Connecticut 2023 Regular Session

Connecticut Senate Bill SB00981 Compare Versions

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Version 2 (New)

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7		-	General Assembly Substitute Bill No. 981
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	4	+
	5	+	General Assembly Governor's Bill No. 981
8	6		January Session, 2023
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	7	+	LCO No. 4026
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	9	+
	10	+	Referred to Committee on FINANCE, REVENUE AND
	11	+	BONDING
	12	+
	13	+
	14	+	Introduced by:
	15	+	Request of the Governor Pursuant
	16	+	to Joint Rule 9
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15	22		AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE
16		-	~~BIENNIAL~~ BUDGET.
	23	+	GOVERNOR'S BUDGET.
17	24		Be it enacted by the Senate and House of Representatives in General
18	25		Assembly convened:
19	26
20	27		Section 1. Subdivision (4) of subsection (b) of section 12-214 of the 1
21	28		general statutes is repealed and the following is substituted in lieu 2
22	29		thereof (Effective from passage and applicable to income years commencing on 3
23	30		or after January 1, 2023): 4
24	31		(4) (A) With respect to income years commencing on or after January 5
25	32		1, 2018, and prior to January 1, [2023] 2026, any company subject to the 6
26	33		tax imposed in accordance with subsection (a) of this section shall pay, 7
27	34		for such income year, except when the tax so calculated is equal to two 8
28	35		hundred fifty dollars, an additional tax in an amount equal to ten per 9
29	36		cent of the tax calculated under said subsection (a) for such income year, 10
30	37		without reduction of the tax so calculated by the amount of any credit 11
31	38		against such tax. The additional amount of tax determined under this 12
32	39		subsection for any income year shall constitute a part of the tax imposed 13
33		-	by the provisions of said subsection (a) and shall become due and be 14
	40	+	by the provisions of said subsection (a) and shall become due and be 14 Governor's Bill No. 981
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	42	+
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34	46		paid, collected and enforced as provided in this chapter. 15
35	47		(B) Any company whose gross income for the income year was less 16
36		-	than one hundred million dollars shall not be subject to the additional 17 Substitute Bill No. 981
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42		-
	48	+	than one hundred million dollars shall not be subject to the additional 17
43	49		tax imposed under subparagraph (A) of this subdivision. This exception 18
44	50		shall not apply to taxable members of a combined group that files a 19
45	51		combined unitary tax return. 20
46	52		Sec. 2. Subdivision (4) of subsection (b) of section 12-219 of the general 21
47	53		statutes is repealed and the following is substituted in lieu thereof 22
48	54		(Effective from passage and applicable to income years commencing on or after 23
49	55		January 1, 2023): 24
50	56		(4) (A) With respect to income years commencing on or after January 25
51	57		1, 2018, and prior to January 1, [2023] 2026, the additional tax imposed 26
52	58		on any company and calculated in accordance with subsection (a) of this 27
53	59		section shall, for such income year, except when the tax so calculated is 28
54	60		equal to two hundred fifty dollars, be increased by adding thereto an 29
55	61		amount equal to ten per cent of the additional tax so calculated for such 30
56	62		income year, without reduction of the tax so calculated by the amount 31
57	63		of any credit against such tax. The increased amount of tax payable by 32
58	64		any company under this section, as determined in accordance with this 33
59	65		subsection, shall become due and be paid, collected and enforced as 34
60	66		provided in this chapter. 35
61	67		(B) Any company whose gross income for the income year was less 36
62	68		than one hundred million dollars shall not be subject to the additional 37
63	69		tax imposed under subparagraph (A) of this subdivision. This exception 38
64	70		shall not apply to taxable members of a combined group that files a 39
65	71		combined unitary tax return. 40
66	72		Sec. 3. (Effective from passage) The provisions of section 12-242d of the 41
67	73		general statutes shall not apply to any additional tax due as a result of 42
68	74		the changes made to subdivision (4) of subsection (b) of section 12-214 43
69	75		of the general statutes pursuant to section 1 of this act or to subdivision 44
70	76		(4) of section 12-219 of the general statutes pursuant to section 2 of this 45
71		-	act, for income years commencing on or after January 1, 2023, but prior 46
	77	+	act, for income years commencing on or after January 1, 2023, but prior 46 Governor's Bill No. 981
	78	+
	79	+
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72	83		to the effective date of sections 1 and 2 of this act. 47
73		-	Sec. 4. Section 12-217x of the general statutes is repealed and the 48 Substitute Bill No. 981
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79		-
80		-	following is substituted in lieu thereof (Effective January 1, 2024): 49
	84	+	Sec. 4. Section 12-217x of the general statutes is repealed and the 48
	85	+	following is substituted in lieu thereof (Effective from passage): 49
81	86		(a) For purposes of this section, "human capital investment" means 50
82		-	the amount paid or incurred by a corporation on: 51
83		-	(1) [job] Job training [which] that occurs in this state for persons who 52
84		-	are employed in this state; 53
85		-	(2) [work] Work education programs in this state, including, but not 54
86		-	limited to, programs in public high schools and work education-55
87		-	diversified occupations programs in this state; 56
88		-	(3) [worker] Worker training and education for persons who are 57
89		-	employed in this state provided by institutions of higher education in 58
90		-	this state; 59
91		-	(4) [donations] Donations or capital contributions to institutions of 60
92		-	higher education in this state for improvements or advancements of 61
93		-	technology, including physical plant improvements; 62
94		-	(5) [planning] Planning, site preparation, construction, renovation or 63
95		-	acquisition of facilities in this state for the purpose of establishing a child 64
96		-	care center, as described in section 19a-77, in this state to be used 65
97		-	primarily by the children of employees who are employed in this state; 66
98		-	(6) [subsidies] Donations or capital contributions to an organization 67
99		-	exempt from taxation pursuant to Section 501(c)(3) of the Internal 68
100		-	Revenue Code of 1986, or any subsequent corresponding internal 69
101		-	revenue code of the United States, as amended from time to time, for the 70
102		-	planning, site preparation, construction, renovation or acquisition of 71
103		-	facilities in this state for the purpose of establishing a child care center 72
104		-	in this state to be used by children residing in the community, including 73
105		-	the children of employees who are employed in this state; 74
106		-	(7) Subsidies to employees who are employed in this state for child 75
107		-	care to be provided in this state; and 76 Substitute Bill No. 981
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114		-	[(7) contributions] (8) Contributions made to the Individual 77
115		-	Development Account Reserve Fund, as defined in section 31-51ww. 78
116		-	(b) There shall be allowed a credit for any corporation against the tax 79
117		-	imposed under this chapter in an amount spent by such corporation, as 80
118		-	a human capital investment as follows: (1) For any income year 81
119		-	commencing on or after January 1, 1998, and prior to January 1, 1999, 82
120		-	equal to three per cent of such amount paid or incurred by the 83
121		-	corporation during such income year; (2) for any income year 84
122		-	commencing on or after January 1, 1999, and prior to January 1, 2000, 85
123		-	equal to four per cent of such amount paid or incurred by the 86
124		-	corporation during such income year; [and] (3) for any income year 87
125		-	commencing on or after January 1, 2000, equal to five per cent of such 88
126		-	amount paid or incurred by the corporation during such income year; 89
127		-	and (4) for any income year commencing on or after January 1, 2024, (A) 90
128		-	equal to ten per cent of the amount paid or incurred by the corporation 91
129		-	during such income year for the purposes set forth in subdivisions (1) 92
130		-	to (4), inclusive, and subdivision (8) of subsection (a) of this section, and 93
131		-	(B) equal to twenty-five per cent of the amount paid or incurred by the 94
132		-	corporation during such income year for the purposes set forth in 95
133		-	subdivisions (5) to (7), inclusive, of subsection (a) of this section. 96
134		-	(c) The amount of credit allowed to any corporation under this 97
135		-	section shall not exceed the amount of tax due from such corporation 98
136		-	under this chapter with respect to such income year. 99
137		-	(d) No corporation claiming the credit under this section with respect 100
138		-	to a human capital investment as defined in subsection (a) of this section 101
139		-	shall claim a credit against any tax under any other provision of the 102
140		-	general statutes against any tax with respect to the same investment. 103
141		-	(e) Any tax credit not used in the income year during which the 104
142		-	investment was made may be carried forward for the five immediately 105
143		-	succeeding income years until the full credit has been allowed. 106
144		-	Sec. 5. Subsection (a) of section 12-704e of the general statutes is 107 Substitute Bill No. 981
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150		-
151		-	repealed and the following is substituted in lieu thereof (Effective from 108
152		-	passage): 109
153		-	(a) Any resident of this state, as defined in subdivision (1) of 110
154		-	subsection (a) of section 12-701, who is subject to the tax imposed under 111
155		-	this chapter for any taxable year shall be allowed a credit against the tax 112
156		-	otherwise due under this chapter in an amount equal to the applicable 113
157		-	percentage of the earned income credit claimed and allowed for the 114
158		-	same taxable year under Section 32 of the Internal Revenue Code, as 115
159		-	defined in subsection (a) of section 12-701, as amended by this act. As 116
160		-	used in this section, "applicable percentage" means (1) twenty-three per 117
161		-	cent for taxable years commencing prior to January 1, 2021, [and] (2) 118
162		-	thirty and one-half per cent for taxable years commencing on or after 119
163		-	January 1, 2021, and prior to January 1, 2023, and (3) forty-five per cent 120
164		-	for taxable years commencing on or after January 1, 2023. 121
165		-	Sec. 6. Subsection (a) of section 12-700 of the general statutes is 122
166		-	repealed and the following is substituted in lieu thereof (Effective January 123
167		-	1, 2024): 124
168		-	(a) There is hereby imposed on the Connecticut taxable income of 125
169		-	each resident of this state a tax: 126
170		-	(1) At the rate of four and one-half per cent of such Connecticut 127
171		-	taxable income for taxable years commencing on or after January 1, 128
172		-	1992, and prior to January 1, 1996. 129
173		-	(2) For taxable years commencing on or after January 1, 1996, but 130
174		-	prior to January 1, 1997, in accordance with the following schedule: 131
175		-	(A) For any person who files a return under the federal income tax 132
176		-	for such taxable year as an unmarried individual or as a married 133
177		-	individual filing separately: 134
	87	+	the amount paid or incurred by a corporation on (1) job training [which] 51
	88	+	that occurs in this state for persons who are employed in this state; (2) 52
	89	+	work education programs in this state, including, but not limited to, 53
	90	+	programs in public high schools and work education-diversified 54
	91	+	occupations programs in this state; (3) worker training and education 55
	92	+	for persons who are employed in this state, provided by institutions of 56
	93	+	higher education in this state; (4) donations or capital contributions to 57
	94	+	institutions of higher education in this state for improvements or 58
	95	+	advancements of technology, including physical plant improvements; 59
	96	+	(5) planning, site preparation, construction, renovation or acquisition of 60
	97	+	facilities in this state for the purpose of establishing a child care center, 61
	98	+	as described in section 19a-77, in this state to be used primarily by the 62
	99	+	children of employees who are employed in this state; (6) subsidies to 63
	100	+	employees who are employed in this state for child care to be provided 64
	101	+	in this state; and (7) contributions made to the Individual Development 65
	102	+	Account Reserve Fund, as defined in section 31-51ww. 66
	103	+	(b) There shall be allowed a credit for any corporation against the tax 67
	104	+	imposed under this chapter in an amount spent by such corporation, as 68
	105	+	a human capital investment as follows: (1) For any income year 69
	106	+	commencing on or after January 1, 1998, and prior to January 1, 1999, 70
	107	+	equal to three per cent of such amount paid or incurred by the 71
	108	+	corporation during such income year; (2) for any income year 72
	109	+	commencing on or after January 1, 1999, and prior to January 1, 2000, 73
	110	+	equal to four per cent of such amount paid or incurred by the 74
	111	+	corporation during such income year; [and] (3) for any income year 75
	112	+	commencing on or after January 1, 2000, and prior to January 1, 2024, 76
	113	+	equal to five per cent of such amount paid or incurred by the 77
	114	+	corporation during such income year; and (4) for any income year 78
	115	+	commencing on or after January 1, 2024, (A) equal to ten per cent of the 79 Governor's Bill No. 981
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	120	+
	121	+	amount paid or incurred by the corporation during such income year 80
	122	+	for the purposes set forth in subdivisions (1) to (4), inclusive, and 81
	123	+	subdivision (7) of subsection (a) of this section, and (B) equal to twenty-82
	124	+	five per cent of the amount paid or incurred by the corporation during 83
	125	+	such income year for the purposes set forth in subdivisions (5) and (6) 84
	126	+	of subsection (a) of this section. 85
	127	+	(c) The amount of credit allowed to any corporation under this 86
	128	+	section shall not exceed the amount of tax due from such corporation 87
	129	+	under this chapter with respect to such income year. 88
	130	+	(d) No corporation claiming the credit under this section with respect 89
	131	+	to a human capital investment, as defined in subsection (a) of this 90
	132	+	section, shall claim a credit against any tax under any other provision of 91
	133	+	the general statutes against any tax with respect to the same investment. 92
	134	+	(e) Any tax credit not used in the income year during which the 93
	135	+	investment was made may be carried forward for the five immediately 94
	136	+	succeeding income years until the full credit has been allowed. 95
	137	+	Sec. 5. Subsection (a) of section 12-217zz of the general statutes is 96
	138	+	repealed and the following is substituted in lieu thereof (Effective from 97
	139	+	passage): 98
	140	+	(a) Except as otherwise provided in subsection (b) of this section and 99
	141	+	sections 12-217aaa and 12-217bbb, the amount of tax credit or credits 100
	142	+	otherwise allowable against the tax imposed under this chapter shall be 101
	143	+	as follows: 102
	144	+	(1) For any income year commencing on or after January 1, 2002, and 103
	145	+	prior to January 1, 2015, the amount of tax credit or credits otherwise 104
	146	+	allowable shall not exceed seventy per cent of the amount of tax due 105
	147	+	from such taxpayer under this chapter with respect to any such income 106
	148	+	year of the taxpayer prior to the application of such credit or credits; 107
	149	+	(2) For any income year commencing on or after January 1, 2015, the 108
	150	+	amount of tax credit or credits otherwise allowable shall not exceed fifty 109 Governor's Bill No. 981
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	156	+	and one one-hundredths per cent of the amount of tax due from such 110
	157	+	taxpayer under this chapter with respect to any such income year of the 111
	158	+	taxpayer prior to the application of such credit or credits; 112
	159	+	(3) Notwithstanding the provisions of subdivision (2) of this 113
	160	+	subsection, any taxpayer that possesses excess credits may utilize the 114
	161	+	excess credits as follows: 115
	162	+	(A) For income years commencing on or after January 1, 2016, and 116
	163	+	prior to January 1, 2017, the aggregate amount of tax credits and excess 117
	164	+	credits allowable shall not exceed fifty-five per cent of the amount of tax 118
	165	+	due from such taxpayer under this chapter with respect to any such 119
	166	+	income year of the taxpayer prior to the application of such credit or 120
	167	+	credits; 121
	168	+	(B) For income years commencing on or after January 1, 2017, and 122
	169	+	prior to January 1, 2018, the aggregate amount of tax credits and excess 123
	170	+	credits allowable shall not exceed sixty per cent of the amount of tax due 124
	171	+	from such taxpayer under this chapter with respect to any such income 125
	172	+	year of the taxpayer prior to the application of such credit or credits; 126
	173	+	(C) For income years commencing on or after January 1, 2018, and 127
	174	+	prior to January 1, 2019, the aggregate amount of tax credits and excess 128
	175	+	credits allowable shall not exceed sixty-five per cent of the amount of 129
	176	+	tax due from such taxpayer under this chapter with respect to any such 130
	177	+	income year of the taxpayer prior to the application of such credit or 131
	178	+	credits; 132
	179	+	(D) For purposes of this subdivision, "excess credits" means any 133
	180	+	remaining credits available under section 12-217j, 12-217n or 32-9t after 134
	181	+	tax credits are utilized in accordance with subdivision (2) of this 135
	182	+	subsection; 136
	183	+	(4) Notwithstanding the provisions of subdivision (2) of this 137
	184	+	subsection, the aggregate amount allowable of tax credits and any 138
	185	+	remaining credits available under section 12-217j or 12-217n after tax 139
	186	+	credits are utilized in accordance with said subdivision shall not exceed 140 Governor's Bill No. 981
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	191	+
	192	+	(A) for income years commencing on or after January 1, 2022, and prior 141
	193	+	to January 1, 2023, sixty per cent of the amount of tax due from such 142
	194	+	taxpayer under this chapter with respect to any such income year of the 143
	195	+	taxpayer prior to the application of such credit or credits, and (B) for 144
	196	+	income years commencing on or after January 1, 2023, and prior to 145
	197	+	January 1, 2024, seventy per cent of the amount of tax due from such 146
	198	+	taxpayer under this chapter with respect to any such income year of the 147
	199	+	taxpayer prior to the application of such credit or credits. 148
	200	+	(5) Notwithstanding the provisions of subdivision (2) of this 149
	201	+	subsection, for income years commencing on or after January 1, 2024, 150
	202	+	the aggregate amount allowable of tax credits and any remaining credits 151
	203	+	available under section 12-217j or 12-217n or subparagraph (B) of 152
	204	+	subdivision (4) of subsection (b) of section 12-217x, as amended by this 153
	205	+	act, after tax credits are utilized in accordance with said subdivision 154
	206	+	shall not exceed seventy per cent of the amount of tax due from such 155
	207	+	taxpayer under this chapter with respect to any such income year of the 156
	208	+	taxpayer prior to the application of such credit or credits. 157
	209	+	Sec. 6. Subsection (a) of section 12-392 of the general statutes is 158
	210	+	repealed and the following is substituted in lieu thereof (Effective July 1, 159
	211	+	2023): 160
	212	+	(a) (1) (A) For the estates of decedents dying prior to July 1, 2009, and 161
	213	+	on or after July 1, 2023, the tax imposed by this chapter shall become due 162
	214	+	at the date of the taxable transfer and shall become payable, and shall 163
	215	+	be paid, without assessment, notice or demand, to the Commissioner of 164
	216	+	Revenue Services at the expiration of nine months from the date of 165
	217	+	death. 166
	218	+	(B) For the estates of decedents dying on or after July 1, 2009, and 167
	219	+	prior to July 1, 2023, the tax imposed by this chapter shall become due 168
	220	+	at the date of the taxable transfer and shall become payable and shall be 169
	221	+	paid, without assessment, notice or demand, to the commissioner at the 170
	222	+	expiration of six months from the date of death. 171
	223	+	(C) Executors, administrators, trustees, grantees, donees, 172 Governor's Bill No. 981
	224	+
	225	+
	226	+
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	229	+	beneficiaries and surviving joint owners shall be liable for the tax and 173
	230	+	for any interest or penalty thereon until it is paid, notwithstanding any 174
	231	+	provision of chapter 802b, except that no executor, administrator, 175
	232	+	trustee, grantee, donee, beneficiary or surviving joint owner shall be 176
	233	+	liable for a greater sum than the value of the property actually received 177
	234	+	by him or her. 178
	235	+	(D) If the amount of tax reported to be due on the return is not paid 179
	236	+	[, for the estates of decedents dying prior to July 1, 2009, within such 180
	237	+	nine months, or for the estates of decedents dying on or after July 1, 181
	238	+	2009, within such six months] within the time period set forth in 182
	239	+	subparagraph (A) or (B) of this subdivision, as applicable, there shall be 183
	240	+	imposed a penalty equal to ten per cent of such amount due and unpaid, 184
	241	+	or fifty dollars, whichever is greater. Such amount shall bear interest at 185
	242	+	the rate of one per cent per month or fraction thereof from the due date 186
	243	+	of such tax until the date of payment. Subject to the provisions of section 187
	244	+	12-3a, the commissioner may waive all or part of the penalties provided 188
	245	+	under this chapter when it is proven to the commissioner's satisfaction 189
	246	+	that the failure to pay any tax was due to reasonable cause and was not 190
	247	+	intentional or due to neglect. 191
	248	+	(2) The Commissioner of Revenue Services may, for reasonable cause 192
	249	+	shown, extend the time for payment. The commissioner may require the 193
	250	+	filing of a tentative return and the payment of the tax reported to be due 194
	251	+	thereon in connection with such extension. Any additional tax which 195
	252	+	may be found to be due on the filing of a return as allowed by such 196
	253	+	extension shall bear interest at the rate of one per cent per month or 197
	254	+	fraction thereof from the original due date of such tax to the date of 198
	255	+	actual payment. 199
	256	+	(3) (A) Whenever there is a claimed overpayment of the tax imposed 200
	257	+	by this chapter, the Commissioner of Revenue Services shall return to 201
	258	+	the fiduciary or transferee the overpayment which shall bear interest at 202
	259	+	the rate of two-thirds of one per cent per month or fraction thereof, such 203
	260	+	interest commencing, for the estates of decedents dying prior to July 1, 204
	261	+	2009, and on or after July 1, 2023, from the expiration of nine months 205 Governor's Bill No. 981
	262	+
	263	+
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	266	+
	267	+	after the death of the transferor or date of payment, whichever is later, 206
	268	+	or, for the estates of decedents dying on or after July 1, 2009, and prior 207
	269	+	to July 1, 2023, from the expiration of six months after the death of the 208
	270	+	transferor or date of payment, whichever is later, as provided in 209
	271	+	subparagraphs (B) and (C) of this subdivision. 210
	272	+	(B) In case of such overpayment pursuant to a tax return, no interest 211
	273	+	shall be allowed or paid under this subdivision on such overpayment 212
	274	+	for any month or fraction thereof prior to (i) the ninety-first day after the 213
	275	+	last day prescribed for filing the tax return associated with such 214
	276	+	overpayment, determined without regard to any extension of time for 215
	277	+	filing, or (ii) the ninety-first day after the date such return was filed, 216
	278	+	whichever is later. 217
	279	+	(C) In case of such overpayment pursuant to an amended tax return, 218
	280	+	no interest shall be allowed or paid under this subdivision on such 219
	281	+	overpayment for any month or fraction thereof prior to the ninety-first 220
	282	+	day after the date such amended tax return was filed. 221
	283	+	Sec. 7. Section 12-704d of the general statutes is repealed and the 222
	284	+	following is substituted in lieu thereof (Effective July 1, 2023): 223
	285	+	(a) As used in this section: 224
	286	+	(1) "Angel investor" means an accredited investor, as defined by the 225
	287	+	Securities and Exchange Commission, or network of accredited 226
	288	+	investors who review new or proposed businesses for potential 227
	289	+	investment and who may seek active involvement, such as consulting 228
	290	+	and mentoring, in a qualified Connecticut business or a qualified 229
	291	+	cannabis business, but "angel investor" does not include (A) a person 230
	292	+	controlling fifty per cent or more of the Connecticut business or cannabis 231
	293	+	business invested in by the angel investor, (B) a venture capital 232
	294	+	company, or (C) any bank, bank and trust company, insurance 233
	295	+	company, trust company, national bank, savings association or building 234
	296	+	and loan association for activities that are a part of its normal course of 235
	297	+	business; 236 Governor's Bill No. 981
	298	+
	299	+
	300	+
	301	+	LCO No. 4026 9 of 64
	302	+
	303	+	(2) "Cash investment" means the contribution of cash, at a risk of loss, 237
	304	+	to a qualified Connecticut business or a qualified cannabis business in 238
	305	+	exchange for qualified securities; 239
	306	+	(3) "Connecticut business" means any business, other than a cannabis 240
	307	+	business, with its principal place of business in Connecticut; 241
	308	+	(4) "Bioscience" means manufacturing pharmaceuticals, medicines, 242
	309	+	medical equipment or medical devices and analytical laboratory 243
	310	+	instruments, operating medical or diagnostic testing laboratories, or 244
	311	+	conducting pure research and development in life sciences; 245
	312	+	(5) "Advanced materials" means developing, formulating or 246
	313	+	manufacturing advanced alloys, coatings, lubricants, refrigerants, 247
	314	+	surfactants, emulsifiers or substrates; 248
	315	+	(6) "Photonics" means generation, emission, transmission, 249
	316	+	modulation, signal processing, switching, amplification, detection and 250
	317	+	sensing of light from ultraviolet to infrared and the manufacture, 251
	318	+	research or development of opto-electronic devices, including, but not 252
	319	+	limited to, lasers, masers, fiber optic devices, quantum devices, 253
	320	+	holographic devices and related technologies; 254
	321	+	(7) "Information technology" means software publishing, motion 255
	322	+	picture and video production, teleproduction and postproduction 256
	323	+	services, telecommunications, data processing, hosting and related 257
	324	+	services, custom computer programming services, computer system 258
	325	+	design, computer facilities management services, other computer 259
	326	+	related services and computer training; 260
	327	+	(8) "Clean technology" means the production, manufacture, design, 261
	328	+	research or development of clean energy, green buildings, smart grid, 262
	329	+	high-efficiency transportation vehicles and alternative fuels, 263
	330	+	environmental products, environmental remediation and pollution 264
	331	+	prevention; 265
	332	+	(9) "Qualified securities" means any form of equity, including a 266 Governor's Bill No. 981
	333	+
	334	+
	335	+
	336	+	LCO No. 4026 10 of 64
	337	+
	338	+	general or limited partnership interest, common stock, preferred stock, 267
	339	+	with or without voting rights, without regard to seniority position that 268
	340	+	must be convertible into common stock; 269
	341	+	(10) "Emerging technology business" means any business that is 270
	342	+	engaged in bioscience, advanced materials, photonics, information 271
	343	+	technology, clean technology or any other emerging technology as 272
	344	+	determined by the Commissioner of Economic and Community 273
	345	+	Development; 274
	346	+	(11) "Cannabis business" means a cannabis establishment (A) for 275
	347	+	which a social equity applicant has been granted a provisional license 276
	348	+	or a license, (B) in which a social equity applicant or social equity 277
	349	+	applicants have an ownership interest of at least sixty-five per cent, and 278
	350	+	(C) such social equity applicant or social equity applicants have control 279
	351	+	of such establishment; 280
