LCO No. 6599 1 of 41
General Assembly Raised Bill No. 6934
January Session, 2023
LCO No. 6599
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT MAKING ADJUSTMENTS TO THE PERSONAL INCOME AND
THE EARNED INCOME TAX CREDIT AND CONCERNING THE HUMAN
CAPITAL INVESTMENT TAX CREDIT, TAX GAP REPORTING AND
THE TAX INCIDENCE REPORT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 12-700 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective January 2
1, 2024): 3
(a) There is hereby imposed on the Connecticut taxable income of 4
each resident of this state a tax: 5
(1) At the rate of four and one-half per cent of such Connecticut 6
taxable income for taxable years commencing on or after January 1, 7
1992, and prior to January 1, 1996. 8
(2) For taxable years commencing on or after January 1, 1996, but 9
prior to January 1, 1997, in accordance with the following schedule: 10
(A) For any person who files a return under the federal income tax 11 Raised Bill No. 6934
LCO No. 6599 2 of 41
for such taxable year as an unmarried individual or as a married 12
individual filing separately: 13
T1
Connecticut Taxable Income Rate of Tax
T2
Not over $2,250 3.0%
T3
Over $2,250 $67.50, plus 4.5% of the
T4 excess over $2,250
(B) For any person who files a return under the federal income tax for 14
such taxable year as a head of household, as defined in Section 2(b) of 15
the Internal Revenue Code: 16
T5
Connecticut Taxable Income Rate of Tax
T6
Not over $3,500 3.0%
T7
Over $3,500 $105.00, plus 4.5% of the
T8
excess over $3,500
(C) For any husband and wife who file a return under the federal 17
income tax for such taxable year as married individuals filing jointly or 18
a person who files a return under the federal income tax as a surviving 19
spouse, as defined in Section 2(a) of the Internal Revenue Code: 20
T9
Connecticut Taxable Income Rate of Tax
T10 Not over $4,500 3.0%
T11 Over $4,500 $135.00, plus 4.5% of the
T12 excess over $4,500
(D) For trusts or estates, the rate of tax shall be 4.5% of their 21
Connecticut taxable income. 22
(3) For taxable years commencing on or after January 1, 1997, but 23
prior to January 1, 1998, in accordance with the following schedule: 24
(A) For any person who files a return under the federal income tax 25 Raised Bill No. 6934
LCO No. 6599 3 of 41
for such taxable year as an unmarried individual or as a married 26
individual filing separately: 27
T13
Connecticut Taxable Income Rate of Tax
T14 Not over $6,250 3.0%
T15 Over $6,250 $187.50, plus 4.5% of the
T16 excess over $6,250
(B) For any person who files a return under the federal income tax for 28
such taxable year as a head of household, as defined in Section 2(b) of 29
the Internal Revenue Code: 30
T17
Connecticut Taxable Income Rate of Tax
T18 Not over $10,000 3.0%
T19 Over $10,000 $300.00, plus 4.5% of the
T20 excess over $10,000
(C) For any husband and wife who file a return under the federal 31
income tax for such taxable year as married individuals filing jointly or 32
any person who files a return under the federal income tax for such 33
taxable year as a surviving spouse, as defined in Section 2(a) of the 34
Internal Revenue Code: 35
T21
Connecticut Taxable Income Rate of Tax
T22 Not over $12,500 3.0%
T23 Over $12,500 $375.00, plus 4.5% of the
T24 excess over $12,500
(D) For trusts or estates, the rate of tax shall be 4.5% of their 36
Connecticut taxable income. 37
(4) For taxable years commencing on or after January 1, 1998, but 38
prior to January 1, 1999, in accordance with the following schedule: 39
(A) For any person who files a return under the federal income tax 40 Raised Bill No. 6934
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for such taxable year as an unmarried individual or as a married 41
individual filing separately: 42
T25
Connecticut Taxable Income Rate of Tax
T26
Not over $7,500 3.0%
T27
Over $7,500 $225.00, plus 4.5% of the
T28 excess over $7,500
(B) For any person who files a return under the federal income tax for 43
such taxable year as a head of household, as defined in Section 2(b) of 44
the Internal Revenue Code: 45
T29
Connecticut Taxable Income Rate of Tax
T30
Not over $12,000 3.0%
T31
Over $12,000 $360.00, plus 4.5% of the
T32
excess over $12,000
(C) For any husband and wife who file a return under the federal 46
income tax for such taxable year as married individuals filing jointly or 47
any person who files a return under the federal income tax for such 48
taxable year as a surviving spouse, as defined in Section 2(a) of the 49
Internal Revenue Code: 50
T33
Connecticut Taxable Income Rate of Tax
T34
Not over $15,000 3.0%
T35
Over $15,000 $450.00, plus 4.5% of the
T36
excess over $15,000
(D) For trusts or estates, the rate of tax shall be 4.5% of their 51
Connecticut taxable income. 52
(5) For taxable years commencing on or after January 1, 1999, but 53
prior to January 1, 2003, in accordance with the following schedule: 54 Raised Bill No. 6934
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(A) For any person who files a return under the federal income tax 55
for such taxable year as an unmarried individual or as a married 56
individual filing separately: 57
T37
Connecticut Taxable Income Rate of Tax
T38
Not over $10,000 3.0%
T39 Over $10,000 $300.00, plus 4.5% of the
T40
excess over $10,000
(B) For any person who files a return under the federal income tax for 58
such taxable year as a head of household, as defined in Section 2(b) of 59
the Internal Revenue Code: 60
T41
Connecticut Taxable Income Rate of Tax
T42
Not over $16,000 3.0%
T43
Over $16,000 $480.00, plus 4.5% of the
T44 excess over $16,000
(C) For any husband and wife who file a return under the federal 61
income tax for such taxable year as married individuals filing jointly or 62
any person who files a return under the federal income tax for such 63
taxable year as a surviving spouse, as defined in Section 2(a) of the 64
Internal Revenue Code: 65
T45
Connecticut Taxable Income Rate of Tax
T46
Not over $20,000 3.0%
T47
Over $20,000 $600.00, plus 4.5% of the
T48 excess over $20,000
(D) For trusts or estates, the rate of tax shall be 4.5% of their 66
Connecticut taxable income. 67
(6) For taxable years commencing on or after January 1, 2003, but 68 Raised Bill No. 6934
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prior to January 1, 2009, in accordance with the following schedule: 69
(A) For any person who files a return under the federal income tax 70
for such taxable year as an unmarried individual or as a married 71
individual filing separately: 72
T49
Connecticut Taxable Income Rate of Tax
T50 Not over $10,000 3.0%
T51
Over $10,000 $300.00, plus 5.0% of the
T52
excess over $10,000
(B) For any person who files a return under the federal income tax for 73
such taxable year as a head of household, as defined in Section 2(b) of 74
the Internal Revenue Code: 75
T53
Connecticut Taxable Income Rate of Tax
T54
Not over $16,000 3.0%
T55 Over $16,000 $480.00, plus 5.0% of the
T56
excess over $16,000
(C) For any husband and wife who file a return under the federal 76
income tax for such taxable year as married individuals filing jointly or 77
any person who files a return under the federal income tax for such 78
taxable year as a surviving spouse, as defined in Section 2(a) of the 79
Internal Revenue Code: 80
T57
Connecticut Taxable Income Rate of Tax
T58
Not over $20,000 3.0%
T59 Over $20,000 $600.00, plus 5.0% of the
T60
excess over $20,000
(D) For trusts or estates, the rate of tax shall be 5.0% of the 81
Connecticut taxable income. 82 Raised Bill No. 6934
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(7) For taxable years commencing on or after January 1, 2009, but 83
prior to January 1, 2011, in accordance with the following schedule: 84
(A) For any person who files a return under the federal income tax 85
for such taxable year as an unmarried individual: 86
T61
Connecticut Taxable Income Rate of Tax
T62 Not over $10,000 3.0%
T63
Over $10,000 but not $300.00, plus 5.0% of the
T64
over $500,000 excess over $10,000
T65
Over $500,000 $24,800, plus 6.5% of the
T66
excess over $500,000
(B) For any person who files a return under the federal income tax for 87
such taxable year as a head of household, as defined in Section 2(b) of 88
the Internal Revenue Code: 89
T67
Connecticut Taxable Income Rate of Tax
T68
Not over $16,000 3.0%
T69
Over $16,000 but not $480.00, plus 5.0% of the
T70
over $800,000 excess over $16,000
T71
Over $800,000 $39,680, plus 6.5% of the
T72 excess over $800,000
(C) For any husband and wife who file a return under the federal 90
income tax for such taxable year as married individuals filing jointly or 91
any person who files a return under the federal income tax for such 92
taxable year as a surviving spouse, as defined in Section 2(a) of the 93
Internal Revenue Code: 94
T73
Connecticut Taxable Income Rate of Tax
T74
Not over $20,000 3.0%
T75
Over $20,000 but not $600.00, plus 5.0% of the
T76
over $1,000,000 excess over $20,000 Raised Bill No. 6934
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T77
Over $1,000,000 $49,600, plus 6.5% of the
T78
excess over $1,000,000
(D) For any person who files a return under the federal income tax 95
for such taxable year as a married individual filing separately: 96
T79
Connecticut Taxable Income Rate of Tax
T80
Not over $10,000 3.0%
T81
