Connecticut 2022 Regular Session

Connecticut House Bill HB05371 Compare Versions

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Version 2 (New)

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7		-	General Assembly Substitute Bill No. 5371
	4	+	LCO No. 2628 1 of 9
	5	+
	6	+	General Assembly Raised Bill No. 5371
8	7		February Session, 2022
	8	+	LCO No. 2628
9	9
	10	+
	11	+	Referred to Committee on VETERANS' AFFAIRS
	12	+
	13	+
	14	+	Introduced by:
	15	+	(VA)
10	16
11	17
12	18
13	19
14	20		AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
15	21		FOR HONOR GUARD DETAIL COMPENSATION.
16	22		Be it enacted by the Senate and House of Representatives in General
17	23		Assembly convened:
18	24
19	25		Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
20	26		section 12-701 of the 2022 supplement to the general statutes is repealed 2
21		-	and the following is substituted in lieu thereof (Effective January 1, 2023, 3
22		-	and applicable to taxable years commencing on or after January 1, 2023): 4
23		-	(B) There shall be subtracted therefrom: 5
24		-	(i) To the extent properly includable in gross income for federal 6
25		-	income tax purposes, any income with respect to which taxation by any 7
26		-	state is prohibited by federal law; 8
27		-	(ii) To the extent allowable under section 12-718, exempt dividends 9
28		-	paid by a regulated investment company; 10
29		-	(iii) To the extent properly includable in gross income for federal 11
30		-	income tax purposes, the amount of any refund or credit for 12
31		-	overpayment of income taxes imposed by this state, or any other state 13
32		-	of the United States or a political subdivision thereof, or the District of 14
33		-	Columbia; 15
34		-	(iv) To the extent properly includable in gross income for federal 16 Substitute Bill No. 5371
	27	+	and the following is substituted in lieu thereof (Effective July 1, 2022): 3
	28	+	(B) There shall be subtracted therefrom: 4
	29	+	(i) To the extent properly includable in gross income for federal 5
	30	+	income tax purposes, any income with respect to which taxation by any 6
	31	+	state is prohibited by federal law; 7
	32	+	(ii) To the extent allowable under section 12-718, exempt dividends 8
	33	+	paid by a regulated investment company; 9
	34	+	(iii) To the extent properly includable in gross income for federal 10
	35	+	income tax purposes, the amount of any refund or credit for 11
	36	+	overpayment of income taxes imposed by this state, or any other state 12
	37	+	of the United States or a political subdivision thereof, or the District of 13
	38	+	LCO No. 2628 2 of 9
35	39
	40	+	Columbia; 14
	41	+	(iv) To the extent properly includable in gross income for federal 15
	42	+	income tax purposes and not otherwise subtracted from federal 16
	43	+	adjusted gross income pursuant to clause (x) of this subparagraph in 17
	44	+	computing Connecticut adjusted gross income, any tier 1 railroad 18
	45	+	retirement benefits; 19
	46	+	(v) To the extent any additional allowance for depreciation under 20
	47	+	Section 168(k) of the Internal Revenue Code for property placed in 21
	48	+	service after September 27, 2017, was added to federal adjusted gross 22
	49	+	income pursuant to subparagraph (A)(ix) of this subdivision in 23
	50	+	computing Connecticut adjusted gross income, twenty-five per cent of 24
	51	+	such additional allowance for depreciation in each of the four 25
	52	+	succeeding taxable years; 26
	53	+	(vi) To the extent properly includable in gross income for federal 27
	54	+	income tax purposes, any interest income from obligations issued by or 28
	55	+	on behalf of the state of Connecticut, any political subdivision thereof, 29
	56	+	or public instrumentality, state or local authority, district or similar 30
	57	+	public entity created under the laws of the state of Connecticut; 31
	58	+	(vii) To the extent properly includable in determining the net gain or 32
	59	+	loss from the sale or other disposition of capital assets for federal income 33
	60	+	tax purposes, any gain from the sale or exchange of obligations issued 34
	61	+	by or on behalf of the state of Connecticut, any political subdivision 35
	62	+	thereof, or public instrumentality, state or local authority, district or 36
	63	+	similar public entity created under the laws of the state of Connecticut, 37
	64	+	in the income year such gain was recognized; 38
	65	+	(viii) Any interest on indebtedness incurred or continued to purchase 39
	66	+	or carry obligations or securities the interest on which is subject to tax 40
	67	+	under this chapter but exempt from federal income tax, to the extent that 41
	68	+	such interest on indebtedness is not deductible in determining federal 42
	69	+	adjusted gross income and is attributable to a trade or business carried 43
	70	+	on by such individual; 44
