Connecticut 2023 Regular Session

Connecticut House Bill HB06934 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 6599 1 of 41
4	4
5	5	General Assembly Raised Bill No. 6934
6	6	January Session, 2023
7	7	LCO No. 6599
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
16	16
17	17
18	18
19	19
20	20	AN ACT MAKING ADJUSTMENTS TO THE PERSONAL INCOME AND
21	21	THE EARNED INCOME TAX CREDIT AND CONCERNING THE HUMAN
22	22	CAPITAL INVESTMENT TAX CREDIT, TAX GAP REPORTING AND
23	23	THE TAX INCIDENCE REPORT.
24	24	Be it enacted by the Senate and House of Representatives in General
25	25	Assembly convened:
26	26
27	27	Section 1. Subsection (a) of section 12-700 of the general statutes is 1
28	28	repealed and the following is substituted in lieu thereof (Effective January 2
29	29	1, 2024): 3
30	30	(a) There is hereby imposed on the Connecticut taxable income of 4
31	31	each resident of this state a tax: 5
32	32	(1) At the rate of four and one-half per cent of such Connecticut 6
33	33	taxable income for taxable years commencing on or after January 1, 7
34	34	1992, and prior to January 1, 1996. 8
35	35	(2) For taxable years commencing on or after January 1, 1996, but 9
36	36	prior to January 1, 1997, in accordance with the following schedule: 10
37	37	(A) For any person who files a return under the federal income tax 11 Raised Bill No. 6934
38	38
39	39
40	40
41	41	LCO No. 6599 2 of 41
42	42
43	43	for such taxable year as an unmarried individual or as a married 12
44	44	individual filing separately: 13
45	45	T1
46	46	Connecticut Taxable Income Rate of Tax
47	47	T2
48	48	Not over $2,250 3.0%
49	49	T3
50	50	Over $2,250 $67.50, plus 4.5% of the
51	51	T4 excess over $2,250
52	52
53	53	(B) For any person who files a return under the federal income tax for 14
54	54	such taxable year as a head of household, as defined in Section 2(b) of 15
55	55	the Internal Revenue Code: 16
56	56	T5
57	57	Connecticut Taxable Income Rate of Tax
58	58	T6
59	59	Not over $3,500 3.0%
60	60	T7
61	61	Over $3,500 $105.00, plus 4.5% of the
62	62	T8
63	63	excess over $3,500
64	64
65	65	(C) For any husband and wife who file a return under the federal 17
66	66	income tax for such taxable year as married individuals filing jointly or 18
67	67	a person who files a return under the federal income tax as a surviving 19
68	68	spouse, as defined in Section 2(a) of the Internal Revenue Code: 20
69	69	T9
70	70	Connecticut Taxable Income Rate of Tax
71	71	T10 Not over $4,500 3.0%
72	72	T11 Over $4,500 $135.00, plus 4.5% of the
73	73	T12 excess over $4,500
74	74
75	75	(D) For trusts or estates, the rate of tax shall be 4.5% of their 21
76	76	Connecticut taxable income. 22
77	77	(3) For taxable years commencing on or after January 1, 1997, but 23
78	78	prior to January 1, 1998, in accordance with the following schedule: 24
79	79	(A) For any person who files a return under the federal income tax 25 Raised Bill No. 6934
80	80
81	81
82	82
83	83	LCO No. 6599 3 of 41
84	84
85	85	for such taxable year as an unmarried individual or as a married 26
86	86	individual filing separately: 27
87	87	T13
88	88	Connecticut Taxable Income Rate of Tax
89	89	T14 Not over $6,250 3.0%
90	90	T15 Over $6,250 $187.50, plus 4.5% of the
91	91	T16 excess over $6,250
92	92
93	93	(B) For any person who files a return under the federal income tax for 28
94	94	such taxable year as a head of household, as defined in Section 2(b) of 29
95	95	the Internal Revenue Code: 30
96	96	T17
97	97	Connecticut Taxable Income Rate of Tax
98	98	T18 Not over $10,000 3.0%
99	99	T19 Over $10,000 $300.00, plus 4.5% of the
100	100	T20 excess over $10,000
101	101
102	102	(C) For any husband and wife who file a return under the federal 31
103	103	income tax for such taxable year as married individuals filing jointly or 32
104	104	any person who files a return under the federal income tax for such 33
105	105	taxable year as a surviving spouse, as defined in Section 2(a) of the 34
106	106	Internal Revenue Code: 35
107	107	T21
108	108	Connecticut Taxable Income Rate of Tax
109	109	T22 Not over $12,500 3.0%
110	110	T23 Over $12,500 $375.00, plus 4.5% of the
111	111	T24 excess over $12,500
112	112
113	113	(D) For trusts or estates, the rate of tax shall be 4.5% of their 36
114	114	Connecticut taxable income. 37
115	115	(4) For taxable years commencing on or after January 1, 1998, but 38
116	116	prior to January 1, 1999, in accordance with the following schedule: 39
117	117	(A) For any person who files a return under the federal income tax 40 Raised Bill No. 6934
118	118
119	119
120	120
121	121	LCO No. 6599 4 of 41
122	122
123	123	for such taxable year as an unmarried individual or as a married 41
124	124	individual filing separately: 42
125	125	T25
126	126	Connecticut Taxable Income Rate of Tax
127	127	T26
128	128	Not over $7,500 3.0%
129	129	T27
130	130	Over $7,500 $225.00, plus 4.5% of the
131	131	T28 excess over $7,500
132	132
133	133	(B) For any person who files a return under the federal income tax for 43
134	134	such taxable year as a head of household, as defined in Section 2(b) of 44
135	135	the Internal Revenue Code: 45
136	136	T29
137	137	Connecticut Taxable Income Rate of Tax
138	138	T30
139	139	Not over $12,000 3.0%
140	140	T31
141	141	Over $12,000 $360.00, plus 4.5% of the
142	142	T32
143	143	excess over $12,000
144	144
145	145	(C) For any husband and wife who file a return under the federal 46
146	146	income tax for such taxable year as married individuals filing jointly or 47
147	147	any person who files a return under the federal income tax for such 48
148	148	taxable year as a surviving spouse, as defined in Section 2(a) of the 49
149	149	Internal Revenue Code: 50
150	150	T33
151	151	Connecticut Taxable Income Rate of Tax
152	152	T34
153	153	Not over $15,000 3.0%
154	154	T35
155	155	Over $15,000 $450.00, plus 4.5% of the
156	156	T36
157	157	excess over $15,000
158	158
159	159	(D) For trusts or estates, the rate of tax shall be 4.5% of their 51
160	160	Connecticut taxable income. 52
161	161	(5) For taxable years commencing on or after January 1, 1999, but 53
162	162	prior to January 1, 2003, in accordance with the following schedule: 54 Raised Bill No. 6934
163	163
164	164
165	165
166	166	LCO No. 6599 5 of 41
167	167
168	168	(A) For any person who files a return under the federal income tax 55
169	169	for such taxable year as an unmarried individual or as a married 56
170	170	individual filing separately: 57
171	171	T37
172	172	Connecticut Taxable Income Rate of Tax
173	173	T38
174	174	Not over $10,000 3.0%
175	175	T39 Over $10,000 $300.00, plus 4.5% of the
176	176	T40
177	177	excess over $10,000
178	178
179	179	(B) For any person who files a return under the federal income tax for 58
180	180	such taxable year as a head of household, as defined in Section 2(b) of 59
181	181	the Internal Revenue Code: 60
182	182	T41
183	183	Connecticut Taxable Income Rate of Tax
184	184	T42
185	185	Not over $16,000 3.0%
186	186	T43
187	187	Over $16,000 $480.00, plus 4.5% of the
188	188	T44 excess over $16,000
189	189
190	190	(C) For any husband and wife who file a return under the federal 61
191	191	income tax for such taxable year as married individuals filing jointly or 62
192	192	any person who files a return under the federal income tax for such 63
193	193	taxable year as a surviving spouse, as defined in Section 2(a) of the 64
194	194	Internal Revenue Code: 65
195	195	T45
196	196	Connecticut Taxable Income Rate of Tax
197	197	T46
198	198	Not over $20,000 3.0%
199	199	T47
200	200	Over $20,000 $600.00, plus 4.5% of the
201	201	T48 excess over $20,000
202	202
203	203	(D) For trusts or estates, the rate of tax shall be 4.5% of their 66
204	204	Connecticut taxable income. 67
205	205	(6) For taxable years commencing on or after January 1, 2003, but 68 Raised Bill No. 6934
206	206
207	207
208	208
209	209	LCO No. 6599 6 of 41
210	210
211	211	prior to January 1, 2009, in accordance with the following schedule: 69
212	212	(A) For any person who files a return under the federal income tax 70
213	213	for such taxable year as an unmarried individual or as a married 71
214	214	individual filing separately: 72
215	215	T49
216	216	Connecticut Taxable Income Rate of Tax
217	217	T50 Not over $10,000 3.0%
218	218	T51
219	219	Over $10,000 $300.00, plus 5.0% of the
220	220	T52
221	221	excess over $10,000
222	222
223	223	(B) For any person who files a return under the federal income tax for 73
224	224	such taxable year as a head of household, as defined in Section 2(b) of 74
225	225	the Internal Revenue Code: 75
226	226	T53
227	227	Connecticut Taxable Income Rate of Tax
228	228	T54
229	229	Not over $16,000 3.0%
230	230	T55 Over $16,000 $480.00, plus 5.0% of the
231	231	T56
232	232	excess over $16,000
233	233
234	234	(C) For any husband and wife who file a return under the federal 76
235	235	income tax for such taxable year as married individuals filing jointly or 77
236	236	any person who files a return under the federal income tax for such 78
237	237	taxable year as a surviving spouse, as defined in Section 2(a) of the 79
238	238	Internal Revenue Code: 80
239	239	T57
240	240	Connecticut Taxable Income Rate of Tax
241	241	T58
242	242	Not over $20,000 3.0%
243	243	T59 Over $20,000 $600.00, plus 5.0% of the
244	244	T60
245	245	excess over $20,000
246	246
247	247	(D) For trusts or estates, the rate of tax shall be 5.0% of the 81
248	248	Connecticut taxable income. 82 Raised Bill No. 6934
249	249
250	250
251	251
252	252	LCO No. 6599 7 of 41
253	253
254	254	(7) For taxable years commencing on or after January 1, 2009, but 83
255	255	prior to January 1, 2011, in accordance with the following schedule: 84
256	256	(A) For any person who files a return under the federal income tax 85
257	257	for such taxable year as an unmarried individual: 86
258	258	T61
259	259	Connecticut Taxable Income Rate of Tax
260	260	T62 Not over $10,000 3.0%
261	261	T63
262	262	Over $10,000 but not $300.00, plus 5.0% of the
263	263	T64
264	264	over $500,000 excess over $10,000
265	265	T65
266	266	Over $500,000 $24,800, plus 6.5% of the
267	267	T66
268	268	excess over $500,000
269	269
270	270	(B) For any person who files a return under the federal income tax for 87
271	271	such taxable year as a head of household, as defined in Section 2(b) of 88
272	272	the Internal Revenue Code: 89
273	273	T67
274	274	Connecticut Taxable Income Rate of Tax
275	275	T68
276	276	Not over $16,000 3.0%
277	277	T69
278	278	Over $16,000 but not $480.00, plus 5.0% of the
279	279	T70
280	280	over $800,000 excess over $16,000
281	281	T71
282	282	Over $800,000 $39,680, plus 6.5% of the
283	283	T72 excess over $800,000
284	284
285	285	(C) For any husband and wife who file a return under the federal 90
286	286	income tax for such taxable year as married individuals filing jointly or 91
287	287	any person who files a return under the federal income tax for such 92
288	288	taxable year as a surviving spouse, as defined in Section 2(a) of the 93
289	289	Internal Revenue Code: 94
290	290	T73
291	291	Connecticut Taxable Income Rate of Tax
292	292	T74
293	293	Not over $20,000 3.0%
294	294	T75
295	295	Over $20,000 but not $600.00, plus 5.0% of the
296	296	T76
297	297	over $1,000,000 excess over $20,000 Raised Bill No. 6934