	352	+	(12) "Social equity applicant" has the same meaning as provided in 281
	353	+	section 21a-420; 282
	354	+	(13) "Cannabis" has the same meaning as provided in section 21a-420; 283
	355	+	and 284
	356	+	(14) "Cannabis establishment" has the same meaning as provided in 285
	357	+	section 21a-420. 286
	358	+	(b) There shall be allowed a credit against the tax imposed under this 287
	359	+	chapter, other than the liability imposed by section 12-707, for a cash 288
	360	+	investment by an angel investor of not less than twenty-five thousand 289
	361	+	dollars in the qualified securities of a Connecticut business or a cannabis 290
	362	+	business. The credit shall be in an amount equal to (1) twenty-five per 291
	363	+	cent of such investor's cash investment in a Connecticut business, or (2) 292
	364	+	forty per cent of such investor's cash investment in a cannabis business, 293
	365	+	provided the total tax credits allowed to any angel investor shall not 294
	366	+	exceed five hundred thousand dollars. The credit shall be claimed in the 295
	367	+	taxable year in which such cash investment is made by the angel 296
	368	+	investor. The credit may be sold, assigned or otherwise transferred, in 297 Governor's Bill No. 981
	369	+
	370	+
	371	+
	372	+	LCO No. 4026 11 of 64
	373	+
	374	+	whole or in part. 298
	375	+	(c) To qualify for a tax credit pursuant to this section, a cash 299
	376	+	investment shall be in: 300
	377	+	(1) A Connecticut business that (A) has been approved as a qualified 301
	378	+	Connecticut business pursuant to subsection (d) of this section; (B) had 302
	379	+	annual gross revenues of less than one million dollars in the most recent 303
	380	+	income year of such business; (C) has fewer than twenty-five employees, 304
	381	+	not less than seventy-five per cent of whom reside in this state; (D) has 305
	382	+	been operating in this state for less than seven consecutive years; (E) is 306
	383	+	primarily owned by the management of the business and their families; 307
	384	+	and (F) received less than two million dollars in cash investments 308
	385	+	eligible for the tax credits provided by this section; or 309
	386	+	(2) A cannabis business that (A) has been approved as a qualified 310
	387	+	cannabis business pursuant to subsection (d) of this section; (B) had 311
	388	+	annual gross revenues of less than one million dollars in the most recent 312
	389	+	income year of such business; (C) has fewer than twenty-five employees, 313
	390	+	not less than seventy-five per cent of whom reside in this state; (D) is 314
	391	+	primarily owned by the management of the business and their families; 315
	392	+	and (E) received less than two million dollars in cash investments 316
	393	+	eligible for the tax credits provided by this section. 317
	394	+	(d) (1) A Connecticut business or a cannabis business may apply to 318
	395	+	Connecticut Innovations, Incorporated, for approval as a Connecticut 319
	396	+	business or cannabis business, as applicable, qualified to receive cash 320
	397	+	investments eligible for a tax credit pursuant to this section. The 321
	398	+	application shall include (A) the name of the business and a copy of the 322
	399	+	organizational documents of such business, (B) a business plan, 323
	400	+	including a description of the business and the management, product, 324
	401	+	market and financial plan of the business, (C) a description of the 325
	402	+	business's innovative technology, product or service, (D) a statement of 326
	403	+	the potential economic impact of the business, including the number, 327
	404	+	location and types of jobs expected to be created, (E) a description of the 328
	405	+	qualified securities to be issued and the amount of cash investment 329 Governor's Bill No. 981
	406	+
	407	+
	408	+
	409	+	LCO No. 4026 12 of 64
	410	+
	411	+	sought by the business, (F) a statement of the amount, timing and 330
	412	+	projected use of the proceeds to be raised from the proposed sale of 331
	413	+	qualified securities, and (G) such other information as the chief 332
	414	+	executive officer of Connecticut Innovations, Incorporated, may require. 333
	415	+	(2) Said chief executive officer shall, on a monthly basis, compile a list 334
	416	+	of approved applications, categorized by the cash investments being 335
	417	+	sought by the qualified Connecticut business or the qualified cannabis 336
	418	+	business and type of qualified securities offered. 337
	419	+	(e) (1) Any angel investor that intends to make a cash investment in 338
	420	+	a business on such list may apply to Connecticut Innovations, 339
	421	+	Incorporated, to reserve a tax credit in the amount indicated by such 340
	422	+	investor. Connecticut Innovations, Incorporated, shall not reserve tax 341
	423	+	credits under this section for any investments made in a qualified 342
	424	+	Connecticut business on or after July 1, 2028, or for any investments 343
	425	+	made in a qualified cannabis business on or after July 1, 2023. 344
	426	+	(2) The aggregate amount of all tax credits under this section that may 345
	427	+	be reserved by Connecticut Innovations, Incorporated, shall not exceed 346
	428	+	(A) for cash investments made in qualified Connecticut businesses, six 347
	429	+	million dollars annually for the fiscal years commencing July 1, 2010, to 348
	430	+	July 1, 2012, inclusive, and five million dollars for each fiscal year 349
	431	+	thereafter, and (B) for cash investments made in qualified cannabis 350
	432	+	businesses, fifteen million dollars annually for [each fiscal year] the 351
	433	+	fiscal years commencing [on or after] July 1, 2021, and July 1, 2022. 352
	434	+	(3) With respect to the tax credits available under this section for 353
	435	+	investments in qualified Connecticut businesses, Connecticut 354
	436	+	Innovations, Incorporated, shall not reserve more than seventy-five per 355
	437	+	cent of such tax credits for investments in emerging technology 356
	438	+	businesses, except if any such credits remain available for reservation 357
	439	+	after April first in any fiscal year, such remaining credits may be 358
	440	+	reserved for investments in such businesses and may be prioritized for 359
	441	+	veteran-owned, women-owned or minority-owned businesses and 360
	442	+	businesses owned by individuals with disabilities. 361 Governor's Bill No. 981
	443	+
	444	+
	445	+
	446	+	LCO No. 4026 13 of 64
	447	+
	448	+	(4) The amount of the credit allowed to any investor pursuant to this 362
	449	+	section shall not exceed the amount of tax due from such investor under 363
	450	+	this chapter, other than section 12-707, with respect to such taxable year. 364
	451	+	Any tax credit that is claimed by the angel investor but not applied 365
	452	+	against the tax due under this chapter, other than the liability imposed 366
	453	+	under section 12-707, may be carried forward for the five immediately 367
	454	+	succeeding taxable years until the full credit has been applied. 368
	455	+	(f) If the angel investor is an S corporation or an entity treated as a 369
	456	+	partnership for federal income tax purposes, the tax credit may be 370
	457	+	claimed by the shareholders or partners of the angel investor. If the 371
	458	+	angel investor is a single member limited liability company that is 372
	459	+	disregarded as an entity separate from its owner, the tax credit may be 373
	460	+	claimed by such limited liability company's owner, provided such 374
	461	+	owner is a person subject to the tax imposed under this chapter. 375
	462	+	(g) A review of the cumulative effectiveness of the credit under this 376
	463	+	section shall be conducted by Connecticut Innovations, Incorporated, by 377
	464	+	July first annually. Such review shall include, but need not be limited to, 378
	465	+	the number and type of Connecticut businesses and cannabis businesses 379
	466	+	that received angel investments, the number of angel investors and the 380
	467	+	aggregate amount of cash investments, the current status of each 381
	468	+	Connecticut business and cannabis business that received angel 382
	469	+	investments, the number of employees employed in each year following 383
	470	+	the year in which such Connecticut business or cannabis business 384
	471	+	received the angel investment and the economic impact in the state of 385
	472	+	the Connecticut business or cannabis business that received the angel 386
	473	+	investment. Such review shall be submitted to the Office of Policy and 387
	474	+	Management and to the joint standing committee of the General 388
	475	+	Assembly having cognizance of matters relating to commerce, in 389
	476	+	accordance with the provisions of section 11-4a. 390
	477	+	Sec. 8. Subsection (c) of section 21a-420f of the general statutes is 391
	478	+	repealed and the following is substituted in lieu thereof (Effective July 1, 392
	479	+	2023): 393 Governor's Bill No. 981
	480	+
	481	+
	482	+
	483	+	LCO No. 4026 14 of 64
	484	+
	485	+	(c) (1) On and after July 1, 2022, there is established a fund to be 394
	486	+	known as the "Social Equity and Innovation Fund" which shall be a 395
	487	+	separate, nonlapsing fund. The fund shall contain any moneys required 396
	488	+	by law to be deposited in the fund and shall be held by the Treasurer 397
	489	+	separate and apart from all other moneys, funds and accounts. Moneys 398
	490	+	in the fund shall be appropriated for the purposes of providing the 399
	491	+	following: Access to capital for businesses; technical assistance for the 400
	492	+	start-up and operation of a business; funding for workforce education; 401
	493	+	funding for community investments; and paying costs incurred to 402
	494	+	implement the activities authorized under RERACA. All such 403
	495	+	appropriations shall be dedicated to expenditures that further the 404
	496	+	principles of equity, as defined in section 21a-420. 405
	497	+	(2) (A) For the purposes of subdivision (1) of this subsection, for the 406
	498	+	fiscal year ending June 30, 2023, and for each fiscal year thereafter, the 407
	499	+	Social Equity Council shall transmit, for even-numbered years, 408
	500	+	estimates of expenditure requirements and for odd-numbered years, 409
	501	+	recommended adjustments and revisions, if any, of such estimates, to 410
	502	+	the Secretary of the Office of Policy and Management, in the manner 411
	503	+	prescribed for a budgeted agency under subsection (a) of section 4-77. 412
	504	+	[The council shall recommend for each fiscal year commencing with the 413
	505	+	fiscal year ending June 30, 2023, appropriate funding for all credits 414
	506	+	payable to angel investors that invest in cannabis businesses pursuant 415
	507	+	to section 12-704d.] 416
	508	+	(B) The Office of Policy and Management may not make adjustments 417
	509	+	to any such estimates or adjustments and revisions of such estimates 418
	510	+	transmitted by the council. Notwithstanding any provision of the 419
	511	+	general statutes or any special act, the Governor shall not reduce the 420
	512	+	allotment requisitions or allotments in force pursuant to section 4-85 or 421
	513	+	make reductions in allotments in order to achieve budget savings in the 422
	514	+	General Fund, concerning any appropriations made by the General 423
	515	+	Assembly for the purposes of subdivision (1) of this subsection. 424
	516	+	Sec. 9. Subsection (a) of section 12-704e of the general statutes is 425
	517	+	repealed and the following is substituted in lieu thereof (Effective from 426 Governor's Bill No. 981
	518	+
	519	+
	520	+
	521	+	LCO No. 4026 15 of 64
	522	+
	523	+	passage): 427
	524	+	(a) Any resident of this state, as defined in subdivision (1) of 428
	525	+	subsection (a) of section 12-701, who is subject to the tax imposed under 429
	526	+	this chapter for any taxable year shall be allowed a credit against the tax 430
	527	+	otherwise due under this chapter in an amount equal to the applicable 431
	528	+	percentage of the earned income credit claimed and allowed for the 432
	529	+	same taxable year under Section 32 of the Internal Revenue Code, as 433
	530	+	defined in subsection (a) of section 12-701. As used in this section, 434
	531	+	"applicable percentage" means (1) twenty-three per cent for taxable 435
	532	+	years commencing prior to January 1, 2021, [and] (2) thirty and one-half 436
	533	+	per cent for taxable years commencing on or after January 1, 2021, and 437
	534	+	prior to January 1, 2023, and (3) forty per cent for taxable years 438
	535	+	commencing on or after January 1, 2023. 439
	536	+	Sec. 10. Section 3-20 of the general statutes is amended by adding 440
	537	+	subsection (bb) as follows (Effective from passage): 441
	538	+	(NEW) (bb) (1) For each fiscal year during which general obligation 442
	539	+	bonds or credit revenue bonds issued on or after the effective date of 443
	540	+	this section and prior to July 1, 2033, shall be outstanding, the state of 444
	541	+	Connecticut shall comply with the provisions of (A) section 4-30a of the 445
	542	+	general statutes, revision of 1958, revised to January 1, 2023, (B) section 446
	543	+	2-33a of the general statutes, revision of 1958, revised to January 1, 2023, 447
	544	+	(C) section 2-33c of the general statutes, revision of 1958, revised to 448
	545	+	January 1, 2023, (D) subsections (d) and (g) of this section, revision of 449
	546	+	1958, revised to January 1, 2023, and (E) section 3-21 of the general 450
	547	+	statutes, revision of 1958, revised to January 1, 2023. The state of 451
	548	+	Connecticut does hereby pledge to and agree with the holders of any 452
	549	+	bonds, notes and other obligations issued pursuant to subdivision (2) of 453
	550	+	this subsection that no public or special act of the General Assembly 454
	551	+	taking effect on or after the effective date of this section and prior to July 455
	552	+	1, 2033, shall alter the obligation to comply with the provisions of the 456
	553	+	sections and subsections set forth in subparagraphs (A) to (E), inclusive, 457
	554	+	of this subdivision, during the period for which the pledge and 458
	555	+	undertaking is applicable pursuant to subdivision (2) of this subsection, 459 Governor's Bill No. 981
	556	+
	557	+
	558	+
	559	+	LCO No. 4026 16 of 64
	560	+
	561	+	provided nothing in this subsection shall preclude such alteration (i) if 460
	562	+	and when adequate provision shall be made by law for the protection of 461
	563	+	the holders of such bonds, or (ii) (I) if and when the Governor declares 462
	564	+	an emergency or the existence of extraordinary circumstances, in which 463
	565	+	the provisions of section 4-85 are invoked, (II) at least three-fifths of the 464
	566	+	members of each chamber of the General Assembly vote to alter such 465
	567	+	required compliance during the fiscal year for which the emergency or 466
	568	+	existence of extraordinary circumstances are determined, and (III) any 467
	569	+	such alteration is for the fiscal year in progress only. 468
	570	+	(2) The Treasurer shall include this pledge and undertaking in 469
	571	+	general obligation bonds and credit revenue bonds issued on or after 470
	572	+	the effective date of this section and prior to July 1, 2033, and such 471
	573	+	pledge and undertaking (A) shall be applicable for a period of ten years 472
	574	+	from the date of first issuance of such bonds, and (B) shall not apply to 473
	575	+	refunding bonds issued for bonds issued under this subdivision. 474
	576	+	Sec. 11. Subsection (p) of section 3-20j of the general statutes is 475
	577	+	repealed and the following is substituted in lieu thereof (Effective July 1, 476
	578	+	2023): 477
	579	+	(p) (1) Prior to July 1, [2023] 2025, net earnings of investments of 478
	580	+	proceeds of bonds issued pursuant to section 3-20, as amended by this 479
	581	+	act, or pursuant to this section and accrued interest on the issuance of 480
	582	+	such bonds and premiums on the issuance of such bonds shall be 481
	583	+	deposited to the credit of the General Fund, after (A) payment of any 482
	584	+	expenses incurred by the Treasurer or State Bond Commission in 483
	585	+	connection with such issuance, or (B) application to interest on bonds, 484
	586	+	notes or other obligations of the state. 485
	587	+	(2) On and after July 1, [2023] 2025, notwithstanding subsection (f) of 486
	588	+	section 3-20, (A) net earnings of investments of proceeds of bonds issued 487
	589	+	pursuant to section 3-20, as amended by this act, or pursuant to this 488
	590	+	section and accrued interest on the issuance of such bonds shall be 489
	591	+	deposited to the credit of the General Fund, and (B) premiums, net of 490
	592	+	any original issue discount, on the issuance of such bonds shall, after 491 Governor's Bill No. 981
	593	+
	594	+
	595	+
	596	+	LCO No. 4026 17 of 64
	597	+
	598	+	payment of any expenses incurred by the Treasurer or State Bond 492
	599	+	Commission in connection with such issuance, be deposited at the 493
	600	+	direction of the Treasurer to the credit of an account or fund to fund all 494
	601	+	or a portion of any purpose or project authorized by the State Bond 495
	602	+	Commission pursuant to any bond act up to the amount authorized by 496
	603	+	the State Bond Commission, provided the bonds for such purpose or 497
	604	+	project are unissued, and provided further the certificate of 498
	605	+	determination the Treasurer files with the secretary of the State Bond 499
	606	+	Commission for such authorized bonds sets forth the amount of the 500
	607	+	deposit applied to fund each such purpose and project. Upon such 501
	608	+	filing, the Treasurer shall record bonds in the amount of net premiums 502
	609	+	credited to each purpose and project as set forth in the certificate of 503
	610	+	determination of the Treasurer as deemed issued and retired and the 504
	611	+	Treasurer shall not thereafter exercise authority to issue bonds in such 505
	612	+	amount for such purpose or project. Upon such recording by the 506
	613	+	Treasurer, such bonds shall be deemed to have been issued, retired and 507
	614	+	no longer authorized for issuance or outstanding for the purposes of 508
	615	+	section 3-21, and for the purpose of aligning the funding of such 509
	616	+	authorized purpose and project with amounts generated by net 510
	617	+	premiums, but shall not constitute an actual bond issuance or bond 511
	618	+	retirement for any other purposes including, but not limited to, financial 512
	619	+	reporting purposes. 513
	620	+	Sec. 12. Subsection (c) of section 4-28e of the general statutes is 514
	621	+	repealed and the following is substituted in lieu thereof (Effective July 1, 515
	622	+	2023): 516
	623	+	(c) Commencing with the fiscal year ending June 30, [2023] 2024, 517
	624	+	annual disbursements from the Tobacco Settlement Fund shall be made 518
	625	+	as follows: (1) To the Tobacco and Health Trust Fund in an amount equal 519
	626	+	to [twelve] six million dollars; and (2) the remainder to the General 520
	627	+	Fund. 521
	628	+	Sec. 13. Subsection (a) of section 12-700 of the general statutes is 522
	629	+	repealed and the following is substituted in lieu thereof (Effective January 523
	630	+	1, 2024): 524 Governor's Bill No. 981
	631	+
	632	+
	633	+
	634	+	LCO No. 4026 18 of 64
	635	+
	636	+	(a) There is hereby imposed on the Connecticut taxable income of 525
	637	+	each resident of this state a tax: 526
	638	+	(1) At the rate of four and one-half per cent of such Connecticut 527
	639	+	taxable income for taxable years commencing on or after January 1, 528
	640	+	1992, and prior to January 1, 1996. 529
	641	+	(2) For taxable years commencing on or after January 1, 1996, but 530
	642	+	prior to January 1, 1997, in accordance with the following schedule: 531
	643	+	(A) For any person who files a return under the federal income tax 532
	644	+	for such taxable year as an unmarried individual or as a married 533
	645	+	individual filing separately: 534
178	646		T1
179	647		Connecticut Taxable Income Rate of Tax
180	648		T2
181		-	Not over $2,250 3.0% Substitute Bill No. 981
182		-
183		-
184		-	LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB-
185		-	00981-R01-SB.docx }
186		-	6 of 99
187		-
	649	+	Not over $2,250 3.0%
188	650		T3
189	651		Over $2,250 $67.50, plus 4.5% of the
190		-	T4
191		-	excess over $2,250
192		-
193		-	(B) For any person who files a return under the federal income tax for 135
194		-	such taxable year as a head of household, as defined in Section 2(b) of 136
195		-	the Internal Revenue Code: 137
	652	+	T4 excess over $2,250
	653	+
	654	+	(B) For any person who files a return under the federal income tax for 535
	655	+	such taxable year as a head of household, as defined in Section 2(b) of 536
	656	+	the Internal Revenue Code: 537
196	657		T5
197	658		Connecticut Taxable Income Rate of Tax
198	659		T6
199	660		Not over $3,500 3.0%
200		-	T7 Over $3,500 $105.00, plus 4.5% of the
201		-	T8 excess over $3,500
202		-
203		-	(C) For any husband and wife who file a return under the federal 138
204		-	income tax for such taxable year as married individuals filing jointly or 139
205		-	a person who files a return under the federal income tax as a surviving 140
206		-	spouse, as defined in Section 2(a) of the Internal Revenue Code: 141
	661	+	T7
	662	+	Over $3,500 $105.00, plus 4.5% of the
	663	+	T8
	664	+	excess over $3,500
	665	+
	666	+	(C) For any husband and wife who file a return under the federal 538
	667	+	income tax for such taxable year as married individuals filing jointly or 539
	668	+	a person who files a return under the federal income tax as a surviving 540
	669	+	spouse, as defined in Section 2(a) of the Internal Revenue Code: 541
207	670		T9
208		-	Connecticut Taxable Income Rate of Tax
	671	+	Connecticut Taxable Income Rate of Tax Governor's Bill No. 981
	672	+
	673	+
	674	+
	675	+	LCO No. 4026 19 of 64
	676	+
209	677		T10 Not over $4,500 3.0%
210	678		T11 Over $4,500 $135.00, plus 4.5% of the
211	679		T12 excess over $4,500
212	680
213		-	(D) For trusts or estates, the rate of tax shall be 4.5% of their ~~142~~
214		-	Connecticut taxable income. ~~143~~
215		-	(3) For taxable years commencing on or after January 1, 1997, but ~~144~~
216		-	prior to January 1, 1998, in accordance with the following schedule: ~~145~~
217		-	(A) For any person who files a return under the federal income tax ~~146~~
218		-	for such taxable year as an unmarried individual or as a married ~~147~~
219		-	individual filing separately: ~~148~~
	681	+	(D) For trusts or estates, the rate of tax shall be 4.5% of their 542
	682	+	Connecticut taxable income. 543
	683	+	(3) For taxable years commencing on or after January 1, 1997, but 544
	684	+	prior to January 1, 1998, in accordance with the following schedule: 545
	685	+	(A) For any person who files a return under the federal income tax 546
	686	+	for such taxable year as an unmarried individual or as a married 547
	687	+	individual filing separately: 548
220	688		T13
221		-	Connecticut Taxable Income Rate of Tax Substitute Bill No. 981
222		-
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227		-
	689	+	Connecticut Taxable Income Rate of Tax
228	690		T14 Not over $6,250 3.0%
229	691		T15 Over $6,250 $187.50, plus 4.5% of the
230	692		T16 excess over $6,250
231	693
232		-	(B) For any person who files a return under the federal income tax for ~~149~~
233		-	such taxable year as a head of household, as defined in Section 2(b) of ~~150~~
234		-	the Internal Revenue Code: ~~151~~
	694	+	(B) For any person who files a return under the federal income tax for 549
	695	+	such taxable year as a head of household, as defined in Section 2(b) of 550
	696	+	the Internal Revenue Code: 551
235	697		T17
236	698		Connecticut Taxable Income Rate of Tax
237	699		T18 Not over $10,000 3.0%
238	700		T19 Over $10,000 $300.00, plus 4.5% of the
239	701		T20 excess over $10,000
240	702
241		-	(C) For any husband and wife who file a return under the federal 152
242		-	income tax for such taxable year as married individuals filing jointly or 153
243		-	any person who files a return under the federal income tax for such 154
244		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 155
245		-	Internal Revenue Code: 156
	703	+	(C) For any husband and wife who file a return under the federal 552
	704	+	income tax for such taxable year as married individuals filing jointly or 553
	705	+	any person who files a return under the federal income tax for such 554
	706	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 555
	707	+	Internal Revenue Code: 556 Governor's Bill No. 981
	708	+
	709	+
	710	+
	711	+	LCO No. 4026 20 of 64
	712	+
246	713		T21
247	714		Connecticut Taxable Income Rate of Tax
248	715		T22 Not over $12,500 3.0%
249	716		T23 Over $12,500 $375.00, plus 4.5% of the
250	717		T24 excess over $12,500
251	718
252		-	(D) For trusts or estates, the rate of tax shall be 4.5% of their 157
253		-	Connecticut taxable income. 158
254		-	(4) For taxable years commencing on or after January 1, 1998, but 159
255		-	prior to January 1, 1999, in accordance with the following schedule: 160
256		-	(A) For any person who files a return under the federal income tax 161
257		-	for such taxable year as an unmarried individual or as a married 162
258		-	individual filing separately: 163 Substitute Bill No. 981
259		-
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264		-
	719	+	(D) For trusts or estates, the rate of tax shall be 4.5% of their 557
	720	+	Connecticut taxable income. 558
	721	+	(4) For taxable years commencing on or after January 1, 1998, but 559
	722	+	prior to January 1, 1999, in accordance with the following schedule: 560
	723	+	(A) For any person who files a return under the federal income tax 561
	724	+	for such taxable year as an unmarried individual or as a married 562
	725	+	individual filing separately: 563
265	726		T25
266	727		Connecticut Taxable Income Rate of Tax
267	728		T26
268	729		Not over $7,500 3.0%
269	730		T27
270	731		Over $7,500 $225.00, plus 4.5% of the
271	732		T28
272	733		excess over $7,500
273	734
274		-	(B) For any person who files a return under the federal income tax for ~~164~~
275		-	such taxable year as a head of household, as defined in Section 2(b) of ~~165~~
276		-	the Internal Revenue Code: ~~166~~
	735	+	(B) For any person who files a return under the federal income tax for 564
	736	+	such taxable year as a head of household, as defined in Section 2(b) of 565
	737	+	the Internal Revenue Code: 566
277	738		T29
278	739		Connecticut Taxable Income Rate of Tax
279		-	T30 Not over $12,000 3.0%
280		-	T31 Over $12,000 $360.00, plus 4.5% of the
	740	+	T30
	741	+	Not over $12,000 3.0%
	742	+	T31
	743	+	Over $12,000 $360.00, plus 4.5% of the
281	744		T32
282	745		excess over $12,000
283	746
284		-	(C) For any husband and wife who file a return under the federal 167
285		-	income tax for such taxable year as married individuals filing jointly or 168
286		-	any person who files a return under the federal income tax for such 169
287		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 170
288		-	Internal Revenue Code: 171
	747	+	(C) For any husband and wife who file a return under the federal 567
	748	+	income tax for such taxable year as married individuals filing jointly or 568
	749	+	any person who files a return under the federal income tax for such 569
	750	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 570
	751	+	Internal Revenue Code: 571 Governor's Bill No. 981
	752	+
	753	+
	754	+
	755	+	LCO No. 4026 21 of 64
	756	+
289	757		T33
290	758		Connecticut Taxable Income Rate of Tax
291		-	T34 Not over $15,000 3.0%
	759	+	T34
	760	+	Not over $15,000 3.0%
292	761		T35
293	762		Over $15,000 $450.00, plus 4.5% of the
294	763		T36
295	764		excess over $15,000
296	765
297		-	(D) For trusts or estates, the rate of tax shall be 4.5% of their 172
298		-	Connecticut taxable income. 173
299		-	(5) For taxable years commencing on or after January 1, 1999, but 174
300		-	prior to January 1, 2003, in accordance with the following schedule: 175
301		-	(A) For any person who files a return under the federal income tax 176
302		-	for such taxable year as an unmarried individual or as a married 177 Substitute Bill No. 981
303		-
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308		-
309		-	individual filing separately: 178
	766	+	(D) For trusts or estates, the rate of tax shall be 4.5% of their 572
	767	+	Connecticut taxable income. 573
	768	+	(5) For taxable years commencing on or after January 1, 1999, but 574
	769	+	prior to January 1, 2003, in accordance with the following schedule: 575
	770	+	(A) For any person who files a return under the federal income tax 576
	771	+	for such taxable year as an unmarried individual or as a married 577
	772	+	individual filing separately: 578
310	773		T37
311	774		Connecticut Taxable Income Rate of Tax
312	775		T38
313	776		Not over $10,000 3.0%
314		-	T39
315		-	Over $10,000 $300.00, plus 4.5% of the
	777	+	T39 Over $10,000 $300.00, plus 4.5% of the
316	778		T40
317	779		excess over $10,000
318	780
319		-	(B) For any person who files a return under the federal income tax for ~~179~~
320		-	such taxable year as a head of household, as defined in Section 2(b) of ~~180~~
321		-	the Internal Revenue Code: ~~181~~
	781	+	(B) For any person who files a return under the federal income tax for 579
	782	+	such taxable year as a head of household, as defined in Section 2(b) of 580
	783	+	the Internal Revenue Code: 581
322	784		T41
323	785		Connecticut Taxable Income Rate of Tax
324		-	T42 Not over $16,000 3.0%
	786	+	T42
	787	+	Not over $16,000 3.0%