	71	+	LCO No. 2628 3 of 9
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	73	+	(ix) Ordinary and necessary expenses paid or incurred during the 45
	74	+	taxable year for the production or collection of income which is subject 46
	75	+	to taxation under this chapter but exempt from federal income tax, or 47
	76	+	the management, conservation or maintenance of property held for the 48
	77	+	production of such income, and the amortizable bond premium for the 49
	78	+	taxable year on any bond the interest on which is subject to tax under 50
	79	+	this chapter but exempt from federal income tax, to the extent that such 51
	80	+	expenses and premiums are not deductible in determining federal 52
	81	+	adjusted gross income and are attributable to a trade or business carried 53
	82	+	on by such individual; 54
	83	+	(x) (I) For taxable years commencing prior to January 1, 2019, for a 55
	84	+	person who files a return under the federal income tax as an unmarried 56
	85	+	individual whose federal adjusted gross income for such taxable year is 57
	86	+	less than fifty thousand dollars, or as a married individual filing 58
	87	+	separately whose federal adjusted gross income for such taxable year is 59
	88	+	less than fifty thousand dollars, or for a husband and wife who file a 60
	89	+	return under the federal income tax as married individuals filing jointly 61
	90	+	whose federal adjusted gross income for such taxable year is less than 62
	91	+	sixty thousand dollars or a person who files a return under the federal 63
	92	+	income tax as a head of household whose federal adjusted gross income 64
	93	+	for such taxable year is less than sixty thousand dollars, an amount 65
	94	+	equal to the Social Security benefits includable for federal income tax 66
	95	+	purposes; 67
	96	+	(II) For taxable years commencing prior to January 1, 2019, for a 68
	97	+	person who files a return under the federal income tax as an unmarried 69
	98	+	individual whose federal adjusted gross income for such taxable year is 70
	99	+	fifty thousand dollars or more, or as a married individual filing 71
	100	+	separately whose federal adjusted gross income for such taxable year is 72
	101	+	fifty thousand dollars or more, or for a husband and wife who file a 73
	102	+	return under the federal income tax as married individuals filing jointly 74
	103	+	whose federal adjusted gross income from such taxable year is sixty 75
	104	+	thousand dollars or more or for a person who files a return under the 76
	105	+	federal income tax as a head of household whose federal adjusted gross 77
	106	+	income for such taxable year is sixty thousand dollars or more, an 78
	107	+	LCO No. 2628 4 of 9
40	108
41		-	income tax purposes and not otherwise subtracted from federal 17
42		-	adjusted gross income pursuant to clause (x) of this subparagraph in 18
43		-	computing Connecticut adjusted gross income, any tier 1 railroad 19
44		-	retirement benefits; 20
45		-	(v) To the extent any additional allowance for depreciation under 21
46		-	Section 168(k) of the Internal Revenue Code for property placed in 22
47		-	service after September 27, 2017, was added to federal adjusted gross 23
48		-	income pursuant to subparagraph (A)(ix) of this subdivision in 24
49		-	computing Connecticut adjusted gross income, twenty-five per cent of 25
50		-	such additional allowance for depreciation in each of the four 26
51		-	succeeding taxable years; 27
52		-	(vi) To the extent properly includable in gross income for federal 28
53		-	income tax purposes, any interest income from obligations issued by or 29
54		-	on behalf of the state of Connecticut, any political subdivision thereof, 30
55		-	or public instrumentality, state or local authority, district or similar 31
56		-	public entity created under the laws of the state of Connecticut; 32
57		-	(vii) To the extent properly includable in determining the net gain or 33
58		-	loss from the sale or other disposition of capital assets for federal income 34
59		-	tax purposes, any gain from the sale or exchange of obligations issued 35
60		-	by or on behalf of the state of Connecticut, any political subdivision 36
61		-	thereof, or public instrumentality, state or local authority, district or 37
62		-	similar public entity created under the laws of the state of Connecticut, 38
63		-	in the income year such gain was recognized; 39
64		-	(viii) Any interest on indebtedness incurred or continued to purchase 40
65		-	or carry obligations or securities the interest on which is subject to tax 41
66		-	under this chapter but exempt from federal income tax, to the extent that 42
67		-	such interest on indebtedness is not deductible in determining federal 43
68		-	adjusted gross income and is attributable to a trade or business carried 44
69		-	on by such individual; 45