Over $10,000 but not $300.00, plus 5.0% of the
T82
over $500,000 excess over $10,000
T83
Over $500,000 $24,800, plus 6.5% of the
T84
excess over $500,000
(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut 97
taxable income. 98
(8) For taxable years commencing on or after January 1, 2011, but 99
prior to January 1, 2015, in accordance with the following schedule: 100
(A) (i) For any person who files a return under the federal income tax 101
for such taxable year as an unmarried individual: 102
T85
Connecticut Taxable Income Rate of Tax
T86
Not over $10,000 3.0%
T87
Over $10,000 but not $300.00, plus 5.0% of the
T88
over $50,000 excess over $10,000
T89
Over $50,000 but not $2,300, plus 5.5% of the
T90 over $100,000 excess over $50,000
T91
Over $100,000 but not $5,050, plus 6.0% of the
T92
over $200,000 excess over $100,000
T93
Over $200,000 but not $11,050, plus 6.5% of the
T94
over $250,000 excess over $200,000
T95
Over $250,000 $14,300, plus 6.70% of the
T96
excess over $250,000 Raised Bill No. 6934
LCO No. 6599 9 of 41
(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 103
subdivision, for each taxpayer whose Connecticut adjusted gross 104
income exceeds fifty-six thousand five hundred dollars, the amount of 105
the taxpayer's Connecticut taxable income to which the three-per-cent 106
tax rate applies shall be reduced by one thousand dollars for each five 107
thousand dollars, or fraction thereof, by which the taxpayer's 108
Connecticut adjusted gross income exceeds said amount. Any such 109
amount of Connecticut taxable income to which, as provided in the 110
preceding sentence, the three-per-cent tax rate does not apply shall be 111
an amount to which the five-per-cent tax rate shall apply. 112
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 113
two hundred thousand dollars shall pay, in addition to the tax 114
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 115
this subdivision, an amount equal to seventy-five dollars for each five 116
thousand dollars, or fraction thereof, by which the taxpayer's 117
Connecticut adjusted gross income exceeds two hundred thousand 118
dollars, up to a maximum payment of two thousand two hundred fifty 119
dollars. 120
(B) (i) For any person who files a return under the federal income tax 121
for such taxable year as a head of household, as defined in Section 2(b) 122
of the Internal Revenue Code: 123
T97
Connecticut Taxable Income Rate of Tax
T98
Not over $16,000 3.0%
T99
Over $16,000 but not $480.00, plus 5.0% of the
T100
over $80,000 excess over $16,000
T101
Over $80,000 but not $3,680, plus 5.5% of the
T102
over $160,000 excess over $80,000
T103
Over $160,000 but not $8,080, plus 6.0% of the
T104
over $320,000 excess over $160,000
T105 Over $320,000 but not $17,680, plus 6.5% of the
T106
over $400,000 excess over $320,000 Raised Bill No. 6934
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T107
Over $400,000 $22,880, plus 6.70% of the
T108
excess over $400,000
(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 124
subdivision, for each taxpayer whose Connecticut adjusted gross 125
income exceeds seventy-eight thousand five hundred dollars, the 126
amount of the taxpayer's Connecticut taxable income to which the three-127
per-cent tax rate applies shall be reduced by one thousand six hundred 128
dollars for each four thousand dollars, or fraction thereof, by which the 129
taxpayer's Connecticut adjusted gross income exceeds said amount. 130
Any such amount of Connecticut taxable income to which, as provided 131
in the preceding sentence, the three-per-cent tax rate does not apply 132
shall be an amount to which the five-per-cent tax rate shall apply. 133
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 134
three hundred twenty thousand dollars shall pay, in addition to the tax 135
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 136
this subdivision, an amount equal to one hundred twenty dollars for 137
each eight thousand dollars, or fraction thereof, by which the taxpayer's 138
Connecticut adjusted gross income exceeds three hundred twenty 139
thousand dollars, up to a maximum payment of three thousand six 140
hundred dollars. 141
(C) (i) For any husband and wife who file a return under the federal 142
income tax for such taxable year as married individuals filing jointly or 143
any person who files a return under the federal income tax for such 144
taxable year as a surviving spouse, as defined in Section 2(a) of the 145
Internal Revenue Code: 146
T109
Connecticut Taxable Income Rate of Tax
T110
Not over $20,000 3.0%
T111 Over $20,000 but not $600.00, plus 5.0% of the
T112
over $100,000 excess over $20,000
T113
Over $100,000 but not $4,600, plus 5.5% of the Raised Bill No. 6934
LCO No. 6599 11 of 41
T114
over $200,000 excess over $100,000
T115
Over $200,000 but not $10,100, plus 6.0% of the
T116 over $400,000 excess over $200,000
T117
Over $400,000 but not $22,100, plus 6.5% of the
T118
over $500,000 excess over $400,000
T119
Over $500,000 $28,600, plus 6.70% of the
T120
excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 147
subdivision, for each taxpayer whose Connecticut adjusted gross 148
income exceeds one hundred thousand five hundred dollars, the 149
amount of the taxpayer's Connecticut taxable income to which the three-150
per-cent tax rate applies shall be reduced by two thousand dollars for 151
each five thousand dollars, or fraction thereof, by which the taxpayer's 152
Connecticut adjusted gross income exceeds said amount. Any such 153
amount of Connecticut taxable income to which, as provided in the 154
preceding sentence, the three-per-cent tax rate does not apply shall be 155
an amount to which the five-per-cent tax rate shall apply. 156
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 157
four hundred thousand dollars shall pay, in addition to the tax 158
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 159
this subdivision, an amount equal to one hundred fifty dollars for each 160
ten thousand dollars, or fraction thereof, by which the taxpayer's 161
Connecticut adjusted gross income exceeds four hundred thousand 162
dollars, up to a maximum payment of four thousand five hundred 163
dollars. 164
(D) (i) For any person who files a return under the federal income tax 165
for such taxable year as a married individual filing separately: 166
T121
Connecticut Taxable Income Rate of Tax
T122
Not over $10,000 3.0%
T123
Over $10,000 but not $300.00, plus 5.0% of the Raised Bill No. 6934
LCO No. 6599 12 of 41
T124
over $50,000 excess over $10,000
T125
Over $50,000 but not $2,300, plus 5.5% of the
T126 over $100,000 excess over $50,000
T127
Over $100,000 but not $5,050, plus 6.0% of the
T128
over $200,000 excess over $100,000
T129
Over $200,000 but not $11,050, plus 6.5% of the
T130
over $250,000 excess over $200,000
T131
Over $250,000 $14,300, plus 6.70% of the
T132
excess over $250,000
(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 167
subdivision, for each taxpayer whose Connecticut adjusted gross 168
income exceeds fifty thousand two hundred fifty dollars, the amount of 169
the taxpayer's Connecticut taxable income to which the three-per-cent 170
tax rate applies shall be reduced by one thousand dollars for each two 171
thousand five hundred dollars, or fraction thereof, by which the 172
taxpayer's Connecticut adjusted gross income exceeds said amount. 173
Any such amount of Connecticut taxable income to which, as provided 174
in the preceding sentence, the three-per-cent tax rate does not apply 175
shall be an amount to which the five-per-cent tax rate shall apply. 176
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 177
two hundred thousand dollars shall pay, in addition to the tax 178
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 179
this subdivision, an amount equal to seventy-five dollars for each five 180
thousand dollars, or fraction thereof, by which the taxpayer's 181
Connecticut adjusted gross income exceeds two hundred thousand 182
dollars, up to a maximum payment of two thousand two hundred fifty 183
dollars. 184
(E) For trusts or estates, the rate of tax shall be 6.70% of the 185
Connecticut taxable income. 186
(9) For taxable years commencing on or after January 1, 2015, but 187
prior to January 1, 2023, in accordance with the following schedule: 188 Raised Bill No. 6934
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(A) (i) For any person who files a return under the federal income tax 189
for such taxable year as an unmarried individual: 190
T133 Connecticut Taxable Income Rate of Tax
T134
Not over $10,000 3.0%
T135
Over $10,000 but not $300.00, plus 5.0% of the
T136
over $50,000 excess over $10,000
T137
Over $50,000 but not $2,300, plus 5.5% of the
T138
over $100,000 excess over $50,000
T139
Over $100,000 but not $5,050, plus 6.0% of the
T140
over $200,000 excess over $100,000
T141
Over $200,000 but not $11,050, plus 6.5% of the
T142
over $250,000 excess over $200,000
T143
Over $250,000 but not $14,300, plus 6.9% of the
T144
over $500,000 excess over $250,000
T145
Over $500,000 $31,550, plus 6.99% of the
T146
excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 191
subdivision, for each taxpayer whose Connecticut adjusted gross 192
income exceeds fifty-six thousand five hundred dollars, the amount of 193
the taxpayer's Connecticut taxable income to which the three-per-cent 194