298	298
299	299
300	300
301	301	LCO No. 6599 8 of 41
302	302
303	303	T77
304	304	Over $1,000,000 $49,600, plus 6.5% of the
305	305	T78
306	306	excess over $1,000,000
307	307
308	308	(D) For any person who files a return under the federal income tax 95
309	309	for such taxable year as a married individual filing separately: 96
310	310	T79
311	311	Connecticut Taxable Income Rate of Tax
312	312	T80
313	313	Not over $10,000 3.0%
314	314	T81
315	315	Over $10,000 but not $300.00, plus 5.0% of the
316	316	T82
317	317	over $500,000 excess over $10,000
318	318	T83
319	319	Over $500,000 $24,800, plus 6.5% of the
320	320	T84
321	321	excess over $500,000
322	322
323	323	(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut 97
324	324	taxable income. 98
325	325	(8) For taxable years commencing on or after January 1, 2011, but 99
326	326	prior to January 1, 2015, in accordance with the following schedule: 100
327	327	(A) (i) For any person who files a return under the federal income tax 101
328	328	for such taxable year as an unmarried individual: 102
329	329	T85
330	330	Connecticut Taxable Income Rate of Tax
331	331	T86
332	332	Not over $10,000 3.0%
333	333	T87
334	334	Over $10,000 but not $300.00, plus 5.0% of the
335	335	T88
336	336	over $50,000 excess over $10,000
337	337	T89
338	338	Over $50,000 but not $2,300, plus 5.5% of the
339	339	T90 over $100,000 excess over $50,000
340	340	T91
341	341	Over $100,000 but not $5,050, plus 6.0% of the
342	342	T92
343	343	over $200,000 excess over $100,000
344	344	T93
345	345	Over $200,000 but not $11,050, plus 6.5% of the
346	346	T94
347	347	over $250,000 excess over $200,000
348	348	T95
349	349	Over $250,000 $14,300, plus 6.70% of the
350	350	T96
351	351	excess over $250,000 Raised Bill No. 6934
352	352
353	353
354	354
355	355	LCO No. 6599 9 of 41
356	356
357	357
358	358	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 103
359	359	subdivision, for each taxpayer whose Connecticut adjusted gross 104
360	360	income exceeds fifty-six thousand five hundred dollars, the amount of 105
361	361	the taxpayer's Connecticut taxable income to which the three-per-cent 106
362	362	tax rate applies shall be reduced by one thousand dollars for each five 107
363	363	thousand dollars, or fraction thereof, by which the taxpayer's 108
364	364	Connecticut adjusted gross income exceeds said amount. Any such 109
365	365	amount of Connecticut taxable income to which, as provided in the 110
366	366	preceding sentence, the three-per-cent tax rate does not apply shall be 111
367	367	an amount to which the five-per-cent tax rate shall apply. 112
368	368	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 113
369	369	two hundred thousand dollars shall pay, in addition to the tax 114
370	370	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 115
371	371	this subdivision, an amount equal to seventy-five dollars for each five 116
372	372	thousand dollars, or fraction thereof, by which the taxpayer's 117
373	373	Connecticut adjusted gross income exceeds two hundred thousand 118
374	374	dollars, up to a maximum payment of two thousand two hundred fifty 119
375	375	dollars. 120
376	376	(B) (i) For any person who files a return under the federal income tax 121
377	377	for such taxable year as a head of household, as defined in Section 2(b) 122
378	378	of the Internal Revenue Code: 123
379	379	T97
380	380	Connecticut Taxable Income Rate of Tax
381	381	T98
382	382	Not over $16,000 3.0%
383	383	T99
384	384	Over $16,000 but not $480.00, plus 5.0% of the
385	385	T100
386	386	over $80,000 excess over $16,000
387	387	T101
388	388	Over $80,000 but not $3,680, plus 5.5% of the
389	389	T102
390	390	over $160,000 excess over $80,000
391	391	T103
392	392	Over $160,000 but not $8,080, plus 6.0% of the
393	393	T104
394	394	over $320,000 excess over $160,000
395	395	T105 Over $320,000 but not $17,680, plus 6.5% of the
396	396	T106
397	397	over $400,000 excess over $320,000 Raised Bill No. 6934
398	398
399	399
400	400
401	401	LCO No. 6599 10 of 41
402	402
403	403	T107
404	404	Over $400,000 $22,880, plus 6.70% of the
405	405	T108
406	406	excess over $400,000
407	407
408	408	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 124
409	409	subdivision, for each taxpayer whose Connecticut adjusted gross 125
410	410	income exceeds seventy-eight thousand five hundred dollars, the 126
411	411	amount of the taxpayer's Connecticut taxable income to which the three-127
412	412	per-cent tax rate applies shall be reduced by one thousand six hundred 128
413	413	dollars for each four thousand dollars, or fraction thereof, by which the 129
414	414	taxpayer's Connecticut adjusted gross income exceeds said amount. 130
415	415	Any such amount of Connecticut taxable income to which, as provided 131
416	416	in the preceding sentence, the three-per-cent tax rate does not apply 132
417	417	shall be an amount to which the five-per-cent tax rate shall apply. 133
418	418	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 134
419	419	three hundred twenty thousand dollars shall pay, in addition to the tax 135
420	420	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 136
421	421	this subdivision, an amount equal to one hundred twenty dollars for 137
422	422	each eight thousand dollars, or fraction thereof, by which the taxpayer's 138
423	423	Connecticut adjusted gross income exceeds three hundred twenty 139
424	424	thousand dollars, up to a maximum payment of three thousand six 140
425	425	hundred dollars. 141
426	426	(C) (i) For any husband and wife who file a return under the federal 142
427	427	income tax for such taxable year as married individuals filing jointly or 143
428	428	any person who files a return under the federal income tax for such 144
429	429	taxable year as a surviving spouse, as defined in Section 2(a) of the 145
430	430	Internal Revenue Code: 146
431	431	T109
432	432	Connecticut Taxable Income Rate of Tax
433	433	T110
434	434	Not over $20,000 3.0%
435	435	T111 Over $20,000 but not $600.00, plus 5.0% of the
436	436	T112
437	437	over $100,000 excess over $20,000
438	438	T113
439	439	Over $100,000 but not $4,600, plus 5.5% of the Raised Bill No. 6934
440	440
441	441
442	442
443	443	LCO No. 6599 11 of 41
444	444
445	445	T114
446	446	over $200,000 excess over $100,000
447	447	T115
448	448	Over $200,000 but not $10,100, plus 6.0% of the
449	449	T116 over $400,000 excess over $200,000
450	450	T117
451	451	Over $400,000 but not $22,100, plus 6.5% of the
452	452	T118
453	453	over $500,000 excess over $400,000
454	454	T119
455	455	Over $500,000 $28,600, plus 6.70% of the
456	456	T120
457	457	excess over $500,000
458	458
459	459	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 147
460	460	subdivision, for each taxpayer whose Connecticut adjusted gross 148
461	461	income exceeds one hundred thousand five hundred dollars, the 149
462	462	amount of the taxpayer's Connecticut taxable income to which the three-150
463	463	per-cent tax rate applies shall be reduced by two thousand dollars for 151
464	464	each five thousand dollars, or fraction thereof, by which the taxpayer's 152
465	465	Connecticut adjusted gross income exceeds said amount. Any such 153
466	466	amount of Connecticut taxable income to which, as provided in the 154
467	467	preceding sentence, the three-per-cent tax rate does not apply shall be 155
468	468	an amount to which the five-per-cent tax rate shall apply. 156
469	469	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 157
470	470	four hundred thousand dollars shall pay, in addition to the tax 158
471	471	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 159
472	472	this subdivision, an amount equal to one hundred fifty dollars for each 160
473	473	ten thousand dollars, or fraction thereof, by which the taxpayer's 161
474	474	Connecticut adjusted gross income exceeds four hundred thousand 162
475	475	dollars, up to a maximum payment of four thousand five hundred 163
476	476	dollars. 164
477	477	(D) (i) For any person who files a return under the federal income tax 165
478	478	for such taxable year as a married individual filing separately: 166
479	479	T121
480	480	Connecticut Taxable Income Rate of Tax
481	481	T122
482	482	Not over $10,000 3.0%
483	483	T123
484	484	Over $10,000 but not $300.00, plus 5.0% of the Raised Bill No. 6934
485	485
486	486
487	487
488	488	LCO No. 6599 12 of 41
489	489
490	490	T124
491	491	over $50,000 excess over $10,000
492	492	T125
493	493	Over $50,000 but not $2,300, plus 5.5% of the
494	494	T126 over $100,000 excess over $50,000
495	495	T127
496	496	Over $100,000 but not $5,050, plus 6.0% of the
497	497	T128
498	498	over $200,000 excess over $100,000
499	499	T129
500	500	Over $200,000 but not $11,050, plus 6.5% of the
501	501	T130
502	502	over $250,000 excess over $200,000
503	503	T131
504	504	Over $250,000 $14,300, plus 6.70% of the
505	505	T132
506	506	excess over $250,000
507	507
508	508	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 167
509	509	subdivision, for each taxpayer whose Connecticut adjusted gross 168
510	510	income exceeds fifty thousand two hundred fifty dollars, the amount of 169
511	511	the taxpayer's Connecticut taxable income to which the three-per-cent 170
512	512	tax rate applies shall be reduced by one thousand dollars for each two 171
513	513	thousand five hundred dollars, or fraction thereof, by which the 172
514	514	taxpayer's Connecticut adjusted gross income exceeds said amount. 173
515	515	Any such amount of Connecticut taxable income to which, as provided 174
516	516	in the preceding sentence, the three-per-cent tax rate does not apply 175
517	517	shall be an amount to which the five-per-cent tax rate shall apply. 176
518	518	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 177
519	519	two hundred thousand dollars shall pay, in addition to the tax 178
520	520	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 179
521	521	this subdivision, an amount equal to seventy-five dollars for each five 180
522	522	thousand dollars, or fraction thereof, by which the taxpayer's 181
523	523	Connecticut adjusted gross income exceeds two hundred thousand 182
524	524	dollars, up to a maximum payment of two thousand two hundred fifty 183
525	525	dollars. 184
526	526	(E) For trusts or estates, the rate of tax shall be 6.70% of the 185
527	527	Connecticut taxable income. 186
528	528	(9) For taxable years commencing on or after January 1, 2015, but 187
529	529	prior to January 1, 2023, in accordance with the following schedule: 188 Raised Bill No. 6934
530	530
531	531
532	532
533	533	LCO No. 6599 13 of 41
534	534
535	535	(A) (i) For any person who files a return under the federal income tax 189
536	536	for such taxable year as an unmarried individual: 190
537	537	T133 Connecticut Taxable Income Rate of Tax
538	538	T134
539	539	Not over $10,000 3.0%
540	540	T135
541	541	Over $10,000 but not $300.00, plus 5.0% of the
542	542	T136
543	543	over $50,000 excess over $10,000
544	544	T137
545	545	Over $50,000 but not $2,300, plus 5.5% of the
546	546	T138
547	547	over $100,000 excess over $50,000
548	548	T139
549	549	Over $100,000 but not $5,050, plus 6.0% of the
550	550	T140
551	551	over $200,000 excess over $100,000