70		-	(ix) Ordinary and necessary expenses paid or incurred during the 46
71		-	taxable year for the production or collection of income which is subject 47 Substitute Bill No. 5371
	109	+	amount equal to the difference between the amount of Social Security 79
	110	+	benefits includable for federal income tax purposes and the lesser of 80
	111	+	twenty-five per cent of the Social Security benefits received during the 81
	112	+	taxable year, or twenty-five per cent of the excess described in Section 82
	113	+	86(b)(1) of the Internal Revenue Code; 83
	114	+	(III) For the taxable year commencing January 1, 2019, and each 84
	115	+	taxable year thereafter, for a person who files a return under the federal 85
	116	+	income tax as an unmarried individual whose federal adjusted gross 86
	117	+	income for such taxable year is less than seventy-five thousand dollars, 87
	118	+	or as a married individual filing separately whose federal adjusted gross 88
	119	+	income for such taxable year is less than seventy-five thousand dollars, 89
	120	+	or for a husband and wife who file a return under the federal income tax 90
	121	+	as married individuals filing jointly whose federal adjusted gross 91
	122	+	income for such taxable year is less than one hundred thousand dollars 92
	123	+	or a person who files a return under the federal income tax as a head of 93
	124	+	household whose federal adjusted gross income for such taxable year is 94
	125	+	less than one hundred thousand dollars, an amount equal to the Social 95
	126	+	Security benefits includable for federal income tax purposes; and 96
	127	+	(IV) For the taxable year commencing January 1, 2019, and each 97
	128	+	taxable year thereafter, for a person who files a return under the federal 98
	129	+	income tax as an unmarried individual whose federal adjusted gross 99
	130	+	income for such taxable year is seventy-five thousand dollars or more, 100
	131	+	or as a married individual filing separately whose federal adjusted gross 101
	132	+	income for such taxable year is seventy-five thousand dollars or more, 102
	133	+	or for a husband and wife who file a return under the federal income tax 103
	134	+	as married individuals filing jointly whose federal adjusted gross 104
	135	+	income from such taxable year is one hundred thousand dollars or more 105
	136	+	or for a person who files a return under the federal income tax as a head 106
	137	+	of household whose federal adjusted gross income for such taxable year 107
	138	+	is one hundred thousand dollars or more, an amount equal to the 108
	139	+	difference between the amount of Social Security benefits includable for 109
	140	+	federal income tax purposes and the lesser of twenty-five per cent of the 110
	141	+	Social Security benefits received during the taxable year, or twenty-five 111
	142	+	per cent of the excess described in Section 86(b)(1) of the Internal 112
	143	+	LCO No. 2628 5 of 9
72	144
	145	+	Revenue Code; 113
	146	+	(xi) To the extent properly includable in gross income for federal 114
	147	+	income tax purposes, any amount rebated to a taxpayer pursuant to 115
	148	+	section 12-746; 116
	149	+	(xii) To the extent properly includable in the gross income for federal 117
	150	+	income tax purposes of a designated beneficiary, any distribution to 118
	151	+	such beneficiary from any qualified state tuition program, as defined in 119
	152	+	Section 529(b) of the Internal Revenue Code, established and 120
	153	+	maintained by this state or any official, agency or instrumentality of the 121
	154	+	state; 122
	155	+	(xiii) To the extent allowable under section 12-701a, contributions to 123
	156	+	accounts established pursuant to any qualified state tuition program, as 124
	157	+	defined in Section 529(b) of the Internal Revenue Code, established and 125
	158	+	maintained by this state or any official, agency or instrumentality of the 126
	159	+	state; 127
	160	+	(xiv) To the extent properly includable in gross income for federal 128
	161	+	income tax purposes, the amount of any Holocaust victims' settlement 129
	162	+	payment received in the taxable year by a Holocaust victim; 130
	163	+	(xv) To the extent properly includable in gross income for federal 131
	164	+	income tax purposes of an account holder, as defined in section 31-132
	165	+	51ww, interest earned on funds deposited in the individual 133
	166	+	development account, as defined in section 31-51ww, of such account 134
	167	+	holder; 135
	168	+	(xvi) To the extent properly includable in the gross income for federal 136
	169	+	income tax purposes of a designated beneficiary, as defined in section 137
	170	+	3-123aa, interest, dividends or capital gains earned on contributions to 138
	171	+	accounts established for the designated beneficiary pursuant to the 139
	172	+	Connecticut Homecare Option Program for the Elderly established by 140