tax rate applies shall be reduced by one thousand dollars for each five 195
thousand dollars, or fraction thereof, by which the taxpayer's 196
Connecticut adjusted gross income exceeds said amount. Any such 197
amount of Connecticut taxable income to which, as provided in the 198
preceding sentence, the three-per-cent tax rate does not apply shall be 199
an amount to which the five-per-cent tax rate shall apply. 200
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 201
two hundred thousand dollars shall pay, in addition to the tax 202
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 203
this subdivision, an amount equal to ninety dollars for each five 204
thousand dollars, or fraction thereof, by which the taxpayer's 205
Connecticut adjusted gross income exceeds two hundred thousand 206 Raised Bill No. 6934
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dollars, up to a maximum payment of two thousand seven hundred 207
dollars. 208
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 209
five hundred thousand dollars shall pay, in addition to the tax 210
computed under the provisions of subparagraphs (A)(i), (A)(ii) and 211
(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 212
thousand dollars, or fraction thereof, by which the taxpayer's 213
Connecticut adjusted gross income exceeds five hundred thousand 214
dollars, up to a maximum payment of four hundred fifty dollars. 215
(B) (i) For any person who files a return under the federal income tax 216
for such taxable year as a head of household, as defined in Section 2(b) 217
of the Internal Revenue Code: 218
T147 Connecticut Taxable Income Rate of Tax
T148
Not over $16,000 3.0%
T149
Over $16,000 but not $480.00, plus 5.0% of the
T150
over $80,000 excess over $16,000
T151
Over $80,000 but not $3,680, plus 5.5% of the
T152
over $160,000 excess over $80,000
T153
Over $160,000 but not $8,080, plus 6.0% of the
T154
over $320,000 excess over $160,000
T155
Over $320,000 but not $17,680, plus 6.5% of the
T156
over $400,000 excess over $320,000
T157
Over $400,000 but not $22,880, plus 6.9% of the
T158
over $800,000 excess over $400,000
T159
Over $800,000 $50,480, plus 6.99% of the
T160
excess over $800,000
(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 219
subdivision, for each taxpayer whose Connecticut adjusted gross 220
income exceeds seventy-eight thousand five hundred dollars, the 221
amount of the taxpayer's Connecticut taxable income to which the three-222
per-cent tax rate applies shall be reduced by one thousand six hundred 223 Raised Bill No. 6934
LCO No. 6599 15 of 41
dollars for each four thousand dollars, or fraction thereof, by which the 224
taxpayer's Connecticut adjusted gross income exceeds said amount. 225
Any such amount of Connecticut taxable income to which, as provided 226
in the preceding sentence, the three-per-cent tax rate does not apply 227
shall be an amount to which the five-per-cent tax rate shall apply. 228
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 229
three hundred twenty thousand dollars shall pay, in addition to the tax 230
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 231
this subdivision, an amount equal to one hundred forty dollars for each 232
eight thousand dollars, or fraction thereof, by which the taxpayer's 233
Connecticut adjusted gross income exceeds three hundred twenty 234
thousand dollars, up to a maximum payment of four thousand two 235
hundred dollars. 236
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 237
eight hundred thousand dollars shall pay, in addition to the tax 238
computed under the provisions of subparagraphs (B)(i), (B)(ii) and 239
(B)(iii) of this subdivision, an amount equal to eighty dollars for each 240
eight thousand dollars, or fraction thereof, by which the taxpayer's 241
Connecticut adjusted gross income exceeds eight hundred thousand 242
dollars, up to a maximum payment of seven hundred twenty dollars. 243
(C) (i) For any husband and wife who file a return under the federal 244
income tax for such taxable year as married individuals filing jointly or 245
any person who files a return under the federal income tax for such 246
taxable year as a surviving spouse, as defined in Section 2(a) of the 247
Internal Revenue Code: 248
T161
Connecticut Taxable Income Rate of Tax
T162 Not over $20,000 3.0%
T163 Over $20,000 but not $600.00, plus 5.0% of the
T164 over $100,000 excess over $20,000
T165 Over $100,000 but not $4,600, plus 5.5% of the
T166 over $200,000 excess over $100,000
T167 Over $200,000 but not $10,100, plus 6.0% of the Raised Bill No. 6934
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T168 over $400,000 excess over $200,000
T169 Over $400,000 but not $22,100, plus 6.5% of the
T170 over $500,000 excess over $400,000
T171 Over $500,000 but not $28,600, plus 6.9% of the
T172 over $1,000,000 excess over $500,000
T173 Over $1,000,000 $63,100, plus 6.99% of the
T174 excess over $1,000,000
(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 249
subdivision, for each taxpayer whose Connecticut adjusted gross 250
income exceeds one hundred thousand five hundred dollars, the 251
amount of the taxpayer's Connecticut taxable income to which the three-252
per-cent tax rate applies shall be reduced by two thousand dollars for 253
each five thousand dollars, or fraction thereof, by which the taxpayer's 254
Connecticut adjusted gross income exceeds said amount. Any such 255
amount of Connecticut taxable income to which, as provided in the 256
preceding sentence, the three-per-cent tax rate does not apply shall be 257
an amount to which the five-per-cent tax rate shall apply. 258
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 259
four hundred thousand dollars shall pay, in addition to the tax 260
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 261
this subdivision, an amount equal to one hundred eighty dollars for 262
each ten thousand dollars, or fraction thereof, by which the taxpayer's 263
Connecticut adjusted gross income exceeds four hundred thousand 264
dollars, up to a maximum payment of five thousand four hundred 265
dollars. 266
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 267
one million dollars shall pay, in addition to the tax computed under the 268
provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 269
subdivision, an amount equal to one hundred dollars for each ten 270
thousand dollars, or fraction thereof, by which the taxpayer's 271
Connecticut adjusted gross income exceeds one million dollars, up to a 272
maximum payment of nine hundred dollars. 273 Raised Bill No. 6934
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(D) (i) For any person who files a return under the federal income tax 274
for such taxable year as a married individual filing separately: 275
T175
Connecticut Taxable Income Rate of Tax
T176 Not over $10,000 3.0%
T177 Over $10,000 but not $300.00, plus 5.0% of the
T178 over $50,000 excess over $10,000
T179 Over $50,000 but not $2,300, plus 5.5% of the
T180 over $100,000 excess over $50,000
T181 Over $100,000 but not $5,050, plus 6.0% of the
T182 over $200,000 excess over $100,000
T183 Over $200,000 but not $11,050, plus 6.5% of the
T184 over $250,000 excess over $200,000
T185 Over $250,000 but not $14,300, plus 6.9% of the
T186 over $500,000 excess over $250,000
T187 Over $500,000 $31,550, plus 6.99% of the
T188 excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 276
subdivision, for each taxpayer whose Connecticut adjusted gross 277
income exceeds fifty thousand two hundred fifty dollars, the amount of 278
the taxpayer's Connecticut taxable income to which the three-per-cent 279
tax rate applies shall be reduced by one thousand dollars for each two 280
thousand five hundred dollars, or fraction thereof, by which the 281
taxpayer's Connecticut adjusted gross income exceeds said amount. 282
Any such amount of Connecticut taxable income to which, as provided 283
in the preceding sentence, the three-per-cent tax rate does not apply 284
shall be an amount to which the five-per-cent tax rate shall apply. 285
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 286
two hundred thousand dollars shall pay, in addition to the tax 287
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 288
this subdivision, an amount equal to ninety dollars for each five 289
thousand dollars, or fraction thereof, by which the taxpayer's 290 Raised Bill No. 6934
LCO No. 6599 18 of 41
Connecticut adjusted gross income exceeds two hundred thousand 291
dollars, up to a maximum payment of two thousand seven hundred 292
dollars. 293
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 294
five hundred thousand dollars shall pay, in addition to the tax 295
computed under the provisions of subparagraphs (D)(i), (D)(ii) and 296
(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 297
thousand dollars, or fraction thereof, by which the taxpayer's 298
Connecticut adjusted gross income exceeds five hundred thousand 299
dollars, up to a maximum payment of four hundred fifty dollars. 300
(E) For trusts or estates, the rate of tax shall be 6.99% of the 301
Connecticut taxable income. 302
(10) For taxable years commencing on or after January 1, 2023, in 303
accordance with the following schedule: 304
(A) (i) For any person who files a return under the federal income tax 305