325	788		T43
326	789		Over $16,000 $480.00, plus 4.5% of the
327	790		T44
328	791		excess over $16,000
329	792
330		-	(C) For any husband and wife who file a return under the federal 182
331		-	income tax for such taxable year as married individuals filing jointly or 183
332		-	any person who files a return under the federal income tax for such 184
333		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 185
334		-	Internal Revenue Code: 186
	793	+	(C) For any husband and wife who file a return under the federal 582
	794	+	income tax for such taxable year as married individuals filing jointly or 583
	795	+	any person who files a return under the federal income tax for such 584
	796	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 585 Governor's Bill No. 981
	797	+
	798	+
	799	+
	800	+	LCO No. 4026 22 of 64
	801	+
	802	+	Internal Revenue Code: 586
335	803		T45
336	804		Connecticut Taxable Income Rate of Tax
337	805		T46
338	806		Not over $20,000 3.0%
339	807		T47
340	808		Over $20,000 $600.00, plus 4.5% of the
341	809		T48
342	810		excess over $20,000
343	811
344		-	(D) For trusts or estates, the rate of tax shall be 4.5% of their 187
345		-	Connecticut taxable income. 188
346		-	(6) For taxable years commencing on or after January 1, 2003, but 189
347		-	prior to January 1, 2009, in accordance with the following schedule: 190 Substitute Bill No. 981
348		-
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353		-
354		-	(A) For any person who files a return under the federal income tax 191
355		-	for such taxable year as an unmarried individual or as a married 192
356		-	individual filing separately: 193
	812	+	(D) For trusts or estates, the rate of tax shall be 4.5% of their 587
	813	+	Connecticut taxable income. 588
	814	+	(6) For taxable years commencing on or after January 1, 2003, but 589
	815	+	prior to January 1, 2009, in accordance with the following schedule: 590
	816	+	(A) For any person who files a return under the federal income tax 591
	817	+	for such taxable year as an unmarried individual or as a married 592
	818	+	individual filing separately: 593
357	819		T49
358	820		Connecticut Taxable Income Rate of Tax
359		-	T50
360		-	Not over $10,000 3.0%
	821	+	T50 Not over $10,000 3.0%
361	822		T51
362	823		Over $10,000 $300.00, plus 5.0% of the
363	824		T52
364	825		excess over $10,000
365	826
366		-	(B) For any person who files a return under the federal income tax for ~~194~~
367		-	such taxable year as a head of household, as defined in Section 2(b) of ~~195~~
368		-	the Internal Revenue Code: ~~196~~
	827	+	(B) For any person who files a return under the federal income tax for 594
	828	+	such taxable year as a head of household, as defined in Section 2(b) of 595
	829	+	the Internal Revenue Code: 596
369	830		T53
370	831		Connecticut Taxable Income Rate of Tax
371	832		T54
372	833		Not over $16,000 3.0%
373	834		T55
374	835		Over $16,000 $480.00, plus 5.0% of the
375		-	T56
376		-	excess over $16,000
377		-
378		-	(C) For any husband and wife who file a return under the federal 197
379		-	income tax for such taxable year as married individuals filing jointly or 198
380		-	any person who files a return under the federal income tax for such 199
381		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 200
382		-	Internal Revenue Code: 201
	836	+	T56 excess over $16,000
	837	+
	838	+	(C) For any husband and wife who file a return under the federal 597
	839	+	income tax for such taxable year as married individuals filing jointly or 598
	840	+	any person who files a return under the federal income tax for such 599 Governor's Bill No. 981
	841	+
	842	+
	843	+
	844	+	LCO No. 4026 23 of 64
	845	+
	846	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 600
	847	+	Internal Revenue Code: 601
383	848		T57
384	849		Connecticut Taxable Income Rate of Tax
385	850		T58
386	851		Not over $20,000 3.0%
387	852		T59
388	853		Over $20,000 $600.00, plus 5.0% of the
389		-	T60
390		-	excess over $20,000
391		-
392		-	(D) For trusts or estates, the rate of tax shall be 5.0% of the 202
393		-	Connecticut taxable income. 203
394		-	(7) For taxable years commencing on or after January 1, 2009, but 204 Substitute Bill No. 981
395		-
396		-
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400		-
401		-	prior to January 1, 2011, in accordance with the following schedule: 205
402		-	(A) For any person who files a return under the federal income tax 206
403		-	for such taxable year as an unmarried individual: 207
	854	+	T60 excess over $20,000
	855	+
	856	+	(D) For trusts or estates, the rate of tax shall be 5.0% of the 602
	857	+	Connecticut taxable income. 603
	858	+	(7) For taxable years commencing on or after January 1, 2009, but 604
	859	+	prior to January 1, 2011, in accordance with the following schedule: 605
	860	+	(A) For any person who files a return under the federal income tax 606
	861	+	for such taxable year as an unmarried individual: 607
404	862		T61
405	863		Connecticut Taxable Income Rate of Tax
406		-	T62
407		-	Not over $10,000 3.0%
	864	+	T62 Not over $10,000 3.0%
408	865		T63
409	866		Over $10,000 but not $300.00, plus 5.0% of the
410	867		T64
411	868		over $500,000 excess over $10,000
412	869		T65
413	870		Over $500,000 $24,800, plus 6.5% of the
414		-	T66 excess over $500,000
415		-
416		-	(B) For any person who files a return under the federal income tax for 208
417		-	such taxable year as a head of household, as defined in Section 2(b) of 209
418		-	the Internal Revenue Code: 210
	871	+	T66
	872	+	excess over $500,000
	873	+
	874	+	(B) For any person who files a return under the federal income tax for 608
	875	+	such taxable year as a head of household, as defined in Section 2(b) of 609
	876	+	the Internal Revenue Code: 610
419	877		T67
420	878		Connecticut Taxable Income Rate of Tax
421		-	T68
422		-	Not over $16,000 3.0%
	879	+	T68 Not over $16,000 3.0%
423	880		T69
424	881		Over $16,000 but not $480.00, plus 5.0% of the
425	882		T70
426	883		over $800,000 excess over $16,000
427	884		T71
428	885		Over $800,000 $39,680, plus 6.5% of the
429		-	T72 excess over $800,000
430		-
431		-	(C) For any husband and wife who file a return under the federal 211
432		-	income tax for such taxable year as married individuals filing jointly or 212
433		-	any person who files a return under the federal income tax for such 213
434		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 214
435		-	Internal Revenue Code: 215
	886	+	T72 excess over $800,000 Governor's Bill No. 981
	887	+
	888	+
	889	+
	890	+	LCO No. 4026 24 of 64
	891	+
	892	+
	893	+	(C) For any husband and wife who file a return under the federal 611
	894	+	income tax for such taxable year as married individuals filing jointly or 612
	895	+	any person who files a return under the federal income tax for such 613
	896	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 614
	897	+	Internal Revenue Code: 615
436	898		T73
437	899		Connecticut Taxable Income Rate of Tax
438	900		T74
439	901		Not over $20,000 3.0%
440		-	T75 Over $20,000 but not $600.00, plus 5.0% of the
	902	+	T75
	903	+	Over $20,000 but not $600.00, plus 5.0% of the
441	904		T76
442		-	over $1,000,000 excess over $20,000 Substitute Bill No. 981
443		-
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448		-
	905	+	over $1,000,000 excess over $20,000
449	906		T77
450	907		Over $1,000,000 $49,600, plus 6.5% of the
451	908		T78
452	909		excess over $1,000,000
453	910
454		-	(D) For any person who files a return under the federal income tax ~~216~~
455		-	for such taxable year as a married individual filing separately: ~~217~~
	911	+	(D) For any person who files a return under the federal income tax 616
	912	+	for such taxable year as a married individual filing separately: 617
456	913		T79
457	914		Connecticut Taxable Income Rate of Tax
458	915		T80
459	916		Not over $10,000 3.0%
460	917		T81
461	918		Over $10,000 but not $300.00, plus 5.0% of the
462		-	T82 over $500,000 excess over $10,000
463		-	T83 Over $500,000 $24,800, plus 6.5% of the
	919	+	T82
	920	+	over $500,000 excess over $10,000
	921	+	T83
	922	+	Over $500,000 $24,800, plus 6.5% of the
464	923		T84
465	924		excess over $500,000
466	925
467		-	(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut 218
468		-	taxable income. 219
469		-	(8) For taxable years commencing on or after January 1, 2011, but 220
470		-	prior to January 1, 2015, in accordance with the following schedule: 221
471		-	(A) (i) For any person who files a return under the federal income tax 222
472		-	for such taxable year as an unmarried individual: 223
	926	+	(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut 618
	927	+	taxable income. 619
	928	+	(8) For taxable years commencing on or after January 1, 2011, but 620
	929	+	prior to January 1, 2015, in accordance with the following schedule: 621
	930	+	(A) (i) For any person who files a return under the federal income tax 622
	931	+	for such taxable year as an unmarried individual: 623 Governor's Bill No. 981
	932	+
	933	+
	934	+
	935	+	LCO No. 4026 25 of 64
	936	+
473	937		T85
474	938		Connecticut Taxable Income Rate of Tax
475	939		T86
476	940		Not over $10,000 3.0%
477	941		T87
478	942		Over $10,000 but not $300.00, plus 5.0% of the
479	943		T88
480	944		over $50,000 excess over $10,000
481	945		T89
482	946		Over $50,000 but not $2,300, plus 5.5% of the
483		-	T90
484		-	over $100,000 excess over $50,000
	947	+	T90 over $100,000 excess over $50,000
485	948		T91
486	949		Over $100,000 but not $5,050, plus 6.0% of the
487	950		T92
488	951		over $200,000 excess over $100,000
489		-	T93 Over $200,000 but not $11,050, plus 6.5% of the
	952	+	T93
	953	+	Over $200,000 but not $11,050, plus 6.5% of the
490	954		T94
491	955		over $250,000 excess over $200,000
492	956		T95
493	957		Over $250,000 $14,300, plus 6.70% of the
494	958		T96
495		-	excess over $250,000 Substitute Bill No. 981
496		-
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501		-
502		-
503		-	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 224
504		-	subdivision, for each taxpayer whose Connecticut adjusted gross 225
505		-	income exceeds fifty-six thousand five hundred dollars, the amount of 226
506		-	the taxpayer's Connecticut taxable income to which the three-per-cent 227
507		-	tax rate applies shall be reduced by one thousand dollars for each five 228
508		-	thousand dollars, or fraction thereof, by which the taxpayer's 229
509		-	Connecticut adjusted gross income exceeds said amount. Any such 230
510		-	amount of Connecticut taxable income to which, as provided in the 231
511		-	preceding sentence, the three-per-cent tax rate does not apply shall be 232
512		-	an amount to which the five-per-cent tax rate shall apply. 233
513		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 234
514		-	two hundred thousand dollars shall pay, in addition to the tax 235
515		-	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 236
516		-	this subdivision, an amount equal to seventy-five dollars for each five 237
517		-	thousand dollars, or fraction thereof, by which the taxpayer's 238
518		-	Connecticut adjusted gross income exceeds two hundred thousand 239
519		-	dollars, up to a maximum payment of two thousand two hundred fifty 240
520		-	dollars. 241
521		-	(B) (i) For any person who files a return under the federal income tax 242
522		-	for such taxable year as a head of household, as defined in Section 2(b) 243
523		-	of the Internal Revenue Code: 244
	959	+	excess over $250,000
	960	+
	961	+	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 624
	962	+	subdivision, for each taxpayer whose Connecticut adjusted gross 625
	963	+	income exceeds fifty-six thousand five hundred dollars, the amount of 626
	964	+	the taxpayer's Connecticut taxable income to which the three-per-cent 627
	965	+	tax rate applies shall be reduced by one thousand dollars for each five 628
	966	+	thousand dollars, or fraction thereof, by which the taxpayer's 629
	967	+	Connecticut adjusted gross income exceeds said amount. Any such 630
	968	+	amount of Connecticut taxable income to which, as provided in the 631
	969	+	preceding sentence, the three-per-cent tax rate does not apply shall be 632
	970	+	an amount to which the five-per-cent tax rate shall apply. 633
	971	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 634
	972	+	two hundred thousand dollars shall pay, in addition to the tax 635
	973	+	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 636
	974	+	this subdivision, an amount equal to seventy-five dollars for each five 637
	975	+	thousand dollars, or fraction thereof, by which the taxpayer's 638
	976	+	Connecticut adjusted gross income exceeds two hundred thousand 639
	977	+	dollars, up to a maximum payment of two thousand two hundred fifty 640
	978	+	dollars. 641
	979	+	(B) (i) For any person who files a return under the federal income tax 642
	980	+	for such taxable year as a head of household, as defined in Section 2(b) 643 Governor's Bill No. 981
	981	+
	982	+
	983	+
	984	+	LCO No. 4026 26 of 64
	985	+
	986	+	of the Internal Revenue Code: 644
524	987		T97
525	988		Connecticut Taxable Income Rate of Tax
526	989		T98
527	990		Not over $16,000 3.0%
528	991		T99
529	992		Over $16,000 but not $480.00, plus 5.0% of the
530		-	T100 ~~over $80,000 excess over $16,000~~
531		-	~~T101~~
532		-	Over $80,000 but not $3,680, plus 5.5% of the
	993	+	T100
	994	+	over $80,000 excess over $16,000
	995	+	T101 Over $80,000 but not $3,680, plus 5.5% of the
533	996		T102
534	997		over $160,000 excess over $80,000
535	998		T103
536	999		Over $160,000 but not $8,080, plus 6.0% of the
537	1000		T104
538	1001		over $320,000 excess over $160,000
539	1002		T105
540		-	Over $320,000 but not $17,680, plus 6.5% of the Substitute Bill No. 981
541		-
542		-
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546		-
	1003	+	Over $320,000 but not $17,680, plus 6.5% of the
547	1004		T106
548	1005		over $400,000 excess over $320,000
549	1006		T107
550	1007		Over $400,000 $22,880, plus 6.70% of the
551	1008		T108
552	1009		excess over $400,000
553	1010
554		-	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 245
555		-	subdivision, for each taxpayer whose Connecticut adjusted gross 246
556		-	income exceeds seventy-eight thousand five hundred dollars, the 247
557		-	amount of the taxpayer's Connecticut taxable income to which the three-248
558		-	per-cent tax rate applies shall be reduced by one thousand six hundred 249
559		-	dollars for each four thousand dollars, or fraction thereof, by which the 250
560		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 251
561		-	Any such amount of Connecticut taxable income to which, as provided 252
562		-	in the preceding sentence, the three-per-cent tax rate does not apply 253
563		-	shall be an amount to which the five-per-cent tax rate shall apply. 254
564		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 255
565		-	three hundred twenty thousand dollars shall pay, in addition to the tax 256
566		-	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 257
567		-	this subdivision, an amount equal to one hundred twenty dollars for 258
568		-	each eight thousand dollars, or fraction thereof, by which the taxpayer's 259
569		-	Connecticut adjusted gross income exceeds three hundred twenty 260
570		-	thousand dollars, up to a maximum payment of three thousand six 261
571		-	hundred dollars. 262
572		-	(C) (i) For any husband and wife who file a return under the federal 263
573		-	income tax for such taxable year as married individuals filing jointly or 264
574		-	any person who files a return under the federal income tax for such 265
575		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 266
576		-	Internal Revenue Code: 267
	1011	+	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 645
	1012	+	subdivision, for each taxpayer whose Connecticut adjusted gross 646
	1013	+	income exceeds seventy-eight thousand five hundred dollars, the 647
	1014	+	amount of the taxpayer's Connecticut taxable income to which the three-648
	1015	+	per-cent tax rate applies shall be reduced by one thousand six hundred 649
	1016	+	dollars for each four thousand dollars, or fraction thereof, by which the 650
	1017	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 651
	1018	+	Any such amount of Connecticut taxable income to which, as provided 652
	1019	+	in the preceding sentence, the three-per-cent tax rate does not apply 653
	1020	+	shall be an amount to which the five-per-cent tax rate shall apply. 654
	1021	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 655
	1022	+	three hundred twenty thousand dollars shall pay, in addition to the tax 656
	1023	+	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 657
	1024	+	this subdivision, an amount equal to one hundred twenty dollars for 658
	1025	+	each eight thousand dollars, or fraction thereof, by which the taxpayer's 659
	1026	+	Connecticut adjusted gross income exceeds three hundred twenty 660
	1027	+	thousand dollars, up to a maximum payment of three thousand six 661
	1028	+	hundred dollars. 662 Governor's Bill No. 981
	1029	+
	1030	+
	1031	+
	1032	+	LCO No. 4026 27 of 64
	1033	+
	1034	+	(C) (i) For any husband and wife who file a return under the federal 663
	1035	+	income tax for such taxable year as married individuals filing jointly or 664
	1036	+	any person who files a return under the federal income tax for such 665
	1037	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 666
	1038	+	Internal Revenue Code: 667
577	1039		T109
578	1040		Connecticut Taxable Income Rate of Tax
579	1041		T110
580	1042		Not over $20,000 3.0%
581	1043		T111
582	1044		Over $20,000 but not $600.00, plus 5.0% of the
583	1045		T112
584		-	over $100,000 excess over $20,000 Substitute Bill No. 981
585		-
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590		-
	1046	+	over $100,000 excess over $20,000
591	1047		T113
592	1048		Over $100,000 but not $4,600, plus 5.5% of the
593		-	T114 ~~over $200,000 excess over $100,000~~
594		-	~~T115~~
595		-	Over $200,000 but not $10,100, plus 6.0% of the
	1049	+	T114
	1050	+	over $200,000 excess over $100,000
	1051	+	T115 Over $200,000 but not $10,100, plus 6.0% of the
596	1052		T116
597	1053		over $400,000 excess over $200,000
598	1054		T117
599	1055		Over $400,000 but not $22,100, plus 6.5% of the
600	1056		T118
601	1057		over $500,000 excess over $400,000
602		-	T119 Over $500,000 $28,600, plus 6.70% of the
603		-	T120
604		-	excess over $500,000
605		-
606		-	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 268
607		-	subdivision, for each taxpayer whose Connecticut adjusted gross 269
608		-	income exceeds one hundred thousand five hundred dollars, the 270
609		-	amount of the taxpayer's Connecticut taxable income to which the three-271
610		-	per-cent tax rate applies shall be reduced by two thousand dollars for 272
611		-	each five thousand dollars, or fraction thereof, by which the taxpayer's 273
612		-	Connecticut adjusted gross income exceeds said amount. Any such 274
613		-	amount of Connecticut taxable income to which, as provided in the 275
614		-	preceding sentence, the three-per-cent tax rate does not apply shall be 276
615		-	an amount to which the five-per-cent tax rate shall apply. 277
616		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 278
617		-	four hundred thousand dollars shall pay, in addition to the tax 279
618		-	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 280
619		-	this subdivision, an amount equal to one hundred fifty dollars for each 281
620		-	ten thousand dollars, or fraction thereof, by which the taxpayer's 282
621		-	Connecticut adjusted gross income exceeds four hundred thousand 283
622		-	dollars, up to a maximum payment of four thousand five hundred 284
623		-	dollars. 285
624		-	(D) (i) For any person who files a return under the federal income tax 286
625		-	for such taxable year as a married individual filing separately: 287
	1058	+	T119
	1059	+	Over $500,000 $28,600, plus 6.70% of the
	1060	+	T120 excess over $500,000
	1061	+
	1062	+	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 668
	1063	+	subdivision, for each taxpayer whose Connecticut adjusted gross 669
	1064	+	income exceeds one hundred thousand five hundred dollars, the 670
	1065	+	amount of the taxpayer's Connecticut taxable income to which the three-671
	1066	+	per-cent tax rate applies shall be reduced by two thousand dollars for 672
	1067	+	each five thousand dollars, or fraction thereof, by which the taxpayer's 673
	1068	+	Connecticut adjusted gross income exceeds said amount. Any such 674
	1069	+	amount of Connecticut taxable income to which, as provided in the 675
	1070	+	preceding sentence, the three-per-cent tax rate does not apply shall be 676
	1071	+	an amount to which the five-per-cent tax rate shall apply. 677
	1072	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 678
	1073	+	four hundred thousand dollars shall pay, in addition to the tax 679
	1074	+	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 680
	1075	+	this subdivision, an amount equal to one hundred fifty dollars for each 681 Governor's Bill No. 981
	1076	+
	1077	+
	1078	+
	1079	+	LCO No. 4026 28 of 64
	1080	+
	1081	+	ten thousand dollars, or fraction thereof, by which the taxpayer's 682
	1082	+	Connecticut adjusted gross income exceeds four hundred thousand 683
	1083	+	dollars, up to a maximum payment of four thousand five hundred 684
	1084	+	dollars. 685
	1085	+	(D) (i) For any person who files a return under the federal income tax 686
	1086	+	for such taxable year as a married individual filing separately: 687
626	1087		T121
627		-	Connecticut Taxable Income Rate of Tax Substitute Bill No. 981
628		-
629		-
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633		-
634		-	T122
635		-	Not over $10,000 3.0%
636		-	T123 Over $10,000 but not $300.00, plus 5.0% of the
	1088	+	Connecticut Taxable Income Rate of Tax
	1089	+	T122 Not over $10,000 3.0%
	1090	+	T123
	1091	+	Over $10,000 but not $300.00, plus 5.0% of the
637	1092		T124
638	1093		over $50,000 excess over $10,000
639	1094		T125
640	1095		Over $50,000 but not $2,300, plus 5.5% of the
641	1096		T126
642	1097		over $100,000 excess over $50,000
643	1098		T127
644	1099		Over $100,000 but not $5,050, plus 6.0% of the
645		-	T128 over $200,000 excess over $100,000
	1100	+	T128
	1101	+	over $200,000 excess over $100,000
646	1102		T129
647	1103		Over $200,000 but not $11,050, plus 6.5% of the
648		-	T130
649		-	~~over $250,000 excess over $200,000~~
650		-	~~T131~~ Over $250,000 $14,300, plus 6.70% of the
	1104	+	T130 over $250,000 excess over $200,000
	1105	+	T131
	1106	+	Over $250,000 $14,300, plus 6.70% of the
651	1107		T132
652	1108		excess over $250,000
653	1109
654		-	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 288
655		-	subdivision, for each taxpayer whose Connecticut adjusted gross 289
656		-	income exceeds fifty thousand two hundred fifty dollars, the amount of 290
657		-	the taxpayer's Connecticut taxable income to which the three-per-cent 291
658		-	tax rate applies shall be reduced by one thousand dollars for each two 292
659		-	thousand five hundred dollars, or fraction thereof, by which the 293
660		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 294
661		-	Any such amount of Connecticut taxable income to which, as provided 295
662		-	in the preceding sentence, the three-per-cent tax rate does not apply 296
663		-	shall be an amount to which the five-per-cent tax rate shall apply. 297
664		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 298
665		-	two hundred thousand dollars shall pay, in addition to the tax 299
666		-	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 300
667		-	this subdivision, an amount equal to seventy-five dollars for each five 301
668		-	thousand dollars, or fraction thereof, by which the taxpayer's 302
669		-	Connecticut adjusted gross income exceeds two hundred thousand 303
670		-	dollars, up to a maximum payment of two thousand two hundred fifty 304
671		-	dollars. 305
672		-	(E) For trusts or estates, the rate of tax shall be 6.70% of the 306
673		-	Connecticut taxable income. 307 Substitute Bill No. 981
674		-
675		-
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678		-	17 of 99
679		-
680		-	(9) For taxable years commencing on or after January 1, 2015, but 308
681		-	prior to January 1, 2024, in accordance with the following schedule: 309
682		-	(A) (i) For any person who files a return under the federal income tax 310
683		-	for such taxable year as an unmarried individual: 311
	1110	+	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 688
	1111	+	subdivision, for each taxpayer whose Connecticut adjusted gross 689
	1112	+	income exceeds fifty thousand two hundred fifty dollars, the amount of 690
	1113	+	the taxpayer's Connecticut taxable income to which the three-per-cent 691
	1114	+	tax rate applies shall be reduced by one thousand dollars for each two 692
	1115	+	thousand five hundred dollars, or fraction thereof, by which the 693
	1116	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 694
	1117	+	Any such amount of Connecticut taxable income to which, as provided 695
	1118	+	in the preceding sentence, the three-per-cent tax rate does not apply 696
	1119	+	shall be an amount to which the five-per-cent tax rate shall apply. 697
	1120	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 698
	1121	+	two hundred thousand dollars shall pay, in addition to the tax 699 Governor's Bill No. 981
	1122	+
	1123	+
	1124	+
	1125	+	LCO No. 4026 29 of 64
	1126	+
	1127	+	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 700
	1128	+	this subdivision, an amount equal to seventy-five dollars for each five 701
	1129	+	thousand dollars, or fraction thereof, by which the taxpayer's 702
	1130	+	Connecticut adjusted gross income exceeds two hundred thousand 703
	1131	+	dollars, up to a maximum payment of two thousand two hundred fifty 704
	1132	+	dollars. 705
	1133	+	(E) For trusts or estates, the rate of tax shall be 6.70% of the 706
	1134	+	Connecticut taxable income. 707
	1135	+	(9) For taxable years commencing on or after January 1, 2015, but 708
	1136	+	prior to January 1, 2024, in accordance with the following schedule: 709
	1137	+	(A) (i) For any person who files a return under the federal income tax 710
	1138	+	for such taxable year as an unmarried individual: 711
684	1139		T133 Connecticut Taxable Income Rate of Tax
685	1140		T134
686	1141		Not over $10,000 3.0%
687	1142		T135
688	1143		Over $10,000 but not $300.00, plus 5.0% of the
689	1144		T136
690	1145		over $50,000 excess over $10,000
691	1146		T137
692	1147		Over $50,000 but not $2,300, plus 5.5% of the
693	1148		T138
694	1149		over $100,000 excess over $50,000
695	1150		T139
696	1151		Over $100,000 but not $5,050, plus 6.0% of the
697	1152		T140
698	1153		over $200,000 excess over $100,000
699	1154		T141
700	1155		Over $200,000 but not $11,050, plus 6.5% of the
701	1156		T142
702	1157		over $250,000 excess over $200,000
703	1158		T143
704	1159		Over $250,000 but not $14,300, plus 6.9% of the
705	1160		T144
706	1161		over $500,000 excess over $250,000
707	1162		T145
708	1163		Over $500,000 $31,550, plus 6.99% of the
709	1164		T146
710	1165		excess over $500,000
711	1166
712		-	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 312
713		-	subdivision, for each taxpayer whose Connecticut adjusted gross 313
714		-	income exceeds fifty-six thousand five hundred dollars, the amount of 314
715		-	the taxpayer's Connecticut taxable income to which the three-per-cent 315
716		-	tax rate applies shall be reduced by one thousand dollars for each five 316
717		-	thousand dollars, or fraction thereof, by which the taxpayer's 317
718		-	Connecticut adjusted gross income exceeds said amount. Any such 318
719		-	amount of Connecticut taxable income to which, as provided in the 319
720		-	preceding sentence, the three-per-cent tax rate does not apply shall be 320
721		-	an amount to which the five-per-cent tax rate shall apply. 321
722		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 322
723		-	two hundred thousand dollars shall pay, in addition to the tax 323 Substitute Bill No. 981
724		-
725		-
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728		-	18 of 99
729		-
730		-	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 324
731		-	this subdivision, an amount equal to ninety dollars for each five 325
732		-	thousand dollars, or fraction thereof, by which the taxpayer's 326
733		-	Connecticut adjusted gross income exceeds two hundred thousand 327
734		-	dollars, up to a maximum payment of two thousand seven hundred 328
735		-	dollars. 329
736		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 330
737		-	five hundred thousand dollars shall pay, in addition to the tax 331
738		-	computed under the provisions of subparagraphs (A)(i), (A)(ii) and 332
739		-	(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 333
740		-	thousand dollars, or fraction thereof, by which the taxpayer's 334
741		-	Connecticut adjusted gross income exceeds five hundred thousand 335
742		-	dollars, up to a maximum payment of four hundred fifty dollars. 336
743		-	(B) (i) For any person who files a return under the federal income tax 337
744		-	for such taxable year as a head of household, as defined in Section 2(b) 338
745		-	of the Internal Revenue Code: 339
	1167	+	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 712
	1168	+	subdivision, for each taxpayer whose Connecticut adjusted gross 713
	1169	+	income exceeds fifty-six thousand five hundred dollars, the amount of 714
	1170	+	the taxpayer's Connecticut taxable income to which the three-per-cent 715 Governor's Bill No. 981
	1171	+
	1172	+
	1173	+
	1174	+	LCO No. 4026 30 of 64