552	552	T141
553	553	Over $200,000 but not $11,050, plus 6.5% of the
554	554	T142
555	555	over $250,000 excess over $200,000
556	556	T143
557	557	Over $250,000 but not $14,300, plus 6.9% of the
558	558	T144
559	559	over $500,000 excess over $250,000
560	560	T145
561	561	Over $500,000 $31,550, plus 6.99% of the
562	562	T146
563	563	excess over $500,000
564	564
565	565	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 191
566	566	subdivision, for each taxpayer whose Connecticut adjusted gross 192
567	567	income exceeds fifty-six thousand five hundred dollars, the amount of 193
568	568	the taxpayer's Connecticut taxable income to which the three-per-cent 194
569	569	tax rate applies shall be reduced by one thousand dollars for each five 195
570	570	thousand dollars, or fraction thereof, by which the taxpayer's 196
571	571	Connecticut adjusted gross income exceeds said amount. Any such 197
572	572	amount of Connecticut taxable income to which, as provided in the 198
573	573	preceding sentence, the three-per-cent tax rate does not apply shall be 199
574	574	an amount to which the five-per-cent tax rate shall apply. 200
575	575	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 201
576	576	two hundred thousand dollars shall pay, in addition to the tax 202
577	577	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 203
578	578	this subdivision, an amount equal to ninety dollars for each five 204
579	579	thousand dollars, or fraction thereof, by which the taxpayer's 205
580	580	Connecticut adjusted gross income exceeds two hundred thousand 206 Raised Bill No. 6934
581	581
582	582
583	583
584	584	LCO No. 6599 14 of 41
585	585
586	586	dollars, up to a maximum payment of two thousand seven hundred 207
587	587	dollars. 208
588	588	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 209
589	589	five hundred thousand dollars shall pay, in addition to the tax 210
590	590	computed under the provisions of subparagraphs (A)(i), (A)(ii) and 211
591	591	(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 212
592	592	thousand dollars, or fraction thereof, by which the taxpayer's 213
593	593	Connecticut adjusted gross income exceeds five hundred thousand 214
594	594	dollars, up to a maximum payment of four hundred fifty dollars. 215
595	595	(B) (i) For any person who files a return under the federal income tax 216
596	596	for such taxable year as a head of household, as defined in Section 2(b) 217
597	597	of the Internal Revenue Code: 218
598	598	T147 Connecticut Taxable Income Rate of Tax
599	599	T148
600	600	Not over $16,000 3.0%
601	601	T149
602	602	Over $16,000 but not $480.00, plus 5.0% of the
603	603	T150
604	604	over $80,000 excess over $16,000
605	605	T151
606	606	Over $80,000 but not $3,680, plus 5.5% of the
607	607	T152
608	608	over $160,000 excess over $80,000
609	609	T153
610	610	Over $160,000 but not $8,080, plus 6.0% of the
611	611	T154
612	612	over $320,000 excess over $160,000
613	613	T155
614	614	Over $320,000 but not $17,680, plus 6.5% of the
615	615	T156
616	616	over $400,000 excess over $320,000
617	617	T157
618	618	Over $400,000 but not $22,880, plus 6.9% of the
619	619	T158
620	620	over $800,000 excess over $400,000
621	621	T159
622	622	Over $800,000 $50,480, plus 6.99% of the
623	623	T160
624	624	excess over $800,000
625	625
626	626	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 219
627	627	subdivision, for each taxpayer whose Connecticut adjusted gross 220
628	628	income exceeds seventy-eight thousand five hundred dollars, the 221
629	629	amount of the taxpayer's Connecticut taxable income to which the three-222
630	630	per-cent tax rate applies shall be reduced by one thousand six hundred 223 Raised Bill No. 6934
631	631
632	632
633	633
634	634	LCO No. 6599 15 of 41
635	635
636	636	dollars for each four thousand dollars, or fraction thereof, by which the 224
637	637	taxpayer's Connecticut adjusted gross income exceeds said amount. 225
638	638	Any such amount of Connecticut taxable income to which, as provided 226
639	639	in the preceding sentence, the three-per-cent tax rate does not apply 227
640	640	shall be an amount to which the five-per-cent tax rate shall apply. 228
641	641	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 229
642	642	three hundred twenty thousand dollars shall pay, in addition to the tax 230
643	643	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 231
644	644	this subdivision, an amount equal to one hundred forty dollars for each 232
645	645	eight thousand dollars, or fraction thereof, by which the taxpayer's 233
646	646	Connecticut adjusted gross income exceeds three hundred twenty 234
647	647	thousand dollars, up to a maximum payment of four thousand two 235
648	648	hundred dollars. 236
649	649	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 237
650	650	eight hundred thousand dollars shall pay, in addition to the tax 238
651	651	computed under the provisions of subparagraphs (B)(i), (B)(ii) and 239
652	652	(B)(iii) of this subdivision, an amount equal to eighty dollars for each 240
653	653	eight thousand dollars, or fraction thereof, by which the taxpayer's 241
654	654	Connecticut adjusted gross income exceeds eight hundred thousand 242
655	655	dollars, up to a maximum payment of seven hundred twenty dollars. 243
656	656	(C) (i) For any husband and wife who file a return under the federal 244
657	657	income tax for such taxable year as married individuals filing jointly or 245
658	658	any person who files a return under the federal income tax for such 246
659	659	taxable year as a surviving spouse, as defined in Section 2(a) of the 247
660	660	Internal Revenue Code: 248
661	661	T161
662	662	Connecticut Taxable Income Rate of Tax
663	663	T162 Not over $20,000 3.0%
664	664	T163 Over $20,000 but not $600.00, plus 5.0% of the
665	665	T164 over $100,000 excess over $20,000
666	666	T165 Over $100,000 but not $4,600, plus 5.5% of the
667	667	T166 over $200,000 excess over $100,000
668	668	T167 Over $200,000 but not $10,100, plus 6.0% of the Raised Bill No. 6934
669	669
670	670
671	671
672	672	LCO No. 6599 16 of 41
673	673
674	674	T168 over $400,000 excess over $200,000
675	675	T169 Over $400,000 but not $22,100, plus 6.5% of the
676	676	T170 over $500,000 excess over $400,000
677	677	T171 Over $500,000 but not $28,600, plus 6.9% of the
678	678	T172 over $1,000,000 excess over $500,000
679	679	T173 Over $1,000,000 $63,100, plus 6.99% of the
680	680	T174 excess over $1,000,000
681	681
682	682	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 249
683	683	subdivision, for each taxpayer whose Connecticut adjusted gross 250
684	684	income exceeds one hundred thousand five hundred dollars, the 251
685	685	amount of the taxpayer's Connecticut taxable income to which the three-252
686	686	per-cent tax rate applies shall be reduced by two thousand dollars for 253
687	687	each five thousand dollars, or fraction thereof, by which the taxpayer's 254
688	688	Connecticut adjusted gross income exceeds said amount. Any such 255
689	689	amount of Connecticut taxable income to which, as provided in the 256
690	690	preceding sentence, the three-per-cent tax rate does not apply shall be 257
691	691	an amount to which the five-per-cent tax rate shall apply. 258
692	692	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 259
693	693	four hundred thousand dollars shall pay, in addition to the tax 260
694	694	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 261
695	695	this subdivision, an amount equal to one hundred eighty dollars for 262
696	696	each ten thousand dollars, or fraction thereof, by which the taxpayer's 263
697	697	Connecticut adjusted gross income exceeds four hundred thousand 264
698	698	dollars, up to a maximum payment of five thousand four hundred 265
699	699	dollars. 266
700	700	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 267
701	701	one million dollars shall pay, in addition to the tax computed under the 268
702	702	provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 269
703	703	subdivision, an amount equal to one hundred dollars for each ten 270
704	704	thousand dollars, or fraction thereof, by which the taxpayer's 271
705	705	Connecticut adjusted gross income exceeds one million dollars, up to a 272
706	706	maximum payment of nine hundred dollars. 273 Raised Bill No. 6934
707	707
708	708
709	709
710	710	LCO No. 6599 17 of 41
711	711
712	712	(D) (i) For any person who files a return under the federal income tax 274
713	713	for such taxable year as a married individual filing separately: 275
714	714	T175
715	715	Connecticut Taxable Income Rate of Tax
716	716	T176 Not over $10,000 3.0%
717	717	T177 Over $10,000 but not $300.00, plus 5.0% of the
718	718	T178 over $50,000 excess over $10,000
719	719	T179 Over $50,000 but not $2,300, plus 5.5% of the
720	720	T180 over $100,000 excess over $50,000
721	721	T181 Over $100,000 but not $5,050, plus 6.0% of the
722	722	T182 over $200,000 excess over $100,000
723	723	T183 Over $200,000 but not $11,050, plus 6.5% of the
724	724	T184 over $250,000 excess over $200,000
725	725	T185 Over $250,000 but not $14,300, plus 6.9% of the
726	726	T186 over $500,000 excess over $250,000
727	727	T187 Over $500,000 $31,550, plus 6.99% of the
728	728	T188 excess over $500,000
729	729
730	730	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 276
731	731	subdivision, for each taxpayer whose Connecticut adjusted gross 277
732	732	income exceeds fifty thousand two hundred fifty dollars, the amount of 278
733	733	the taxpayer's Connecticut taxable income to which the three-per-cent 279
734	734	tax rate applies shall be reduced by one thousand dollars for each two 280
735	735	thousand five hundred dollars, or fraction thereof, by which the 281
736	736	taxpayer's Connecticut adjusted gross income exceeds said amount. 282
737	737	Any such amount of Connecticut taxable income to which, as provided 283
738	738	in the preceding sentence, the three-per-cent tax rate does not apply 284
739	739	shall be an amount to which the five-per-cent tax rate shall apply. 285
740	740	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 286
741	741	two hundred thousand dollars shall pay, in addition to the tax 287
742	742	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 288
743	743	this subdivision, an amount equal to ninety dollars for each five 289
744	744	thousand dollars, or fraction thereof, by which the taxpayer's 290 Raised Bill No. 6934
745	745
746	746
747	747
748	748	LCO No. 6599 18 of 41
749	749
750	750	Connecticut adjusted gross income exceeds two hundred thousand 291
751	751	dollars, up to a maximum payment of two thousand seven hundred 292
752	752	dollars. 293
753	753	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 294
754	754	five hundred thousand dollars shall pay, in addition to the tax 295
755	755	computed under the provisions of subparagraphs (D)(i), (D)(ii) and 296
756	756	(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 297
757	757	thousand dollars, or fraction thereof, by which the taxpayer's 298
758	758	Connecticut adjusted gross income exceeds five hundred thousand 299
759	759	dollars, up to a maximum payment of four hundred fifty dollars. 300