for such taxable year as an unmarried individual: 306
T189 Connecticut Taxable Income Rate of Tax
T190
Not over $10,000 2.0%
T191
Over $10,000 but not $200.00, plus 4.75% of the
T192
over $50,000 excess over $10,000
T193
Over $50,000 but not $2,100, plus 5.5% of the
T194
over $100,000 excess over $50,000
T195
Over $100,000 but not $4,850, plus 6.0% of the
T196
over $200,000 excess over $100,000
T197
Over $200,000 but not $10,850, plus 6.5% of the
T198
over $250,000 excess over $200,000
T199
Over $250,000 but not $14,100, plus 6.9% of the
T200
over $500,000 excess over $250,000
T201
Over $500,000 $31,350, plus 6.99% of the
T202
excess over $500,000
Raised Bill No. 6934
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(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 307
subdivision, for each taxpayer whose Connecticut adjusted gross 308
income exceeds fifty-six thousand five hundred dollars, the amount of 309
the taxpayer's Connecticut taxable income to which the two-per-cent tax 310
rate applies shall be reduced by one thousand dollars for each five 311
thousand dollars, or fraction thereof, by which the taxpayer's 312
Connecticut adjusted gross income exceeds said amount. Any such 313
amount of Connecticut taxable income to which, as provided in the 314
preceding sentence, the two-per-cent tax rate does not apply shall be an 315
amount to which the four-and-three-quarters-per-cent tax rate shall 316
apply. 317
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 318
two hundred thousand dollars shall pay, in addition to the tax 319
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 320
this subdivision, an amount equal to ninety dollars for each five 321
thousand dollars, or fraction thereof, by which the taxpayer's 322
Connecticut adjusted gross income exceeds two hundred thousand 323
dollars, up to a maximum payment of two thousand seven hundred 324
dollars. 325
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 326
five hundred thousand dollars shall pay, in addition to the tax 327
computed under the provisions of subparagraphs (A)(i), (A)(ii) and 328
(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 329
thousand dollars, or fraction thereof, by which the taxpayer's 330
Connecticut adjusted gross income exceeds five hundred thousand 331
dollars, up to a maximum payment of four hundred fifty dollars. 332
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 333
two hundred thousand dollars shall pay, in addition to the tax 334
computed under the provisions of subparagraphs (A)(i), (A)(ii), (A)(iii) 335
and, if applicable, (A)(iv) of this subdivision, one hundred twenty-five 336
dollars. 337
(B) (i) For any person who files a return under the federal income tax 338 Raised Bill No. 6934
LCO No. 6599 20 of 41
for such taxable year as a head of household, as defined in Section 2(b) 339
of the Internal Revenue Code: 340
T203 Connecticut Taxable Income Rate of Tax
T204
Not over $16,000 2.0%
T205
Over $16,000 but not $320.00, plus 4.75% of the
T206
over $80,000 excess over $16,000
T207
Over $80,000 but not $3,360, plus 5.5% of the
T208
over $160,000 excess over $80,000
T209
Over $160,000 but not $7,760, plus 6.0% of the
T210
over $320,000 excess over $160,000
T211
Over $320,000 but not $17,360, plus 6.5% of the
T212
over $400,000 excess over $320,000
T213
Over $400,000 but not $22,560, plus 6.9% of the
T214
over $800,000 excess over $400,000
T215
Over $800,000 $50,160, plus 6.99% of the
T216
excess over $800,000
(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 341
subdivision, for each taxpayer whose Connecticut adjusted gross 342
income exceeds seventy-eight thousand five hundred dollars, the 343
amount of the taxpayer's Connecticut taxable income to which the two-344
per-cent tax rate applies shall be reduced by one thousand six hundred 345
dollars for each four thousand dollars, or fraction thereof, by which the 346
taxpayer's Connecticut adjusted gross income exceeds said amount. 347
Any such amount of Connecticut taxable income to which, as provided 348
in the preceding sentence, the two-per-cent tax rate does not apply shall 349
be an amount to which the four-and-three-quarters-per-cent tax rate 350
shall apply. 351
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 352
three hundred twenty thousand dollars shall pay, in addition to the tax 353
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 354
this subdivision, an amount equal to one hundred forty dollars for each 355
eight thousand dollars, or fraction thereof, by which the taxpayer's 356 Raised Bill No. 6934
LCO No. 6599 21 of 41
Connecticut adjusted gross income exceeds three hundred twenty 357
thousand dollars, up to a maximum payment of four thousand two 358
hundred dollars. 359
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 360
eight hundred thousand dollars shall pay, in addition to the tax 361
computed under the provisions of subparagraphs (B)(i), (B)(ii) and 362
(B)(iii) of this subdivision, an amount equal to eighty dollars for each 363
eight thousand dollars, or fraction thereof, by which the taxpayer's 364
Connecticut adjusted gross income exceeds eight hundred thousand 365
dollars, up to a maximum payment of seven hundred twenty dollars. 366
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 367
three hundred twenty thousand dollars shall pay, in addition to the tax 368
computed under the provisions of subparagraphs (B)(i), (B)(ii), (B)(iii) 369
and, if applicable, (B)(iv) of this subdivision, two hundred dollars. 370
(C) (i) For any husband and wife who file a return under the federal 371
income tax for such taxable year as married individuals filing jointly or 372
any person who files a return under the federal income tax for such 373
taxable year as a surviving spouse, as defined in Section 2(a) of the 374
Internal Revenue Code: 375
T217
Connecticut Taxable Income Rate of Tax
T218 Not over $20,000 2.0%
T219 Over $20,000 but not $400.00, plus 4.75% of the
T220 over $100,000 excess over $20,000
T221 Over $100,000 but not $4,200, plus 5.5% of the
T222 over $200,000 excess over $100,000
T223 Over $200,000 but not $9,700, plus 6.0% of the
T224 over $400,000 excess over $200,000
T225 Over $400,000 but not $21,700, plus 6.5% of the
T226 over $500,000 excess over $400,000
T227 Over $500,000 but not $28,200, plus 6.9% of the
T228 over $1,000,000 excess over $500,000 Raised Bill No. 6934
LCO No. 6599 22 of 41
T229 Over $1,000,000 $62,700, plus 6.99% of the
T230 excess over $1,000,000
(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 376
subdivision, for each taxpayer whose Connecticut adjusted gross 377
income exceeds one hundred thousand five hundred dollars, the 378
amount of the taxpayer's Connecticut taxable income to which the two-379
per-cent tax rate applies shall be reduced by two thousand dollars for 380
each five thousand dollars, or fraction thereof, by which the taxpayer's 381
Connecticut adjusted gross income exceeds said amount. Any such 382
amount of Connecticut taxable income to which, as provided in the 383
preceding sentence, the two-per-cent tax rate does not apply shall be an 384
amount to which the four-and-three-quarters-per-cent tax rate shall 385
apply. 386
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 387
four hundred thousand dollars shall pay, in addition to the tax 388
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 389
this subdivision, an amount equal to one hundred eighty dollars for 390
each ten thousand dollars, or fraction thereof, by which the taxpayer's 391
Connecticut adjusted gross income exceeds four hundred thousand 392
dollars, up to a maximum payment of five thousand four hundred 393
dollars. 394
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 395
one million dollars shall pay, in addition to the tax computed under the 396
provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 397
subdivision, an amount equal to one hundred dollars for each ten 398
thousand dollars, or fraction thereof, by which the taxpayer's 399
Connecticut adjusted gross income exceeds one million dollars, up to a 400
maximum payment of nine hundred dollars. 401
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 402
four hundred thousand dollars shall pay, in addition to the tax 403
computed under the provisions of subparagraphs (C)(i), (C)(ii), (C)(iii) 404 Raised Bill No. 6934
LCO No. 6599 23 of 41
and, if applicable, (C)(iv) of this subdivision, two hundred fifty dollars. 405
(D) (i) For any person who files a return under the federal income tax 406
for such taxable year as a married individual filing separately: 407
T231
Connecticut Taxable Income Rate of Tax
T232 Not over $10,000 2.0%
T233 Over $10,000 but not $200.00, plus 4.75% of the
T234 over $50,000 excess over $10,000
T235 Over $50,000 but not $2,100, plus 5.5% of the
T236 over $100,000 excess over $50,000
T237 Over $100,000 but not $4,850, plus 6.0% of the
T238 over $200,000 excess over $100,000
T239 Over $200,000 but not $10,850, plus 6.5% of the
T240 over $250,000 excess over $200,000
T241 Over $250,000 but not $14,100, plus 6.9% of the
T242 over $500,000 excess over $250,000
T243 Over $500,000 $31,350, plus 6.99% of the
T244 excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 408
subdivision, for each taxpayer whose Connecticut adjusted gross 409
income exceeds fifty thousand two hundred fifty dollars, the amount of 410