	1175	+
	1176	+	tax rate applies shall be reduced by one thousand dollars for each five 716
	1177	+	thousand dollars, or fraction thereof, by which the taxpayer's 717
	1178	+	Connecticut adjusted gross income exceeds said amount. Any such 718
	1179	+	amount of Connecticut taxable income to which, as provided in the 719
	1180	+	preceding sentence, the three-per-cent tax rate does not apply shall be 720
	1181	+	an amount to which the five-per-cent tax rate shall apply. 721
	1182	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 722
	1183	+	two hundred thousand dollars shall pay, in addition to the tax 723
	1184	+	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 724
	1185	+	this subdivision, an amount equal to ninety dollars for each five 725
	1186	+	thousand dollars, or fraction thereof, by which the taxpayer's 726
	1187	+	Connecticut adjusted gross income exceeds two hundred thousand 727
	1188	+	dollars, up to a maximum payment of two thousand seven hundred 728
	1189	+	dollars. 729
	1190	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 730
	1191	+	five hundred thousand dollars shall pay, in addition to the tax 731
	1192	+	computed under the provisions of subparagraphs (A)(i), (A)(ii) and 732
	1193	+	(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 733
	1194	+	thousand dollars, or fraction thereof, by which the taxpayer's 734
	1195	+	Connecticut adjusted gross income exceeds five hundred thousand 735
	1196	+	dollars, up to a maximum payment of four hundred fifty dollars. 736
	1197	+	(B) (i) For any person who files a return under the federal income tax 737
	1198	+	for such taxable year as a head of household, as defined in Section 2(b) 738
	1199	+	of the Internal Revenue Code: 739
746	1200		T147 Connecticut Taxable Income Rate of Tax
747		-	T148
748		-	Not over $16,000 3.0%
749		-	T149
750		-	Over $16,000 but not $480.00, plus 5.0% of the
751		-	T150
752		-	over $80,000 excess over $16,000
753		-	T151
754		-	Over $80,000 but not $3,680, plus 5.5% of the
755		-	T152
756		-	over $160,000 excess over $80,000
757		-	T153
758		-	Over $160,000 but not $8,080, plus 6.0% of the
759		-	T154
760		-	over $320,000 excess over $160,000
	1201	+	T148 Not over $16,000 3.0%
	1202	+	T149 Over $16,000 but not $480.00, plus 5.0% of the
	1203	+	T150 over $80,000 excess over $16,000
	1204	+	T151 Over $80,000 but not $3,680, plus 5.5% of the
	1205	+	T152 over $160,000 excess over $80,000
	1206	+	T153 Over $160,000 but not $8,080, plus 6.0% of the
	1207	+	T154 over $320,000 excess over $160,000 Governor's Bill No. 981
	1208	+
	1209	+
	1210	+
	1211	+	LCO No. 4026 31 of 64
	1212	+
761	1213		T155
762	1214		Over $320,000 but not $17,680, plus 6.5% of the
763	1215		T156
764	1216		over $400,000 excess over $320,000
765	1217		T157
766	1218		Over $400,000 but not $22,880, plus 6.9% of the
767	1219		T158
768	1220		over $800,000 excess over $400,000
769	1221		T159
770	1222		Over $800,000 $50,480, plus 6.99% of the
771	1223		T160
772	1224		excess over $800,000
773	1225
774		-	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 340 Substitute Bill No. 981
775		-
776		-
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779		-	19 of 99
780		-
781		-	subdivision, for each taxpayer whose Connecticut adjusted gross 341
782		-	income exceeds seventy-eight thousand five hundred dollars, the 342
783		-	amount of the taxpayer's Connecticut taxable income to which the three-343
784		-	per-cent tax rate applies shall be reduced by one thousand six hundred 344
785		-	dollars for each four thousand dollars, or fraction thereof, by which the 345
786		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 346
787		-	Any such amount of Connecticut taxable income to which, as provided 347
788		-	in the preceding sentence, the three-per-cent tax rate does not apply 348
789		-	shall be an amount to which the five-per-cent tax rate shall apply. 349
790		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 350
791		-	three hundred twenty thousand dollars shall pay, in addition to the tax 351
792		-	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 352
793		-	this subdivision, an amount equal to one hundred forty dollars for each 353
794		-	eight thousand dollars, or fraction thereof, by which the taxpayer's 354
795		-	Connecticut adjusted gross income exceeds three hundred twenty 355
796		-	thousand dollars, up to a maximum payment of four thousand two 356
797		-	hundred dollars. 357
798		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 358
799		-	eight hundred thousand dollars shall pay, in addition to the tax 359
800		-	computed under the provisions of subparagraphs (B)(i), (B)(ii) and 360
801		-	(B)(iii) of this subdivision, an amount equal to eighty dollars for each 361
802		-	eight thousand dollars, or fraction thereof, by which the taxpayer's 362
803		-	Connecticut adjusted gross income exceeds eight hundred thousand 363
804		-	dollars, up to a maximum payment of seven hundred twenty dollars. 364
805		-	(C) (i) For any husband and wife who file a return under the federal 365
806		-	income tax for such taxable year as married individuals filing jointly or 366
807		-	any person who files a return under the federal income tax for such 367
808		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 368
809		-	Internal Revenue Code: 369
	1226	+	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 740
	1227	+	subdivision, for each taxpayer whose Connecticut adjusted gross 741
	1228	+	income exceeds seventy-eight thousand five hundred dollars, the 742
	1229	+	amount of the taxpayer's Connecticut taxable income to which the three-743
	1230	+	per-cent tax rate applies shall be reduced by one thousand six hundred 744
	1231	+	dollars for each four thousand dollars, or fraction thereof, by which the 745
	1232	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 746
	1233	+	Any such amount of Connecticut taxable income to which, as provided 747
	1234	+	in the preceding sentence, the three-per-cent tax rate does not apply 748
	1235	+	shall be an amount to which the five-per-cent tax rate shall apply. 749
	1236	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 750
	1237	+	three hundred twenty thousand dollars shall pay, in addition to the tax 751
	1238	+	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 752
	1239	+	this subdivision, an amount equal to one hundred forty dollars for each 753
	1240	+	eight thousand dollars, or fraction thereof, by which the taxpayer's 754
	1241	+	Connecticut adjusted gross income exceeds three hundred twenty 755
	1242	+	thousand dollars, up to a maximum payment of four thousand two 756
	1243	+	hundred dollars. 757
	1244	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 758
	1245	+	eight hundred thousand dollars shall pay, in addition to the tax 759
	1246	+	computed under the provisions of subparagraphs (B)(i), (B)(ii) and 760
	1247	+	(B)(iii) of this subdivision, an amount equal to eighty dollars for each 761
	1248	+	eight thousand dollars, or fraction thereof, by which the taxpayer's 762
	1249	+	Connecticut adjusted gross income exceeds eight hundred thousand 763
	1250	+	dollars, up to a maximum payment of seven hundred twenty dollars. 764 Governor's Bill No. 981
	1251	+
	1252	+
	1253	+
	1254	+	LCO No. 4026 32 of 64
	1255	+
	1256	+	(C) (i) For any husband and wife who file a return under the federal 765
	1257	+	income tax for such taxable year as married individuals filing jointly or 766
	1258	+	any person who files a return under the federal income tax for such 767
	1259	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 768
	1260	+	Internal Revenue Code: 769
810	1261		T161
811	1262		Connecticut Taxable Income Rate of Tax
812		-	T162 Not over $20,000 3.0% Substitute Bill No. 981
813		-
814		-
815		-	LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB-
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817		-	20 of 99
818		-
	1263	+	T162 Not over $20,000 3.0%
819	1264		T163 Over $20,000 but not $600.00, plus 5.0% of the
820	1265		T164 over $100,000 excess over $20,000
821	1266		T165 Over $100,000 but not $4,600, plus 5.5% of the
822	1267		T166 over $200,000 excess over $100,000
823	1268		T167 Over $200,000 but not $10,100, plus 6.0% of the
824	1269		T168 over $400,000 excess over $200,000
825	1270		T169 Over $400,000 but not $22,100, plus 6.5% of the
826	1271		T170 over $500,000 excess over $400,000
827	1272		T171 Over $500,000 but not $28,600, plus 6.9% of the
828	1273		T172 over $1,000,000 excess over $500,000
829	1274		T173 Over $1,000,000 $63,100, plus 6.99% of the
830	1275		T174 excess over $1,000,000
831	1276
832		-	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 370
833		-	subdivision, for each taxpayer whose Connecticut adjusted gross 371
834		-	income exceeds one hundred thousand five hundred dollars, the 372
835		-	amount of the taxpayer's Connecticut taxable income to which the three-373
836		-	per-cent tax rate applies shall be reduced by two thousand dollars for 374
837		-	each five thousand dollars, or fraction thereof, by which the taxpayer's 375
838		-	Connecticut adjusted gross income exceeds said amount. Any such 376
839		-	amount of Connecticut taxable income to which, as provided in the 377
840		-	preceding sentence, the three-per-cent tax rate does not apply shall be 378
841		-	an amount to which the five-per-cent tax rate shall apply. 379
842		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 380
843		-	four hundred thousand dollars shall pay, in addition to the tax 381
844		-	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 382
845		-	this subdivision, an amount equal to one hundred eighty dollars for 383
846		-	each ten thousand dollars, or fraction thereof, by which the taxpayer's 384
847		-	Connecticut adjusted gross income exceeds four hundred thousand 385
848		-	dollars, up to a maximum payment of five thousand four hundred 386
849		-	dollars. 387
850		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 388 Substitute Bill No. 981
851		-
852		-
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855		-	21 of 99
856		-
857		-	one million dollars shall pay, in addition to the tax computed under the 389
858		-	provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 390
859		-	subdivision, an amount equal to one hundred dollars for each ten 391
860		-	thousand dollars, or fraction thereof, by which the taxpayer's 392
861		-	Connecticut adjusted gross income exceeds one million dollars, up to a 393
862		-	maximum payment of nine hundred dollars. 394
863		-	(D) (i) For any person who files a return under the federal income tax 395
864		-	for such taxable year as a married individual filing separately: 396
	1277	+	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 770
	1278	+	subdivision, for each taxpayer whose Connecticut adjusted gross 771
	1279	+	income exceeds one hundred thousand five hundred dollars, the 772
	1280	+	amount of the taxpayer's Connecticut taxable income to which the three-773
	1281	+	per-cent tax rate applies shall be reduced by two thousand dollars for 774
	1282	+	each five thousand dollars, or fraction thereof, by which the taxpayer's 775
	1283	+	Connecticut adjusted gross income exceeds said amount. Any such 776
	1284	+	amount of Connecticut taxable income to which, as provided in the 777
	1285	+	preceding sentence, the three-per-cent tax rate does not apply shall be 778
	1286	+	an amount to which the five-per-cent tax rate shall apply. 779
	1287	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 780
	1288	+	four hundred thousand dollars shall pay, in addition to the tax 781 Governor's Bill No. 981
	1289	+
	1290	+
	1291	+
	1292	+	LCO No. 4026 33 of 64
	1293	+
	1294	+	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 782
	1295	+	this subdivision, an amount equal to one hundred eighty dollars for 783
	1296	+	each ten thousand dollars, or fraction thereof, by which the taxpayer's 784
	1297	+	Connecticut adjusted gross income exceeds four hundred thousand 785
	1298	+	dollars, up to a maximum payment of five thousand four hundred 786
	1299	+	dollars. 787
	1300	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 788
	1301	+	one million dollars shall pay, in addition to the tax computed under the 789
	1302	+	provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 790
	1303	+	subdivision, an amount equal to one hundred dollars for each ten 791
	1304	+	thousand dollars, or fraction thereof, by which the taxpayer's 792
	1305	+	Connecticut adjusted gross income exceeds one million dollars, up to a 793
	1306	+	maximum payment of nine hundred dollars. 794
	1307	+	(D) (i) For any person who files a return under the federal income tax 795
	1308	+	for such taxable year as a married individual filing separately: 796
865	1309		T175
866	1310		Connecticut Taxable Income Rate of Tax
867	1311		T176 Not over $10,000 3.0%
868	1312		T177 Over $10,000 but not $300.00, plus 5.0% of the
869	1313		T178 over $50,000 excess over $10,000
870	1314		T179 Over $50,000 but not $2,300, plus 5.5% of the
871	1315		T180 over $100,000 excess over $50,000
872	1316		T181 Over $100,000 but not $5,050, plus 6.0% of the
873	1317		T182 over $200,000 excess over $100,000
874	1318		T183 Over $200,000 but not $11,050, plus 6.5% of the
875	1319		T184 over $250,000 excess over $200,000
876	1320		T185 Over $250,000 but not $14,300, plus 6.9% of the
877	1321		T186 over $500,000 excess over $250,000
878	1322		T187 Over $500,000 $31,550, plus 6.99% of the
879	1323		T188 excess over $500,000
880	1324
881		-	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 397
882		-	subdivision, for each taxpayer whose Connecticut adjusted gross 398
883		-	income exceeds fifty thousand two hundred fifty dollars, the amount of 399
884		-	the taxpayer's Connecticut taxable income to which the three-per-cent 400
885		-	tax rate applies shall be reduced by one thousand dollars for each two 401
886		-	thousand five hundred dollars, or fraction thereof, by which the 402
887		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 403
888		-	Any such amount of Connecticut taxable income to which, as provided 404 Substitute Bill No. 981
889		-
890		-
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893		-	22 of 99
894		-
895		-	in the preceding sentence, the three-per-cent tax rate does not apply 405
896		-	shall be an amount to which the five-per-cent tax rate shall apply. 406
897		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 407
898		-	two hundred thousand dollars shall pay, in addition to the tax 408
899		-	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 409
900		-	this subdivision, an amount equal to ninety dollars for each five 410
901		-	thousand dollars, or fraction thereof, by which the taxpayer's 411
902		-	Connecticut adjusted gross income exceeds two hundred thousand 412
903		-	dollars, up to a maximum payment of two thousand seven hundred 413
904		-	dollars. 414
905		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 415
906		-	five hundred thousand dollars shall pay, in addition to the tax 416
907		-	computed under the provisions of subparagraphs (D)(i), (D)(ii) and 417
908		-	(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 418
909		-	thousand dollars, or fraction thereof, by which the taxpayer's 419
910		-	Connecticut adjusted gross income exceeds five hundred thousand 420
911		-	dollars, up to a maximum payment of four hundred fifty dollars. 421
912		-	(E) For trusts or estates, the rate of tax shall be 6.99% of the 422
913		-	Connecticut taxable income. 423
914		-	(10) For taxable years commencing on or after January 1, 2024, in 424
915		-	accordance with the following schedule: 425
916		-	(A) (i) For any person who files a return under the federal income tax 426
917		-	for such taxable year as an unmarried individual: 427
918		-	T189 Connecticut Taxable Income Rate of Tax
	1325	+	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 797 Governor's Bill No. 981
	1326	+
	1327	+
	1328	+
	1329	+	LCO No. 4026 34 of 64
	1330	+
	1331	+	subdivision, for each taxpayer whose Connecticut adjusted gross 798
	1332	+	income exceeds fifty thousand two hundred fifty dollars, the amount of 799
	1333	+	the taxpayer's Connecticut taxable income to which the three-per-cent 800
	1334	+	tax rate applies shall be reduced by one thousand dollars for each two 801
	1335	+	thousand five hundred dollars, or fraction thereof, by which the 802
	1336	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 803
	1337	+	Any such amount of Connecticut taxable income to which, as provided 804
	1338	+	in the preceding sentence, the three-per-cent tax rate does not apply 805
	1339	+	shall be an amount to which the five-per-cent tax rate shall apply. 806
	1340	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 807
	1341	+	two hundred thousand dollars shall pay, in addition to the tax 808
	1342	+	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 809
	1343	+	this subdivision, an amount equal to ninety dollars for each five 810
	1344	+	thousand dollars, or fraction thereof, by which the taxpayer's 811
	1345	+	Connecticut adjusted gross income exceeds two hundred thousand 812
	1346	+	dollars, up to a maximum payment of two thousand seven hundred 813
	1347	+	dollars. 814
	1348	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 815
	1349	+	five hundred thousand dollars shall pay, in addition to the tax 816
	1350	+	computed under the provisions of subparagraphs (D)(i), (D)(ii) and 817
	1351	+	(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 818
	1352	+	thousand dollars, or fraction thereof, by which the taxpayer's 819
	1353	+	Connecticut adjusted gross income exceeds five hundred thousand 820
	1354	+	dollars, up to a maximum payment of four hundred fifty dollars. 821
	1355	+	(E) For trusts or estates, the rate of tax shall be 6.99% of the 822
	1356	+	Connecticut taxable income. 823
	1357	+	(10) For taxable years commencing on or after January 1, 2024, in 824
	1358	+	accordance with the following schedule: 825
	1359	+	(A) (i) For any person who files a return under the federal income tax 826
	1360	+	for such taxable year as an unmarried individual: 827
	1361	+	T189 Connecticut Taxable Income Rate of Tax Governor's Bill No. 981
	1362	+
	1363	+
	1364	+
	1365	+	LCO No. 4026 35 of 64
	1366	+
919	1367		T190
920	1368		Not over $10,000 2.0%
921	1369		T191
922		-	Over $10,000 but not $200.00, plus 4.75% of the
	1370	+	Over $10,000 but not $200.00, plus 4.5% of the
923	1371		T192
924	1372		over $50,000 excess over $10,000
925	1373		T193
926		-	Over $50,000 but not $2,~~100~~, plus 5.5% of the
	1374	+	Over $50,000 but not $2,000, plus 5.5% of the
927	1375		T194
928	1376		over $100,000 excess over $50,000
929	1377		T195
930		-	Over $100,000 but not $4,850, plus 6.0% of the Substitute Bill No. 981
931		-
932		-
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935		-	23 of 99
936		-
937		-	T196 over $200,000 excess over $100,000
938		-	T197 Over $200,000 but not $10,850, plus 6.5% of the
939		-	T198 over $250,000 excess over $200,000
940		-	T199 Over $250,000 but not $14,100, plus 6.9% of the
941		-	T200 over $500,000 excess over $250,000
942		-	T201 Over $500,000 $31,350, plus 6.99% of the
943		-	T202 excess over $500,000
944		-
945		-	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 428
946		-	subdivision, for each taxpayer whose Connecticut adjusted gross 429
947		-	income exceeds fifty-six thousand five hundred dollars, the amount of 430
948		-	the taxpayer's Connecticut taxable income to which the two-per-cent tax 431
949		-	rate applies shall be reduced by one thousand dollars for each five 432
950		-	thousand dollars, or fraction thereof, by which the taxpayer's 433
951		-	Connecticut adjusted gross income exceeds said amount. Any such 434
952		-	amount of Connecticut taxable income to which, as provided in the 435
953		-	preceding sentence, the two-per-cent tax rate does not apply shall be an 436
954		-	amount to which the four-and-three-quarters-per-cent tax rate shall 437
955		-	apply. 438
956		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 439
957		-	two hundred thousand dollars shall pay, in addition to the tax 440
958		-	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 441
959		-	this subdivision, an amount equal to ninety dollars for each five 442
960		-	thousand dollars, or fraction thereof, by which the taxpayer's 443
961		-	Connecticut adjusted gross income exceeds two hundred thousand 444
962		-	dollars, up to a maximum payment of two thousand seven hundred 445
963		-	dollars. 446
964		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 447
965		-	five hundred thousand dollars shall pay, in addition to the tax 448
966		-	computed under the provisions of subparagraphs (A)(i), (A)(ii) and 449
967		-	(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 450
968		-	thousand dollars, or fraction thereof, by which the taxpayer's 451 Substitute Bill No. 981
969		-
970		-
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973		-	24 of 99
974		-
975		-	Connecticut adjusted gross income exceeds five hundred thousand 452
976		-	dollars, up to a maximum payment of four hundred fifty dollars. 453
977		-	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 454
978		-	two hundred thousand dollars shall pay, in addition to the tax 455
979		-	computed under the provisions of subparagraphs (A)(i), (A)(ii), (A)(iii) 456
980		-	and, if applicable, (A)(iv) of this subdivision, one hundred twenty-five 457
981		-	dollars. 458
982		-	(B) (i) For any person who files a return under the federal income tax 459
983		-	for such taxable year as a head of household, as defined in Section 2(b) 460
984		-	of the Internal Revenue Code: 461
	1378	+	Over $100,000 but not $4,750, plus 6.0% of the
	1379	+	T196
	1380	+	over $200,000 excess over $100,000
	1381	+	T197
	1382	+	Over $200,000 but not $10,750, plus 6.5% of the
	1383	+	T198
	1384	+	over $250,000 excess over $200,000
	1385	+	T199
	1386	+	Over $250,000 but not $14,000, plus 6.9% of the
	1387	+	T200
	1388	+	over $500,000 excess over $250,000
	1389	+	T201
	1390	+	Over $500,000 $31,250, plus 6.99% of the
	1391	+	T202
	1392	+	excess over $500,000
	1393	+
	1394	+	(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 828
	1395	+	subdivision, for each taxpayer whose Connecticut adjusted gross 829
	1396	+	income exceeds fifty-six thousand five hundred dollars, the amount of 830
	1397	+	the taxpayer's Connecticut taxable income to which the two-per-cent tax 831
	1398	+	rate applies shall be reduced by one thousand dollars for each five 832
	1399	+	thousand dollars, or fraction thereof, by which the taxpayer's 833
	1400	+	Connecticut adjusted gross income exceeds said amount. Any such 834
	1401	+	amount of Connecticut taxable income to which, as provided in the 835
	1402	+	preceding sentence, the two-per-cent tax rate does not apply shall be an 836
	1403	+	amount to which the four-and-one-half-per-cent tax rate shall apply. 837
	1404	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 838
	1405	+	two hundred thousand dollars shall pay, in addition to the tax 839
	1406	+	computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 840
	1407	+	this subdivision, an amount equal to ninety-eight dollars for each five 841
	1408	+	thousand dollars, or fraction thereof, by which the taxpayer's 842
	1409	+	Connecticut adjusted gross income exceeds two hundred thousand 843
	1410	+	dollars, up to a maximum payment of two thousand nine hundred forty 844
	1411	+	dollars. 845
	1412	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 846 Governor's Bill No. 981
	1413	+
	1414	+
	1415	+
	1416	+	LCO No. 4026 36 of 64
	1417	+
	1418	+	five hundred thousand dollars shall pay, in addition to the tax 847
	1419	+	computed under the provisions of subparagraphs (A)(i), (A)(ii) and 848
	1420	+	(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 849
	1421	+	thousand dollars, or fraction thereof, by which the taxpayer's 850
	1422	+	Connecticut adjusted gross income exceeds five hundred thousand 851
	1423	+	dollars, up to a maximum payment of four hundred fifty dollars. 852
	1424	+	(B) (i) For any person who files a return under the federal income tax 853
	1425	+	for such taxable year as a head of household, as defined in Section 2(b) 854
	1426	+	of the Internal Revenue Code: 855
985	1427		T203 Connecticut Taxable Income Rate of Tax
986		-	T204 Not over $16,000 2.0%
987		-	T205 Over $16,000 but not $320.00, plus 4.75% of the
988		-	T206 over $80,000 excess over $16,000
989		-	T207 Over $80,000 but not $3,360, plus 5.5% of the
990		-	T208 over $160,000 excess over $80,000
991		-	T209 Over $160,000 but not $7,760, plus 6.0% of the
992		-	T210 over $320,000 excess over $160,000
993		-	T211 Over $320,000 but not $17,360, plus 6.5% of the
994		-	T212 over $400,000 excess over $320,000
995		-	T213 Over $400,000 but not $22,560, plus 6.9% of the
996		-	T214 over $800,000 excess over $400,000
997		-	T215 Over $800,000 $50,160, plus 6.99% of the
998		-	T216 excess over $800,000
999		-
1000		-	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 462
1001		-	subdivision, for each taxpayer whose Connecticut adjusted gross 463
1002		-	income exceeds seventy-eight thousand five hundred dollars, the 464
1003		-	amount of the taxpayer's Connecticut taxable income to which the two-465
1004		-	per-cent tax rate applies shall be reduced by one thousand six hundred 466
1005		-	dollars for each four thousand dollars, or fraction thereof, by which the 467
1006		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 468 Substitute Bill No. 981
1007		-
1008		-
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1011		-	25 of 99
1012		-
1013		-	Any such amount of Connecticut taxable income to which, as provided 469
1014		-	in the preceding sentence, the two-per-cent tax rate does not apply shall 470
1015		-	be an amount to which the four-and-three-quarters-per-cent tax rate 471
1016		-	shall apply. 472
1017		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 473
1018		-	three hundred twenty thousand dollars shall pay, in addition to the tax 474
1019		-	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 475
1020		-	this subdivision, an amount equal to one hundred forty dollars for each 476
1021		-	eight thousand dollars, or fraction thereof, by which the taxpayer's 477
1022		-	Connecticut adjusted gross income exceeds three hundred twenty 478
1023		-	thousand dollars, up to a maximum payment of four thousand two 479
1024		-	hundred dollars. 480
1025		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 481
1026		-	eight hundred thousand dollars shall pay, in addition to the tax 482
1027		-	computed under the provisions of subparagraphs (B)(i), (B)(ii) and 483
1028		-	(B)(iii) of this subdivision, an amount equal to eighty dollars for each 484
1029		-	eight thousand dollars, or fraction thereof, by which the taxpayer's 485
1030		-	Connecticut adjusted gross income exceeds eight hundred thousand 486
1031		-	dollars, up to a maximum payment of seven hundred twenty dollars. 487
1032		-	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 488
1033		-	three hundred twenty thousand dollars shall pay, in addition to the tax 489
1034		-	computed under the provisions of subparagraphs (B)(i), (B)(ii), (B)(iii) 490
1035		-	and, if applicable, (B)(iv) of this subdivision, two hundred dollars. 491
1036		-	(C) (i) For any husband and wife who file a return under the federal 492
1037		-	income tax for such taxable year as married individuals filing jointly or 493
1038		-	any person who files a return under the federal income tax for such 494
1039		-	taxable year as a surviving spouse, as defined in Section 2(a) of the 495
1040		-	Internal Revenue Code: 496
	1428	+	T204
	1429	+	Not over $16,000 2.0%
	1430	+	T205
	1431	+	Over $16,000 but not $320.00, plus 4.5% of the
	1432	+	T206
	1433	+	over $80,000 excess over $16,000
	1434	+	T207
	1435	+	Over $80,000 but not $3,200, plus 5.5% of the
	1436	+	T208
	1437	+	over $160,000 excess over $80,000
	1438	+	T209
	1439	+	Over $160,000 but not $7,600, plus 6.0% of the
	1440	+	T210
	1441	+	over $320,000 excess over $160,000
	1442	+	T211
	1443	+	Over $320,000 but not $17,200, plus 6.5% of the
	1444	+	T212
	1445	+	over $400,000 excess over $320,000
	1446	+	T213
	1447	+	Over $400,000 but not $22,400, plus 6.9% of the
	1448	+	T214
	1449	+	over $800,000 excess over $400,000
	1450	+	T215
	1451	+	Over $800,000 $50,000, plus 6.99% of the
	1452	+	T216
	1453	+	excess over $800,000
	1454	+
	1455	+	(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 856
	1456	+	subdivision, for each taxpayer whose Connecticut adjusted gross 857
	1457	+	income exceeds seventy-eight thousand five hundred dollars, the 858
	1458	+	amount of the taxpayer's Connecticut taxable income to which the two-859
	1459	+	per-cent tax rate applies shall be reduced by one thousand six hundred 860
	1460	+	dollars for each four thousand dollars, or fraction thereof, by which the 861
	1461	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 862
	1462	+	Any such amount of Connecticut taxable income to which, as provided 863
	1463	+	in the preceding sentence, the two-per-cent tax rate does not apply shall 864 Governor's Bill No. 981
	1464	+
	1465	+
	1466	+
	1467	+	LCO No. 4026 37 of 64
	1468	+
	1469	+	be an amount to which the four-and-one-half-per-cent tax rate shall 865
	1470	+	apply. 866
	1471	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 867
	1472	+	three hundred twenty thousand dollars shall pay, in addition to the tax 868
	1473	+	computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 869
	1474	+	this subdivision, an amount equal to one hundred fifty-seven dollars for 870
	1475	+	each eight thousand dollars, or fraction thereof, by which the taxpayer's 871
