+
	318	+	S.B. 274
	319	+
318	320