the taxpayer's Connecticut taxable income to which the two-per-cent tax 411
rate applies shall be reduced by one thousand dollars for each two 412
thousand five hundred dollars, or fraction thereof, by which the 413
taxpayer's Connecticut adjusted gross income exceeds said amount. 414
Any such amount of Connecticut taxable income to which, as provided 415
in the preceding sentence, the two-per-cent tax rate does not apply shall 416
be an amount to which the four-and-three-quarters-per-cent tax rate 417
shall apply. 418
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 419
two hundred thousand dollars shall pay, in addition to the tax 420 Raised Bill No. 6934
LCO No. 6599 24 of 41
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 421
this subdivision, an amount equal to ninety dollars for each five 422
thousand dollars, or fraction thereof, by which the taxpayer's 423
Connecticut adjusted gross income exceeds two hundred thousand 424
dollars, up to a maximum payment of two thousand seven hundred 425
dollars. 426
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 427
five hundred thousand dollars shall pay, in addition to the tax 428
computed under the provisions of subparagraphs (D)(i), (D)(ii) and 429
(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 430
thousand dollars, or fraction thereof, by which the taxpayer's 431
Connecticut adjusted gross income exceeds five hundred thousand 432
dollars, up to a maximum payment of four hundred fifty dollars. 433
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 434
two hundred thousand dollars shall pay, in addition to the tax 435
computed under the provisions of subparagraphs (D)(i), (D)(ii), (D)(iii) 436
and, if applicable, (D)(iv) of this subdivision, one hundred twenty-five 437
dollars. 438
(E) For trusts or estates, the rate of tax shall be 6.99% of the 439
Connecticut taxable income. 440
[(10)] (11) The provisions of this subsection shall apply to resident 441
trusts and estates and, wherever reference is made in this subsection to 442
residents of this state, such reference shall be construed to include 443
resident trusts and estates, provided any reference to a resident's 444
Connecticut adjusted gross income derived from sources without this 445
state or to a resident's Connecticut adjusted gross income shall be 446
construed, in the case of a resident trust or estate, to mean the resident 447
trust or estate's Connecticut taxable income derived from sources 448
without this state and the resident trust or estate's Connecticut taxable 449
income, respectively. 450
Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 451
section 12-701 of the general statutes is repealed and the following is 452 Raised Bill No. 6934
LCO No. 6599 25 of 41
substituted in lieu thereof (Effective from passage and applicable to taxable 453
years commencing on or after January 1, 2023): 454
(B) There shall be subtracted therefrom: 455
(i) To the extent properly includable in gross income for federal 456
income tax purposes, any income with respect to which taxation by any 457
state is prohibited by federal law; 458
(ii) To the extent allowable under section 12-718, exempt dividends 459
paid by a regulated investment company; 460
(iii) To the extent properly includable in gross income for federal 461
income tax purposes, the amount of any refund or credit for 462
overpayment of income taxes imposed by this state, or any other state 463
of the United States or a political subdivision thereof, or the District of 464
Columbia; 465
(iv) To the extent properly includable in gross income for federal 466
income tax purposes and not otherwise subtracted from federal 467
adjusted gross income pursuant to clause (x) of this subparagraph in 468
computing Connecticut adjusted gross income, any tier 1 railroad 469
retirement benefits; 470
(v) To the extent any additional allowance for depreciation under 471
Section 168(k) of the Internal Revenue Code for property placed in 472
service after September 27, 2017, was added to federal adjusted gross 473
income pursuant to subparagraph (A)(ix) of this subdivision in 474
computing Connecticut adjusted gross income, twenty-five per cent of 475
such additional allowance for depreciation in each of the four 476
succeeding taxable years; 477
(vi) To the extent properly includable in gross income for federal 478
income tax purposes, any interest income from obligations issued by or 479
on behalf of the state of Connecticut, any political subdivision thereof, 480
or public instrumentality, state or local authority, district or similar 481
public entity created under the laws of the state of Connecticut; 482 Raised Bill No. 6934
LCO No. 6599 26 of 41
(vii) To the extent properly includable in determining the net gain or 483
loss from the sale or other disposition of capital assets for federal income 484
tax purposes, any gain from the sale or exchange of obligations issued 485
by or on behalf of the state of Connecticut, any political subdivision 486
thereof, or public instrumentality, state or local authority, district or 487
similar public entity created under the laws of the state of Connecticut, 488
in the income year such gain was recognized; 489
(viii) Any interest on indebtedness incurred or continued to purchase 490
or carry obligations or securities the interest on which is subject to tax 491
under this chapter but exempt from federal income tax, to the extent that 492
such interest on indebtedness is not deductible in determining federal 493
adjusted gross income and is attributable to a trade or business carried 494
on by such individual; 495
(ix) Ordinary and necessary expenses paid or incurred during the 496
taxable year for the production or collection of income which is subject 497
to taxation under this chapter but exempt from federal income tax, or 498
the management, conservation or maintenance of property held for the 499
production of such income, and the amortizable bond premium for the 500
taxable year on any bond the interest on which is subject to tax under 501
this chapter but exempt from federal income tax, to the extent that such 502
expenses and premiums are not deductible in determining federal 503
adjusted gross income and are attributable to a trade or business carried 504
on by such individual; 505
(x) (I) For taxable years commencing prior to January 1, 2019, for a 506
person who files a return under the federal income tax as an unmarried 507
individual whose federal adjusted gross income for such taxable year is 508
less than fifty thousand dollars, or as a married individual filing 509
separately whose federal adjusted gross income for such taxable year is 510
less than fifty thousand dollars, or for a husband and wife who file a 511
return under the federal income tax as married individuals filing jointly 512
whose federal adjusted gross income for such taxable year is less than 513
sixty thousand dollars or a person who files a return under the federal 514
income tax as a head of household whose federal adjusted gross income 515 Raised Bill No. 6934
LCO No. 6599 27 of 41
for such taxable year is less than sixty thousand dollars, an amount 516
equal to the Social Security benefits includable for federal income tax 517
purposes; 518
(II) For taxable years commencing prior to January 1, 2019, for a 519
person who files a return under the federal income tax as an unmarried 520
individual whose federal adjusted gross income for such taxable year is 521
fifty thousand dollars or more, or as a married individual filing 522
separately whose federal adjusted gross income for such taxable year is 523
fifty thousand dollars or more, or for a husband and wife who file a 524
return under the federal income tax as married individuals filing jointly 525
whose federal adjusted gross income from such taxable year is sixty 526
thousand dollars or more or for a person who files a return under the 527
federal income tax as a head of household whose federal adjusted gross 528
income for such taxable year is sixty thousand dollars or more, an 529
amount equal to the difference between the amount of Social Security 530
benefits includable for federal income tax purposes and the lesser of 531
twenty-five per cent of the Social Security benefits received during the 532
taxable year, or twenty-five per cent of the excess described in Section 533
86(b)(1) of the Internal Revenue Code; 534
(III) For the taxable year commencing January 1, 2019, and each 535
taxable year thereafter, for a person who files a return under the federal 536
income tax as an unmarried individual whose federal adjusted gross 537
income for such taxable year is less than seventy-five thousand dollars, 538
or as a married individual filing separately whose federal adjusted gross 539
income for such taxable year is less than seventy-five thousand dollars, 540
or for a husband and wife who file a return under the federal income tax 541
as married individuals filing jointly whose federal adjusted gross 542
income for such taxable year is less than one hundred thousand dollars 543
or a person who files a return under the federal income tax as a head of 544
household whose federal adjusted gross income for such taxable year is 545
less than one hundred thousand dollars, an amount equal to the Social 546