	173	+	sections 3-123aa to 3-123ff, inclusive; 141
	174	+	(xvii) To the extent properly includable in gross income for federal 142
	175	+	income tax purposes, any income received from the United States 143
	176	+	LCO No. 2628 6 of 9
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	178	+	government as retirement pay for a retired member of (I) the Armed 144
	179	+	Forces of the United States, as defined in Section 101 of Title 10 of the 145
	180	+	United States Code, or (II) the National Guard, as defined in Section 101 146
	181	+	of Title 10 of the United States Code; 147
	182	+	(xviii) To the extent properly includable in gross income for federal 148
	183	+	income tax purposes for the taxable year, any income from the discharge 149
	184	+	of indebtedness in connection with any reacquisition, after December 150
	185	+	31, 2008, and before January 1, 2011, of an applicable debt instrument or 151
	186	+	instruments, as those terms are defined in Section 108 of the Internal 152
	187	+	Revenue Code, as amended by Section 1231 of the American Recovery 153
	188	+	and Reinvestment Act of 2009, to the extent any such income was added 154
	189	+	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 155
	190	+	this subdivision in computing Connecticut adjusted gross income for a 156
	191	+	preceding taxable year; 157
	192	+	(xix) To the extent not deductible in determining federal adjusted 158
	193	+	gross income, the amount of any contribution to a manufacturing 159
	194	+	reinvestment account established pursuant to section 32-9zz in the 160
	195	+	taxable year that such contribution is made; 161
	196	+	(xx) To the extent properly includable in gross income for federal 162
	197	+	income tax purposes, (I) for the taxable year commencing January 1, 163
	198	+	2015, ten per cent of the income received from the state teachers' 164
	199	+	retirement system, (II) for the taxable years commencing January 1, 165
	200	+	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 166
	201	+	received from the state teachers' retirement system, and (III) for the 167
	202	+	taxable year commencing January 1, 2021, and each taxable year 168
	203	+	thereafter, fifty per cent of the income received from the state teachers' 169
	204	+	retirement system or, for a taxpayer whose federal adjusted gross 170
	205	+	income does not exceed the applicable threshold under clause (xxi) of 171
	206	+	this subparagraph, the percentage pursuant to said clause of the income 172
	207	+	received from the state teachers' retirement system, whichever 173
	208	+	deduction is greater; 174
	209	+	(xxi) To the extent properly includable in gross income for federal 175
	210	+	income tax purposes, except for retirement benefits under clause (iv) of 176
	211	+	LCO No. 2628 7 of 9
77	212
78		-	to taxation under this chapter but exempt from federal income tax, or 48
79		-	the management, conservation or maintenance of property held for the 49
80		-	production of such income, and the amortizable bond premium for the 50
81		-	taxable year on any bond the interest on which is subject to tax under 51
82		-	this chapter but exempt from federal income tax, to the extent that such 52
83		-	expenses and premiums are not deductible in determining federal 53
84		-	adjusted gross income and are attributable to a trade or business carried 54
85		-	on by such individual; 55
86		-	(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
87		-	person who files a return under the federal income tax as an unmarried 57
88		-	individual whose federal adjusted gross income for such taxable year is 58
89		-	less than fifty thousand dollars, or as a married individual filing 59
90		-	separately whose federal adjusted gross income for such taxable year is 60
91		-	less than fifty thousand dollars, or for a husband and wife who file a 61
92		-	return under the federal income tax as married individuals filing jointly 62
93		-	whose federal adjusted gross income for such taxable year is less than 63
94		-	sixty thousand dollars or a person who files a return under the federal 64
95		-	income tax as a head of household whose federal adjusted gross income 65
96		-	for such taxable year is less than sixty thousand dollars, an amount 66
97		-	equal to the Social Security benefits includable for federal income tax 67
98		-	purposes; 68
99		-	(II) For taxable years commencing prior to January 1, 2019, for a 69
100		-	person who files a return under the federal income tax as an unmarried 70
101		-	individual whose federal adjusted gross income for such taxable year is 71
102		-	fifty thousand dollars or more, or as a married individual filing 72
103		-	separately whose federal adjusted gross income for such taxable year is 73
104		-	fifty thousand dollars or more, or for a husband and wife who file a 74