760	760	(E) For trusts or estates, the rate of tax shall be 6.99% of the 301
761	761	Connecticut taxable income. 302
762	762	(10) For taxable years commencing on or after January 1, 2023, in 303
763	763	accordance with the following schedule: 304
764	764	(A) (i) For any person who files a return under the federal income tax 305
765	765	for such taxable year as an unmarried individual: 306
766	766	T189 Connecticut Taxable Income Rate of Tax
767	767	T190
768	768	Not over $10,000 2.0%
769	769	T191
770	770	Over $10,000 but not $200.00, plus 4.75% of the
771	771	T192
772	772	over $50,000 excess over $10,000
773	773	T193
774	774	Over $50,000 but not $2,100, plus 5.5% of the
775	775	T194
776	776	over $100,000 excess over $50,000
777	777	T195
778	778	Over $100,000 but not $4,850, plus 6.0% of the
779	779	T196
780	780	over $200,000 excess over $100,000
781	781	T197
782	782	Over $200,000 but not $10,850, plus 6.5% of the
783	783	T198
784	784	over $250,000 excess over $200,000
785	785	T199
786	786	Over $250,000 but not $14,100, plus 6.9% of the
787	787	T200
788	788	over $500,000 excess over $250,000
789	789	T201
790	790	Over $500,000 $31,350, plus 6.99% of the
791	791	T202
792	792	excess over $500,000
793	793	Raised Bill No. 6934
794	794
795	795
796	796
797	797	LCO No. 6599 19 of 41
798	798
799	799	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 307
800	800	subdivision, for each taxpayer whose Connecticut adjusted gross 308
801	801	income exceeds fifty-six thousand five hundred dollars, the amount of 309
802	802	the taxpayer's Connecticut taxable income to which the two-per-cent tax 310
803	803	rate applies shall be reduced by one thousand dollars for each five 311
804	804	thousand dollars, or fraction thereof, by which the taxpayer's 312
805	805	Connecticut adjusted gross income exceeds said amount. Any such 313
806	806	amount of Connecticut taxable income to which, as provided in the 314
807	807	preceding sentence, the two-per-cent tax rate does not apply shall be an 315
808	808	amount to which the four-and-three-quarters-per-cent tax rate shall 316
809	809	apply. 317
810	810	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 318
811	811	two hundred thousand dollars shall pay, in addition to the tax 319
812	812	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 320
813	813	this subdivision, an amount equal to ninety dollars for each five 321
814	814	thousand dollars, or fraction thereof, by which the taxpayer's 322
815	815	Connecticut adjusted gross income exceeds two hundred thousand 323
816	816	dollars, up to a maximum payment of two thousand seven hundred 324
817	817	dollars. 325
818	818	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 326
819	819	five hundred thousand dollars shall pay, in addition to the tax 327
820	820	computed under the provisions of subparagraphs (A)(i), (A)(ii) and 328
821	821	(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 329
822	822	thousand dollars, or fraction thereof, by which the taxpayer's 330
823	823	Connecticut adjusted gross income exceeds five hundred thousand 331
824	824	dollars, up to a maximum payment of four hundred fifty dollars. 332
825	825	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 333
826	826	two hundred thousand dollars shall pay, in addition to the tax 334
827	827	computed under the provisions of subparagraphs (A)(i), (A)(ii), (A)(iii) 335
828	828	and, if applicable, (A)(iv) of this subdivision, one hundred twenty-five 336
829	829	dollars. 337
830	830	(B) (i) For any person who files a return under the federal income tax 338 Raised Bill No. 6934
831	831
832	832
833	833
834	834	LCO No. 6599 20 of 41
835	835
836	836	for such taxable year as a head of household, as defined in Section 2(b) 339
837	837	of the Internal Revenue Code: 340
838	838	T203 Connecticut Taxable Income Rate of Tax
839	839	T204
840	840	Not over $16,000 2.0%
841	841	T205
842	842	Over $16,000 but not $320.00, plus 4.75% of the
843	843	T206
844	844	over $80,000 excess over $16,000
845	845	T207
846	846	Over $80,000 but not $3,360, plus 5.5% of the
847	847	T208
848	848	over $160,000 excess over $80,000
849	849	T209
850	850	Over $160,000 but not $7,760, plus 6.0% of the
851	851	T210
852	852	over $320,000 excess over $160,000
853	853	T211
854	854	Over $320,000 but not $17,360, plus 6.5% of the
855	855	T212
856	856	over $400,000 excess over $320,000
857	857	T213
858	858	Over $400,000 but not $22,560, plus 6.9% of the
859	859	T214
860	860	over $800,000 excess over $400,000
861	861	T215
862	862	Over $800,000 $50,160, plus 6.99% of the
863	863	T216
864	864	excess over $800,000
865	865
866	866	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 341
867	867	subdivision, for each taxpayer whose Connecticut adjusted gross 342
868	868	income exceeds seventy-eight thousand five hundred dollars, the 343
869	869	amount of the taxpayer's Connecticut taxable income to which the two-344
870	870	per-cent tax rate applies shall be reduced by one thousand six hundred 345
871	871	dollars for each four thousand dollars, or fraction thereof, by which the 346
872	872	taxpayer's Connecticut adjusted gross income exceeds said amount. 347
873	873	Any such amount of Connecticut taxable income to which, as provided 348
874	874	in the preceding sentence, the two-per-cent tax rate does not apply shall 349
875	875	be an amount to which the four-and-three-quarters-per-cent tax rate 350
876	876	shall apply. 351
877	877	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 352
878	878	three hundred twenty thousand dollars shall pay, in addition to the tax 353
879	879	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 354
880	880	this subdivision, an amount equal to one hundred forty dollars for each 355
881	881	eight thousand dollars, or fraction thereof, by which the taxpayer's 356 Raised Bill No. 6934
882	882
883	883
884	884
885	885	LCO No. 6599 21 of 41
886	886
887	887	Connecticut adjusted gross income exceeds three hundred twenty 357
888	888	thousand dollars, up to a maximum payment of four thousand two 358
889	889	hundred dollars. 359
890	890	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 360
891	891	eight hundred thousand dollars shall pay, in addition to the tax 361
892	892	computed under the provisions of subparagraphs (B)(i), (B)(ii) and 362
893	893	(B)(iii) of this subdivision, an amount equal to eighty dollars for each 363
894	894	eight thousand dollars, or fraction thereof, by which the taxpayer's 364
895	895	Connecticut adjusted gross income exceeds eight hundred thousand 365
896	896	dollars, up to a maximum payment of seven hundred twenty dollars. 366
897	897	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 367
898	898	three hundred twenty thousand dollars shall pay, in addition to the tax 368
899	899	computed under the provisions of subparagraphs (B)(i), (B)(ii), (B)(iii) 369
900	900	and, if applicable, (B)(iv) of this subdivision, two hundred dollars. 370
901	901	(C) (i) For any husband and wife who file a return under the federal 371
902	902	income tax for such taxable year as married individuals filing jointly or 372
903	903	any person who files a return under the federal income tax for such 373
904	904	taxable year as a surviving spouse, as defined in Section 2(a) of the 374
905	905	Internal Revenue Code: 375
906	906	T217
907	907	Connecticut Taxable Income Rate of Tax
908	908	T218 Not over $20,000 2.0%
909	909	T219 Over $20,000 but not $400.00, plus 4.75% of the
910	910	T220 over $100,000 excess over $20,000
911	911	T221 Over $100,000 but not $4,200, plus 5.5% of the
912	912	T222 over $200,000 excess over $100,000
913	913	T223 Over $200,000 but not $9,700, plus 6.0% of the
914	914	T224 over $400,000 excess over $200,000
915	915	T225 Over $400,000 but not $21,700, plus 6.5% of the
916	916	T226 over $500,000 excess over $400,000
917	917	T227 Over $500,000 but not $28,200, plus 6.9% of the
918	918	T228 over $1,000,000 excess over $500,000 Raised Bill No. 6934
919	919
920	920
921	921
922	922	LCO No. 6599 22 of 41
923	923
924	924	T229 Over $1,000,000 $62,700, plus 6.99% of the
925	925	T230 excess over $1,000,000
926	926
927	927	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 376
928	928	subdivision, for each taxpayer whose Connecticut adjusted gross 377
929	929	income exceeds one hundred thousand five hundred dollars, the 378
930	930	amount of the taxpayer's Connecticut taxable income to which the two-379
931	931	per-cent tax rate applies shall be reduced by two thousand dollars for 380
932	932	each five thousand dollars, or fraction thereof, by which the taxpayer's 381
933	933	Connecticut adjusted gross income exceeds said amount. Any such 382
934	934	amount of Connecticut taxable income to which, as provided in the 383
935	935	preceding sentence, the two-per-cent tax rate does not apply shall be an 384
936	936	amount to which the four-and-three-quarters-per-cent tax rate shall 385
937	937	apply. 386
938	938	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 387
939	939	four hundred thousand dollars shall pay, in addition to the tax 388
940	940	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 389
941	941	this subdivision, an amount equal to one hundred eighty dollars for 390
942	942	each ten thousand dollars, or fraction thereof, by which the taxpayer's 391
943	943	Connecticut adjusted gross income exceeds four hundred thousand 392
944	944	dollars, up to a maximum payment of five thousand four hundred 393
945	945	dollars. 394
946	946	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 395
947	947	one million dollars shall pay, in addition to the tax computed under the 396
948	948	provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 397
949	949	subdivision, an amount equal to one hundred dollars for each ten 398
950	950	thousand dollars, or fraction thereof, by which the taxpayer's 399
951	951	Connecticut adjusted gross income exceeds one million dollars, up to a 400
952	952	maximum payment of nine hundred dollars. 401
953	953	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 402
954	954	four hundred thousand dollars shall pay, in addition to the tax 403
955	955	computed under the provisions of subparagraphs (C)(i), (C)(ii), (C)(iii) 404 Raised Bill No. 6934
956	956
957	957
958	958
959	959	LCO No. 6599 23 of 41
960	960
961	961	and, if applicable, (C)(iv) of this subdivision, two hundred fifty dollars. 405
962	962	(D) (i) For any person who files a return under the federal income tax 406
963	963	for such taxable year as a married individual filing separately: 407
964	964	T231
965	965	Connecticut Taxable Income Rate of Tax
966	966	T232 Not over $10,000 2.0%
967	967	T233 Over $10,000 but not $200.00, plus 4.75% of the
968	968	T234 over $50,000 excess over $10,000
969	969	T235 Over $50,000 but not $2,100, plus 5.5% of the
970	970	T236 over $100,000 excess over $50,000
971	971	T237 Over $100,000 but not $4,850, plus 6.0% of the
972	972	T238 over $200,000 excess over $100,000
973	973	T239 Over $200,000 but not $10,850, plus 6.5% of the
974	974	T240 over $250,000 excess over $200,000
975	975	T241 Over $250,000 but not $14,100, plus 6.9% of the
976	976	T242 over $500,000 excess over $250,000
977	977	T243 Over $500,000 $31,350, plus 6.99% of the
978	978	T244 excess over $500,000
979	979