Security benefits includable for federal income tax purposes; and 547
(IV) For the taxable year commencing January 1, 2019, and each 548 Raised Bill No. 6934
LCO No. 6599 28 of 41
taxable year thereafter, for a person who files a return under the federal 549
income tax as an unmarried individual whose federal adjusted gross 550
income for such taxable year is seventy-five thousand dollars or more, 551
or as a married individual filing separately whose federal adjusted gross 552
income for such taxable year is seventy-five thousand dollars or more, 553
or for a husband and wife who file a return under the federal income tax 554
as married individuals filing jointly whose federal adjusted gross 555
income from such taxable year is one hundred thousand dollars or more 556
or for a person who files a return under the federal income tax as a head 557
of household whose federal adjusted gross income for such taxable year 558
is one hundred thousand dollars or more, an amount equal to the 559
difference between the amount of Social Security benefits includable for 560
federal income tax purposes and the lesser of twenty-five per cent of the 561
Social Security benefits received during the taxable year, or twenty-five 562
per cent of the excess described in Section 86(b)(1) of the Internal 563
Revenue Code; 564
(xi) To the extent properly includable in gross income for federal 565
income tax purposes, any amount rebated to a taxpayer pursuant to 566
section 12-746; 567
(xii) To the extent properly includable in the gross income for federal 568
income tax purposes of a designated beneficiary, any distribution to 569
such beneficiary from any qualified state tuition program, as defined in 570
Section 529(b) of the Internal Revenue Code, established and 571
maintained by this state or any official, agency or instrumentality of the 572
state; 573
(xiii) To the extent allowable under section 12-701a, contributions to 574
accounts established pursuant to any qualified state tuition program, as 575
defined in Section 529(b) of the Internal Revenue Code, established and 576
maintained by this state or any official, agency or instrumentality of the 577
state; 578
(xiv) To the extent properly includable in gross income for federal 579
income tax purposes, the amount of any Holocaust victims' settlement 580 Raised Bill No. 6934
LCO No. 6599 29 of 41
payment received in the taxable year by a Holocaust victim; 581
(xv) To the extent properly includable in gross income for federal 582
income tax purposes of an account holder, as defined in section 31-583
51ww, interest earned on funds deposited in the individual 584
development account, as defined in section 31-51ww, of such account 585
holder; 586
(xvi) To the extent properly includable in the gross income for federal 587
income tax purposes of a designated beneficiary, as defined in section 588
3-123aa, interest, dividends or capital gains earned on contributions to 589
accounts established for the designated beneficiary pursuant to the 590
Connecticut Homecare Option Program for the Elderly established by 591
sections 3-123aa to 3-123ff, inclusive; 592
(xvii) To the extent properly includable in gross income for federal 593
income tax purposes, any income received from the United States 594
government as retirement pay for a retired member of (I) the Armed 595
Forces of the United States, as defined in Section 101 of Title 10 of the 596
United States Code, or (II) the National Guard, as defined in Section 101 597
of Title 10 of the United States Code; 598
(xviii) To the extent properly includable in gross income for federal 599
income tax purposes for the taxable year, any income from the discharge 600
of indebtedness in connection with any reacquisition, after December 601
31, 2008, and before January 1, 2011, of an applicable debt instrument or 602
instruments, as those terms are defined in Section 108 of the Internal 603
Revenue Code, as amended by Section 1231 of the American Recovery 604
and Reinvestment Act of 2009, to the extent any such income was added 605
to federal adjusted gross income pursuant to subparagraph (A)(xi) of 606
this subdivision in computing Connecticut adjusted gross income for a 607
preceding taxable year; 608
(xix) To the extent not deductible in determining federal adjusted 609
gross income, the amount of any contribution to a manufacturing 610
reinvestment account established pursuant to section 32-9zz in the 611
taxable year that such contribution is made; 612 Raised Bill No. 6934
LCO No. 6599 30 of 41
(xx) To the extent properly includable in gross income for federal 613
income tax purposes, (I) for the taxable year commencing January 1, 614
2015, ten per cent of the income received from the state teachers' 615
retirement system, (II) for the taxable years commencing January 1, 616
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 617
received from the state teachers' retirement system, and (III) for the 618
taxable year commencing January 1, 2021, and each taxable year 619
thereafter, fifty per cent of the income received from the state teachers' 620
retirement system or, for a taxpayer whose federal adjusted gross 621
income does not exceed the applicable threshold under clause (xxi) of 622
this subparagraph, the percentage pursuant to said clause of the income 623
received from the state teachers' retirement system, whichever 624
deduction is greater; 625
(xxi) To the extent properly includable in gross income for federal 626
income tax purposes, except for retirement benefits under clause (iv) of 627
this subparagraph and retirement pay under clause (xvii) of this 628
subparagraph, for a person who files a return under the federal income 629
tax as an unmarried individual whose federal adjusted gross income for 630
such taxable year is less than seventy-five thousand dollars, or as a 631
married individual filing separately whose federal adjusted gross 632
income for such taxable year is less than seventy-five thousand dollars, 633
or as a head of household whose federal adjusted gross income for such 634
taxable year is less than seventy-five thousand dollars, or for a husband 635
and wife who file a return under the federal income tax as married 636
individuals filing jointly whose federal adjusted gross income for such 637
taxable year is less than one hundred thousand dollars, (I) for the taxable 638
year commencing January 1, 2019, fourteen per cent of any pension or 639
annuity income, (II) for the taxable year commencing January 1, 2020, 640
twenty-eight per cent of any pension or annuity income, (III) for the 641
taxable year commencing January 1, 2021, forty-two per cent of any 642
pension or annuity income, and (IV) for the taxable year commencing 643
January 1, 2022, [and each taxable year thereafter,] one hundred per cent 644
of any pension or annuity income; 645
(xxii) To the extent properly includable in gross income for federal 646 Raised Bill No. 6934
LCO No. 6599 31 of 41
income tax purposes, except for retirement benefits under clause (iv) of 647
this subparagraph and retirement pay under clause (xvii) of this 648
subparagraph, any pension or annuity income for the taxable year 649
commencing on or after January 1, 2023, and each taxable year 650
thereafter, in accordance with the following schedule, for a person who 651
files a return under the federal income tax as an unmarried individual 652
whose federal adjusted gross income for such taxable year is less than 653
one hundred thousand dollars, or as a married individual filing 654
separately whose federal adjusted gross income for such taxable year is 655
less than one hundred thousand dollars, or as a head of household 656
whose federal adjusted gross income for such taxable year is less than 657
one hundred thousand dollars: 658
T245
Federal Adjusted Gross Income Deduction
T246 Less than $75,000 100.0%
T247
$75,000 but not over $77,499 85.0%
T248
$77,500 but not over $79,999 70.0%
T249
$80,000 but not over $82,499 55.0%
T250
$82,500 but not over $84,999 40.0%
T251
$85,000 but not over $87,499 25.0%
T252
$87,500 but not over $89,999 10.0%
T253
$90,000 but not over $94,999 5.0%
T254
$95,000 but not over $99,999 2.5%
T255 $100,000 and over 0.0%
(xxiii) To the extent properly includable in gross income for federal 659
income tax purposes, except for retirement benefits under clause (iv) of 660
this subparagraph and retirement pay under clause (xvii) of this 661
subparagraph, any pension or annuity income for the taxable year 662
commencing on or after January 1, 2023, and each taxable year 663
thereafter, in accordance with the following schedule for married 664
individuals who file a return under the federal income tax as married 665
individuals filing jointly whose federal adjusted gross income for such 666
taxable year is less than one hundred fifty thousand dollars: 667 Raised Bill No. 6934
LCO No. 6599 32 of 41
T256
Federal Adjusted Gross Income Deduction
T257
Less than $100,000 100.0%
T258
$100,000 but not over $104,999 85.0%
T259
$105,000 but not over $109,999 70.0%
T260
$110,000 but not over $114,999 55.0%
T261 $115,000 but not over $119,999 40.0%
T262
$120,000 but not over $124,999 25.0%
T263
$125,000 but not over $129,999 10.0%
T264
$130,000 but not over $139,999 5.0%
T265
$140,000 but not over $149,999 2.5%
T266
$150,000 and over 0.0%
[(xxii)] (xxiv) The amount of lost wages and medical, travel and 668