105		-	return under the federal income tax as married individuals filing jointly 75
106		-	whose federal adjusted gross income from such taxable year is sixty 76
107		-	thousand dollars or more or for a person who files a return under the 77
108		-	federal income tax as a head of household whose federal adjusted gross 78
109		-	income for such taxable year is sixty thousand dollars or more, an 79
110		-	amount equal to the difference between the amount of Social Security 80 Substitute Bill No. 5371
	213	+	this subparagraph and retirement pay under clause (xvii) of this 177
	214	+	subparagraph, for a person who files a return under the federal income 178
	215	+	tax as an unmarried individual whose federal adjusted gross income for 179
	216	+	such taxable year is less than seventy-five thousand dollars, or as a 180
	217	+	married individual filing separately whose federal adjusted gross 181
	218	+	income for such taxable year is less than seventy-five thousand dollars, 182
	219	+	or as a head of household whose federal adjusted gross income for such 183
	220	+	taxable year is less than seventy-five thousand dollars, or for a husband 184
	221	+	and wife who file a return under the federal income tax as married 185
	222	+	individuals filing jointly whose federal adjusted gross income for such 186
	223	+	taxable year is less than one hundred thousand dollars, (I) for the taxable 187
	224	+	year commencing January 1, 2019, fourteen per cent of any pension or 188
	225	+	annuity income, (II) for the taxable year commencing January 1, 2020, 189
	226	+	twenty-eight per cent of any pension or annuity income, (III) for the 190
	227	+	taxable year commencing January 1, 2021, forty-two per cent of any 191
	228	+	pension or annuity income, (IV) for the taxable year commencing 192
	229	+	January 1, 2022, fifty-six per cent of any pension or annuity income, (V) 193
	230	+	for the taxable year commencing January 1, 2023, seventy per cent of any 194
	231	+	pension or annuity income, (VI) for the taxable year commencing 195
	232	+	January 1, 2024, eighty-four per cent of any pension or annuity income, 196
	233	+	and (VII) for the taxable year commencing January 1, 2025, and each 197
	234	+	taxable year thereafter, any pension or annuity income; 198
	235	+	(xxii) The amount of lost wages and medical, travel and housing 199
	236	+	expenses, not to exceed ten thousand dollars in the aggregate, incurred 200
	237	+	by a taxpayer during the taxable year in connection with the donation 201
	238	+	to another person of an organ for organ transplantation occurring on or 202
	239	+	after January 1, 2017; 203
	240	+	(xxiii) To the extent properly includable in gross income for federal 204
	241	+	income tax purposes, the amount of any financial assistance received 205
	242	+	from the Crumbling Foundations Assistance Fund or paid to or on 206
	243	+	behalf of the owner of a residential building pursuant to sections 8-442 207
	244	+	and 8-443; 208
	245	+	(xxiv) To the extent properly includable in gross income for federal 209
	246	+	LCO No. 2628 8 of 9
111	247
	248	+	income tax purposes, the amount calculated pursuant to subsection (b) 210
	249	+	of section 12-704g for income received by a general partner of a venture 211
	250	+	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 212
	251	+	time; 213
	252	+	(xxv) To the extent any portion of a deduction under Section 179 of 214
	253	+	the Internal Revenue Code was added to federal adjusted gross income 215
	254	+	pursuant to subparagraph (A)(xiv) of this subdivision in computing 216
	255	+	Connecticut adjusted gross income, twenty-five per cent of such 217
	256	+	disallowed portion of the deduction in each of the four succeeding 218
	257	+	taxable years; [and] 219
	258	+	(xxvi) To the extent properly includable in gross income for federal 220
	259	+	income tax purposes, for a person who files a return under the federal 221
	260	+	income tax as an unmarried individual whose federal adjusted gross 222
	261	+	income for such taxable year is less than seventy-five thousand dollars, 223
	262	+	or as a married individual filing separately whose federal adjusted gross 224
	263	+	income for such taxable year is less than seventy-five thousand dollars, 225
	264	+	or as a head of household whose federal adjusted gross income for such 226
	265	+	taxable year is less than seventy-five thousand dollars, or for a husband 227
	266	+	and wife who file a return under the federal income tax as married 228
	267	+	individuals filing jointly whose federal adjusted gross income for such 229
	268	+	taxable year is less than one hundred thousand dollars, (I) for the taxable 230
	269	+	year commencing January 1, 2023, twenty-five per cent of any 231
	270	+	distribution from an individual retirement account other than a Roth 232
	271	+	individual retirement account, (II) for the taxable year commencing 233