980	980	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 408
981	981	subdivision, for each taxpayer whose Connecticut adjusted gross 409
982	982	income exceeds fifty thousand two hundred fifty dollars, the amount of 410
983	983	the taxpayer's Connecticut taxable income to which the two-per-cent tax 411
984	984	rate applies shall be reduced by one thousand dollars for each two 412
985	985	thousand five hundred dollars, or fraction thereof, by which the 413
986	986	taxpayer's Connecticut adjusted gross income exceeds said amount. 414
987	987	Any such amount of Connecticut taxable income to which, as provided 415
988	988	in the preceding sentence, the two-per-cent tax rate does not apply shall 416
989	989	be an amount to which the four-and-three-quarters-per-cent tax rate 417
990	990	shall apply. 418
991	991	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 419
992	992	two hundred thousand dollars shall pay, in addition to the tax 420 Raised Bill No. 6934
993	993
994	994
995	995
996	996	LCO No. 6599 24 of 41
997	997
998	998	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 421
999	999	this subdivision, an amount equal to ninety dollars for each five 422
1000	1000	thousand dollars, or fraction thereof, by which the taxpayer's 423
1001	1001	Connecticut adjusted gross income exceeds two hundred thousand 424
1002	1002	dollars, up to a maximum payment of two thousand seven hundred 425
1003	1003	dollars. 426
1004	1004	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 427
1005	1005	five hundred thousand dollars shall pay, in addition to the tax 428
1006	1006	computed under the provisions of subparagraphs (D)(i), (D)(ii) and 429
1007	1007	(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 430
1008	1008	thousand dollars, or fraction thereof, by which the taxpayer's 431
1009	1009	Connecticut adjusted gross income exceeds five hundred thousand 432
1010	1010	dollars, up to a maximum payment of four hundred fifty dollars. 433
1011	1011	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 434
1012	1012	two hundred thousand dollars shall pay, in addition to the tax 435
1013	1013	computed under the provisions of subparagraphs (D)(i), (D)(ii), (D)(iii) 436
1014	1014	and, if applicable, (D)(iv) of this subdivision, one hundred twenty-five 437
1015	1015	dollars. 438
1016	1016	(E) For trusts or estates, the rate of tax shall be 6.99% of the 439
1017	1017	Connecticut taxable income. 440
1018	1018	[(10)] (11) The provisions of this subsection shall apply to resident 441
1019	1019	trusts and estates and, wherever reference is made in this subsection to 442
1020	1020	residents of this state, such reference shall be construed to include 443
1021	1021	resident trusts and estates, provided any reference to a resident's 444
1022	1022	Connecticut adjusted gross income derived from sources without this 445
1023	1023	state or to a resident's Connecticut adjusted gross income shall be 446
1024	1024	construed, in the case of a resident trust or estate, to mean the resident 447
1025	1025	trust or estate's Connecticut taxable income derived from sources 448
1026	1026	without this state and the resident trust or estate's Connecticut taxable 449
1027	1027	income, respectively. 450
1028	1028	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 451
1029	1029	section 12-701 of the general statutes is repealed and the following is 452 Raised Bill No. 6934
1030	1030
1031	1031
1032	1032
1033	1033	LCO No. 6599 25 of 41
1034	1034
1035	1035	substituted in lieu thereof (Effective from passage and applicable to taxable 453
1036	1036	years commencing on or after January 1, 2023): 454
1037	1037	(B) There shall be subtracted therefrom: 455
1038	1038	(i) To the extent properly includable in gross income for federal 456
1039	1039	income tax purposes, any income with respect to which taxation by any 457
1040	1040	state is prohibited by federal law; 458
1041	1041	(ii) To the extent allowable under section 12-718, exempt dividends 459
1042	1042	paid by a regulated investment company; 460
1043	1043	(iii) To the extent properly includable in gross income for federal 461
1044	1044	income tax purposes, the amount of any refund or credit for 462
1045	1045	overpayment of income taxes imposed by this state, or any other state 463
1046	1046	of the United States or a political subdivision thereof, or the District of 464
1047	1047	Columbia; 465
1048	1048	(iv) To the extent properly includable in gross income for federal 466
1049	1049	income tax purposes and not otherwise subtracted from federal 467
1050	1050	adjusted gross income pursuant to clause (x) of this subparagraph in 468
1051	1051	computing Connecticut adjusted gross income, any tier 1 railroad 469
1052	1052	retirement benefits; 470
1053	1053	(v) To the extent any additional allowance for depreciation under 471
1054	1054	Section 168(k) of the Internal Revenue Code for property placed in 472
1055	1055	service after September 27, 2017, was added to federal adjusted gross 473
1056	1056	income pursuant to subparagraph (A)(ix) of this subdivision in 474
1057	1057	computing Connecticut adjusted gross income, twenty-five per cent of 475
1058	1058	such additional allowance for depreciation in each of the four 476
1059	1059	succeeding taxable years; 477
1060	1060	(vi) To the extent properly includable in gross income for federal 478
1061	1061	income tax purposes, any interest income from obligations issued by or 479
1062	1062	on behalf of the state of Connecticut, any political subdivision thereof, 480
1063	1063	or public instrumentality, state or local authority, district or similar 481
1064	1064	public entity created under the laws of the state of Connecticut; 482 Raised Bill No. 6934
1065	1065
1066	1066
1067	1067
1068	1068	LCO No. 6599 26 of 41
1069	1069
1070	1070	(vii) To the extent properly includable in determining the net gain or 483
1071	1071	loss from the sale or other disposition of capital assets for federal income 484
1072	1072	tax purposes, any gain from the sale or exchange of obligations issued 485
1073	1073	by or on behalf of the state of Connecticut, any political subdivision 486
1074	1074	thereof, or public instrumentality, state or local authority, district or 487
1075	1075	similar public entity created under the laws of the state of Connecticut, 488
1076	1076	in the income year such gain was recognized; 489
1077	1077	(viii) Any interest on indebtedness incurred or continued to purchase 490
1078	1078	or carry obligations or securities the interest on which is subject to tax 491
1079	1079	under this chapter but exempt from federal income tax, to the extent that 492
1080	1080	such interest on indebtedness is not deductible in determining federal 493
1081	1081	adjusted gross income and is attributable to a trade or business carried 494
1082	1082	on by such individual; 495
1083	1083	(ix) Ordinary and necessary expenses paid or incurred during the 496
1084	1084	taxable year for the production or collection of income which is subject 497
1085	1085	to taxation under this chapter but exempt from federal income tax, or 498
1086	1086	the management, conservation or maintenance of property held for the 499
1087	1087	production of such income, and the amortizable bond premium for the 500
1088	1088	taxable year on any bond the interest on which is subject to tax under 501
1089	1089	this chapter but exempt from federal income tax, to the extent that such 502
1090	1090	expenses and premiums are not deductible in determining federal 503
1091	1091	adjusted gross income and are attributable to a trade or business carried 504
1092	1092	on by such individual; 505
1093	1093	(x) (I) For taxable years commencing prior to January 1, 2019, for a 506
1094	1094	person who files a return under the federal income tax as an unmarried 507
1095	1095	individual whose federal adjusted gross income for such taxable year is 508
1096	1096	less than fifty thousand dollars, or as a married individual filing 509
1097	1097	separately whose federal adjusted gross income for such taxable year is 510
1098	1098	less than fifty thousand dollars, or for a husband and wife who file a 511
1099	1099	return under the federal income tax as married individuals filing jointly 512
1100	1100	whose federal adjusted gross income for such taxable year is less than 513
1101	1101	sixty thousand dollars or a person who files a return under the federal 514
1102	1102	income tax as a head of household whose federal adjusted gross income 515 Raised Bill No. 6934
1103	1103
1104	1104
1105	1105
1106	1106	LCO No. 6599 27 of 41
1107	1107
1108	1108	for such taxable year is less than sixty thousand dollars, an amount 516
1109	1109	equal to the Social Security benefits includable for federal income tax 517
1110	1110	purposes; 518
1111	1111	(II) For taxable years commencing prior to January 1, 2019, for a 519
1112	1112	person who files a return under the federal income tax as an unmarried 520
1113	1113	individual whose federal adjusted gross income for such taxable year is 521
1114	1114	fifty thousand dollars or more, or as a married individual filing 522
1115	1115	separately whose federal adjusted gross income for such taxable year is 523
1116	1116	fifty thousand dollars or more, or for a husband and wife who file a 524
1117	1117	return under the federal income tax as married individuals filing jointly 525
1118	1118	whose federal adjusted gross income from such taxable year is sixty 526
1119	1119	thousand dollars or more or for a person who files a return under the 527
1120	1120	federal income tax as a head of household whose federal adjusted gross 528
1121	1121	income for such taxable year is sixty thousand dollars or more, an 529
1122	1122	amount equal to the difference between the amount of Social Security 530
1123	1123	benefits includable for federal income tax purposes and the lesser of 531
1124	1124	twenty-five per cent of the Social Security benefits received during the 532
1125	1125	taxable year, or twenty-five per cent of the excess described in Section 533
1126	1126	86(b)(1) of the Internal Revenue Code; 534
1127	1127	(III) For the taxable year commencing January 1, 2019, and each 535
1128	1128	taxable year thereafter, for a person who files a return under the federal 536
1129	1129	income tax as an unmarried individual whose federal adjusted gross 537
1130	1130	income for such taxable year is less than seventy-five thousand dollars, 538
1131	1131	or as a married individual filing separately whose federal adjusted gross 539
1132	1132	income for such taxable year is less than seventy-five thousand dollars, 540
1133	1133	or for a husband and wife who file a return under the federal income tax 541
1134	1134	as married individuals filing jointly whose federal adjusted gross 542
1135	1135	income for such taxable year is less than one hundred thousand dollars 543
1136	1136	or a person who files a return under the federal income tax as a head of 544
1137	1137	household whose federal adjusted gross income for such taxable year is 545
1138	1138	less than one hundred thousand dollars, an amount equal to the Social 546
1139	1139	Security benefits includable for federal income tax purposes; and 547
1140	1140	(IV) For the taxable year commencing January 1, 2019, and each 548 Raised Bill No. 6934