housing expenses, not to exceed ten thousand dollars in the aggregate, 669
incurred by a taxpayer during the taxable year in connection with the 670
donation to another person of an organ for organ transplantation 671
occurring on or after January 1, 2017; 672
[(xxiii)] (xxv) To the extent properly includable in gross income for 673
federal income tax purposes, the amount of any financial assistance 674
received from the Crumbling Foundations Assistance Fund or paid to 675
or on behalf of the owner of a residential building pursuant to sections 676
8-442 and 8-443; 677
[(xxiv)] (xxvi) To the extent properly includable in gross income for 678
federal income tax purposes, the amount calculated pursuant to 679
subsection (b) of section 12-704g for income received by a general 680
partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as 681
amended from time to time; 682
[(xxv)] (xxvii) To the extent any portion of a deduction under Section 683
179 of the Internal Revenue Code was added to federal adjusted gross 684
income pursuant to subparagraph (A)(xiv) of this subdivision in 685
computing Connecticut adjusted gross income, twenty-five per cent of 686
such disallowed portion of the deduction in each of the four succeeding 687 Raised Bill No. 6934
LCO No. 6599 33 of 41
taxable years; 688
[(xxvi)] (xxviii) To the extent properly includable in gross income for 689
federal income tax purposes, for a person who files a return under the 690
federal income tax as an unmarried individual whose federal adjusted 691
gross income for such taxable year is less than [seventy-five] one 692
hundred thousand dollars, or as a married individual filing separately 693
whose federal adjusted gross income for such taxable year is less than 694
[seventy-five] one hundred thousand dollars, or as a head of household 695
whose federal adjusted gross income for such taxable year is less than 696
[seventy-five] one hundred thousand dollars, [or for a husband and wife 697
who file a return under the federal income tax as married individuals 698
filing jointly whose federal adjusted gross income for such taxable year 699
is less than one hundred thousand dollars,] (I) for the taxable year 700
commencing January 1, 2023, twenty-five per cent of any distribution 701
from an individual retirement account other than a Roth individual 702
retirement account, (II) for the taxable year commencing January 1, 2024, 703
fifty per cent of any distribution from an individual retirement account 704
other than a Roth individual retirement account, (III) for the taxable year 705
commencing January 1, 2025, seventy-five per cent of any distribution 706
from an individual retirement account other than a Roth individual 707
retirement account, and (IV) for the taxable year commencing January 708
1, 2026, and each taxable year thereafter, any distribution from an 709
individual retirement account other than a Roth individual retirement 710
account. [; and] The subtraction under this clause shall be made in 711
accordance with the following schedule: 712
T267
Federal Adjusted Gross Income Deduction
T268
Less than $75,000 100.0%
T269
$75,000 but not over $77,499 85.0%
T270
$77,500 but not over $79,999 70.0%
T271
$80,000 but not over $82,499 55.0%
T272 $82,500 but not over $84,999 40.0%
T273
$85,000 but not over $87,499 25.0%
T274
$87,500 but not over $89,999 10.0% Raised Bill No. 6934
LCO No. 6599 34 of 41
T275
$90,000 but not over $94,999 5.0%
T276
$95,000 but not over $99,999 2.5%
T277
$100,000 and over 0.0%
(xxix) To the extent properly includable in gross income for federal 713
income tax purposes, for married individuals who file a return under 714
the federal income tax as married individuals filing jointly whose 715
federal adjusted gross income for such taxable year is less than one 716
hundred fifty thousand dollars, (I) for the taxable year commencing 717
January 1, 2023, twenty-five per cent of any distribution from an 718
individual retirement account other than a Roth individual retirement 719
account, (II) for the taxable year commencing January 1, 2024, fifty per 720
cent of any distribution from an individual retirement account other 721
than a Roth individual retirement account, (III) for the taxable year 722
commencing January 1, 2025, seventy-five per cent of any distribution 723
from an individual retirement account other than a Roth individual 724
retirement account, and (IV) for the taxable year commencing January 725
1, 2026, and each taxable year thereafter, any distribution from an 726
individual retirement account other than a Roth individual retirement 727
account. The subtraction under this clause shall be made in accordance 728
with the following schedule: 729
T278
Federal Adjusted Gross Income Deduction
T279 Less than $100,000 100.0%
T280
$100,000 but not over $104,999 85.0%
T281
$105,000 but not over $109,999 70.0%
T282
$110,000 but not over $114,999 55.0%
T283
$115,000 but not over $119,999 40.0%
T284
$120,000 but not over $124,999 25.0%
T285
$125,000 but not over $129,999 10.0%
T286
$130,000 but not over $139,999 5.0%
T287 $140,000 but not over $149,999 2.5%
T288
$150,000 and over 0.0%
Raised Bill No. 6934
LCO No. 6599 35 of 41
[(xxvii)] (xxx) To the extent properly includable in gross income for 730
federal income tax purposes, for the taxable year commencing January 731
1, 2022, the amount or amounts paid or otherwise credited to any 732
eligible resident of this state under (I) the 2020 Earned Income Tax 733
Credit enhancement program from funding allocated to the state 734
through the Coronavirus Relief Fund established under the Coronavirus 735
Aid, Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 736
Earned Income Tax Credit enhancement program from funding 737
allocated to the state pursuant to Section 9901 of Subtitle M of Title IX of 738
the American Rescue Plan Act of 2021, P.L. 117-2. 739
Sec. 3. Subsection (a) of section 12-704e of the general statutes is 740
repealed and the following is substituted in lieu thereof (Effective from 741
passage): 742
(a) Any resident of this state, as defined in subdivision (1) of 743
subsection (a) of section 12-701, who is subject to the tax imposed under 744
this chapter for any taxable year shall be allowed a credit against the tax 745
otherwise due under this chapter in an amount equal to the applicable 746
percentage of the earned income credit claimed and allowed for the 747
same taxable year under Section 32 of the Internal Revenue Code, as 748
defined in subsection (a) of section 12-701. As used in this section, 749
"applicable percentage" means (1) twenty-three per cent for taxable 750
years commencing prior to January 1, 2021, [and] (2) thirty and one-half 751
per cent for taxable years commencing on or after January 1, 2021, and 752
prior to January 1, 2023, and (3) forty per cent for taxable years 753
commencing on or after January 1, 2023. 754
Sec. 4. Section 12-217x of the general statutes is repealed and the 755
following is substituted in lieu thereof (Effective January 1, 2024): 756
(a) For purposes of this section, "human capital investment" means 757
the amount paid or incurred by a corporation on: 758
(1) [job] Job training [which] that occurs in this state for persons who 759
are employed in this state; 760 Raised Bill No. 6934
LCO No. 6599 36 of 41
(2) [work] Work education programs in this state, including, but not 761
limited to, programs in public high schools and work education-762
diversified occupations programs in this state; 763
(3) [worker] Worker training and education for persons who are 764
employed in this state provided by institutions of higher education in 765
this state; 766
(4) [donations] Donations or capital contributions to institutions of 767
higher education in this state for improvements or advancements of 768
technology, including physical plant improvements; 769
(5) [planning] Planning, site preparation, construction, renovation or 770
acquisition of facilities in this state for the purpose of establishing a child 771
care center, as described in section 19a-77, in this state to be used 772
primarily by the children of employees who are employed in this state; 773
(6) Donations or capital contributions to an organization exempt from 774
taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 775
1986, or any subsequent corresponding internal revenue code of the 776
United States, as amended from time to time, for the planning, site 777
preparation, construction, renovation or acquisition of facilities in this 778
state for the purpose of establishing a child care center in this state to be 779
used by children residing in the community, including the children of 780
employees who are employed in this state; 781
[(6) subsidies] (7) Subsidies to employees who are employed in this 782
state for child care to be provided in this state; and 783
[(7) contributions] (8) Contributions made to the Individual 784
Development Account Reserve Fund, as defined in section 31-51ww. 785
(b) There shall be allowed a credit for any corporation against the tax 786
imposed under this chapter in an amount spent by such corporation, as 787
a human capital investment as follows: (1) For any income year 788
commencing on or after January 1, 1998, and prior to January 1, 1999, 789