	1476	+	Connecticut adjusted gross income exceeds three hundred twenty 872
	1477	+	thousand dollars, up to a maximum payment of four thousand seven 873
	1478	+	hundred ten dollars. 874
	1479	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 875
	1480	+	eight hundred thousand dollars shall pay, in addition to the tax 876
	1481	+	computed under the provisions of subparagraphs (B)(i), (B)(ii) and 877
	1482	+	(B)(iii) of this subdivision, an amount equal to eighty dollars for each 878
	1483	+	eight thousand dollars, or fraction thereof, by which the taxpayer's 879
	1484	+	Connecticut adjusted gross income exceeds eight hundred thousand 880
	1485	+	dollars, up to a maximum payment of seven hundred twenty dollars. 881
	1486	+	(C) (i) For any husband and wife who file a return under the federal 882
	1487	+	income tax for such taxable year as married individuals filing jointly or 883
	1488	+	any person who files a return under the federal income tax for such 884
	1489	+	taxable year as a surviving spouse, as defined in Section 2(a) of the 885
	1490	+	Internal Revenue Code: 886
1041	1491		T217
1042	1492		Connecticut Taxable Income Rate of Tax
1043		-	T218 Not over $20,000 2.0% Substitute Bill No. 981
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1049		-
1050		-	T219 Over $20,000 but not $400.00, plus 4.75% of the
	1493	+	T218 Not over $20,000 2.0%
	1494	+	T219 Over $20,000 but not $400.00, plus 4.5% of the
1051	1495		T220 over $100,000 excess over $20,000
1052		-	T221 Over $100,000 but not $4,~~200~~, plus 5.5% of the
	1496	+	T221 Over $100,000 but not $4,000, plus 5.5% of the
1053	1497		T222 over $200,000 excess over $100,000
1054		-	T223 Over $200,000 but not $9,~~700~~, plus 6.0% of the
	1498	+	T223 Over $200,000 but not $9,500, plus 6.0% of the
1055	1499		T224 over $400,000 excess over $200,000
1056		-	T225 Over $400,000 but not $21,700, plus 6.5% of the
	1500	+	T225 Over $400,000 but not $21,500, plus 6.5% of the Governor's Bill No. 981
	1501	+
	1502	+
	1503	+
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	1505	+
1057	1506		T226 over $500,000 excess over $400,000
1058		-	T227 Over $500,000 but not $28,~~200~~, plus 6.9% of the
	1507	+	T227 Over $500,000 but not $28,000, plus 6.9% of the
1059	1508		T228 over $1,000,000 excess over $500,000
1060		-	T229 Over $1,000,000 $62,~~700~~, plus 6.99% of the
	1509	+	T229 Over $1,000,000 $62,500, plus 6.99% of the
1061	1510		T230 excess over $1,000,000
1062	1511
1063		-	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 497
1064		-	subdivision, for each taxpayer whose Connecticut adjusted gross 498
1065		-	income exceeds one hundred thousand five hundred dollars, the 499
1066		-	amount of the taxpayer's Connecticut taxable income to which the two-500
1067		-	per-cent tax rate applies shall be reduced by two thousand dollars for 501
1068		-	each five thousand dollars, or fraction thereof, by which the taxpayer's 502
1069		-	Connecticut adjusted gross income exceeds said amount. Any such 503
1070		-	amount of Connecticut taxable income to which, as provided in the 504
1071		-	preceding sentence, the two-per-cent tax rate does not apply shall be an 505
1072		-	amount to which the four-and-three-quarters-per-cent tax rate shall 506
1073		-	apply. 507
1074		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 508
1075		-	four hundred thousand dollars shall pay, in addition to the tax 509
1076		-	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 510
1077		-	this subdivision, an amount equal to one hundred eighty dollars for 511
1078		-	each ten thousand dollars, or fraction thereof, by which the taxpayer's 512
1079		-	Connecticut adjusted gross income exceeds four hundred thousand 513
1080		-	dollars, up to a maximum payment of five thousand four hundred 514
1081		-	dollars. 515 Substitute Bill No. 981
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1087		-
1088		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 516
1089		-	one million dollars shall pay, in addition to the tax computed under the 517
1090		-	provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 518
1091		-	subdivision, an amount equal to one hundred dollars for each ten 519
1092		-	thousand dollars, or fraction thereof, by which the taxpayer's 520
1093		-	Connecticut adjusted gross income exceeds one million dollars, up to a 521
1094		-	maximum payment of nine hundred dollars. 522
1095		-	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 523
1096		-	four hundred thousand dollars shall pay, in addition to the tax 524
1097		-	computed under the provisions of subparagraphs (C)(i), (C)(ii), (C)(iii) 525
1098		-	and, if applicable, (C)(iv) of this subdivision, two hundred fifty dollars. 526
1099		-	(D) (i) For any person who files a return under the federal income tax 527
1100		-	for such taxable year as a married individual filing separately: 528
	1512	+	(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 887
	1513	+	subdivision, for each taxpayer whose Connecticut adjusted gross 888
	1514	+	income exceeds one hundred thousand five hundred dollars, the 889
	1515	+	amount of the taxpayer's Connecticut taxable income to which the two-890
	1516	+	per-cent tax rate applies shall be reduced by two thousand dollars for 891
	1517	+	each five thousand dollars, or fraction thereof, by which the taxpayer's 892
	1518	+	Connecticut adjusted gross income exceeds said amount. Any such 893
	1519	+	amount of Connecticut taxable income to which, as provided in the 894
	1520	+	preceding sentence, the two-per-cent tax rate does not apply shall be an 895
	1521	+	amount to which the four-and-one-half-per-cent tax rate shall apply. 896
	1522	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 897
	1523	+	four hundred thousand dollars shall pay, in addition to the tax 898
	1524	+	computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 899
	1525	+	this subdivision, an amount equal to one hundred ninety-six dollars for 900
	1526	+	each ten thousand dollars, or fraction thereof, by which the taxpayer's 901
	1527	+	Connecticut adjusted gross income exceeds four hundred thousand 902
	1528	+	dollars, up to a maximum payment of five thousand eight hundred 903
	1529	+	eighty dollars. 904
	1530	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 905
	1531	+	one million dollars shall pay, in addition to the tax computed under the 906
	1532	+	provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 907
	1533	+	subdivision, an amount equal to one hundred dollars for each ten 908
	1534	+	thousand dollars, or fraction thereof, by which the taxpayer's 909
	1535	+	Connecticut adjusted gross income exceeds one million dollars, up to a 910
	1536	+	maximum payment of nine hundred dollars. 911
	1537	+	(D) (i) For any person who files a return under the federal income tax 912 Governor's Bill No. 981
	1538	+
	1539	+
	1540	+
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	1542	+
	1543	+	for such taxable year as a married individual filing separately: 913
1101	1544		T231
1102	1545		Connecticut Taxable Income Rate of Tax
1103	1546		T232 Not over $10,000 2.0%
1104		-	T233 Over $10,000 but not $200.00, plus 4.75% of the
	1547	+	T233 Over $10,000 but not $200.00, plus 4.5% of the
1105	1548		T234 over $50,000 excess over $10,000
1106		-	T235 Over $50,000 but not $2,~~100~~, plus 5.5% of the
	1549	+	T235 Over $50,000 but not $2,000, plus 5.5% of the
1107	1550		T236 over $100,000 excess over $50,000
1108		-	T237 Over $100,000 but not $4,~~850~~, plus 6.0% of the
	1551	+	T237 Over $100,000 but not $4,750, plus 6.0% of the
1109	1552		T238 over $200,000 excess over $100,000
1110		-	T239 Over $200,000 but not $10,~~850~~, plus 6.5% of the
	1553	+	T239 Over $200,000 but not $10,750, plus 6.5% of the
1111	1554		T240 over $250,000 excess over $200,000
1112		-	T241 Over $250,000 but not $14,~~100~~, plus 6.9% of the
	1555	+	T241 Over $250,000 but not $14,000, plus 6.9% of the
1113	1556		T242 over $500,000 excess over $250,000
1114		-	T243 Over $500,000 $31,~~350~~, plus 6.99% of the
	1557	+	T243 Over $500,000 $31,250, plus 6.99% of the
1115	1558		T244 excess over $500,000
1116	1559
1117		-	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 529
1118		-	subdivision, for each taxpayer whose Connecticut adjusted gross 530
1119		-	income exceeds fifty thousand two hundred fifty dollars, the amount of 531 Substitute Bill No. 981
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1125		-
1126		-	the taxpayer's Connecticut taxable income to which the two-per-cent tax 532
1127		-	rate applies shall be reduced by one thousand dollars for each two 533
1128		-	thousand five hundred dollars, or fraction thereof, by which the 534
1129		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 535
1130		-	Any such amount of Connecticut taxable income to which, as provided 536
1131		-	in the preceding sentence, the two-per-cent tax rate does not apply shall 537
1132		-	be an amount to which the four-and-three-quarters-per-cent tax rate 538
1133		-	shall apply. 539
1134		-	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 540
1135		-	two hundred thousand dollars shall pay, in addition to the tax 541
1136		-	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 542
1137		-	this subdivision, an amount equal to ninety dollars for each five 543
1138		-	thousand dollars, or fraction thereof, by which the taxpayer's 544
1139		-	Connecticut adjusted gross income exceeds two hundred thousand 545
1140		-	dollars, up to a maximum payment of two thousand seven hundred 546
1141		-	dollars. 547
1142		-	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 548
1143		-	five hundred thousand dollars shall pay, in addition to the tax 549
1144		-	computed under the provisions of subparagraphs (D)(i), (D)(ii) and 550
1145		-	(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 551
1146		-	thousand dollars, or fraction thereof, by which the taxpayer's 552
1147		-	Connecticut adjusted gross income exceeds five hundred thousand 553
1148		-	dollars, up to a maximum payment of four hundred fifty dollars. 554
1149		-	(v) Each taxpayer whose Connecticut adjusted gross income exceeds 555
1150		-	two hundred thousand dollars shall pay, in addition to the tax 556
1151		-	computed under the provisions of subparagraphs (D)(i), (D)(ii), (D)(iii) 557
1152		-	and, if applicable, (D)(iv) of this subdivision, one hundred twenty-five 558
1153		-	dollars. 559
1154		-	(E) For trusts or estates, the rate of tax shall be 6.99% of the 560
1155		-	Connecticut taxable income. 561
1156		-	[(10)] (11) The provisions of this subsection shall apply to resident 562 Substitute Bill No. 981
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1162		-
1163		-	trusts and estates and, wherever reference is made in this subsection to 563
1164		-	residents of this state, such reference shall be construed to include 564
1165		-	resident trusts and estates, provided any reference to a resident's 565
1166		-	Connecticut adjusted gross income derived from sources without this 566
1167		-	state or to a resident's Connecticut adjusted gross income shall be 567
1168		-	construed, in the case of a resident trust or estate, to mean the resident 568
1169		-	trust or estate's Connecticut taxable income derived from sources 569
1170		-	without this state and the resident trust or estate's Connecticut taxable 570
1171		-	income, respectively. 571
1172		-	Sec. 7. Subparagraph (B) of subdivision (20) of subsection (a) of 572
1173		-	section 12-701 of the general statutes is repealed and the following is 573
1174		-	substituted in lieu thereof (Effective from passage and applicable to taxable 574
1175		-	years commencing on or after January 1, 2023): 575
1176		-	(B) There shall be subtracted therefrom: 576
1177		-	(i) To the extent properly includable in gross income for federal 577
1178		-	income tax purposes, any income with respect to which taxation by any 578
1179		-	state is prohibited by federal law; 579
1180		-	(ii) To the extent allowable under section 12-718, exempt dividends 580
1181		-	paid by a regulated investment company; 581
1182		-	(iii) To the extent properly includable in gross income for federal 582
1183		-	income tax purposes, the amount of any refund or credit for 583
1184		-	overpayment of income taxes imposed by this state, or any other state 584
1185		-	of the United States or a political subdivision thereof, or the District of 585
1186		-	Columbia; 586
1187		-	(iv) To the extent properly includable in gross income for federal 587
1188		-	income tax purposes and not otherwise subtracted from federal 588
1189		-	adjusted gross income pursuant to clause (x) of this subparagraph in 589
1190		-	computing Connecticut adjusted gross income, any tier 1 railroad 590
1191		-	retirement benefits; 591
1192		-	(v) To the extent any additional allowance for depreciation under 592 Substitute Bill No. 981
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1198		-
1199		-	Section 168(k) of the Internal Revenue Code for property placed in 593
1200		-	service after September 27, 2017, was added to federal adjusted gross 594
1201		-	income pursuant to subparagraph (A)(ix) of this subdivision in 595
1202		-	computing Connecticut adjusted gross income, twenty-five per cent of 596
1203		-	such additional allowance for depreciation in each of the four 597
1204		-	succeeding taxable years; 598
1205		-	(vi) To the extent properly includable in gross income for federal 599
1206		-	income tax purposes, any interest income from obligations issued by or 600
1207		-	on behalf of the state of Connecticut, any political subdivision thereof, 601
1208		-	or public instrumentality, state or local authority, district or similar 602
1209		-	public entity created under the laws of the state of Connecticut; 603
1210		-	(vii) To the extent properly includable in determining the net gain or 604
1211		-	loss from the sale or other disposition of capital assets for federal income 605
1212		-	tax purposes, any gain from the sale or exchange of obligations issued 606
1213		-	by or on behalf of the state of Connecticut, any political subdivision 607
1214		-	thereof, or public instrumentality, state or local authority, district or 608
1215		-	similar public entity created under the laws of the state of Connecticut, 609
1216		-	in the income year such gain was recognized; 610
1217		-	(viii) Any interest on indebtedness incurred or continued to purchase 611
1218		-	or carry obligations or securities the interest on which is subject to tax 612
1219		-	under this chapter but exempt from federal income tax, to the extent that 613
1220		-	such interest on indebtedness is not deductible in determining federal 614
1221		-	adjusted gross income and is attributable to a trade or business carried 615
1222		-	on by such individual; 616
1223		-	(ix) Ordinary and necessary expenses paid or incurred during the 617
1224		-	taxable year for the production or collection of income which is subject 618
1225		-	to taxation under this chapter but exempt from federal income tax, or 619
1226		-	the management, conservation or maintenance of property held for the 620
1227		-	production of such income, and the amortizable bond premium for the 621
1228		-	taxable year on any bond the interest on which is subject to tax under 622
1229		-	this chapter but exempt from federal income tax, to the extent that such 623
1230		-	expenses and premiums are not deductible in determining federal 624 Substitute Bill No. 981
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1235		-	31 of 99
1236		-
1237		-	adjusted gross income and are attributable to a trade or business carried 625
1238		-	on by such individual; 626
1239		-	(x) (I) For taxable years commencing prior to January 1, 2019, for a 627
1240		-	person who files a return under the federal income tax as an unmarried 628
1241		-	individual whose federal adjusted gross income for such taxable year is 629
1242		-	less than fifty thousand dollars, or as a married individual filing 630
1243		-	separately whose federal adjusted gross income for such taxable year is 631
1244		-	less than fifty thousand dollars, or for a husband and wife who file a 632
1245		-	return under the federal income tax as married individuals filing jointly 633
1246		-	whose federal adjusted gross income for such taxable year is less than 634
1247		-	sixty thousand dollars or a person who files a return under the federal 635
1248		-	income tax as a head of household whose federal adjusted gross income 636
1249		-	for such taxable year is less than sixty thousand dollars, an amount 637
1250		-	equal to the Social Security benefits includable for federal income tax 638
1251		-	purposes; 639
1252		-	(II) For taxable years commencing prior to January 1, 2019, for a 640
1253		-	person who files a return under the federal income tax as an unmarried 641
1254		-	individual whose federal adjusted gross income for such taxable year is 642
1255		-	fifty thousand dollars or more, or as a married individual filing 643
1256		-	separately whose federal adjusted gross income for such taxable year is 644
1257		-	fifty thousand dollars or more, or for a husband and wife who file a 645
1258		-	return under the federal income tax as married individuals filing jointly 646
1259		-	whose federal adjusted gross income from such taxable year is sixty 647
1260		-	thousand dollars or more or for a person who files a return under the 648
1261		-	federal income tax as a head of household whose federal adjusted gross 649
1262		-	income for such taxable year is sixty thousand dollars or more, an 650
1263		-	amount equal to the difference between the amount of Social Security 651
1264		-	benefits includable for federal income tax purposes and the lesser of 652
1265		-	twenty-five per cent of the Social Security benefits received during the 653
1266		-	taxable year, or twenty-five per cent of the excess described in Section 654
1267		-	86(b)(1) of the Internal Revenue Code; 655
1268		-	(III) For the taxable year commencing January 1, 2019, and each 656
1269		-	taxable year thereafter, for a person who files a return under the federal 657 Substitute Bill No. 981
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1274		-	32 of 99
1275		-
1276		-	income tax as an unmarried individual whose federal adjusted gross 658
1277		-	income for such taxable year is less than seventy-five thousand dollars, 659
1278		-	or as a married individual filing separately whose federal adjusted gross 660
1279		-	income for such taxable year is less than seventy-five thousand dollars, 661
1280		-	or for a husband and wife who file a return under the federal income tax 662
1281		-	as married individuals filing jointly whose federal adjusted gross 663
1282		-	income for such taxable year is less than one hundred thousand dollars 664
1283		-	or a person who files a return under the federal income tax as a head of 665
1284		-	household whose federal adjusted gross income for such taxable year is 666
1285		-	less than one hundred thousand dollars, an amount equal to the Social 667
1286		-	Security benefits includable for federal income tax purposes; and 668
1287		-	(IV) For the taxable year commencing January 1, 2019, and each 669
1288		-	taxable year thereafter, for a person who files a return under the federal 670
1289		-	income tax as an unmarried individual whose federal adjusted gross 671
1290		-	income for such taxable year is seventy-five thousand dollars or more, 672
1291		-	or as a married individual filing separately whose federal adjusted gross 673
1292		-	income for such taxable year is seventy-five thousand dollars or more, 674
1293		-	or for a husband and wife who file a return under the federal income tax 675
1294		-	as married individuals filing jointly whose federal adjusted gross 676
1295		-	income from such taxable year is one hundred thousand dollars or more 677
1296		-	or for a person who files a return under the federal income tax as a head 678
1297		-	of household whose federal adjusted gross income for such taxable year 679
1298		-	is one hundred thousand dollars or more, an amount equal to the 680
1299		-	difference between the amount of Social Security benefits includable for 681
1300		-	federal income tax purposes and the lesser of twenty-five per cent of the 682
1301		-	Social Security benefits received during the taxable year, or twenty-five 683
1302		-	per cent of the excess described in Section 86(b)(1) of the Internal 684
1303		-	Revenue Code; 685
1304		-	(xi) To the extent properly includable in gross income for federal 686
1305		-	income tax purposes, any amount rebated to a taxpayer pursuant to 687
1306		-	section 12-746; 688
1307		-	(xii) To the extent properly includable in the gross income for federal 689
1308		-	income tax purposes of a designated beneficiary, any distribution to 690 Substitute Bill No. 981
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1314		-
1315		-	such beneficiary from any qualified state tuition program, as defined in 691
1316		-	Section 529(b) of the Internal Revenue Code, established and 692
1317		-	maintained by this state or any official, agency or instrumentality of the 693
1318		-	state; 694
1319		-	(xiii) To the extent allowable under section 12-701a, contributions to 695
1320		-	accounts established pursuant to any qualified state tuition program, as 696
1321		-	defined in Section 529(b) of the Internal Revenue Code, established and 697
1322		-	maintained by this state or any official, agency or instrumentality of the 698
1323		-	state; 699
1324		-	(xiv) To the extent properly includable in gross income for federal 700
1325		-	income tax purposes, the amount of any Holocaust victims' settlement 701
1326		-	payment received in the taxable year by a Holocaust victim; 702
1327		-	(xv) To the extent properly includable in gross income for federal 703
1328		-	income tax purposes of an account holder, as defined in section 31-704
1329		-	51ww, interest earned on funds deposited in the individual 705
1330		-	development account, as defined in section 31-51ww, of such account 706
1331		-	holder; 707
1332		-	(xvi) To the extent properly includable in the gross income for federal 708
1333		-	income tax purposes of a designated beneficiary, as defined in section 709
1334		-	3-123aa, interest, dividends or capital gains earned on contributions to 710
1335		-	accounts established for the designated beneficiary pursuant to the 711
1336		-	Connecticut Homecare Option Program for the Elderly established by 712
1337		-	sections 3-123aa to 3-123ff, inclusive; 713
1338		-	(xvii) To the extent properly includable in gross income for federal 714
1339		-	income tax purposes, any income received from the United States 715
1340		-	government as retirement pay for a retired member of (I) the Armed 716
1341		-	Forces of the United States, as defined in Section 101 of Title 10 of the 717
1342		-	United States Code, or (II) the National Guard, as defined in Section 101 718
1343		-	of Title 10 of the United States Code; 719
1344		-	(xviii) To the extent properly includable in gross income for federal 720
1345		-	income tax purposes for the taxable year, any income from the discharge 721 Substitute Bill No. 981
1346		-
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1351		-
1352		-	of indebtedness in connection with any reacquisition, after December 722
1353		-	31, 2008, and before January 1, 2011, of an applicable debt instrument or 723
1354		-	instruments, as those terms are defined in Section 108 of the Internal 724
1355		-	Revenue Code, as amended by Section 1231 of the American Recovery 725
1356		-	and Reinvestment Act of 2009, to the extent any such income was added 726
1357		-	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 727
1358		-	this subdivision in computing Connecticut adjusted gross income for a 728
1359		-	preceding taxable year; 729
1360		-	(xix) To the extent not deductible in determining federal adjusted 730
1361		-	gross income, the amount of any contribution to a manufacturing 731
1362		-	reinvestment account established pursuant to section 32-9zz in the 732
1363		-	taxable year that such contribution is made; 733
1364		-	(xx) To the extent properly includable in gross income for federal 734
1365		-	income tax purposes, (I) for the taxable year commencing January 1, 735
1366		-	2015, ten per cent of the income received from the state teachers' 736
1367		-	retirement system, (II) for the taxable years commencing January 1, 737
1368		-	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 738
1369		-	received from the state teachers' retirement system, and (III) for the 739
1370		-	taxable year commencing January 1, 2021, and each taxable year 740
1371		-	thereafter, fifty per cent of the income received from the state teachers' 741
1372		-	retirement system or, for a taxpayer whose federal adjusted gross 742
1373		-	income does not exceed the applicable threshold under clause (xxi) of 743
1374		-	this subparagraph, the percentage pursuant to said clause of the income 744
1375		-	received from the state teachers' retirement system, whichever 745
1376		-	deduction is greater; 746
1377		-	(xxi) To the extent properly includable in gross income for federal 747
1378		-	income tax purposes, except for retirement benefits under clause (iv) of 748
1379		-	this subparagraph and retirement pay under clause (xvii) of this 749
1380		-	subparagraph, for a person who files a return under the federal income 750
1381		-	tax as an unmarried individual whose federal adjusted gross income for 751
1382		-	such taxable year is less than seventy-five thousand dollars, or as a 752
1383		-	married individual filing separately whose federal adjusted gross 753
1384		-	income for such taxable year is less than seventy-five thousand dollars, 754 Substitute Bill No. 981
1385		-
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1389		-	35 of 99
1390		-
1391		-	or as a head of household whose federal adjusted gross income for such 755
1392		-	taxable year is less than seventy-five thousand dollars, or for a husband 756
1393		-	and wife who file a return under the federal income tax as married 757
1394		-	individuals filing jointly whose federal adjusted gross income for such 758
1395		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 759
1396		-	year commencing January 1, 2019, fourteen per cent of any pension or 760
1397		-	annuity income, (II) for the taxable year commencing January 1, 2020, 761
1398		-	twenty-eight per cent of any pension or annuity income, (III) for the 762
1399		-	taxable year commencing January 1, 2021, forty-two per cent of any 763
1400		-	pension or annuity income, and (IV) for the taxable year commencing 764
1401		-	January 1, 2022, [and each taxable year thereafter,] one hundred per cent 765
1402		-	of any pension or annuity income; 766
1403		-	(xxii) To the extent properly includable in gross income for federal 767
1404		-	income tax purposes, except for retirement benefits under clause (iv) of 768
1405		-	this subparagraph and retirement pay under clause (xvii) of this 769
1406		-	subparagraph, any pension or annuity income for the taxable year 770
1407		-	commencing on or after January 1, 2023, and each taxable year 771
1408		-	thereafter, in accordance with the following schedule, for a person who 772
1409		-	files a return under the federal income tax as an unmarried individual 773
1410		-	whose federal adjusted gross income for such taxable year is less than 774
1411		-	one hundred thousand dollars, or as a married individual filing 775
1412		-	separately whose federal adjusted gross income for such taxable year is 776
1413		-	less than one hundred thousand dollars, or as a head of household 777
1414		-	whose federal adjusted gross income for such taxable year is less than 778
1415		-	one hundred thousand dollars: 779
1416		-	T245
1417		-	Federal Adjusted Gross Income Deduction
1418		-	T246
1419		-	Less than $75,000 100.0%
1420		-	T247
1421		-	$75,000 but not over $77,499 85.0%
1422		-	T248
1423		-	$77,500 but not over $79,999 70.0%
1424		-	T249
1425		-	$80,000 but not over $82,499 55.0%
1426		-	T250
1427		-	$82,500 but not over $84,999 40.0%
1428		-	T251
1429		-	$85,000 but not over $87,499 25.0%
1430		-	T252 $87,500 but not over $89,999 10.0% Substitute Bill No. 981
1431		-
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1436		-
1437		-	T253
1438		-	$90,000 but not over $94,999 5.0%
1439		-	T254
1440		-	$95,000 but not over $99,999 2.5%
1441		-	T255
1442		-	$100,000 and over 0.0%
1443		-
1444		-	(xxiii) To the extent properly includable in gross income for federal 780
1445		-	income tax purposes, except for retirement benefits under clause (iv) of 781
1446		-	this subparagraph and retirement pay under clause (xvii) of this 782
1447		-	subparagraph, any pension or annuity income for the taxable year 783
1448		-	commencing on or after January 1, 2023, and each taxable year 784
1449		-	thereafter, in accordance with the following schedule for married 785
1450		-	individuals who file a return under the federal income tax as married 786
1451		-	individuals filing jointly whose federal adjusted gross income for such 787
1452		-	taxable year is less than one hundred fifty thousand dollars: 788
1453		-	T256
1454		-	Federal Adjusted Gross Income Deduction
1455		-	T257
1456		-	Less than $100,000 100.0%
1457		-	T258
1458		-	$100,000 but not over $104,999 85.0%
1459		-	T259
1460		-	$105,000 but not over $109,999 70.0%
1461		-	T260 $110,000 but not over $114,999 55.0%
1462		-	T261
1463		-	$115,000 but not over $119,999 40.0%
1464		-	T262
1465		-	$120,000 but not over $124,999 25.0%
1466		-	T263
1467		-	$125,000 but not over $129,999 10.0%