1141	1141
1142	1142
1143	1143
1144	1144	LCO No. 6599 28 of 41
1145	1145
1146	1146	taxable year thereafter, for a person who files a return under the federal 549
1147	1147	income tax as an unmarried individual whose federal adjusted gross 550
1148	1148	income for such taxable year is seventy-five thousand dollars or more, 551
1149	1149	or as a married individual filing separately whose federal adjusted gross 552
1150	1150	income for such taxable year is seventy-five thousand dollars or more, 553
1151	1151	or for a husband and wife who file a return under the federal income tax 554
1152	1152	as married individuals filing jointly whose federal adjusted gross 555
1153	1153	income from such taxable year is one hundred thousand dollars or more 556
1154	1154	or for a person who files a return under the federal income tax as a head 557
1155	1155	of household whose federal adjusted gross income for such taxable year 558
1156	1156	is one hundred thousand dollars or more, an amount equal to the 559
1157	1157	difference between the amount of Social Security benefits includable for 560
1158	1158	federal income tax purposes and the lesser of twenty-five per cent of the 561
1159	1159	Social Security benefits received during the taxable year, or twenty-five 562
1160	1160	per cent of the excess described in Section 86(b)(1) of the Internal 563
1161	1161	Revenue Code; 564
1162	1162	(xi) To the extent properly includable in gross income for federal 565
1163	1163	income tax purposes, any amount rebated to a taxpayer pursuant to 566
1164	1164	section 12-746; 567
1165	1165	(xii) To the extent properly includable in the gross income for federal 568
1166	1166	income tax purposes of a designated beneficiary, any distribution to 569
1167	1167	such beneficiary from any qualified state tuition program, as defined in 570
1168	1168	Section 529(b) of the Internal Revenue Code, established and 571
1169	1169	maintained by this state or any official, agency or instrumentality of the 572
1170	1170	state; 573
1171	1171	(xiii) To the extent allowable under section 12-701a, contributions to 574
1172	1172	accounts established pursuant to any qualified state tuition program, as 575
1173	1173	defined in Section 529(b) of the Internal Revenue Code, established and 576
1174	1174	maintained by this state or any official, agency or instrumentality of the 577
1175	1175	state; 578
1176	1176	(xiv) To the extent properly includable in gross income for federal 579
1177	1177	income tax purposes, the amount of any Holocaust victims' settlement 580 Raised Bill No. 6934
1178	1178
1179	1179
1180	1180
1181	1181	LCO No. 6599 29 of 41
1182	1182
1183	1183	payment received in the taxable year by a Holocaust victim; 581
1184	1184	(xv) To the extent properly includable in gross income for federal 582
1185	1185	income tax purposes of an account holder, as defined in section 31-583
1186	1186	51ww, interest earned on funds deposited in the individual 584
1187	1187	development account, as defined in section 31-51ww, of such account 585
1188	1188	holder; 586
1189	1189	(xvi) To the extent properly includable in the gross income for federal 587
1190	1190	income tax purposes of a designated beneficiary, as defined in section 588
1191	1191	3-123aa, interest, dividends or capital gains earned on contributions to 589
1192	1192	accounts established for the designated beneficiary pursuant to the 590
1193	1193	Connecticut Homecare Option Program for the Elderly established by 591
1194	1194	sections 3-123aa to 3-123ff, inclusive; 592
1195	1195	(xvii) To the extent properly includable in gross income for federal 593
1196	1196	income tax purposes, any income received from the United States 594
1197	1197	government as retirement pay for a retired member of (I) the Armed 595
1198	1198	Forces of the United States, as defined in Section 101 of Title 10 of the 596
1199	1199	United States Code, or (II) the National Guard, as defined in Section 101 597
1200	1200	of Title 10 of the United States Code; 598
1201	1201	(xviii) To the extent properly includable in gross income for federal 599
1202	1202	income tax purposes for the taxable year, any income from the discharge 600
1203	1203	of indebtedness in connection with any reacquisition, after December 601
1204	1204	31, 2008, and before January 1, 2011, of an applicable debt instrument or 602
1205	1205	instruments, as those terms are defined in Section 108 of the Internal 603
1206	1206	Revenue Code, as amended by Section 1231 of the American Recovery 604
1207	1207	and Reinvestment Act of 2009, to the extent any such income was added 605
1208	1208	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 606
1209	1209	this subdivision in computing Connecticut adjusted gross income for a 607
1210	1210	preceding taxable year; 608
1211	1211	(xix) To the extent not deductible in determining federal adjusted 609
1212	1212	gross income, the amount of any contribution to a manufacturing 610
1213	1213	reinvestment account established pursuant to section 32-9zz in the 611
1214	1214	taxable year that such contribution is made; 612 Raised Bill No. 6934
1215	1215
1216	1216
1217	1217
1218	1218	LCO No. 6599 30 of 41
1219	1219
1220	1220	(xx) To the extent properly includable in gross income for federal 613
1221	1221	income tax purposes, (I) for the taxable year commencing January 1, 614
1222	1222	2015, ten per cent of the income received from the state teachers' 615
1223	1223	retirement system, (II) for the taxable years commencing January 1, 616
1224	1224	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 617
1225	1225	received from the state teachers' retirement system, and (III) for the 618
1226	1226	taxable year commencing January 1, 2021, and each taxable year 619
1227	1227	thereafter, fifty per cent of the income received from the state teachers' 620
1228	1228	retirement system or, for a taxpayer whose federal adjusted gross 621
1229	1229	income does not exceed the applicable threshold under clause (xxi) of 622
1230	1230	this subparagraph, the percentage pursuant to said clause of the income 623
1231	1231	received from the state teachers' retirement system, whichever 624
1232	1232	deduction is greater; 625
1233	1233	(xxi) To the extent properly includable in gross income for federal 626
1234	1234	income tax purposes, except for retirement benefits under clause (iv) of 627
1235	1235	this subparagraph and retirement pay under clause (xvii) of this 628
1236	1236	subparagraph, for a person who files a return under the federal income 629
1237	1237	tax as an unmarried individual whose federal adjusted gross income for 630
1238	1238	such taxable year is less than seventy-five thousand dollars, or as a 631
1239	1239	married individual filing separately whose federal adjusted gross 632
1240	1240	income for such taxable year is less than seventy-five thousand dollars, 633
1241	1241	or as a head of household whose federal adjusted gross income for such 634
1242	1242	taxable year is less than seventy-five thousand dollars, or for a husband 635
1243	1243	and wife who file a return under the federal income tax as married 636
1244	1244	individuals filing jointly whose federal adjusted gross income for such 637
1245	1245	taxable year is less than one hundred thousand dollars, (I) for the taxable 638
1246	1246	year commencing January 1, 2019, fourteen per cent of any pension or 639
1247	1247	annuity income, (II) for the taxable year commencing January 1, 2020, 640
1248	1248	twenty-eight per cent of any pension or annuity income, (III) for the 641
1249	1249	taxable year commencing January 1, 2021, forty-two per cent of any 642
1250	1250	pension or annuity income, and (IV) for the taxable year commencing 643
1251	1251	January 1, 2022, [and each taxable year thereafter,] one hundred per cent 644
1252	1252	of any pension or annuity income; 645
1253	1253	(xxii) To the extent properly includable in gross income for federal 646 Raised Bill No. 6934
1254	1254
1255	1255
1256	1256
1257	1257	LCO No. 6599 31 of 41
1258	1258
1259	1259	income tax purposes, except for retirement benefits under clause (iv) of 647
1260	1260	this subparagraph and retirement pay under clause (xvii) of this 648
1261	1261	subparagraph, any pension or annuity income for the taxable year 649
1262	1262	commencing on or after January 1, 2023, and each taxable year 650
1263	1263	thereafter, in accordance with the following schedule, for a person who 651
1264	1264	files a return under the federal income tax as an unmarried individual 652
1265	1265	whose federal adjusted gross income for such taxable year is less than 653
1266	1266	one hundred thousand dollars, or as a married individual filing 654
1267	1267	separately whose federal adjusted gross income for such taxable year is 655
1268	1268	less than one hundred thousand dollars, or as a head of household 656
1269	1269	whose federal adjusted gross income for such taxable year is less than 657
1270	1270	one hundred thousand dollars: 658
1271	1271	T245
1272	1272	Federal Adjusted Gross Income Deduction
1273	1273	T246 Less than $75,000 100.0%
1274	1274	T247
1275	1275	$75,000 but not over $77,499 85.0%
1276	1276	T248
1277	1277	$77,500 but not over $79,999 70.0%
1278	1278	T249
1279	1279	$80,000 but not over $82,499 55.0%
1280	1280	T250
1281	1281	$82,500 but not over $84,999 40.0%
1282	1282	T251
1283	1283	$85,000 but not over $87,499 25.0%
1284	1284	T252
1285	1285	$87,500 but not over $89,999 10.0%
1286	1286	T253
1287	1287	$90,000 but not over $94,999 5.0%
1288	1288	T254
1289	1289	$95,000 but not over $99,999 2.5%
1290	1290	T255 $100,000 and over 0.0%
1291	1291
1292	1292	(xxiii) To the extent properly includable in gross income for federal 659
1293	1293	income tax purposes, except for retirement benefits under clause (iv) of 660
1294	1294	this subparagraph and retirement pay under clause (xvii) of this 661
1295	1295	subparagraph, any pension or annuity income for the taxable year 662
1296	1296	commencing on or after January 1, 2023, and each taxable year 663
1297	1297	thereafter, in accordance with the following schedule for married 664
1298	1298	individuals who file a return under the federal income tax as married 665
1299	1299	individuals filing jointly whose federal adjusted gross income for such 666
1300	1300	taxable year is less than one hundred fifty thousand dollars: 667 Raised Bill No. 6934
1301	1301
1302	1302
1303	1303
1304	1304	LCO No. 6599 32 of 41
1305	1305
1306	1306	T256
1307	1307	Federal Adjusted Gross Income Deduction
1308	1308	T257
1309	1309	Less than $100,000 100.0%
1310	1310	T258
1311	1311	$100,000 but not over $104,999 85.0%
1312	1312	T259
1313	1313	$105,000 but not over $109,999 70.0%
1314	1314	T260
1315	1315	$110,000 but not over $114,999 55.0%
1316	1316	T261 $115,000 but not over $119,999 40.0%
1317	1317	T262
1318	1318	$120,000 but not over $124,999 25.0%
1319	1319	T263
1320	1320	$125,000 but not over $129,999 10.0%
1321	1321	T264
1322	1322	$130,000 but not over $139,999 5.0%
1323	1323	T265
1324	1324	$140,000 but not over $149,999 2.5%
1325	1325	T266
1326	1326	$150,000 and over 0.0%
1327	1327
1328	1328	[(xxii)] (xxiv) The amount of lost wages and medical, travel and 668