equal to three per cent of such amount paid or incurred by the 790 Raised Bill No. 6934
LCO No. 6599 37 of 41
corporation during such income year; (2) for any income year 791
commencing on or after January 1, 1999, and prior to January 1, 2000, 792
equal to four per cent of such amount paid or incurred by the 793
corporation during such income year; [and] (3) for any income year 794
commencing on or after January 1, 2000, equal to five per cent of such 795
amount paid or incurred by the corporation during such income year; 796
and (4) for any income year commencing on or after January 1, 2024, (A) 797
equal to ten per cent of the amount paid or incurred by the corporation 798
during such income year for the purposes set forth in subdivisions (1) 799
to (4), inclusive, and subdivision (8) of subsection (a) of this section, and 800
(B) equal to twenty-five per cent of the amount paid or incurred by the 801
corporation during such income year for the purposes set forth in 802
subdivisions (5) to (7), inclusive, of subsection (a) of this section. 803
(c) The amount of credit allowed to any corporation under this 804
section shall not exceed the amount of tax due from such corporation 805
under this chapter with respect to such income year. 806
(d) No corporation claiming the credit under this section with respect 807
to a human capital investment as defined in subsection (a) of this section 808
shall claim a credit against any tax under any other provision of the 809
general statutes against any tax with respect to the same investment. 810
(e) Any tax credit not used in the income year during which the 811
investment was made may be carried forward for the five immediately 812
succeeding income years until the full credit has been allowed. 813
Sec. 5. (NEW) (Effective July 1, 2023) (a) The Commissioner of Revenue 814
Services shall annually: 815
(1) Estimate the state tax gap and develop an overall strategy to 816
promote compliance and discourage tax avoidance. Such estimate shall 817
include an analysis of income distribution and population distribution 818
expressed for (A) every ten percentage points, (B) the top five per cent 819
of all income taxpayers, (C) the top one per cent of all income taxpayers, 820
and (D) the top one-half of one per cent of all income taxpayers. As used 821
in this section, "tax gap" means the difference between taxes owed under 822 Raised Bill No. 6934
LCO No. 6599 38 of 41
full compliance with all state tax laws and the state taxes voluntarily 823
paid, where such difference may be due to a failure to file taxes, 824
underreporting of tax liability or not paying all taxes owing; 825
(2) Evaluate the specific staffing needs of the Department of Revenue 826
Services to implement such overall strategy and reduce the state tax gap 827
and determine the progress made, if any, towards filling such staffing 828
needs; and 829
(3) Conduct (A) a cost benefit analysis of each major tax compliance 830
initiative undertaken by the department in the preceding fiscal year, 831
including tax amnesty programs, and (B) an analysis of audit rates, by 832
income level, undertaken by the department in the preceding fiscal year. 833
(b) On or before December 15, 2023, and annually thereafter, the 834
commissioner shall submit a report, in accordance with the provisions 835
of section 11-4a of the general statutes, to the joint standing committee 836
of the General Assembly having cognizance of matters relating to 837
finance, revenue and bonding and appropriations. Such report shall be 838
posted on the Department of Revenue Service's Internet web site and 839
shall include (1) the tax gap estimate and analysis and the compliance 840
strategy developed under subdivision (1) of subsection (a) of this section 841
and any information supporting the amount of the tax gap estimate, (2) 842
a summary of the evaluation and determination of the department's 843
staffing needs under subdivision (2) of subsection (a) of this section, and 844
(3) the findings of the analyses conducted under subdivision (3) of 845
subsection (a) of this section. 846
(c) On or before July 1, 2024, the commissioner shall publish a 847
strategic plan that includes the department's mission, measurable goals 848
that define how the mission is to be accomplished, specific strategies to 849
achieve the goals and a timetable to measure progress toward achieving 850
those goals. Such plan shall be posted on the department's Internet web 851
site and updated annually. 852
Sec. 6. Section 12-7c of the general statutes is repealed and the 853
following is substituted in lieu thereof (Effective July 1, 2023): 854 Raised Bill No. 6934
LCO No. 6599 39 of 41
(a) The Commissioner of Revenue Services shall, on or before 855
December 15, 2023, and biennially thereafter, submit to the joint 856
standing committee of the General Assembly having cognizance of 857
matters relating to finance, revenue and bonding, and post on the 858
department's Internet web site a report on the overall incidence of the 859
personal income tax, the affected business entity tax, sales and excise 860
taxes, the corporation business tax, [and] property tax and any other tax 861
that generated at least one hundred million dollars in the most recent 862
fiscal year prior to the submission of each report, for each of the most 863
recent ten tax years for which complete data are available. 864
(1) The report shall include incidence projections for each such tax 865
and shall present information on the distribution of the tax burden as 866
follows: 867
[(1)] (A) For individuals: 868
[(A)] (i) Income classes, including income distribution and 869
population distribution expressed for [(i)] (I) every ten percentage 870
points, [(ii)] (II) the top five per cent of all income taxpayers, [and (iii)] 871
(III) the top one per cent of all income taxpayers, [;] and (IV) the top one-872
half of one per cent of all income taxpayers; 873
(ii) For each income class, the percentage of taxpayers who (I) are 874
homeowners, (II) are single, (III) are married, (IV) are seniors, or (V) 875
have children; 876
(iii) For each income class, the average market value of a home and 877
the average monthly rent; 878
(iv) Effective tax rates by population distribution expressed as state 879
taxes compared to local taxes; 880
(v) Effective tax rates by population distribution expressed as taxes 881
imposed on businesses compared to taxes imposed on individuals; and 882
[(B)] (vi) Other appropriate taxpayer characteristics, as determined 883
by said commissioner. 884 Raised Bill No. 6934
LCO No. 6599 40 of 41
[(2)] (B) For businesses: 885
[(A)] (i) Business size as established by gross receipts; 886
[(B)] (ii) Legal organization; and 887
[(C)] (iii) Industry by NAICS code. 888
(2) In addition to the information required under subdivision (1) of 889
this subsection, the report shall include the following: 890
(A) For the personal income tax, information on the distribution of 891
the property tax credit under section 12-704c, the earned income tax 892
credit under section 12-704e, the affected business entity tax credit 893
under section 12-699 and any other credit against the personal income 894
tax that resulted in a revenue loss to the state of at least twenty-five 895
million dollars in the most recent fiscal year prior to the submission of 896
each report; 897
(B) For property tax, information on the distribution of residential 898
and commercial property and for residential property, the distribution 899
of homeowners and renters; and 900
(C) For any other tax other than the personal income tax or property 901
tax that generated at least one hundred million dollars in the most recent 902
fiscal year prior to the submission of each report, information on the 903
distribution of any credit against such tax that resulted in a revenue loss 904
to the state of at least twenty-five million dollars in the most recent fiscal 905
year prior to the submission of each report. 906
(b) The Commissioner of Revenue Services may enter into a contract 907
with any public or private entity for the purpose of preparing the report 908
required pursuant to subsection (a) of this section, provided, if the 909
commissioner enters into such contract, the commissioner shall include 910
in such report the resources that the commissioner deems necessary to 911
allow the Department of Revenue Services to prepare such report in-912
house. 913 Raised Bill No. 6934
LCO No. 6599 41 of 41
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2024 12-700(a)
Sec. 2 from passage and
applicable to taxable years
commencing on or after
January 1, 2023
12-701(a)(20)(B)
Sec. 3 from passage 12-704e(a)
Sec. 4 January 1, 2024 12-217x
Sec. 5 July 1, 2023 New section
Sec. 6 July 1, 2023 12-7c
Statement of Purpose:
To (1) make adjustments to certain personal income tax rates, (2)
establish income phase-out thresholds for the personal income tax
deductions for pension and annuity income and individual retirement
accounts, (3) increase the applicable percentage of the earned income tax
credit, (4) expand the tax credit for human capital investment, (5)
require the Commissioner of Revenue Services to provide information
related to the tax gap, and (6) require additional information to be
included in the tax incidence report.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]