Connecticut 2022 Regular Session

Connecticut House Bill HB05173 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	6		General Assembly Raised Bill No. 5173
8	7		February Session, 2022
9	8		LCO No. 871
10	9
11	10
12	11		Referred to Committee on PUBLIC SAFETY AND SECURITY
13	12
14	13
15	14		Introduced by:
16	15		(PS)
	16	+
17	17
18	18
19	19
20	20		AN ACT ALLOWING A PERSONAL INCOME TAX DEDUCTION FOR
21	21		STIPENDS PAID TO VOLUNTEER FIREFIGHTERS AND VOLUNTEER
22	22		AMBULANCE MEMBERS.
23	23		Be it enacted by the Senate and House of Representatives in General
24	24		Assembly convened:
25	25
26	26		Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
27	27		section 12-701 of the 2022 supplement to the general statutes is repealed 2
28	28		and the following is substituted in lieu thereof (Effective January 1, 2023, 3
29	29		and applicable to taxable years commencing on or after January 1, 2023): 4
30	30		(B) There shall be subtracted therefrom: 5
31	31		(i) To the extent properly includable in gross income for federal 6
32	32		income tax purposes, any income with respect to which taxation by any 7
33	33		state is prohibited by federal law; 8
34	34		(ii) To the extent allowable under section 12-718, exempt dividends 9
35	35		paid by a regulated investment company; 10
36	36		(iii) To the extent properly includable in gross income for federal 11
37	37		income tax purposes, the amount of any refund or credit for 12 Raised Bill No. 5173
38	38
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43	42
44	43		overpayment of income taxes imposed by this state, or any other state 13
45	44		of the United States or a political subdivision thereof, or the District of 14
46	45		Columbia; 15
47	46		(iv) To the extent properly includable in gross income for federal 16
48	47		income tax purposes and not otherwise subtracted from federal 17
49	48		adjusted gross income pursuant to clause (x) of this subparagraph in 18
50	49		computing Connecticut adjusted gross income, any tier 1 railroad 19
51	50		retirement benefits; 20
52	51		(v) To the extent any additional allowance for depreciation under 21
53	52		Section 168(k) of the Internal Revenue Code for property placed in 22
54	53		service after September 27, 2017, was added to federal adjusted gross 23
55	54		income pursuant to subparagraph (A)(ix) of this subdivision in 24
56	55		computing Connecticut adjusted gross income, twenty-five per cent of 25
57	56		such additional allowance for depreciation in each of the four 26
58	57		succeeding taxable years; 27
59	58		(vi) To the extent properly includable in gross income for federal 28
60	59		income tax purposes, any interest income from obligations issued by or 29
61	60		on behalf of the state of Connecticut, any political subdivision thereof, 30
62	61		or public instrumentality, state or local authority, district or similar 31
63	62		public entity created under the laws of the state of Connecticut; 32
64	63		(vii) To the extent properly includable in determining the net gain or 33
65	64		loss from the sale or other disposition of capital assets for federal income 34
66	65		tax purposes, any gain from the sale or exchange of obligations issued 35
67	66		by or on behalf of the state of Connecticut, any political subdivision 36
68	67		thereof, or public instrumentality, state or local authority, district or 37
69	68		similar public entity created under the laws of the state of Connecticut, 38
70	69		in the income year such gain was recognized; 39
71	70		(viii) Any interest on indebtedness incurred or continued to purchase 40
72	71		or carry obligations or securities the interest on which is subject to tax 41
73	72		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 Raised Bill No. 5173
	73	+	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 Raised Bill No. 5173
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80	77
81		-	adjusted gross income and is attributable to a trade or business carried 44
	78	+	LCO No. 871 3 of 9
	79	+
82	80		on by such individual; 45
83	81		(ix) Ordinary and necessary expenses paid or incurred during the 46
84	82		taxable year for the production or collection of income which is subject 47
85	83		to taxation under this chapter but exempt from federal income tax, or 48
86	84		the management, conservation or maintenance of property held for the 49
87	85		production of such income, and the amortizable bond premium for the 50
88	86		taxable year on any bond the interest on which is subject to tax under 51