	272	+	January 1, 2024, fifty per cent of any distribution from an individual 234
	273	+	retirement account other than a Roth individual retirement account, (III) 235
	274	+	for the taxable year commencing January 1, 2025, seventy-five per cent 236
	275	+	of any distribution from an individual retirement account other than a 237
	276	+	Roth individual retirement account, and (IV) for the taxable year 238
	277	+	commencing January 1, 2026, and each taxable year thereafter, any 239
	278	+	distribution from an individual retirement account other than a Roth 240
	279	+	individual retirement account; and 241
	280	+	(xxvii) To the extent properly includable in gross income for federal 242
	281	+	LCO No. 2628 9 of 9
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116		-
117		-	benefits includable for federal income tax purposes and the lesser of 81
118		-	twenty-five per cent of the Social Security benefits received during the 82
119		-	taxable year, or twenty-five per cent of the excess described in Section 83
120		-	86(b)(1) of the Internal Revenue Code; 84
121		-	(III) For the taxable year commencing January 1, 2019, and each 85
122		-	taxable year thereafter, for a person who files a return under the federal 86
123		-	income tax as an unmarried individual whose federal adjusted gross 87
124		-	income for such taxable year is less than seventy-five thousand dollars, 88
125		-	or as a married individual filing separately whose federal adjusted gross 89
126		-	income for such taxable year is less than seventy-five thousand dollars, 90
127		-	or for a husband and wife who file a return under the federal income tax 91
128		-	as married individuals filing jointly whose federal adjusted gross 92
129		-	income for such taxable year is less than one hundred thousand dollars 93
130		-	or a person who files a return under the federal income tax as a head of 94
131		-	household whose federal adjusted gross income for such taxable year is 95
132		-	less than one hundred thousand dollars, an amount equal to the Social 96
133		-	Security benefits includable for federal income tax purposes; and 97
134		-	(IV) For the taxable year commencing January 1, 2019, and each 98
135		-	taxable year thereafter, for a person who files a return under the federal 99
136		-	income tax as an unmarried individual whose federal adjusted gross 100
137		-	income for such taxable year is seventy-five thousand dollars or more, 101
138		-	or as a married individual filing separately whose federal adjusted gross 102
139		-	income for such taxable year is seventy-five thousand dollars or more, 103
140		-	or for a husband and wife who file a return under the federal income tax 104
141		-	as married individuals filing jointly whose federal adjusted gross 105
142		-	income from such taxable year is one hundred thousand dollars or more 106
143		-	or for a person who files a return under the federal income tax as a head 107
144		-	of household whose federal adjusted gross income for such taxable year 108
145		-	is one hundred thousand dollars or more, an amount equal to the 109
146		-	difference between the amount of Social Security benefits includable for 110
147		-	federal income tax purposes and the lesser of twenty-five per cent of the 111
148		-	Social Security benefits received during the taxable year, or twenty-five 112
149		-	per cent of the excess described in Section 86(b)(1) of the Internal 113 Substitute Bill No. 5371
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155		-
156		-	Revenue Code; 114
157		-	(xi) To the extent properly includable in gross income for federal 115
158		-	income tax purposes, any amount rebated to a taxpayer pursuant to 116
159		-	section 12-746; 117
160		-	(xii) To the extent properly includable in the gross income for federal 118
161		-	income tax purposes of a designated beneficiary, any distribution to 119
162		-	such beneficiary from any qualified state tuition program, as defined in 120
163		-	Section 529(b) of the Internal Revenue Code, established and 121
164		-	maintained by this state or any official, agency or instrumentality of the 122
165		-	state; 123
166		-	(xiii) To the extent allowable under section 12-701a, contributions to 124
167		-	accounts established pursuant to any qualified state tuition program, as 125
168		-	defined in Section 529(b) of the Internal Revenue Code, established and 126
169		-	maintained by this state or any official, agency or instrumentality of the 127
170		-	state; 128
171		-	(xiv) To the extent properly includable in gross income for federal 129
172		-	income tax purposes, the amount of any Holocaust victims' settlement 130
173		-	payment received in the taxable year by a Holocaust victim; 131
174		-	(xv) To the extent properly includable in gross income for federal 132