1329	1329	housing expenses, not to exceed ten thousand dollars in the aggregate, 669
1330	1330	incurred by a taxpayer during the taxable year in connection with the 670
1331	1331	donation to another person of an organ for organ transplantation 671
1332	1332	occurring on or after January 1, 2017; 672
1333	1333	[(xxiii)] (xxv) To the extent properly includable in gross income for 673
1334	1334	federal income tax purposes, the amount of any financial assistance 674
1335	1335	received from the Crumbling Foundations Assistance Fund or paid to 675
1336	1336	or on behalf of the owner of a residential building pursuant to sections 676
1337	1337	8-442 and 8-443; 677
1338	1338	[(xxiv)] (xxvi) To the extent properly includable in gross income for 678
1339	1339	federal income tax purposes, the amount calculated pursuant to 679
1340	1340	subsection (b) of section 12-704g for income received by a general 680
1341	1341	partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as 681
1342	1342	amended from time to time; 682
1343	1343	[(xxv)] (xxvii) To the extent any portion of a deduction under Section 683
1344	1344	179 of the Internal Revenue Code was added to federal adjusted gross 684
1345	1345	income pursuant to subparagraph (A)(xiv) of this subdivision in 685
1346	1346	computing Connecticut adjusted gross income, twenty-five per cent of 686
1347	1347	such disallowed portion of the deduction in each of the four succeeding 687 Raised Bill No. 6934
1348	1348
1349	1349
1350	1350
1351	1351	LCO No. 6599 33 of 41
1352	1352
1353	1353	taxable years; 688
1354	1354	[(xxvi)] (xxviii) To the extent properly includable in gross income for 689
1355	1355	federal income tax purposes, for a person who files a return under the 690
1356	1356	federal income tax as an unmarried individual whose federal adjusted 691
1357	1357	gross income for such taxable year is less than [seventy-five] one 692
1358	1358	hundred thousand dollars, or as a married individual filing separately 693
1359	1359	whose federal adjusted gross income for such taxable year is less than 694
1360	1360	[seventy-five] one hundred thousand dollars, or as a head of household 695
1361	1361	whose federal adjusted gross income for such taxable year is less than 696
1362	1362	[seventy-five] one hundred thousand dollars, [or for a husband and wife 697
1363	1363	who file a return under the federal income tax as married individuals 698
1364	1364	filing jointly whose federal adjusted gross income for such taxable year 699
1365	1365	is less than one hundred thousand dollars,] (I) for the taxable year 700
1366	1366	commencing January 1, 2023, twenty-five per cent of any distribution 701
1367	1367	from an individual retirement account other than a Roth individual 702
1368	1368	retirement account, (II) for the taxable year commencing January 1, 2024, 703
1369	1369	fifty per cent of any distribution from an individual retirement account 704
1370	1370	other than a Roth individual retirement account, (III) for the taxable year 705
1371	1371	commencing January 1, 2025, seventy-five per cent of any distribution 706
1372	1372	from an individual retirement account other than a Roth individual 707
1373	1373	retirement account, and (IV) for the taxable year commencing January 708
1374	1374	1, 2026, and each taxable year thereafter, any distribution from an 709
1375	1375	individual retirement account other than a Roth individual retirement 710
1376	1376	account. [; and] The subtraction under this clause shall be made in 711
1377	1377	accordance with the following schedule: 712
1378	1378	T267
1379	1379	Federal Adjusted Gross Income Deduction
1380	1380	T268
1381	1381	Less than $75,000 100.0%
1382	1382	T269
1383	1383	$75,000 but not over $77,499 85.0%
1384	1384	T270
1385	1385	$77,500 but not over $79,999 70.0%
1386	1386	T271
1387	1387	$80,000 but not over $82,499 55.0%
1388	1388	T272 $82,500 but not over $84,999 40.0%
1389	1389	T273
1390	1390	$85,000 but not over $87,499 25.0%
1391	1391	T274
1392	1392	$87,500 but not over $89,999 10.0% Raised Bill No. 6934
1393	1393
1394	1394
1395	1395
1396	1396	LCO No. 6599 34 of 41
1397	1397
1398	1398	T275
1399	1399	$90,000 but not over $94,999 5.0%
1400	1400	T276
1401	1401	$95,000 but not over $99,999 2.5%
1402	1402	T277
1403	1403	$100,000 and over 0.0%
1404	1404
1405	1405	(xxix) To the extent properly includable in gross income for federal 713
1406	1406	income tax purposes, for married individuals who file a return under 714
1407	1407	the federal income tax as married individuals filing jointly whose 715
1408	1408	federal adjusted gross income for such taxable year is less than one 716
1409	1409	hundred fifty thousand dollars, (I) for the taxable year commencing 717
1410	1410	January 1, 2023, twenty-five per cent of any distribution from an 718
1411	1411	individual retirement account other than a Roth individual retirement 719
1412	1412	account, (II) for the taxable year commencing January 1, 2024, fifty per 720
1413	1413	cent of any distribution from an individual retirement account other 721
1414	1414	than a Roth individual retirement account, (III) for the taxable year 722
1415	1415	commencing January 1, 2025, seventy-five per cent of any distribution 723
1416	1416	from an individual retirement account other than a Roth individual 724
1417	1417	retirement account, and (IV) for the taxable year commencing January 725
1418	1418	1, 2026, and each taxable year thereafter, any distribution from an 726
1419	1419	individual retirement account other than a Roth individual retirement 727
1420	1420	account. The subtraction under this clause shall be made in accordance 728
1421	1421	with the following schedule: 729
1422	1422	T278
1423	1423	Federal Adjusted Gross Income Deduction
1424	1424	T279 Less than $100,000 100.0%
1425	1425	T280
1426	1426	$100,000 but not over $104,999 85.0%
1427	1427	T281
1428	1428	$105,000 but not over $109,999 70.0%
1429	1429	T282
1430	1430	$110,000 but not over $114,999 55.0%
1431	1431	T283
1432	1432	$115,000 but not over $119,999 40.0%
1433	1433	T284
1434	1434	$120,000 but not over $124,999 25.0%
1435	1435	T285
1436	1436	$125,000 but not over $129,999 10.0%
1437	1437	T286
1438	1438	$130,000 but not over $139,999 5.0%
1439	1439	T287 $140,000 but not over $149,999 2.5%
1440	1440	T288
1441	1441	$150,000 and over 0.0%
1442	1442	Raised Bill No. 6934
1443	1443
1444	1444
1445	1445
1446	1446	LCO No. 6599 35 of 41
1447	1447
1448	1448	[(xxvii)] (xxx) To the extent properly includable in gross income for 730
1449	1449	federal income tax purposes, for the taxable year commencing January 731
1450	1450	1, 2022, the amount or amounts paid or otherwise credited to any 732
1451	1451	eligible resident of this state under (I) the 2020 Earned Income Tax 733
1452	1452	Credit enhancement program from funding allocated to the state 734
1453	1453	through the Coronavirus Relief Fund established under the Coronavirus 735
1454	1454	Aid, Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 736
1455	1455	Earned Income Tax Credit enhancement program from funding 737
1456	1456	allocated to the state pursuant to Section 9901 of Subtitle M of Title IX of 738
1457	1457	the American Rescue Plan Act of 2021, P.L. 117-2. 739
1458	1458	Sec. 3. Subsection (a) of section 12-704e of the general statutes is 740
1459	1459	repealed and the following is substituted in lieu thereof (Effective from 741
1460	1460	passage): 742
1461	1461	(a) Any resident of this state, as defined in subdivision (1) of 743
1462	1462	subsection (a) of section 12-701, who is subject to the tax imposed under 744
1463	1463	this chapter for any taxable year shall be allowed a credit against the tax 745
1464	1464	otherwise due under this chapter in an amount equal to the applicable 746
1465	1465	percentage of the earned income credit claimed and allowed for the 747
1466	1466	same taxable year under Section 32 of the Internal Revenue Code, as 748
1467	1467	defined in subsection (a) of section 12-701. As used in this section, 749
1468	1468	"applicable percentage" means (1) twenty-three per cent for taxable 750
1469	1469	years commencing prior to January 1, 2021, [and] (2) thirty and one-half 751
1470	1470	per cent for taxable years commencing on or after January 1, 2021, and 752
1471	1471	prior to January 1, 2023, and (3) forty per cent for taxable years 753
1472	1472	commencing on or after January 1, 2023. 754
1473	1473	Sec. 4. Section 12-217x of the general statutes is repealed and the 755
1474	1474	following is substituted in lieu thereof (Effective January 1, 2024): 756
1475	1475	(a) For purposes of this section, "human capital investment" means 757
1476	1476	the amount paid or incurred by a corporation on: 758
1477	1477	(1) [job] Job training [which] that occurs in this state for persons who 759
1478	1478	are employed in this state; 760 Raised Bill No. 6934
1479	1479
1480	1480
1481	1481
1482	1482	LCO No. 6599 36 of 41
1483	1483
1484	1484	(2) [work] Work education programs in this state, including, but not 761
1485	1485	limited to, programs in public high schools and work education-762
1486	1486	diversified occupations programs in this state; 763
1487	1487	(3) [worker] Worker training and education for persons who are 764
1488	1488	employed in this state provided by institutions of higher education in 765
1489	1489	this state; 766
1490	1490	(4) [donations] Donations or capital contributions to institutions of 767
1491	1491	higher education in this state for improvements or advancements of 768
1492	1492	technology, including physical plant improvements; 769
1493	1493	(5) [planning] Planning, site preparation, construction, renovation or 770
1494	1494	acquisition of facilities in this state for the purpose of establishing a child 771
1495	1495	care center, as described in section 19a-77, in this state to be used 772
1496	1496	primarily by the children of employees who are employed in this state; 773
1497	1497	(6) Donations or capital contributions to an organization exempt from 774
1498	1498	taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 775
1499	1499	1986, or any subsequent corresponding internal revenue code of the 776
1500	1500	United States, as amended from time to time, for the planning, site 777
1501	1501	preparation, construction, renovation or acquisition of facilities in this 778
1502	1502	state for the purpose of establishing a child care center in this state to be 779
1503	1503	used by children residing in the community, including the children of 780
1504	1504	employees who are employed in this state; 781
1505	1505	[(6) subsidies] (7) Subsidies to employees who are employed in this 782
1506	1506	state for child care to be provided in this state; and 783
1507	1507	[(7) contributions] (8) Contributions made to the Individual 784
1508	1508	Development Account Reserve Fund, as defined in section 31-51ww. 785
1509	1509	(b) There shall be allowed a credit for any corporation against the tax 786
1510	1510	imposed under this chapter in an amount spent by such corporation, as 787
1511	1511	a human capital investment as follows: (1) For any income year 788
1512	1512	commencing on or after January 1, 1998, and prior to January 1, 1999, 789
1513	1513	equal to three per cent of such amount paid or incurred by the 790 Raised Bill No. 6934