89	87		this chapter but exempt from federal income tax, to the extent that such 52
90	88		expenses and premiums are not deductible in determining federal 53
91	89		adjusted gross income and are attributable to a trade or business carried 54
92	90		on by such individual; 55
93	91		(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
94	92		person who files a return under the federal income tax as an unmarried 57
95	93		individual whose federal adjusted gross income for such taxable year is 58
96	94		less than fifty thousand dollars, or as a married individual filing 59
97	95		separately whose federal adjusted gross income for such taxable year is 60
98	96		less than fifty thousand dollars, or for a husband and wife who file a 61
99	97		return under the federal income tax as married individuals filing jointly 62
100	98		whose federal adjusted gross income for such taxable year is less than 63
101	99		sixty thousand dollars or a person who files a return under the federal 64
102	100		income tax as a head of household whose federal adjusted gross income 65
103	101		for such taxable year is less than sixty thousand dollars, an amount 66
104	102		equal to the Social Security benefits includable for federal income tax 67
105	103		purposes; 68
106	104		(II) For taxable years commencing prior to January 1, 2019, for a 69
107	105		person who files a return under the federal income tax as an unmarried 70
108	106		individual whose federal adjusted gross income for such taxable year is 71
109	107		fifty thousand dollars or more, or as a married individual filing 72
110	108		separately whose federal adjusted gross income for such taxable year is 73
111	109		fifty thousand dollars or more, or for a husband and wife who file a 74
112	110		return under the federal income tax as married individuals filing jointly 75
113		-	whose federal adjusted gross income from such taxable year is sixty 76 Raised Bill No. 5173
	111	+	whose federal adjusted gross income from such taxable year is sixty 76
	112	+	thousand dollars or more or for a person who files a return under the 77 Raised Bill No. 5173
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119	115
120		-	thousand dollars or more or for a person who files a return under the 77
	116	+	LCO No. 871 4 of 9
	117	+
121	118		federal income tax as a head of household whose federal adjusted gross 78
122	119		income for such taxable year is sixty thousand dollars or more, an 79
123	120		amount equal to the difference between the amount of Social Security 80
124	121		benefits includable for federal income tax purposes and the lesser of 81
125	122		twenty-five per cent of the Social Security benefits received during the 82
126	123		taxable year, or twenty-five per cent of the excess described in Section 83
127	124		86(b)(1) of the Internal Revenue Code; 84
128	125		(III) For the taxable year commencing January 1, 2019, and each 85
129	126		taxable year thereafter, for a person who files a return under the federal 86
130	127		income tax as an unmarried individual whose federal adjusted gross 87
131	128		income for such taxable year is less than seventy-five thousand dollars, 88
132	129		or as a married individual filing separately whose federal adjusted gross 89
133	130		income for such taxable year is less than seventy-five thousand dollars, 90
134	131		or for a husband and wife who file a return under the federal income tax 91
135	132		as married individuals filing jointly whose federal adjusted gross 92
136	133		income for such taxable year is less than one hundred thousand dollars 93
137	134		or a person who files a return under the federal income tax as a head of 94
138	135		household whose federal adjusted gross income for such taxable year is 95
139	136		less than one hundred thousand dollars, an amount equal to the Social 96
140	137		Security benefits includable for federal income tax purposes; and 97
141	138		(IV) For the taxable year commencing January 1, 2019, and each 98
142	139		taxable year thereafter, for a person who files a return under the federal 99
143	140		income tax as an unmarried individual whose federal adjusted gross 100
144	141		income for such taxable year is seventy-five thousand dollars or more, 101
145	142		or as a married individual filing separately whose federal adjusted gross 102
146	143		income for such taxable year is seventy-five thousand dollars or more, 103