175		-	income tax purposes of an account holder, as defined in section 31-133
176		-	51ww, interest earned on funds deposited in th e individual 134
177		-	development account, as defined in section 31-51ww, of such account 135
178		-	holder; 136
179		-	(xvi) To the extent properly includable in the gross income for federal 137
180		-	income tax purposes of a designated beneficiary, as defined in section 138
181		-	3-123aa, interest, dividends or capital gains earned on contributions to 139
182		-	accounts established for the designated beneficiary pursuant to the 140
183		-	Connecticut Homecare Option Program for the Elderly established by 141
184		-	sections 3-123aa to 3-123ff, inclusive; 142
185		-	(xvii) To the extent properly includable in gross income for federal 143 Substitute Bill No. 5371
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191		-
192		-	income tax purposes, any income received from the United States 144
193		-	government as retirement pay for a retired member of (I) the Armed 145
194		-	Forces of the United States, as defined in Section 101 of Title 10 of the 146
195		-	United States Code, or (II) the National Guard, as defined in Section 101 147
196		-	of Title 10 of the United States Code; 148
197		-	(xviii) To the extent properly includable in gross income for federal 149
198		-	income tax purposes for the taxable year, any income from the discharge 150
199		-	of indebtedness in connection with any reacquisition, after December 151
200		-	31, 2008, and before January 1, 2011, of an applicable debt instrument or 152
201		-	instruments, as those terms are defined in Section 108 of the Internal 153
202		-	Revenue Code, as amended by Section 1231 of the American Recovery 154
203		-	and Reinvestment Act of 2009, to the extent any such income was added 155
204		-	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 156
205		-	this subdivision in computing Connecticut adjusted gross income for a 157
206		-	preceding taxable year; 158
207		-	(xix) To the extent not deductible in determining federal adjusted 159
208		-	gross income, the amount of any contribution to a manufacturing 160
209		-	reinvestment account established pursuant to section 32-9zz in the 161
210		-	taxable year that such contribution is made; 162
211		-	(xx) To the extent properly includable in gross income for federal 163
212		-	income tax purposes, (I) for the taxable year commencing January 1, 164
213		-	2015, ten per cent of the income received from the state teachers' 165
214		-	retirement system, (II) for the taxable years commencing January 1, 166
215		-	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 167
216		-	received from the state teachers' retirement system, and (III) for the 168
217		-	taxable year commencing January 1, 2021, and each taxable year 169
218		-	thereafter, fifty per cent of the income received from the state teachers' 170
219		-	retirement system or, for a taxpayer whose federal adjusted gross 171
220		-	income does not exceed the applicable threshold under clause (xxi) of 172
221		-	this subparagraph, the percentage pursuant to said clause of the income 173
222		-	received from the state teachers' retirement system, whichever 174
223		-	deduction is greater; 175 Substitute Bill No. 5371
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229		-
230		-	(xxi) To the extent properly includable in gross income for federal 176
231		-	income tax purposes, except for retirement benefits under clause (iv) of 177
232		-	this subparagraph and retirement pay under clause (xvii) of this 178
233		-	subparagraph, for a person who files a return under the federal income 179
234		-	tax as an unmarried individual whose federal adjusted gross income for 180
235		-	such taxable year is less than seventy-five thousand dollars, or as a 181
236		-	married individual filing separately whose federal adjusted gross 182
237		-	income for such taxable year is less than seventy-five thousand dollars, 183
238		-	or as a head of household whose federal adjusted gross income for such 184
239		-	taxable year is less than seventy-five thousand dollars, or for a husband 185
240		-	and wife who file a return under the federal income tax as married 186
241		-	individuals filing jointly whose federal adjusted gross income for such 187
242		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 188
243		-	year commencing January 1, 2019, fourteen per cent of any pension or 189
244		-	annuity income, (II) for the taxable year commencing January 1, 2020, 190
245		-	twenty-eight per cent of any pension or annuity income, (III) for the 191
246		-	taxable year commencing January 1, 2021, forty-two per cent of any 192
247		-	pension or annuity income, (IV) for the taxable year commencing 193
248		-	January 1, 2022, fifty-six per cent of any pension or annuity income, (V) 194