1468		-	T264
1469		-	$130,000 but not over $139,999 5.0%
1470		-	T265
1471		-	$140,000 but not over $149,999 2.5%
1472		-	T266
1473		-	$150,000 and over 0.0%
1474		-
1475		-	[(xxii)] (xxiv) The amount of lost wages and medical, travel and 789
1476		-	housing expenses, not to exceed ten thousand dollars in the aggregate, 790
1477		-	incurred by a taxpayer during the taxable year in connection with the 791
1478		-	donation to another person of an organ for organ transplantation 792
1479		-	occurring on or after January 1, 2017; 793
1480		-	[(xxiii)] (xxv) To the extent properly includable in gross income for 794 Substitute Bill No. 981
1481		-
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1486		-
1487		-	federal income tax purposes, the amount of any financial assistance 795
1488		-	received from the Crumbling Foundations Assistance Fund or paid to 796
1489		-	or on behalf of the owner of a residential building pursuant to sections 797
1490		-	8-442 and 8-443; 798
1491		-	[(xxiv)] (xxvi) To the extent properly includable in gross income for 799
1492		-	federal income tax purposes, the amount calculated pursuant to 800
1493		-	subsection (b) of section 12-704g for income received by a general 801
1494		-	partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as 802
1495		-	amended from time to time; 803
1496		-	[(xxv)] (xxvii) To the extent any portion of a deduction under Section 804
1497		-	179 of the Internal Revenue Code was added to federal adjusted gross 805
1498		-	income pursuant to subparagraph (A)(xiv) of this subdivision in 806
1499		-	computing Connecticut adjusted gross income, twenty-five per cent of 807
1500		-	such disallowed portion of the deduction in each of the four succeeding 808
1501		-	taxable years; 809
1502		-	[(xxvi)] (xxviii) To the extent properly includable in gross income for 810
1503		-	federal income tax purposes, for a person who files a return under the 811
1504		-	federal income tax as an unmarried individual whose federal adjusted 812
1505		-	gross income for such taxable year is less than [seventy-five] one 813
1506		-	hundred thousand dollars, or as a married individual filing separately 814
1507		-	whose federal adjusted gross income for such taxable year is less than 815
1508		-	[seventy-five] one hundred thousand dollars, or as a head of household 816
1509		-	whose federal adjusted gross income for such taxable year is less than 817
1510		-	[seventy-five] one hundred thousand dollars, [or for a husband and wife 818
1511		-	who file a return under the federal income tax as married individuals 819
1512		-	filing jointly whose federal adjusted gross income for such taxable year 820
1513		-	is less than one hundred thousand dollars,] (I) for the taxable year 821
1514		-	commencing January 1, 2023, twenty-five per cent of any distribution 822
1515		-	from an individual retirement account other than a Roth individual 823
1516		-	retirement account, (II) for the taxable year commencing January 1, 2024, 824
1517		-	fifty per cent of any distribution from an individual retirement account 825
1518		-	other than a Roth individual retirement account, (III) for the taxable year 826
1519		-	commencing January 1, 2025, seventy-five per cent of any distribution 827 Substitute Bill No. 981
1520		-
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1525		-
1526		-	from an individual retirement account other than a Roth individual 828
1527		-	retirement account, and (IV) for the taxable year commencing January 829
1528		-	1, 2026, and each taxable year thereafter, any distribution from an 830
1529		-	individual retirement account other than a Roth individual retirement 831
1530		-	account. [; and] The subtraction under this clause shall be made in 832
1531		-	accordance with the following schedule: 833
1532		-	T267
1533		-	Federal Adjusted Gross Income Deduction
1534		-	T268
1535		-	Less than $75,000 100.0%
1536		-	T269 $75,000 but not over $77,499 85.0%
1537		-	T270 $77,500 but not over $79,999 70.0%
1538		-	T271
1539		-	$80,000 but not over $82,499 55.0%
1540		-	T272
1541		-	$82,500 but not over $84,999 40.0%
1542		-	T273
1543		-	$85,000 but not over $87,499 25.0%
1544		-	T274
1545		-	$87,500 but not over $89,999 10.0%
1546		-	T275
1547		-	$90,000 but not over $94,999 5.0%
1548		-	T276
1549		-	$95,000 but not over $99,999 2.5%
1550		-	T277
1551		-	$100,000 and over 0.0%
1552		-
1553		-	(xxix) To the extent properly includable in gross income for federal 834
1554		-	income tax purposes, for married individuals who file a return under 835
1555		-	the federal income tax as married individuals filing jointly whose 836
1556		-	federal adjusted gross income for such taxable year is less than one 837
1557		-	hundred fifty thousand dollars, (I) for the taxable year commencing 838
1558		-	January 1, 2023, twenty-five per cent of any distribution from an 839
1559		-	individual retirement account other than a Roth individual retirement 840
1560		-	account, (II) for the taxable year commencing January 1, 2024, fifty per 841
1561		-	cent of any distribution from an individual retirement account other 842
1562		-	than a Roth individual retirement account, (III) for the taxable year 843
1563		-	commencing January 1, 2025, seventy-five per cent of any distribution 844
1564		-	from an individual retirement account other than a Roth individual 845
1565		-	retirement account, and (IV) for the taxable year commencing January 846
1566		-	1, 2026, and each taxable year thereafter, any distribution from an 847
1567		-	individual retirement account other than a Roth individual retirement 848 Substitute Bill No. 981
1568		-
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1573		-
1574		-	account. The subtraction under this clause shall be made in accordance 849
1575		-	with the following schedule: 850
1576		-	T278
1577		-	Federal Adjusted Gross Income Deduction
1578		-	T279
1579		-	Less than $100,000 100.0%
1580		-	T280
1581		-	$100,000 but not over $104,999 85.0%
1582		-	T281
1583		-	$105,000 but not over $109,999 70.0%
1584		-	T282
1585		-	$110,000 but not over $114,999 55.0%
1586		-	T283
1587		-	$115,000 but not over $119,999 40.0%
1588		-	T284 $120,000 but not over $124,999 25.0%
1589		-	T285 $125,000 but not over $129,999 10.0%
1590		-	T286
1591		-	$130,000 but not over $139,999 5.0%
1592		-	T287
1593		-	$140,000 but not over $149,999 2.5%
1594		-	T288
1595		-	$150,000 and over 0.0%
1596		-
1597		-	[(xxvii)] (xxx) To the extent properly includable in gross income for 851
1598		-	federal income tax purposes, for the taxable year commencing January 852
1599		-	1, 2022, the amount or amounts paid or otherwise credited to any 853
1600		-	eligible resident of this state under (I) the 2020 Earned Income Tax 854
1601		-	Credit enhancement program from funding allocated to the state 855
1602		-	through the Coronavirus Relief Fund established under the Coronavirus 856
1603		-	Aid, Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 857
1604		-	Earned Income Tax Credit enhancement program from funding 858
1605		-	allocated to the state pursuant to Section 9901 of Subtitle M of Title IX of 859
1606		-	the American Rescue Plan Act of 2021, P.L. 117-2; 860
1607		-	(xxxi) For a taxpayer licensed under the provisions of chapter 420f or 861
1608		-	420h, the amount of the expenditures that would be eligible to be 862
1609		-	claimed as a deduction for federal income tax purposes but that are 863
1610		-	disallowed under Section 280E of the Internal Revenue Code because 864
1611		-	marijuana is a controlled substance under the federal Controlled 865
1612		-	Substance Act. 866
1613		-	Sec. 8. Section 12-217 of the general statutes is repealed and the 867 Substitute Bill No. 981
1614		-
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1619		-
1620		-	following is substituted in lieu thereof (Effective from passage and 868
1621		-	applicable to income years commencing on or after January 1, 2023): 869
1622		-	(a) (1) In arriving at net income as defined in section 12-213, whether 870
1623		-	or not the taxpayer is taxable under the federal corporation net income 871
1624		-	tax, there shall be deducted from gross income: [,] 872
1625		-	(A) [all] All items deductible under the Internal Revenue Code 873
1626		-	effective and in force on the last day of the income year, except (i) any 874
1627		-	taxes imposed under the provisions of this chapter [which] that are paid 875
1628		-	or accrued in the income year and in the income year commencing 876
1629		-	January 1, 1989, and thereafter, any taxes in any state of the United 877
1630		-	States or any political subdivision of such state, or the District of 878
1631		-	Columbia, imposed on or measured by the income or profits of a 879
1632		-	corporation [which] that are paid or accrued in the income year, (ii) 880
1633		-	deductions for depreciation, which shall be allowed as provided in 881
1634		-	subsection (b) of this section, (iii) deductions for qualified domestic 882
1635		-	production activities income, as provided in Section 199 of the Internal 883
1636		-	Revenue Code, and (iv) in the case of any captive real estate investment 884
1637		-	trust, the deduction for dividends paid provided under Section 857(b)(2) 885
1638		-	of the Internal Revenue Code; [,] and 886
1639		-	(B) [additionally] Additionally, in the case of a regulated investment 887
1640		-	company, the sum of (i) the exempt-interest dividends, as defined in the 888
1641		-	Internal Revenue Code, and (ii) expenses, bond premium, and interest 889
1642		-	related to tax-exempt income that are disallowed as deductions under 890
1643		-	the Internal Revenue Code; [,] and 891
1644		-	(C) [in] In the case of a taxpayer maintaining an international banking 892
1645		-	facility as defined in the laws of the United States or the regulations of 893
1646		-	the Board of Governors of the Federal Reserve System, as either may be 894
1647		-	amended from time to time, the gross income attributable to the 895
1648		-	international banking facility, provided [,] no expense or loss 896
1649		-	attributable to the international banking facility shall be a deduction 897
1650		-	under any provision of this section; [,] and 898 Substitute Bill No. 981
1651		-
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1655		-	41 of 99
1656		-
1657		-	(D) [additionally] Additionally, in the case of all taxpayers, all 899
1658		-	dividends as defined in the Internal Revenue Code effective and in force 900
1659		-	on the last day of the income year not otherwise deducted from gross 901
1660		-	income, including dividends received from a DISC or former DISC as 902
1661		-	defined in Section 992 of the Internal Revenue Code and dividends 903
1662		-	deemed to have been distributed by a DISC or former DISC as provided 904
1663		-	in Section 995 of said Internal Revenue Code, other than thirty per cent 905
1664		-	of dividends received from a domestic corporation in which the 906
1665		-	taxpayer owns less than twenty per cent of the total voting power and 907
1666		-	value of the stock of such corporation; [,] and 908
1667		-	(E) [additionally] Additionally, in the case of all taxpayers, the value 909
1668		-	of any capital gain realized from the sale of any land, or interest in land, 910
1669		-	to the state, any political subdivision of the state, or to any nonprofit 911
1670		-	land conservation organization where such land is to be permanently 912
1671		-	preserved as protected open space or to a water company, as defined in 913
1672		-	section 25-32a, where such land is to be permanently preserved as 914
1673		-	protected open space or as Class I or Class II water company land; [,] 915
1674		-	and 916
1675		-	(F) [in] In the case of [manufacturers] a manufacturer, the amount of 917
1676		-	any contribution to a manufacturing reinvestment account established 918
1677		-	pursuant to section 32-9zz in the income year that such contribution is 919
1678		-	made to the extent not deductible for federal income tax purposes; [,] 920
1679		-	and 921
1680		-	(G) [the] The amount of any contribution made on or after December 922
1681		-	23, 2017, by the state of Connecticut or a political subdivision thereof to 923
1682		-	the extent included in a company's gross income under Section 118(b)(2) 924
1683		-	of the Internal Revenue Code; and 925
1684		-	(H) In the case of a taxpayer licensed under the provisions of chapter 926
1685		-	420f or 420h, the amount of the expenditures that would be eligible to 927
1686		-	be claimed as a deduction for federal income tax purposes but that are 928
1687		-	disallowed under Section 280E of the Internal Revenue Code because 929
1688		-	marijuana is a controlled substance under the federal Controlled 930 Substitute Bill No. 981
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1694		-
1695		-	Substance Act. 931
1696		-	(2) (A) No deduction shall be allowed for (i) expenses related to 932
1697		-	dividends that are allowable as a deduction or credit under the Internal 933
1698		-	Revenue Code, and (ii) federal taxes on income or profits, losses of other 934
1699		-	calendar or fiscal years, retroactive to include all calendar or fiscal years 935
1700		-	beginning after January 1, 1935, interest received from federal, state and 936
1701		-	local government securities, if any such deductions are allowed by the 937
1702		-	federal government. 938
1703		-	(B) For purposes of this subdivision, expenses related to dividends 939
1704		-	shall equal five per cent of all dividends received by a company during 940
1705		-	an income year. The net income associated with the disallowance of 941
1706		-	expenses related to dividends shall be apportioned, if the company 942
1707		-	conducts business within and without the state or is required to 943
1708		-	apportion its income under section 12-218b, in accordance with this 944
1709		-	chapter. 945
1710		-	(3) Notwithstanding any provision of this section to the contrary, no 946
1711		-	dividend received from a real estate investment trust shall be deductible 947
1712		-	under this section by the recipient unless the dividend is: (A) Deductible 948
1713		-	under Section 243 of the Internal Revenue Code; (B) received by a 949
1714		-	qualified dividend recipient from a qualified real estate investment trust 950
1715		-	and, as of the last day of the period for which such dividend is paid, 951
1716		-	persons, not including the qualified dividend recipient or any person 952
1717		-	that is either a related person to, or an employee or director of, the 953
1718		-	qualified dividend recipient, have outstanding cash capital 954
1719		-	contributions to the qualified real estate investment trust that, in the 955
1720		-	aggregate, exceed five per cent of the fair market value of the aggregate 956
1721		-	real estate assets, valued as of the last day of the period for which such 957
1722		-	dividend is paid, then held by the qualified real estate investment trust; 958
1723		-	or (C) received from a captive real estate investment trust that is subject 959
1724		-	to the tax imposed under this chapter. For purposes of this section, 960
1725		-	"related person" has the same meaning as provided in section 12-217ii, 961
1726		-	"real estate assets" has the same meaning as provided in Section 856 of 962
1727		-	the Internal Revenue Code, "qualified dividend recipient" means a 963 Substitute Bill No. 981
1728		-
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1733		-
1734		-	dividend recipient who has invested in a qualified real estate investment 964
1735		-	trust prior to April 1, 1997, and "qualified real estate investment trust" 965
1736		-	means an entity that both was incorporated and had contributed to it a 966
1737		-	minimum of five hundred million dollars' worth of real estate assets 967
1738		-	prior to April 1, 1997, and that elects to be a real estate investment trust 968
1739		-	under Section 856 of the Internal Revenue Code prior to April 1, 1998. 969
1740		-	(4) Notwithstanding any provision of this section: [to the contrary,] 970
1741		-	(A) [any] Any excess of the deductions provided in this section for 971
1742		-	any income year commencing on or after January 1, 1973, over the gross 972
1743		-	income for such year or the amount of such excess apportioned to this 973
1744		-	state under the provisions of this chapter, shall be an operating loss of 974
1745		-	such income year and shall be deductible as an operating loss carry-over 975
1746		-	for operating losses incurred prior to income years commencing January 976
1747		-	1, 2000, in each of the five income years following such loss year, and 977
1748		-	for operating losses incurred in income years commencing on or after 978
1749		-	January 1, 2000, in each of the twenty income years following such loss 979
1750		-	year, except that: 980
1751		-	(i) [for] For income years commencing prior to January 1, 2015, the 981
1752		-	portion of such operating loss [which] that may be deducted as an 982
1753		-	operating loss carry-over in any income year following such loss year 983
1754		-	shall be limited to the lesser of (I) any net income greater than zero of 984
1755		-	such income year following such loss year, or in the case of a company 985
1756		-	entitled to apportion its net income under the provisions of this chapter, 986
1757		-	the amount of such net income [which] that is apportioned to this state 987
1758		-	pursuant thereto, or (II) the excess, if any, of such operating loss over 988
1759		-	the total of such net income for each of any prior income years following 989
1760		-	such loss year, such net income of each of such prior income years 990
1761		-	following such loss year for such purposes being computed without 991
1762		-	regard to any operating loss carry-over from such loss year allowed 992
1763		-	under this subparagraph and being regarded as not less than zero, and 993
1764		-	provided further the operating loss of any income year shall be 994
1765		-	deducted in any subsequent year, to the extent available for such 995
1766		-	deduction, before the operating loss of any subsequent income year is 996 Substitute Bill No. 981
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1772		-
1773		-	deducted; [,] 997
1774		-	(ii) [for] For income years commencing on or after January 1, 2015, 998
1775		-	the portion of such operating loss [which] that may be deducted as an 999
1776		-	operating loss carry-over in any income year following such loss year 1000
1777		-	shall be limited to the lesser of (I) fifty per cent of net income of such 1001
1778		-	income year following such loss year, or in the case of a company 1002
1779		-	entitled to apportion its net income under the provisions of this chapter, 1003
1780		-	fifty per cent of such net income [which] that is apportioned to this state 1004
1781		-	pursuant thereto, or (II) the excess, if any, of such operating loss over 1005
1782		-	the operating loss deductions allowable with respect to such operating 1006
1783		-	loss under this subparagraph for each of any prior income years 1007
1784		-	following such loss year, such net income of each of such prior income 1008
1785		-	years following such loss year for such purposes being computed 1009
1786		-	without regard to any operating loss carry-over from such loss year 1010
1787		-	allowed under this subparagraph and being regarded as not less than 1011
1788		-	zero, and provided further the operating loss of any income year shall 1012
1789		-	be deducted in any subsequent year, to the extent available for such 1013
1790		-	deduction, before the operating loss of any subsequent income year is 1014
1791		-	deducted; [,] and 1015
1792		-	(iii) [if] If a combined group so elects, the combined group shall 1016
1793		-	relinquish fifty per cent of its unused operating losses incurred prior to 1017
1794		-	the income year commencing on or after January 1, 2015, and before 1018
1795		-	January 1, 2016, and may utilize the remaining operating loss carry-over 1019
1796		-	without regard to the limitations prescribed in subparagraph (A)(ii) of 1020
1797		-	this subdivision. The portion of such operating loss carry-over that may 1021
1798		-	be deducted shall be limited to the amount required to reduce a 1022
1799		-	combined group's tax under this chapter, prior to surtax and prior to the 1023
1800		-	application of credits, to two million five hundred thousand dollars in 1024
1801		-	any income year commencing on or after January 1, 2015. Only after the 1025
1802		-	combined group's remaining operating loss carry-over for operating 1026
1803		-	losses incurred prior to income years commencing January 1, 2015, has 1027
1804		-	been fully utilized, will the limitations prescribed in subparagraph 1028
1805		-	(A)(ii) of this subdivision apply. The combined group, or any member 1029 Substitute Bill No. 981
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1811		-
1812		-	thereof, shall make such election on its return for the income year 1030
1813		-	beginning on or after January 1, 2015, and before January 1, 2016, by the 1031
1814		-	due date for such return, including any extensions. Only combined 1032
1815		-	groups with unused operating losses in excess of six billion dollars from 1033
1816		-	income years beginning prior to January 1, 2013, may make the election 1034
1817		-	prescribed in this clause; [,] and 1035
1818		-	(B) [any] Any net capital loss, as defined in the Internal Revenue Code 1036
1819		-	effective and in force on the last day of the income year, for any income 1037
1820		-	year commencing on or after January 1, 1973, shall be allowed as a 1038
1821		-	capital loss carry-over to reduce, but not below zero, any net capital 1039
1822		-	gain, as so defined, in each of the five following income years, in order 1040
1823		-	of sequence, to the extent not exhausted by the net capital gain of any of 1041
1824		-	the preceding of such five following income years; [,] and 1042
1825		-	(C) [any] Any net capital losses allowed and carried forward from 1043
1826		-	prior years to income years beginning on or after January 1, 1973, for 1044
1827		-	federal income tax purposes by companies entitled to a deduction for 1045
1828		-	dividends paid under the Internal Revenue Code other than companies 1046
1829		-	subject to the gross earnings taxes imposed under chapters 211 and 212, 1047
1830		-	shall be allowed as a capital loss carry-over. 1048
1831		-	(5) This section shall not apply to a life insurance company as defined 1049
1832		-	in the Internal Revenue Code effective and in force on the last day of the 1050
1833		-	income year. For purposes of this section, the unpaid loss reserve 1051
1834		-	adjustment required for nonlife insurance companies under the 1052
1835		-	provisions of Section 832(b)(5) of the Internal Revenue Code of 1986, or 1053
1836		-	any subsequent corresponding internal revenue code of the United 1054
1837		-	States, as from time to time amended, shall be applied without making 1055
1838		-	the adjustment in Subparagraph (B) of said Section 832(b)(5). 1056
1839		-	(6) For purposes of determining net income under this section for 1057
1840		-	income years commencing on or after January 1, 2018, the deduction 1058
1841		-	allowed for business interest paid or accrued shall be determined as 1059
1842		-	provided under the Internal Revenue Code, except that in making such 1060
1843		-	determination, the provisions of Section 163(j) shall not apply. 1061 Substitute Bill No. 981
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1849		-
1850		-	(b) (1) For purposes of determining net income under this section, the 1062
1851		-	deduction allowed for depreciation shall be determined as provided 1063
1852		-	under the Internal Revenue Code of 1986, or any subsequent 1064
1853		-	corresponding internal revenue code of the United States, as from time 1065
1854		-	to time amended, provided in making such determination, the 1066
1855		-	provisions of Section 168(k) of said code shall not apply. 1067
1856		-	(2) (A) For purposes of determining net income under this section for 1068
1857		-	taxable years ending after December 31, 2008, and to the extent any 1069
1858		-	income from the discharge of indebtedness, under Section 108 of the 1070
1859		-	Internal Revenue Code, as amended by Section 1231 of the American 1071
1860		-	Recovery and Reinvestment Act of 2009, in connection with any 1072
1861		-	reacquisition, after December 31, 2008, and before January 1, 2011, of an 1073
1862		-	applicable debt instrument or instruments, as those terms are defined in 1074
1863		-	said Section 108, as amended by said Section 1231, is not properly 1075
1864		-	includable in gross income for federal income tax purposes for the 1076
1865		-	taxable year, any deferral of the recognition of any such income shall 1077
1866		-	not be allowed. 1078
1867		-	(B) To the extent that any income from the discharge of indebtedness 1079
1868		-	in connection with any reacquisition, after December 31, 2008, and 1080
1869		-	before January 1, 2011, of an applicable debt instrument or instruments, 1081
1870		-	as those terms are defined in Section 108 of the Internal Revenue Code, 1082
1871		-	as amended by Section 1231 of the American Recov ery and 1083
1872		-	Reinvestment Act of 2009, is properly includable in gross income for 1084
1873		-	federal income tax purposes for the taxable year, any such income shall 1085
1874		-	be deductible in computing net income under this section for a taxable 1086
1875		-	year ending after December 31, 2008, to the extent that the deferral of 1087
1876		-	recognition of such income from such discharge was not allowed 1088
1877		-	pursuant to subparagraph (A) of this subdivision in computing net 1089
1878		-	income for a preceding taxable year. 1090
1879		-	(C) For income years commencing on or after January 1, 2018, eighty 1091
1880		-	per cent of any deduction claimed under Section 179 of the Internal 1092
1881		-	Revenue Code for federal income tax purposes shall be disallowed. To 1093
1882		-	the extent such a deduction is disallowed for purposes of computing the 1094 Substitute Bill No. 981
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1888		-
1889		-	tax under this chapter, twenty-five per cent of the disallowed portion of 1095
1890		-	the deduction shall be allowed as a deduction in each of the four 1096
1891		-	succeeding income years. 1097
1892		-	(c) (1) Notwithstanding the provisions of subsections (a) and (b) of 1098
1893		-	this section, "net income", in the case of an S corporation, means the 1099
1894		-	percentage of the nonseparately computed income or loss, as defined in 1100
1895		-	Section 1366(a)(2) of the Internal Revenue Code, of such S corporation, 1101
1896		-	without separate state adjustment pursuant to section 12-233 or 12-226a 1102
1897		-	for the compensation of any officer or employee, to which shall be added 1103
1898		-	(A) any taxes imposed under the provisions of this chapter [which] that 1104
1899		-	are paid or accrued in the income year, and (B) any taxes in any state of 1105
1900		-	the United States or any political subdivision of such state, or the District 1106
1901		-	of Columbia, imposed on or measured by the income or profits of a 1107
1902		-	corporation [which] that are paid or accrued in the income year as 1108
1903		-	provided in subdivision (2) of this subsection. 1109
1904		-	(2) For income years commencing prior to January 1, 1997, "net 1110
1905		-	income" means one hundred per cent of the amount computed under 1111
1906		-	subdivision (1) of this subsection; for income years commencing on or 1112
1907		-	after January 1, 1997, and prior to January 1, 1998, "net income" means 1113
1908		-	ninety per cent of the amount computed under subdivision (1) of this 1114
1909		-	subsection; for income years commencing on or after January 1, 1998, 1115
1910		-	and prior to January 1, 1999, "net income" means seventy-five per cent 1116
1911		-	of the amount computed under subdivision (1) of this subsection; for 1117
1912		-	income years commencing on or after January 1, 1999, and prior to 1118
1913		-	January 1, 2000, "net income" means fifty-five per cent of the amount 1119
1914		-	computed under subdivision (1) of this subsection; for income years 1120
1915		-	commencing on or after January 1, 2000, and prior to January 1, 2001, 1121
1916		-	"net income" means thirty per cent of the amount computed under 1122
1917		-	subdivision (1) of this subsection; for income years commencing on or 1123
1918		-	after January 1, 2001, net income of S corporations as computed under 1124
1919		-	subdivision (1) of this subsection shall not be subject to the tax under 1125
1920		-	this chapter. Any S corporation subject to the tax on net income as 1126
1921		-	provided in this section shall be eligible for any credit against the tax 1127 Substitute Bill No. 981
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1927		-
1928		-	otherwise available to taxpayers under this chapter only to the extent 1128
1929		-	and in the same percentage as net income of such S corporation is subject 1129
1930		-	to taxation under this chapter, except that any S corporation with an 1130
1931		-	income year commencing on or after January 1, 1999, but before 1131
1932		-	December 31, 2000, shall be eligible for the entire credit available under 1132
1933		-	sections 8-395, 12-633, 12-634, 12-635 and 12-635a. 1133
1934		-	(d) The commissioner may adopt regulations in accordance with 1134
1935		-	chapter 54, relating to mergers or consolidations of corporations 1135
1936		-	providing for the deduction, by the surviving or new corporation 1136