147	144		or for a husband and wife who file a return under the federal income tax 104
148	145		as married individuals filing jointly whose federal adjusted gross 105
149	146		income from such taxable year is one hundred thousand dollars or more 106
150	147		or for a person who files a return under the federal income tax as a head 107
151	148		of household whose federal adjusted gross income for such taxable year 108
152		-	is one hundred thousand dollars or more, an amount equal to the 109 Raised Bill No. 5173
	149	+	is one hundred thousand dollars or more, an amount equal to the 109
	150	+	difference between the amount of Social Security benefits includable for 110
	151	+	federal income tax purposes and the lesser of twenty-five per cent of the 111 Raised Bill No. 5173
153	152
154	153
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158	154
159		-	~~difference between the amount~~ of ~~Social Security benefits includable for 110~~
160		-	~~federal income tax purposes and the lesser of twenty-five per cent of the 111~~
	155	+	LCO No. 871 5 of 9
	156	+
161	157		Social Security benefits received during the taxable year, or twenty-five 112
162	158		per cent of the excess described in Section 86(b)(1) of the Internal 113
163	159		Revenue Code; 114
164	160		(xi) To the extent properly includable in gross income for federal 115
165	161		income tax purposes, any amount rebated to a taxpayer pursuant to 116
166	162		section 12-746; 117
167	163		(xii) To the extent properly includable in the gross income for federal 118
168	164		income tax purposes of a designated beneficiary, any distribution to 119
169	165		such beneficiary from any qualified state tuition program, as defined in 120
170	166		Section 529(b) of the Internal Revenue Code, established and 121
171	167		maintained by this state or any official, agency or instrumentality of the 122
172	168		state; 123
173	169		(xiii) To the extent allowable under section 12-701a, contributions to 124
174	170		accounts established pursuant to any qualified state tuition program, as 125
175	171		defined in Section 529(b) of the Internal Revenue Code, established and 126
176	172		maintained by this state or any official, agency or instrumentality of the 127
177	173		state; 128
178	174		(xiv) To the extent properly includable in gross income for federal 129
179	175		income tax purposes, the amount of any Holocaust victims' settlement 130
180	176		payment received in the taxable year by a Holocaust victim; 131
181	177		(xv) To the extent properly includable in gross income for federal 132
182	178		income tax purposes of an account holder, as defined in section 31-133
183	179		51ww, interest earned on funds deposited in the individual 134
184	180		development account, as defined in section 31-51ww, of such account 135
185	181		holder; 136
186	182		(xvi) To the extent properly includable in the gross income for federal 137
187	183		income tax purposes of a designated beneficiary, as defined in section 138
188	184		3-123aa, interest, dividends or capital gains earned on contributions to 139
189		-	accounts established for the designated beneficiary pursuant to the 140 Raised Bill No. 5173
	185	+	accounts established for the designated beneficiary pursuant to the 140
	186	+	Connecticut Homecare Option Program for the Elderly established by 141
	187	+	sections 3-123aa to 3-123ff, inclusive; 142 Raised Bill No. 5173
190	188
191	189
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195	190
196		-	~~Connecticut Homecare Option Program for the Elderly established by 141~~
197		-	~~sections 3-123aa to 3-123ff, inclusive; 142~~
	191	+	LCO No. 871 6 of 9
	192	+
198	193		(xvii) To the extent properly includable in gross income for federal 143
199	194		income tax purposes, any income received from the United States 144
200	195		government as retirement pay for a retired member of (I) the Armed 145
201	196		Forces of the United States, as defined in Section 101 of Title 10 of the 146
202	197		United States Code, or (II) the National Guard, as defined in Section 101 147
203	198		of Title 10 of the United States Code; 148
204	199		(xviii) To the extent properly includable in gross income for federal 149
205	200		income tax purposes for the taxable year, any income from the discharge 150
206	201		of indebtedness in connection with any reacquisition, after December 151
207	202		31, 2008, and before January 1, 2011, of an applicable debt instrument or 152