1514	1514
1515	1515
1516	1516
1517	1517	LCO No. 6599 37 of 41
1518	1518
1519	1519	corporation during such income year; (2) for any income year 791
1520	1520	commencing on or after January 1, 1999, and prior to January 1, 2000, 792
1521	1521	equal to four per cent of such amount paid or incurred by the 793
1522	1522	corporation during such income year; [and] (3) for any income year 794
1523	1523	commencing on or after January 1, 2000, equal to five per cent of such 795
1524	1524	amount paid or incurred by the corporation during such income year; 796
1525	1525	and (4) for any income year commencing on or after January 1, 2024, (A) 797
1526	1526	equal to ten per cent of the amount paid or incurred by the corporation 798
1527	1527	during such income year for the purposes set forth in subdivisions (1) 799
1528	1528	to (4), inclusive, and subdivision (8) of subsection (a) of this section, and 800
1529	1529	(B) equal to twenty-five per cent of the amount paid or incurred by the 801
1530	1530	corporation during such income year for the purposes set forth in 802
1531	1531	subdivisions (5) to (7), inclusive, of subsection (a) of this section. 803
1532	1532	(c) The amount of credit allowed to any corporation under this 804
1533	1533	section shall not exceed the amount of tax due from such corporation 805
1534	1534	under this chapter with respect to such income year. 806
1535	1535	(d) No corporation claiming the credit under this section with respect 807
1536	1536	to a human capital investment as defined in subsection (a) of this section 808
1537	1537	shall claim a credit against any tax under any other provision of the 809
1538	1538	general statutes against any tax with respect to the same investment. 810
1539	1539	(e) Any tax credit not used in the income year during which the 811
1540	1540	investment was made may be carried forward for the five immediately 812
1541	1541	succeeding income years until the full credit has been allowed. 813
1542	1542	Sec. 5. (NEW) (Effective July 1, 2023) (a) The Commissioner of Revenue 814
1543	1543	Services shall annually: 815
1544	1544	(1) Estimate the state tax gap and develop an overall strategy to 816
1545	1545	promote compliance and discourage tax avoidance. Such estimate shall 817
1546	1546	include an analysis of income distribution and population distribution 818
1547	1547	expressed for (A) every ten percentage points, (B) the top five per cent 819
1548	1548	of all income taxpayers, (C) the top one per cent of all income taxpayers, 820
1549	1549	and (D) the top one-half of one per cent of all income taxpayers. As used 821
1550	1550	in this section, "tax gap" means the difference between taxes owed under 822 Raised Bill No. 6934
1551	1551
1552	1552
1553	1553
1554	1554	LCO No. 6599 38 of 41
1555	1555
1556	1556	full compliance with all state tax laws and the state taxes voluntarily 823
1557	1557	paid, where such difference may be due to a failure to file taxes, 824
1558	1558	underreporting of tax liability or not paying all taxes owing; 825
1559	1559	(2) Evaluate the specific staffing needs of the Department of Revenue 826
1560	1560	Services to implement such overall strategy and reduce the state tax gap 827
1561	1561	and determine the progress made, if any, towards filling such staffing 828
1562	1562	needs; and 829
1563	1563	(3) Conduct (A) a cost benefit analysis of each major tax compliance 830
1564	1564	initiative undertaken by the department in the preceding fiscal year, 831
1565	1565	including tax amnesty programs, and (B) an analysis of audit rates, by 832
1566	1566	income level, undertaken by the department in the preceding fiscal year. 833
1567	1567	(b) On or before December 15, 2023, and annually thereafter, the 834
1568	1568	commissioner shall submit a report, in accordance with the provisions 835
1569	1569	of section 11-4a of the general statutes, to the joint standing committee 836
1570	1570	of the General Assembly having cognizance of matters relating to 837
1571	1571	finance, revenue and bonding and appropriations. Such report shall be 838
1572	1572	posted on the Department of Revenue Service's Internet web site and 839
1573	1573	shall include (1) the tax gap estimate and analysis and the compliance 840
1574	1574	strategy developed under subdivision (1) of subsection (a) of this section 841
1575	1575	and any information supporting the amount of the tax gap estimate, (2) 842
1576	1576	a summary of the evaluation and determination of the department's 843
1577	1577	staffing needs under subdivision (2) of subsection (a) of this section, and 844
1578	1578	(3) the findings of the analyses conducted under subdivision (3) of 845
1579	1579	subsection (a) of this section. 846
1580	1580	(c) On or before July 1, 2024, the commissioner shall publish a 847
1581	1581	strategic plan that includes the department's mission, measurable goals 848
1582	1582	that define how the mission is to be accomplished, specific strategies to 849
1583	1583	achieve the goals and a timetable to measure progress toward achieving 850
1584	1584	those goals. Such plan shall be posted on the department's Internet web 851
1585	1585	site and updated annually. 852
1586	1586	Sec. 6. Section 12-7c of the general statutes is repealed and the 853
1587	1587	following is substituted in lieu thereof (Effective July 1, 2023): 854 Raised Bill No. 6934
1588	1588
1589	1589
1590	1590
1591	1591	LCO No. 6599 39 of 41
1592	1592
1593	1593	(a) The Commissioner of Revenue Services shall, on or before 855
1594	1594	December 15, 2023, and biennially thereafter, submit to the joint 856
1595	1595	standing committee of the General Assembly having cognizance of 857
1596	1596	matters relating to finance, revenue and bonding, and post on the 858
1597	1597	department's Internet web site a report on the overall incidence of the 859
1598	1598	personal income tax, the affected business entity tax, sales and excise 860
1599	1599	taxes, the corporation business tax, [and] property tax and any other tax 861
1600	1600	that generated at least one hundred million dollars in the most recent 862
1601	1601	fiscal year prior to the submission of each report, for each of the most 863
1602	1602	recent ten tax years for which complete data are available. 864
1603	1603	(1) The report shall include incidence projections for each such tax 865
1604	1604	and shall present information on the distribution of the tax burden as 866
1605	1605	follows: 867
1606	1606	[(1)] (A) For individuals: 868
1607	1607	[(A)] (i) Income classes, including income distribution and 869
1608	1608	population distribution expressed for [(i)] (I) every ten percentage 870
1609	1609	points, [(ii)] (II) the top five per cent of all income taxpayers, [and (iii)] 871
1610	1610	(III) the top one per cent of all income taxpayers, [;] and (IV) the top one-872
1611	1611	half of one per cent of all income taxpayers; 873
1612	1612	(ii) For each income class, the percentage of taxpayers who (I) are 874
1613	1613	homeowners, (II) are single, (III) are married, (IV) are seniors, or (V) 875
1614	1614	have children; 876
1615	1615	(iii) For each income class, the average market value of a home and 877
1616	1616	the average monthly rent; 878
1617	1617	(iv) Effective tax rates by population distribution expressed as state 879
1618	1618	taxes compared to local taxes; 880
1619	1619	(v) Effective tax rates by population distribution expressed as taxes 881
1620	1620	imposed on businesses compared to taxes imposed on individuals; and 882
1621	1621	[(B)] (vi) Other appropriate taxpayer characteristics, as determined 883
1622	1622	by said commissioner. 884 Raised Bill No. 6934
1623	1623
1624	1624
1625	1625
1626	1626	LCO No. 6599 40 of 41
1627	1627
1628	1628	[(2)] (B) For businesses: 885
1629	1629	[(A)] (i) Business size as established by gross receipts; 886
1630	1630	[(B)] (ii) Legal organization; and 887
1631	1631	[(C)] (iii) Industry by NAICS code. 888
1632	1632	(2) In addition to the information required under subdivision (1) of 889
1633	1633	this subsection, the report shall include the following: 890
1634	1634	(A) For the personal income tax, information on the distribution of 891
1635	1635	the property tax credit under section 12-704c, the earned income tax 892
1636	1636	credit under section 12-704e, the affected business entity tax credit 893
1637	1637	under section 12-699 and any other credit against the personal income 894
1638	1638	tax that resulted in a revenue loss to the state of at least twenty-five 895
1639	1639	million dollars in the most recent fiscal year prior to the submission of 896
1640	1640	each report; 897
1641	1641	(B) For property tax, information on the distribution of residential 898
1642	1642	and commercial property and for residential property, the distribution 899
1643	1643	of homeowners and renters; and 900
1644	1644	(C) For any other tax other than the personal income tax or property 901
1645	1645	tax that generated at least one hundred million dollars in the most recent 902
1646	1646	fiscal year prior to the submission of each report, information on the 903
1647	1647	distribution of any credit against such tax that resulted in a revenue loss 904
1648	1648	to the state of at least twenty-five million dollars in the most recent fiscal 905
1649	1649	year prior to the submission of each report. 906
1650	1650	(b) The Commissioner of Revenue Services may enter into a contract 907
1651	1651	with any public or private entity for the purpose of preparing the report 908
1652	1652	required pursuant to subsection (a) of this section, provided, if the 909
1653	1653	commissioner enters into such contract, the commissioner shall include 910
1654	1654	in such report the resources that the commissioner deems necessary to 911
1655	1655	allow the Department of Revenue Services to prepare such report in-912
1656	1656	house. 913 Raised Bill No. 6934
1657	1657
1658	1658
1659	1659
1660	1660	LCO No. 6599 41 of 41
1661	1661
1662	1662	This act shall take effect as follows and shall amend the following
1663	1663	sections:
1664	1664
1665	1665	Section 1 January 1, 2024 12-700(a)
1666	1666	Sec. 2 from passage and
1667	1667	applicable to taxable years
1668	1668	commencing on or after
1669	1669	January 1, 2023
1670	1670	12-701(a)(20)(B)
1671	1671	Sec. 3 from passage 12-704e(a)
1672	1672	Sec. 4 January 1, 2024 12-217x
1673	1673	Sec. 5 July 1, 2023 New section
1674	1674	Sec. 6 July 1, 2023 12-7c
1675	1675
1676	1676	Statement of Purpose:
1677	1677	To (1) make adjustments to certain personal income tax rates, (2)
1678	1678	establish income phase-out thresholds for the personal income tax
1679	1679	deductions for pension and annuity income and individual retirement
1680	1680	accounts, (3) increase the applicable percentage of the earned income tax
1681	1681	credit, (4) expand the tax credit for human capital investment, (5)
1682	1682	require the Commissioner of Revenue Services to provide information
1683	1683	related to the tax gap, and (6) require additional information to be
1684	1684	included in the tax incidence report.
1685	1685	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
1686	1686	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
1687	1687	underlined.]
1688	1688