249		-	for the taxable year commencing January 1, 2023, seventy per cent of any 195
250		-	pension or annuity income, (VI) for the taxable year commencing 196
251		-	January 1, 2024, eighty-four per cent of any pension or annuity income, 197
252		-	and (VII) for the taxable year commencing January 1, 2025, and each 198
253		-	taxable year thereafter, any pension or annuity income; 199
254		-	(xxii) The amount of lost wages and medical, travel and housing 200
255		-	expenses, not to exceed ten thousand dollars in the aggregate, incurred 201
256		-	by a taxpayer during the taxable year in connection with the donation 202
257		-	to another person of an organ for organ transplantation occurring on or 203
258		-	after January 1, 2017; 204
259		-	(xxiii) To the extent properly includable in gross income for federal 205
260		-	income tax purposes, the amount of any financial assistance received 206
261		-	from the Crumbling Foundations Assistance Fund or paid to or on 207
262		-	behalf of the owner of a residential building pursuant to sections 8-442 208 Substitute Bill No. 5371
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268		-
269		-	and 8-443; 209
270		-	(xxiv) To the extent properly includable in gross income for federal 210
271		-	income tax purposes, the amount calculated pursuant to subsection (b) 211
272		-	of section 12-704g for income received by a general partner of a venture 212
273		-	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 213
274		-	time; 214
275		-	(xxv) To the extent any portion of a deduction under Section 179 of 215
276		-	the Internal Revenue Code was added to federal adjusted gross income 216
277		-	pursuant to subparagraph (A)(xiv) of this subdivision in computing 217
278		-	Connecticut adjusted gross income, twenty-five per cent of such 218
279		-	disallowed portion of the deduction in each of the four succeeding 219
280		-	taxable years; [and] 220
281		-	(xxvi) To the extent properly includable in gross income for federal 221
282		-	income tax purposes, for a person who files a return under the federal 222
283		-	income tax as an unmarried individual whose federal adjusted gross 223
284		-	income for such taxable year is less than seventy-five thousand dollars, 224
285		-	or as a married individual filing separately whose federal adjusted gross 225
286		-	income for such taxable year is less than seventy-five thousand dollars, 226
287		-	or as a head of household whose federal adjusted gross income for such 227
288		-	taxable year is less than seventy-five thousand dollars, or for a husband 228
289		-	and wife who file a return under the federal income tax as married 229
290		-	individuals filing jointly whose federal adjusted gross income for such 230
291		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 231
292		-	year commencing January 1, 2023, twenty-five per cent of any 232
293		-	distribution from an individual retirement account other than a Roth 233
294		-	individual retirement account, (II) for the taxable year commencing 234
295		-	January 1, 2024, fifty per cent of any distribution from an individual 235
296		-	retirement account other than a Roth individual retirement account, (III) 236
297		-	for the taxable year commencing January 1, 2025, seventy-five per cent 237
298		-	of any distribution from an individual retirement account other than a 238
299		-	Roth individual retirement account, and (IV) for the taxable year 239
300		-	commencing January 1, 2026, and each taxable year thereafter, any 240
301		-	distribution from an individual retirement account other than a Roth 241 Substitute Bill No. 5371
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308		-	individual retirement account; and 242
309		-	(xxvii) To the extent properly includable in gross income for federal 243
310		-	income tax purposes, the amount of any compensation received for 244
311		-	attending a funeral as a member of an honor guard detail pursuant to 245
312		-	section 27-76.246
	283	+	income tax purposes, the amount of any compensation received for 243
	284	+	attending a funeral as a member of an honor guard detail pursuant to 244
	285	+	section 27-76. 245
313	286		This act shall take effect as follows and shall amend the following
314	287		sections:
315	288
316		-	Section 1 January 1, 2023, and
317		-	applicable to taxable years
318		-	commencing on or after
319		-	January 1, 2023
320		-	12-701(a)(20)(B)
	289	+	Section 1 July 1, 2022 12-701(a)(20)(B)
321	290
322		-	VA Joint Favorable Subst. C/R FIN
	291	+	Statement of Purpose:
	292	+	To establish a personal income tax deduction for compensation received
	293	+	as a result of participation in military honor guard details.
	294	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	295	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	296	+	underlined.]
323	297