208	203		instruments, as those terms are defined in Section 108 of the Internal 153
209	204		Revenue Code, as amended by Section 1231 of the American Recovery 154
210	205		and Reinvestment Act of 2009, to the extent any such income was added 155
211	206		to federal adjusted gross income pursuant to subparagraph (A)(xi) of 156
212	207		this subdivision in computing Connecticut adjusted gross income for a 157
213	208		preceding taxable year; 158
214	209		(xix) To the extent not deductible in determining federal adjusted 159
215	210		gross income, the amount of any contribution to a manufacturing 160
216	211		reinvestment account established pursuant to section 32-9zz in the 161
217	212		taxable year that such contribution is made; 162
218	213		(xx) To the extent properly includable in gross income for federal 163
219	214		income tax purposes, (I) for the taxable year commencing January 1, 164
220	215		2015, ten per cent of the income received from the state teachers' 165
221	216		retirement system, (II) for the taxable years commencing January 1, 166
222	217		2016, to January 1, 2020, inclusive, twenty-five per cent of the income 167
223	218		received from the state teachers' retirement system, and (III) for the 168
224	219		taxable year commencing January 1, 2021, and each taxable year 169
225	220		thereafter, fifty per cent of the income received from the state teachers' 170
226	221		retirement system or, for a taxpayer whose federal adjusted gross 171
227		-	income does not exceed the applicable threshold under clause (xxi) of 172 Raised Bill No. 5173
	222	+	income does not exceed the applicable threshold under clause (xxi) of 172
	223	+	this subparagraph, the percentage pursuant to said clause of the income 173
	224	+	received from the state teachers' retirement system, whichever 174
	225	+	deduction is greater; 175 Raised Bill No. 5173
228	226
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234		-	this subparagraph, the percentage pursuant to said clause of the income 173
235		-	received from the state teachers' retirement system, whichever 174
236		-	deduction is greater; 175
	229	+	LCO No. 871 7 of 9
	230	+
237	231		(xxi) To the extent properly includable in gross income for federal 176
238	232		income tax purposes, except for retirement benefits under clause (iv) of 177
239	233		this subparagraph and retirement pay under clause (xvii) of this 178
240	234		subparagraph, for a person who files a return under the federal income 179
241	235		tax as an unmarried individual whose federal adjusted gross income for 180
242	236		such taxable year is less than seventy-five thousand dollars, or as a 181
243	237		married individual filing separately whose federal adjusted gross 182
244	238		income for such taxable year is less than seventy-five thousand dollars, 183
245	239		or as a head of household whose federal adjusted gross income for such 184
246	240		taxable year is less than seventy-five thousand dollars, or for a husband 185
247	241		and wife who file a return under the federal income tax as married 186
248	242		individuals filing jointly whose federal adjusted gross income for such 187
249	243		taxable year is less than one hundred thousand dollars, (I) for the taxable 188
250	244		year commencing January 1, 2019, fourteen per cent of any pension or 189
251	245		annuity income, (II) for the taxable year commencing January 1, 2020, 190
252	246		twenty-eight per cent of any pension or annuity income, (III) for the 191
253	247		taxable year commencing January 1, 2021, forty-two per cent of any 192
254	248		pension or annuity income, (IV) for the taxable year commencing 193
255	249		January 1, 2022, fifty-six per cent of any pension or annuity income, (V) 194
256	250		for the taxable year commencing January 1, 2023, seventy per cent of any 195
257	251		pension or annuity income, (VI) for the taxable year commencing 196
258	252		January 1, 2024, eighty-four per cent of any pension or annuity income, 197
259	253		and (VII) for the taxable year commencing January 1, 2025, and each 198
260	254		taxable year thereafter, any pension or annuity income; 199
261	255		(xxii) The amount of lost wages and medical, travel and housing 200
262	256		expenses, not to exceed ten thousand dollars in the aggregate, incurred 201
263	257		by a taxpayer during the taxable year in connection with the donation 202
264	258		to another person of an organ for organ transplantation occurring on or 203
265	259		after January 1, 2017; 204