1937		-	provided for in the plan of consolidation, of operating losses that were 1137
1938		-	incurred by a merging or consolidating corporation, respectively, before 1138
1939		-	the merger or consolidation, respectively. Such regulations may follow 1139
1940		-	the provisions of the Internal Revenue Code of 1986, or any subsequent 1140
1941		-	corresponding internal revenue code of the United States, as from time 1141
1942		-	to time amended, or the regulations thereunder. 1142
1943		-	(e) Where a combined group is required to file a combined unitary 1143
1944		-	tax return pursuant to section 12-222, the combined group's net income 1144
1945		-	shall be computed as provided in subsection (a) of section 12-218e. 1145
1946		-	(f) Where a combined group is required to file a combined unitary tax 1146
1947		-	return pursuant to section 12-222, a taxable member's net operating loss 1147
1948		-	apportioned to this state shall be deducted and carried over by the 1148
1949		-	taxable member as provided in subsection (d) of section 12-218e. 1149
1950		-	Sec. 9. Section 12-217jj of the general statutes is repealed and the 1150
1951		-	following is substituted in lieu thereof (Effective January 1, 2024): 1151
1952		-	(a) As used in this section: 1152
1953		-	(1) "Commissioner" means the Commissioner of Revenue Services. 1153
1954		-	(2) "Department" means the Department of Economic and 1154
1955		-	Community Development. 1155
1956		-	(3) (A) "Qualified production" means entertainment content created 1156 Substitute Bill No. 981
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1962		-
1963		-	in whole or in part within the state, including motion pictures, except as 1157
1964		-	otherwise provided in this subparagraph; documentaries; long-form, 1158
1965		-	specials, mini-series, series, sound recordings, videos and music videos 1159
1966		-	and interstitials television programming; interactive television; 1160
1967		-	relocated television production; interactive games; videogames; 1161
1968		-	commercials; any format of digital media, including an interactive web 1162
1969		-	site, created for distribution or exhibition to the general public; and any 1163
1970		-	trailer, pilot, video teaser or demo created primarily to stimulate the 1164
1971		-	sale, marketing, promotion or exploitation of future investment in either 1165
1972		-	a product or a qualified production via any means and media in any 1166
1973		-	digital media format, film or videotape, provided such program meets 1167
1974		-	all the underlying criteria of a qualified production. For state fiscal years 1168
1975		-	ending on or after June 30, 2014, "qualified production" shall not include 1169
1976		-	a motion picture that has not been designated as a state-certified 1170
1977		-	qualified production prior to July 1, 2013, and no tax credit voucher for 1171
1978		-	such motion picture may be issued for such motion picture, except, for 1172
1979		-	state fiscal years ending on or after June 30, 2015, "qualified production" 1173
1980		-	shall include a motion picture for which twenty-five per cent or more of 1174
1981		-	the principal photography shooting days are in this state at a facility that 1175
1982		-	receives not less than twenty-five million dollars in private investment 1176
1983		-	and opens for business on or after July 1, 2013, and a tax credit voucher 1177
1984		-	may be issued for such motion picture. 1178
1985		-	(B) "Qualified production" shall not include any ongoing television 1179
1986		-	program created primarily as news, weather or financial market reports; 1180
1987		-	a production featuring current events, other than a relocated television 1181
1988		-	production, sporting events, an awards show or other gala event; a 1182
1989		-	production whose sole purpose is fundraising; a long-form production 1183
1990		-	that primarily markets a product or service; a production used for 1184
1991		-	corporate training or in-house corporate advertising or other similar 1185
1992		-	productions; or any production for which records are required to be 1186
1993		-	maintained under 18 USC 2257, as amended from time to time, with 1187
1994		-	respect to sexually explicit content. 1188
1995		-	(4) "Eligible production company" means a corporation, partnership, 1189 Substitute Bill No. 981
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2001		-
2002		-	limited liability company, or other business entity engaged in the 1190
2003		-	business of producing qualified productions on a one-time or ongoing 1191
2004		-	basis, and qualified by the Secretary of the State to engage in business 1192
2005		-	in the state. 1193
2006		-	(5) "Production expenses or costs" means all expenditures clearly and 1194
2007		-	demonstrably incurred in the state in the preproduction, production or 1195
2008		-	postproduction costs of a qualified production, including: 1196
2009		-	(A) Expenditures incurred in the state in the form of either 1197
2010		-	compensation or purchases including production work, production 1198
2011		-	equipment not eligible for the infrastructure tax credit provided in 1199
2012		-	section 12-217kk, production software, postproduction work, 1200
2013		-	postproduction equipment, postproduction software, set design, set 1201
2014		-	construction, props, lighting, wardrobe, makeup, makeup accessories, 1202
2015		-	special effects, visual effects, audio effects, film processing, music, 1203
2016		-	sound mixing, editing, location fees, soundstages and any and all other 1204
2017		-	costs or services directly incurred in connection with a state-certified 1205
2018		-	qualified production; 1206
2019		-	(B) Expenditures for distribution, including preproduction, 1207
2020		-	production or postproduction costs relating to the creation of trailers, 1208
2021		-	marketing videos, commercials, point-of-purchase videos and any and 1209
2022		-	all content created on film or digital media, including the duplication of 1210
2023		-	films, videos, CDs, DVDs and any and all digital files now in existence 1211
2024		-	and those yet to be created for mass consumer consumption; the 1212
2025		-	purchase, by a company in the state, of any and all equipment relating 1213
2026		-	to the duplication or mass market distribution of any content created or 1214
2027		-	produced in the state by any digital media format which is now in use 1215
2028		-	and those formats yet to be created for mass consumer consumption; 1216
2029		-	and 1217
2030		-	(C) "Production expenses or costs" does not include the following: (i) 1218
2031		-	On and after January 1, 2008, compensation in excess of fifteen million 1219
2032		-	dollars paid to any individual or entity representing an individual, for 1220
2033		-	services provided in the production of a qualified production and on or 1221 Substitute Bill No. 981
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2039		-
2040		-	after January 1, 2010, compensation subject to Connecticut personal 1222
2041		-	income tax in excess of twenty million dollars paid in the aggregate to 1223
2042		-	any individuals or entities representing individuals, for star talent 1224
2043		-	provided in the production of a qualified production; (ii) media buys, 1225
2044		-	promotional events or gifts or public relations associated with the 1226
2045		-	promotion or marketing of any qualified production; (iii) deferred, 1227
2046		-	leveraged or profit participation costs relating to any and all personnel 1228
2047		-	associated with any and all aspects of the production, including, but not 1229
2048		-	limited to, producer fees, director fees, talent fees and writer fees; (iv) 1230
2049		-	costs relating to the transfer of the production tax credits; (v) any 1231
2050		-	amounts paid to persons or businesses as a result of their participation 1232
2051		-	in profits from the exploitation of the qualified production; and (vi) any 1233
2052		-	expenses or costs relating to an independent certification, as required by 1234
2053		-	subsection (h) of this section, or as the department may otherwise 1235
2054		-	require, pertaining to the amount of production expenses or costs set 1236
2055		-	forth by an eligible production company in its application for a 1237
2056		-	production tax credit. 1238
2057		-	(6) "Sound recording" means a recording of music, poetry or spoken-1239
2058		-	word performance, but does not include the audio portions of dialogue 1240
2059		-	or words spoken and recorded as part of a motion picture, video, 1241
2060		-	theatrical production, television news coverage or athletic event. 1242
2061		-	(7) "State-certified qualified production" means a qualified 1243
2062		-	production produced by an eligible production company that (A) is in 1244
2063		-	compliance with regulations adopted pursuant to subsection (l) of this 1245
2064		-	section, (B) is authorized to conduct business in this state, and (C) has 1246
2065		-	been approved by the department as qualifying for a production tax 1247
2066		-	credit under this section. 1248
2067		-	(8) "Interactive web site" means a web site, the production costs of 1249
2068		-	which (A) exceed five hundred thousand dollars per income year, and 1250
2069		-	(B) is primarily (i) interactive games or end user applications, or (ii) 1251
2070		-	animation, simulation, sound, graphics, story lines or video created or 1252
2071		-	repurposed for distribution over the Internet. An interactive web site 1253
2072		-	does not include a web site primarily used for institutional, private, 1254 Substitute Bill No. 981
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2078		-
2079		-	industrial, retail or wholesale marketing or promotional purposes, or 1255
2080		-	which contains obscene content. 1256
2081		-	(9) "Post-certification remedy" means the recapture, disallowance, 1257
2082		-	recovery, reduction, repayment, forfeiture, decertification or any other 1258
2083		-	remedy that would have the effect of reducing or otherwise limiting the 1259
2084		-	use of a tax credit provided by this section. 1260
2085		-	(10) "Compensation" means base salary or wages and does not 1261
2086		-	include bonus pay, stock options, restricted stock units or similar 1262
2087		-	arrangements. 1263
2088		-	(11) "Relocated television production" means: 1264
2089		-	(A) An ongoing television program all of the prior seasons of which 1265
2090		-	were filmed outside this state, and may include current events shows, 1266
2091		-	except those referenced in subparagraph (B)(i) of this subdivision. 1267
2092		-	(B) An eligible production company's television programming in this 1268
2093		-	state that (i) is not a general news program, sporting event or game 1269
2094		-	broadcast, and (ii) is created at a qualified production facility that has 1270
2095		-	had a minimum investment of twenty-five million dollars made by such 1271
2096		-	eligible production company on or after January 1, 2012, at which 1272
2097		-	facility the eligible production company creates ongoing television 1273
2098		-	programming as defined in subparagraph (A) of this subdivision, and 1274
2099		-	creates at least two hundred new jobs in Connecticut on or after January 1275
2100		-	1, 2012. For purposes of this subdivision, "new job" means a full-time 1276
2101		-	job, as defined in section 12-217ii, that did not exist in this state prior to 1277
2102		-	January 1, 2012, and is filled by a new employee, and "new employee" 1278
2103		-	includes a person who was employed outside this state by the eligible 1279
2104		-	production company prior to January 1, 2012, but does not include a 1280
2105		-	person who was employed in this state by the eligible production 1281
2106		-	company or a related person, as defined in section 12-217ii, with respect 1282
2107		-	to the eligible production company during the prior twelve months. 1283
2108		-	(C) A relocated television production may be a state-certified 1284
2109		-	qualified production for not more than ten successive income years, 1285 Substitute Bill No. 981
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2115		-
2116		-	after which period the eligible production company shall be ineligible 1286
2117		-	to resubmit an application for certification. 1287
2118		-	(b) (1) The Department of Economic and Community Development 1288
2119		-	shall administer a system of tax credit vouchers within the resources, 1289
2120		-	requirements and purposes of this section for eligible production 1290
2121		-	companies producing a state-certified qualified production in the state. 1291
2122		-	(2) Any eligible production company incurring production expenses 1292
2123		-	or costs shall be eligible for a credit (A) for income years commencing 1293
2124		-	on or after January 1, 2010, but prior to January 1, 2018, against the tax 1294
2125		-	imposed under chapter 207 or this chapter, (B) for income years 1295
2126		-	commencing on or after January 1, 2018, but prior to January 1, 2022, 1296
2127		-	against the tax imposed under chapter 207 or 211 or this chapter, and 1297
2128		-	(C) for income years commencing on or after January 1, 2022, against the 1298
2129		-	tax imposed under chapter 207, 211, 219 or this chapter, as follows: (i) 1299
2130		-	For any such company incurring such expenses or costs of not less than 1300
2131		-	one hundred thousand dollars, but not more than five hundred 1301
2132		-	thousand dollars, a credit equal to ten per cent of such expenses or costs, 1302
2133		-	(ii) for any such company incurring such expenses or costs of more than 1303
2134		-	five hundred thousand dollars, but not more than one million dollars, a 1304
2135		-	credit equal to fifteen per cent of such expenses or costs, and (iii) for any 1305
2136		-	such company incurring such expenses or costs of more than one million 1306
2137		-	dollars, a credit equal to thirty per cent of such expenses or costs. 1307
2138		-	(c) No eligible production company incurring an amount of 1308
2139		-	production expenses or costs that qualifies for such credit shall be 1309
2140		-	eligible for such credit unless on or after January 1, 2010, such company 1310
2141		-	conducts (1) not less than fifty per cent of principal photography days 1311
2142		-	within the state, or (2) expends not less than fifty per cent of 1312
2143		-	postproduction costs within the state, or (3) expends not less than one 1313
2144		-	million dollars of postproduction costs within the state. 1314
2145		-	(d) For income years commencing on or after January 1, 2010, no 1315
2146		-	expenses or costs incurred outside the state and used within the state 1316
2147		-	shall be eligible for a credit, and one hundred per cent of such expenses 1317 Substitute Bill No. 981
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2153		-
2154		-	or costs shall be counted toward such credit when incurred within the 1318
2155		-	state and used within the state. 1319
2156		-	(e) (1) On and after July 1, 2006, and for income years commencing 1320
2157		-	on or after January 1, 2006, any credit allowed pursuant to this section 1321
2158		-	may be sold, assigned or otherwise transferred, in whole or in part, to 1322
2159		-	one or more taxpayers, provided (A) no credit, after issuance, may be 1323
2160		-	sold, assigned or otherwise transferred, in whole or in part, more than 1324
2161		-	three times, (B) in the case of a credit allowed for the income year 1325
2162		-	commencing on or after January 1, 2011, [and] but prior to January 1, 1326
2163		-	2012, any entity that is not subject to tax under chapter 207 or this 1327
2164		-	chapter may transfer not more than fifty per cent of such credit in any 1328
2165		-	one income year, and (C) in the case of a credit allowed for an income 1329
2166		-	year commencing on or after January 1, 2012, any entity that is not 1330
2167		-	subject to tax under chapter 207 or this chapter may transfer not more 1331
2168		-	than twenty-five per cent of such credit in any one income year. 1332
2169		-	(2) Notwithstanding the provisions of subdivision (1) of this 1333
2170		-	subsection, any entity that is not subject to tax under this chapter or 1334
2171		-	chapter 207 shall not be subject to the limitations on the transfer of 1335
2172		-	credits provided in subparagraphs (B) and (C) of said subdivision (1), 1336
2173		-	provided such entity owns not less than fifty per cent, directly or 1337
2174		-	indirectly, of a business entity, as defined in section 12-284b. 1338
2175		-	(3) Notwithstanding the provisions of subdivision (1) of this 1339
2176		-	subsection, any qualified production that is created in whole or in 1340
2177		-	significant part, as determined by the Commissioner of Economic and 1341
2178		-	Community Development, at a qualified production facility shall not be 1342
2179		-	subject to the limitations of subparagraph (B) or (C) of said subdivision 1343
2180		-	(1). For purposes of this subdivision, "qualified production facility" 1344
2181		-	means a facility (A) located in this state, (B) intended for film, television 1345
2182		-	or digital media production, and (C) that has had a minimum 1346
2183		-	investment of three million dollars, or less if the Commissioner of 1347
2184		-	Economic and Community D evelopment determines such facility 1348
2185		-	otherwise qualifies. 1349 Substitute Bill No. 981
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2191		-
2192		-	(4) (A) For the income year commencing on or after January 1, 2018, 1350
2193		-	but prior to January 1, 2019, any credit that is sold, assigned or otherwise 1351
2194		-	transferred, in whole or in part, to one or more taxpayers pursuant to 1352
2195		-	subdivision (1) of this subsection may be claimed against the tax 1353
2196		-	imposed under chapter 211 only if there is common ownership of at least 1354
2197		-	fifty per cent between such taxpayer and the eligible production 1355
2198		-	company that sold, assigned or otherwise transferred such credit. Such 1356
2199		-	taxpayer may only claim ninety-two per cent of the amount of such 1357
2200		-	credit entered by the department on the production tax credit voucher. 1358
2201		-	(B) For income years commencing on or after January 1, 2019, any 1359
2202		-	credit that is sold, assigned or otherwise transferred, in whole or in part, 1360
2203		-	to one or more taxpayers pursuant to subdivision (1) of this subsection, 1361
2204		-	which credit is claimed against the tax imposed under chapter 211, shall 1362
2205		-	be subject to the following limits: 1363
2206		-	(i) The taxpayer may only claim ninety-five per cent of the amount of 1364
2207		-	such credit entered by the department on the production tax credit 1365
2208		-	voucher; and 1366
2209		-	(ii) If there is common ownership of at least fifty per cent between 1367
2210		-	such taxpayer and the eligible production company that sold, assigned 1368
2211		-	or otherwise transferred such credit, such taxpayer may only claim 1369
2212		-	ninety-two per cent of the amount of such credit entered by the 1370
2213		-	department on the production tax credit voucher. 1371
2214		-	(5) (A) For income years commencing on or after January 1, 2022, but 1372
2215		-	prior to January 1, 2024, any credit that is claimed against the tax 1373
2216		-	imposed under chapter 219 shall be subject to the following limits: 1374
2217		-	[(A)] (i) Any credit that is sold, assigned or otherwise transferred, in 1375
2218		-	whole or in part, to one or more taxpayers pursuant to subdivision (1) 1376
2219		-	of this subsection may be claimed against the tax imposed under chapter 1377
2220		-	219 only if there is common ownership of at least fifty per cent between 1378
2221		-	such taxpayer and the eligible production company that sold, assigned 1379
2222		-	or otherwise transferred such credit; and 1380 Substitute Bill No. 981
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2228		-
2229		-	[(B)] (ii) The eligible production company or taxpayer claiming the 1381
2230		-	credit against the tax imposed under chapter 219 may only claim 1382
2231		-	seventy-eight per cent of the amount of such credit entered by the 1383
2232		-	department on the production tax credit voucher. 1384
2233		-	(B) For income years commencing on or after January 1, 2024, any 1385
2234		-	credit that is claimed against the tax imposed under chapter 219 shall be 1386
2235		-	subject to the following limits: 1387
2236		-	(i) Any credit that is sold, assigned or otherwise transferred, in whole 1388
2237		-	or in part, to one or more taxpayers pursuant to subdivision (1) of this 1389
2238		-	subsection may be claimed against the tax imposed under chapter 219 1390
2239		-	only if there is common ownership of at least fifty per cent between such 1391
2240		-	taxpayer and the eligible production company that sold, assigned or 1392
2241		-	otherwise transferred such credit; and 1393
2242		-	(ii) The eligible production company or taxpayer claiming the credit 1394
2243		-	against the tax imposed under chapter 219 may only claim ninety-two 1395
2244		-	per cent of the amount of such credit entered by the department on the 1396
2245		-	production tax credit voucher. 1397
2246		-	(f) (1) On and after July 1, 2006, and for income years commencing on 1398
2247		-	or after January 1, 2006, but prior to January 1, 2015, all or part of any 1399
2248		-	such credit allowed under this section may be claimed against the tax 1400
2249		-	imposed under chapter 207 or this chapter for the income year in which 1401
2250		-	the production expenses or costs were incurred, or in the three 1402
2251		-	immediately succeeding income years. 1403
2252		-	(2) For production tax credit vouchers issued on or after July 1, 2015, 1404
2253		-	but prior to January 1, 2018, all or part of any such credit may be claimed 1405
2254		-	against the tax imposed under chapter 207 or this chapter, for the 1406
2255		-	income year in which the production expenses or costs were incurred, 1407
2256		-	or in the five immediately succeeding income years. 1408
2257		-	(3) For production tax credit vouchers issued on or after July 1, 2018, 1409
2258		-	but prior to January 1, 2022, all or part of any such credit may be claimed 1410
2259		-	against the tax imposed under chapter 207 or 211 or this chapter, for the 1411 Substitute Bill No. 981
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2265		-
2266		-	income year in which the production expenses or costs were incurred, 1412
2267		-	or in the five immediately succeeding income years. 1413
2268		-	(4) For production tax credit vouchers issued on or after January 1, 1414
2269		-	2022, all or part of any such credit may be claimed against the tax 1415
2270		-	imposed under chapter 207, 211, 219 or this chapter, for the income year 1416
2271		-	in which the production expenses or costs were incurred, or in the five 1417
2272		-	immediately succeeding income years. 1418
2273		-	(g) Any production tax credit allowed under this section shall be 1419
2274		-	nonrefundable. 1420
2275		-	(h) (1) An eligible production company shall apply to the department 1421
2276		-	for a tax credit voucher on an annual basis, but not later than ninety days 1422
2277		-	after the first production expenses or costs are incurred in the 1423
2278		-	production of a qualified production, and shall provide with such 1424
2279		-	application such information as the department may require to 1425
2280		-	determine such company's eligibility to claim a credit under this section. 1426
2281		-	No production expenses or costs may be listed more than once for 1427
2282		-	purposes of the tax credit voucher pursuant to this section, or pursuant 1428
2283		-	to section 12-217kk or 12-217ll, and if a production expense or cost has 1429
2284		-	been included in a claim for a credit, such production expense or cost 1430
2285		-	may not be included in any subsequent claim for a credit. 1431
2286		-	(2) Not later than ninety days after the end of the annual period, or 1432
2287		-	after the last production expenses or costs are incurred in the production 1433
2288		-	of a qualified production, an eligible production company shall apply 1434
2289		-	to the department for a production tax credit voucher, and shall provide 1435
2290		-	with such application (A) a report that includes the number of full-time 1436
2291		-	jobs and the number of part-time jobs created by the eligible production 1437
2292		-	company during the annual period, a description of each such job and 1438
2293		-	an explanation of what the eligible production company considers to be 1439
2294		-	job creation for purposes of the report, and (B) such information and 1440
2295		-	independent certification as the department may require pertaining to 1441
2296		-	the amount of such company's production expenses or costs. Such 1442
2297		-	independent certification shall be provided by an audit professional 1443 Substitute Bill No. 981
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2303		-
2304		-	chosen from a list compiled by the department. If the department 1444
2305		-	determines that such company is eligible to be issued a production tax 1445
2306		-	credit voucher, the department shall enter on the voucher the amount 1446
2307		-	of production expenses or costs that has been established to the 1447
2308		-	satisfaction of the department and the amount of such company's credit 1448
2309		-	under this section. The department shall provide a copy of such voucher 1449
2310		-	to the commissioner, upon request. 1450
2311		-	(3) The department shall charge a reasonable administrative fee 1451
2312		-	sufficient to cover the department's costs to analyze applications 1452
2313		-	submitted under this section. 1453
2314		-	(i) If an eligible production company sells, assigns or otherwise 1454
2315		-	transfers a credit under this section to another taxpayer, the transferor 1455
2316		-	and transferee shall jointly submit written notification of such transfer 1456
2317		-	to the department not later than thirty days after such transfer. If such 1457
2318		-	transferee sells, assigns or otherwise transfers a credit under this section 1458
2319		-	to a subsequent transferee, such transferee and such subsequent 1459
2320		-	transferee shall jointly submit written notification of such transfer to the 1460
2321		-	department not later than thirty days after such transfer. The 1461
2322		-	notification after each transfer shall include the credit voucher number, 1462
2323		-	the date of transfer, the amount of such credit transferred, the tax credit 1463
2324		-	balance before and after the transfer, the tax identification numbers for 1464
2325		-	both the transferor and the transferee, and any other information 1465
2326		-	required by the department. Failure to comply with this subsection will 1466
2327		-	result in a disallowance of the tax credit until there is full compliance on 1467
2328		-	the part of the transferor and the transferee, and for a second or third 1468
2329		-	transfer, on the part of all subsequent transferors and transferees. The 1469
2330		-	department shall provide a copy of the notification of assignment to the 1470
2331		-	commissioner upon request. 1471
2332		-	(j) Any eligible production company that submits information to the 1472
2333		-	department that it knows to be fraudulent or false shall, in addition to 1473
2334		-	any other penalties provided by law, be liable for a penalty equal to the 1474
2335		-	amount of such company's credit entered on the production tax credit 1475
2336		-	voucher issued under this section. 1476 Substitute Bill No. 981
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2342		-
2343		-	(k) No tax credits transferred pursuant to this section shall be subject 1477
2344		-	to a post-certification remedy, and the department and the 1478
2345		-	commissioner shall have no right, except in the case of possible material 1479
2346		-	misrepresentation or fraud, to conduct any further or additional review, 1480
2347		-	examination or audit of the expenditures or costs for which such tax 1481
2348		-	credits were issued. The sole and exclusive remedy of the department 1482
2349		-	and the commissioner shall be to seek collection of the amount of such 1483
2350		-	tax credits from the entity that committed the fraud or 1484
2351		-	misrepresentation. 1485
2352		-	(l) The department, in consultation with the commissioner, shall 1486
2353		-	adopt regulations, in accordance with the provisions of chapter 54, as 1487
2354		-	may be necessary for the administration of this section. 1488
2355		-	Sec. 10. Subsection (a) of section 32-1m of the general statutes is 1489
2356		-	repealed and the following is substituted in lieu thereof (Effective January 1490
2357		-	1, 2024): 1491
2358		-	(a) Not later than February first, annually, the Commissioner of 1492
2359		-	Economic and Community Development shall submit a report to the 1493
2360		-	Governor, the Auditors of Public Accounts and the joint standing 1494
2361		-	committees of the General Assembly having cognizance of matters 1495
2362		-	relating to appropriations and the budgets of state agencies, finance, 1496
2363		-	revenue and bonding and commerce, in accordance with the provisions 1497
2364		-	of section 11-4a. Not later than thirty days after submission of the report, 1498
2365		-	said commissioner shall post the report on the Department of Economic 1499
2366		-	and Community Development's web site. Such report shall include, but 1500
2367		-	not be limited to, the following information with regard to the activities 1501