266		-	(xxiii) To the extent properly includable in gross income for federal 205 Raised Bill No. 5173
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	260	+	(xxiii) To the extent properly includable in gross income for federal 205
273	261		income tax purposes, the amount of any financial assistance received 206
274	262		from the Crumbling Foundations Assistance Fund or paid to or on 207
275	263		behalf of the owner of a residential building pursuant to sections 8-442 208
276		-	and 8-443; 209
	264	+	and 8-443; 209 Raised Bill No. 5173
	265	+
	266	+
	267	+
	268	+	LCO No. 871 8 of 9
	269	+
277	270		(xxiv) To the extent properly includable in gross income for federal 210
278	271		income tax purposes, the amount calculated pursuant to subsection (b) 211
279	272		of section 12-704g for income received by a general partner of a venture 212
280	273		capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 213
281	274		time; 214
282	275		(xxv) To the extent any portion of a deduction under Section 179 of 215
283	276		the Internal Revenue Code was added to federal adjusted gross income 216
284	277		pursuant to subparagraph (A)(xiv) of this subdivision in computing 217
285	278		Connecticut adjusted gross income, twenty-five per cent of such 218
286	279		disallowed portion of the deduction in each of the four succeeding 219
287	280		taxable years; [and] 220
288	281		(xxvi) To the extent properly includable in gross income for federal 221
289	282		income tax purposes, for a person who files a return under the federal 222
290	283		income tax as an unmarried individual whose federal adjusted gross 223
291	284		income for such taxable year is less than seventy-five thousand dollars, 224
292	285		or as a married individual filing separately whose federal adjusted gross 225
293	286		income for such taxable year is less than seventy-five thousand dollars, 226
294	287		or as a head of household whose federal adjusted gross income for such 227
295	288		taxable year is less than seventy-five thousand dollars, or for a husband 228
296	289		and wife who file a return under the federal income tax as married 229
297	290		individuals filing jointly whose federal adjusted gross income for such 230
298	291		taxable year is less than one hundred thousand dollars, (I) for the taxable 231
299	292		year commencing January 1, 2023, twenty-five per cent of any 232
300	293		distribution from an individual retirement account other than a Roth 233
301	294		individual retirement account, (II) for the taxable year commencing 234
302	295		January 1, 2024, fifty per cent of any distribution from an individual 235
303	296		retirement account other than a Roth individual retirement account, (III) 236
304	297		for the taxable year commencing January 1, 2025, seventy-five per cent 237
305		-	of any distribution from an individual retirement account other than a 238 Raised Bill No. 5173
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311		-
	298	+	of any distribution from an individual retirement account other than a 238
312	299		Roth individual retirement account, and (IV) for the taxable year 239
313	300		commencing January 1, 2026, and each taxable year thereafter, any 240
314	301		distribution from an individual retirement account other than a Roth 241
315		-	individual retirement account; and 242
	302	+	individual retirement account; and 242 Raised Bill No. 5173
	303	+
	304	+
	305	+
	306	+	LCO No. 871 9 of 9
	307	+
316	308		(xxvii) To the extent properly includable in gross income for federal 243
317	309		income tax purposes, any qualified payment, as defined in Section 139B 244
318	310		of the Internal Revenue Code, not to exceed nine hundred dollars in the 245
319	311		aggregate. 246
320	312		This act shall take effect as follows and shall amend the following
321	313		sections:
322	314
323	315		Section 1 January 1, 2023, and
324	316		applicable to taxable years
325	317		commencing on or after
326	318		January 1, 2023
327	319		12-701(a)(20)(B)
328	320
329		-	PS Joint Favorable
	321	+	Statement of Purpose:
	322	+	To allow a personal income tax deduction for a stipend made by a
	323	+	municipality, volunteer fire department or volunteer ambulance
	324	+	association to a volunteer firefighter, fire police officer or volunteer
	325	+	ambulance member.
	326	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	327	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	328	+	underlined.]
330	329