2368		-	of the Department of Economic and Community Development and to 1502
2369		-	business assistance programs administered by Connecticut Innovations, 1503
2370		-	Incorporated, during the preceding state fiscal year: 1504
2371		-	(1) A brief description and assessment of the state's economy during 1505
2372		-	such year, utilizing the most recent and reasonably available data, and 1506
2373		-	including: 1507 Substitute Bill No. 981
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2379		-
2380		-	(A) Connecticut employment by industry; 1508
2381		-	(B) Connecticut and national average unemployment; and 1509
2382		-	(C) Connecticut gross state product, by industry. 1510
2383		-	(2) An analysis of the economic development portfolio of the 1511
2384		-	department, including, but not limited to, each business assistance or 1512
2385		-	incentive program, including any business tax credit or abatement 1513
2386		-	program, grant, loan, forgivable loan or other form of assistance, 1514
2387		-	enacted for the purpose of improving economic development. The 1515
2388		-	analysis shall include: 1516
2389		-	(A) The Internet web site address of the state's open data portal and 1517
2390		-	an indication of where the name, address and location of each recipient 1518
2391		-	of the department's assistance is published on the site along with the 1519
2392		-	following information concerning each recipient: (i) Business activities, 1520
2393		-	(ii) standard industrial classification codes or North American industrial 1521
2394		-	classification codes, (iii) whether the recipient is a minority or woman-1522
2395		-	owned business, (iv) a summary of the terms and conditions for the 1523
2396		-	assistance, including the type and amount of state financial assistance 1524
2397		-	and job creation or retention requirements, (v) the amount of 1525
2398		-	investments from private and other nonstate sources that have been 1526
2399		-	leveraged by the assistance, and (vi) the amount of state investment; 1527
2400		-	(B) A portfolio analysis, including an analysis of the wages paid by 1528
2401		-	recipients of financial assistance by industry; 1529
2402		-	(C) An investment analysis, including (i) total portfolio value, (ii) 1530
2403		-	total investment by industry, (iii) portfolio dollar per job average, and 1531
2404		-	(iv) portfolio leverage ratio; 1532
2405		-	(D) An overview of the business assistance and incentive programs 1533
2406		-	administered by the department and an analysis of their estimated 1534
2407		-	economic impact on the state's economy. The analysis shall include, for 1535
2408		-	each business assistance or incentive program for which such data is 1536
2409		-	available, the number of new jobs created, the borrowing cost to the 1537 Substitute Bill No. 981
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2415		-
2416		-	state and the estimated impact of such program on annual state 1538
2417		-	revenues; 1539
2418		-	(E) An analysis of whether the statutory and programmatic goals of 1540
2419		-	each business or incentive program are being met, with obstacles to such 1541
2420		-	goals identified, if possible; 1542
2421		-	(F) (i) Recommendations as to whether any existing business 1543
2422		-	assistance or incentive program should be continued, modified or 1544
2423		-	repealed and the basis or bases for such recommendations, and (ii) any 1545
2424		-	recommendations for additional data collection by the state to better 1546
2425		-	inform future evaluations of such programs; and 1547
2426		-	(G) The methodologies and assumptions used in carrying out the 1548
2427		-	analyses under this subdivision. 1549
2428		-	(3) An analysis of the community development portfolio of the 1550
2429		-	department, including: 1551
2430		-	(A) The Internet web site address of the state's open data portal and 1552
2431		-	an indication of where the name, address and location of each recipient 1553
2432		-	of the department's assistance is published on the site along with the 1554
2433		-	following information concerning each recipient: (i) Amount of state 1555
2434		-	investment, (ii) a summary of the terms and conditions for the 1556
2435		-	department's assistance, including the type and amount of state 1557
2436		-	financial assistance, and (iii) the amount of investments from private 1558
2437		-	and other nonstate sources that have been leveraged by such assistance; 1559
2438		-	and 1560
2439		-	(B) An investment analysis, including (i) total active portfolio value, 1561
2440		-	(ii) total investments made in the preceding state fiscal year, and (iii) 1562
2441		-	total portfolio leverage ratio. 1563
2442		-	(4) An analysis of each business assistance or incentive program, 1564
2443		-	including any business tax credit or abatement program, grant, loan, 1565
2444		-	forgivable loan or other form of assistance, enacted for the purpose of 1566
2445		-	improving economic development, that (A) (i) had ten or more 1567 Substitute Bill No. 981
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2451		-
2452		-	recipients of assistance in the preceding state fiscal year, or (ii) credited, 1568
2453		-	abated or distributed more than one million dollars in the preceding 1569
2454		-	state fiscal year, and (B) is administered by the department or 1570
2455		-	Connecticut Innovations, Incorporated. The analysis shall include: 1571
2456		-	(i) An overview of the business assistance or incentive program and 1572
2457		-	an analysis of its estimated economic effects on the state's economy, 1573
2458		-	including, for each program where such data is available, the number of 1574
2459		-	new jobs created and the estimated impact of such program on annual 1575
2460		-	state revenues; 1576
2461		-	(ii) An analysis of whether the statutory and programmatic goals of 1577
2462		-	each business assistance or incentive program are being met, with 1578
2463		-	obstacles to such goals identified, if possible; 1579
2464		-	(iii) Recommendations as to whether any such existing business 1580
2465		-	assistance or incentive program should be continued, modified or 1581
2466		-	repealed and the basis or bases for such recommendations, and any 1582
2467		-	recommendations for additional data collection by the state to better 1583
2468		-	inform future evaluations of such programs; and 1584
2469		-	(iv) The methodologies and assumptions used in carrying out the 1585
2470		-	analysis under this subdivision. 1586
2471		-	(5) A summary of the department's international trade efforts in the 1587
2472		-	preceding state fiscal year, and, to the extent possible, a summary of 1588
2473		-	foreign direct investment that occurred in the state in such year. 1589
2474		-	(6) A summary of the total social and economic impact of the 1590
2475		-	department's efforts and activities in the areas of economic and 1591
2476		-	community development, and an assessment of the department's 1592
2477		-	performance in terms of meeting its stated goals and objectives. 1593
2478		-	(7) With regard to the Small Business Express program established 1594
2479		-	pursuant to section 32-7g, data on (A) the number of small businesses 1595
2480		-	that received assistance under said program and the general categories 1596
2481		-	of such businesses, (B) the amounts and types of assistance provided, 1597 Substitute Bill No. 981
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2487		-
2488		-	(C) the total number of jobs on the date of application and the number 1598
2489		-	proposed to be created or retained, (D) the most recent employment 1599
2490		-	figures of the small businesses receiving assistance, (E) the default rate 1600
2491		-	of small businesses that received assistance under said program, and (F) 1601
2492		-	the progress of the lenders participating in said program in becoming 1602
2493		-	self-sustainable. 1603
2494		-	(8) With regard to airport development zones established pursuant 1604
2495		-	to section 32-75d, a summary of the economic and cost benefits of each 1605
2496		-	zone and any recommended revisions to any such zones. 1606
2497		-	(9) An overview of the department's activities related to tourism, the 1607
2498		-	arts and historic preservation. 1608
2499		-	(10) An overview of the department's activities concerning digital 1609
2500		-	media, motion pictures and related production activity, and an analysis 1610
2501		-	of the use of the film production tax credit established under section 12-1611
2502		-	217jj, as amended by this act, the entertainment industry infrastructure 1612
2503		-	tax credit established under section 12-217kk and the digital animation 1613
2504		-	production tax credit established under section 12-217ll, including the 1614
2505		-	amount of any tax credit issued under said sections, [and] the total 1615
2506		-	amount of production expenses or costs incurred in the state by the 1616
2507		-	taxpayer who was issued such a tax credit and the information 1617
2508		-	submitted in the report required under subparagraph (A) of subdivision 1618
2509		-	(1) of subsection (h) of section 12-217jj, as amended by this act. 1619
2510		-	(11) A summary of the department's and the office of the permit 1620
2511		-	ombudsman's brownfield-related efforts and activities in the preceding 1621
2512		-	fiscal year. 1622
2513		-	(12) A summary of the department's dry cleaning establishment 1623
2514		-	remediation account activities in the preceding fiscal year. 1624
2515		-	Sec. 11. Section 12-217ee of the general statutes is repealed and the 1625
2516		-	following is substituted in lieu thereof (Effective July 1, 2023): 1626
2517		-	(a) (1) Any taxpayer that [(1)] (A) is a qualified small business, [(2)] 1627 Substitute Bill No. 981
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2523		-
2524		-	(B) qualifies for a credit under section 12-217j or section 12-217n, and 1628
2525		-	[(3)] (C) cannot take such credit in the taxable year in which the credit 1629
2526		-	could otherwise be taken as a result of having no tax liability under this 1630
2527		-	chapter may elect to carry such credit forward under this chapter or may 1631
2528		-	apply to the commissioner as provided in subsection (b) of this section 1632
2529		-	to exchange such credit with the state for a credit refund equal to sixty-1633
2530		-	five per cent of the value of the credit or, for a biotechnology company, 1634
2531		-	equal to eighty per cent of the value of the credit. 1635
2532		-	(2) Any amount of credit refunded under this section shall be 1636
2533		-	refunded to the taxpayer under the provisions of this chapter, except 1637
2534		-	that such credit refund shall not be subject to the provisions of section 1638
2535		-	12-227. Payment of the capital base tax under section 12-219, as 1639
2536		-	amended by this act, for an income year commencing on or after January 1640
2537		-	1, 2002, in which year the taxpayer reports no net income, as defined in 1641
2538		-	section 12-213, or payment of the minimum tax of two hundred fifty 1642
2539		-	dollars under section 12-219, as amended by this act, or 12-223c for any 1643
2540		-	income year, shall not be considered a tax liability for purposes of this 1644
2541		-	section. 1645
2542		-	(b) An application for refund of such credit amount shall be made to 1646
2543		-	the Commissioner of Revenue Services, at the same time such taxpayer 1647
2544		-	files its return for the income year on or before the original due date or, 1648
2545		-	if applicable, the extended due date of such [year’s] year's return, on 1649
2546		-	such forms and containing such information as prescribed by said 1650
2547		-	commissioner. No application for refund of such credit amount may be 1651
2548		-	made after the due date or extended due date, as the case may be, of 1652
2549		-	such return. 1653
2550		-	(c) If the commissioner determines that the taxpayer qualifies for a 1654
2551		-	credit refund under this section, the commissioner shall notify, no later 1655
2552		-	than one hundred twenty days from receipt of the application for such 1656
2553		-	credit refund, the State Comptroller of the name of the eligible taxpayer, 1657
2554		-	and the State Comptroller shall draw an order on the State Treasurer. 1658
2555		-	The amount of the credit refund shall be limited as follows: 1659 Substitute Bill No. 981
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2561		-
2562		-	(1) In the case of an application for such credit refund filed by the 1660
2563		-	taxpayer for income years beginning during 2000 or 2001 where such 1661
2564		-	credit refund has not been paid as of July 1, 2002, the taxpayer shall be 1662
2565		-	entitled to receive no more than one million dollars during the [state’s] 1663
2566		-	state's fiscal year in which the initial refund is paid, with any remaining 1664
2567		-	unpaid balance to be paid in two equal installments during the [state’s] 1665
2568		-	state's next two succeeding fiscal years; and 1666
2569		-	(2) [in] In the case of an application for such credit refund filed by the 1667
2570		-	taxpayer for the income years beginning during 2002 or thereafter, the 1668
2571		-	taxpayer shall be entitled to receive no more than one million five 1669
2572		-	hundred thousand dollars for any one such income year. 1670
2573		-	(d) The Commissioner of Revenue Services may disallow the credit 1671
2574		-	refund of any credit otherwise allowable for a taxable year under this 1672
2575		-	section if the company claiming the exchange has any amount of taxes 1673
2576		-	due and unpaid to the state including interest, penalties, fees and other 1674
2577		-	charges related thereto for which a period in excess of thirty days has 1675
2578		-	elapsed following the date on which such taxes were due and which are 1676
2579		-	not the subject of a timely filed administrative appeal to the 1677
2580		-	commissioner or of a timely filed appeal pending before any court of 1678
2581		-	competent jurisdiction. Before any such disallowance, the commissioner 1679
2582		-	shall send written notice to the company, stating that it may pay the 1680
2583		-	amount of such delinquent tax or enter into an agreement with the 1681
2584		-	commissioner for the payment thereof, by the date set forth in said 1682
2585		-	notice, provided, such date shall not be less than thirty days after the 1683
2586		-	date of such notice. Failure on the part of the company to pay the 1684
2587		-	amount of the delinquent tax or enter into an agreement to pay the 1685
2588		-	amount thereof by said date shall result in a disallowance of the credit 1686
2589		-	refund being claimed. 1687
2590		-	(e) For purposes of this section, (1) "qualified small business" means 1688
2591		-	a company that [(1)] (A) has gross income for the previous income year 1689
2592		-	that does not exceed seventy million dollars, and [(2)] (B) has not, in the 1690
2593		-	determination of the commissioner, met the gross income test through 1691
2594		-	transactions with a related person, as defined in section 12-217w, as 1692 Substitute Bill No. 981
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2600		-
2601		-	amended by this act, and (2) "biotechnology company" has the same 1693
2602		-	meaning as provided in subsection (b) of section 12-217j. 1694
2603		-	Sec. 12. Section 22a-245a of the general statutes is repealed and the 1695
2604		-	following is substituted in lieu thereof (Effective from passage): 1696
2605		-	(a) Each deposit initiator shall open a special interest-bearing account 1697
2606		-	at a Connecticut branch of a financial institution, as defined in section 1698
2607		-	45a-557a, to the credit of the deposit initiator. Each deposit initiator shall 1699
2608		-	deposit in such account an amount equal to the refund value established 1700
2609		-	pursuant to subsection (a) of section 22a-244, for each beverage 1701
2610		-	container sold by such deposit initiator. Such deposit shall be made not 1702
2611		-	more than one month after the date such beverage container is sold, 1703
2612		-	provided for any beverage container sold during the period from 1704
2613		-	December 1, 2008, to December 31, 2008, inclusive, such deposit shall be 1705
2614		-	made not later than January 5, 2009. All interest, dividends and returns 1706
2615		-	earned on the special account shall be paid directly into such account. 1707
2616		-	Such moneys shall be kept separate and apart from all other moneys in 1708
2617		-	the possession of the deposit initiator. The amount required to be 1709
2618		-	deposited pursuant to this section, when deposited, shall be held to be 1710
2619		-	a special fund in trust for the state. 1711
2620		-	(b) (1) Any reimbursement of the refund value for a redeemed 1712
2621		-	beverage container shall be paid from the deposit initiator's special 1713
2622		-	account, with such payment to be computed, subject to the provisions 1714
2623		-	of subdivision (2) of this subsection, under the cash receipts and 1715
2624		-	disbursements method of accounting, as described in Section 446(c)(1) 1716
2625		-	of the Internal Revenue Code of 1986, or any subsequent corresponding 1717
2626		-	Internal Revenue Code of the United States, as amended from time to 1718
2627		-	time. 1719
2628		-	(2) A deposit initiator may petition the Commissioner of Revenue 1720
2629		-	Services for an alternate method of accounting by filing with such 1721
2630		-	deposit initiator's return a statement of objections and other proposed 1722
2631		-	alternate method of accounting, as such deposit initiator believes proper 1723
2632		-	and equitable under the circumstances, that is accompanied by 1724 Substitute Bill No. 981
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2638		-
2639		-	supporting details and proof. The Commissioner of Revenue Services 1725
2640		-	shall promptly notify such deposit initiator whether the proposed 1726
2641		-	alternate method is accepted as reasonable and equitable and, if so 1727
2642		-	accepted, shall adjust such deposit initiator's return and payment of 1728
2643		-	reimbursement accordingly. 1729
2644		-	(c) Not later than August 1, 2024, and annually thereafter, the 1730
2645		-	Commissioner of Energy and Environmental Protection shall calculate 1731
2646		-	and publish the average state-wide redemption rate for the preceding 1732
2647		-	fiscal year, calculated as the number of beverage containers redeemed 1733
2648		-	for the deposit divided by the number of beverage containers sold. 1734
2649		-	[(c)] (d) (1) Each deposit initiator shall submit a report on March 15, 1735
2650		-	2009, for the period from December 1, 2008, to February 28, 2009, 1736
2651		-	inclusive. Each deposit initiator shall submit a report on July 31, 2009, 1737
2652		-	for the period from March 1, 2009, to June 30, 2009, inclusive, and 1738
2653		-	thereafter shall submit a quarterly report for the immediately preceding 1739
2654		-	calendar quarter one month after the close of such quarter. Each such 1740
2655		-	report shall be submitted to the Commissioner of Energy and 1741
2656		-	Environmental Protection, on a form prescribed by the commissioner 1742
2657		-	and with such information as the commissioner deems necessary, 1743
2658		-	including, but not limited to: (A) The balance in the special account at 1744
2659		-	the beginning of the quarter for which the report is prepared; (B) a list 1745
2660		-	of all deposits credited to such account during such quarter, including 1746
2661		-	all refund values paid to the deposit initiator and all interest, dividends 1747
2662		-	or returns received on the account; (C) a list of all withdrawals from 1748
2663		-	such account during such quarter, all service charges and overdraft 1749
2664		-	charges on the account and all payments made pursuant to subsection 1750
2665		-	[(d)] (e) of this section; and (D) the balance in the account at the close of 1751
2666		-	the quarter for which the report is prepared. 1752
2667		-	(2) Each deposit initiator shall submit a report on October 31, 2010, 1753
2668		-	for the calendar quarter beginning July 1, 2010. Subsequently, each 1754
2669		-	deposit initiator shall submit a quarterly report for the immediately 1755
2670		-	preceding calendar quarter, on or before the last day of the month next 1756
2671		-	succeeding the close of such quarter. Each such report shall be 1757 Substitute Bill No. 981
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2677		-
2678		-	submitted to the Commissioner of Revenue Services, on a form 1758
2679		-	prescribed by the Commissioner of Revenue Services, and with such 1759
2680		-	information as the Commissioner of Revenue Services deems necessary, 1760
2681		-	including, but not limited to, the following information: (A) The balance 1761
2682		-	in the special account at the beginning of the quarter for which the 1762
2683		-	report is prepared, (B) all deposits credited to such account during such 1763
2684		-	quarter, including all refund values paid to the deposit initiator and all 1764
2685		-	interest, dividends or returns received on such account, (C) all 1765
2686		-	withdrawals from such account during such quarter, including all 1766
2687		-	service charges and overdraft charges on such account and all payments 1767
2688		-	made pursuant to subsection [(d)] (e) of this section, and (D) the balance 1768
2689		-	in such account at the close of the quarter for which the report is 1769
2690		-	prepared. Such quarterly report shall be filed electronically with the 1770
2691		-	Commissioner of Revenue Services, in the manner provided by chapter 1771
2692		-	228g. 1772
2693		-	[(d)] (e) (1) On or before April 30, 2009, each deposit initiator shall 1773
2694		-	pay the balance outstanding in the special account that is attributable to 1774
2695		-	the period from December 1, 2008, to March 31, 2009, inclusive, to the 1775
2696		-	Commissioner of Energy and Environmental Protection for deposit in 1776
2697		-	the General Fund. Thereafter, the balance outstanding in the special 1777
2698		-	account that is attributable to the immediately preceding calendar 1778
2699		-	quarter shall be paid by the deposit initiator one month after the close 1779
2700		-	of such quarter to the Commissioner of Energy and Environmental 1780
2701		-	Protection for deposit in the General Fund. If the amount of the required 1781
2702		-	payment pursuant to this subdivision is not paid by the date seven days 1782
2703		-	after the due date, a penalty of ten per cent of the amount due shall be 1783
2704		-	added to the amount due. The amount due shall bear interest at the rate 1784
2705		-	of one and one-half per cent per month or fraction thereof, from the due 1785
2706		-	date. Any such penalty or interest shall not be paid from funds 1786
2707		-	maintained in the special account. 1787
2708		-	(2) (A) On or before October 31, 2010, each deposit initiator shall pay 1788
2709		-	the balance outstanding in the special account that is attributable to the 1789
2710		-	period from July 1, 2010, to September 30, 2010, inclusive, to the 1790 Substitute Bill No. 981
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2716		-
2717		-	Commissioner of Revenue Services for deposit in the General Fund. 1791
2718		-	(B) Subsequently: [, for] 1792
2719		-	(i) For the fiscal year ending June 30, 2023, ninety-five per cent of the 1793
2720		-	balance outstanding in the special account that is attributable to the 1794
2721		-	immediately preceding calendar quarter shall be paid by the deposit 1795
2722		-	initiator on or before the last day of the month next succeeding the close 1796
2723		-	of such quarter to the Commissioner of Revenue Services for deposit in 1797
2724		-	the General Fund; [, for] 1798
2725		-	(ii) For the fiscal year ending June 30, 2024, sixty-five per cent of the 1799
2726		-	balance outstanding in the special account that is attributable to the 1800
2727		-	immediately preceding calendar quarter shall be paid by the deposit 1801
2728		-	initiator on or before the last day of the month next succeeding the close 1802
2729		-	of such quarter to the Commissioner of Revenue Services for deposit in 1803
2730		-	the General Fund, except that for the calendar quarters ending 1804
2731		-	September 30, 2023, and December 31, 2023, the balances outstanding in 1805
2732		-	the special account that are attributable to said calendar quarters shall 1806
2733		-	be retained in the special account by the deposit initiator for the purpose 1807
2734		-	of reimbursement of the refund value in effect on January 1, 2024, for a 1808
2735		-	redeemed beverage container in accordance with the provisions of 1809
2736		-	subsection (b) of this section and section 22a-244; 1810
2737		-	(iii) For the fiscal year ending June 30, 2025, [fifty-five] fifty per cent 1811
2738		-	of the balance outstanding in the special account that is attributable to 1812
2739		-	the immediately preceding calendar quarter shall be paid by the deposit 1813
2740		-	initiator on or before the last day of the month next succeeding the close 1814
2741		-	of such quarter to the Commissioner of Revenue Services for deposit in 1815
2742		-	the General Fund; [and for] 1816
2743		-	(iv) For the fiscal year ending June 30, 2026, [and each subsequent 1817
2744		-	fiscal year thereafter, forty-five] if the redemption rate calculated under 1818
2745		-	subsection (c) of this section for the preceding fiscal year is: 1819
2746		-	(I) At least sixty-five per cent, twenty-five per cent of the balance 1820
2747		-	outstanding in the special account that is attributable to the immediately 1821 Substitute Bill No. 981
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2753		-
2754		-	preceding calendar quarter shall be paid by the deposit initiator on or 1822
2755		-	before the last day of the month next succeeding the close of such 1823
2756		-	quarter to the Commissioner of Revenue Services for deposit in the 1824
2757		-	General Fund; and 1825
2758		-	(II) Less than sixty-five per cent, forty-five per cent of the balance 1826
2759		-	outstanding in the special account that is attributable to the immediately 1827
2760		-	preceding calendar quarter shall be paid by the deposit initiator on or 1828
2761		-	before the last day of the month next succeeding the close of such 1829
2762		-	quarter to the Commissioner of Revenue Services for deposit in the 1830
2763		-	General Fund; 1831
2764		-	(v) For the fiscal year ending June 30, 2027, if the redemption rate 1832
2765		-	calculated under subsection (c) of this section for the preceding fiscal 1833
2766		-	year is: 1834
2767		-	(I) At least seventy per cent, five per cent of the balance outstanding 1835
2768		-	in the special account that is attributable to the immediately preceding 1836
2769		-	calendar quarter shall be paid by the deposit initiator on or before the 1837
2770		-	last day of the month next succeeding the close of such quarter to the 1838
2771		-	Commissioner of Revenue Services for deposit in the General Fund; 1839
2772		-	(II) Less than seventy per cent but more than sixty-five per cent, 1840
2773		-	twenty-five per cent of the balance outstanding in the special account 1841
2774		-	that is attributable to the immediately preceding calendar quarter shall 1842
2775		-	be paid by the deposit initiator on or before the last day of the month 1843
2776		-	next succeeding the close of such quarter to the Commissioner of 1844
2777		-	Revenue Services for deposit in the General Fund; and 1845
2778		-	(III) Sixty-five per cent or less, forty-five per cent of the balance 1846
2779		-	outstanding in the special account that is attributable to the immediately 1847
2780		-	preceding calendar quarter shall be paid by the deposit initiator on or 1848
2781		-	before the last day of the month next succeeding the close of such 1849
2782		-	quarter to the Commissioner of Revenue Services for deposit in the 1850
2783		-	General Fund; and 1851
2784		-	(vi) For the fiscal year ending June 30, 2028, and each fiscal year 1852 Substitute Bill No. 981
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2790		-
2791		-	thereafter, if the redemption rate calculated under subsection (c) of this 1853
2792		-	section for the preceding fiscal year is: 1854
2793		-	(I) At least eighty per cent, five per cent of the balance outstanding in 1855
2794		-	the special account that is attributable to the immediately preceding 1856
2795		-	calendar quarter shall be paid by the deposit initiator on or before the 1857
2796		-	last day of the month next succeeding the close of such quarter to the 1858
2797		-	Commissioner of Revenue Services for deposit in the General Fund; 1859
2798		-	(II) Less than eighty per cent but more than seventy per cent, ten per 1860
2799		-	cent of the balance outstanding in the special account that is attributable 1861
2800		-	to the immediately preceding calendar quarter shall be paid by the 1862
2801		-	deposit initiator on or before the last day of the month next succeeding 1863
2802		-	the close of such quarter to the Commissioner of Revenue Services for 1864
2803		-	deposit in the General Fund; 1865
2804		-	(III) Seventy per cent or less but more than sixty-five per cent, twenty-1866
2805		-	five per cent of the balance outstanding in the special account that is 1867
2806		-	attributable to the immediately preceding calendar quarter shall be paid 1868
2807		-	by the deposit initiator on or before the last day of the month next 1869
2808		-	succeeding the close of such quarter to the Commissioner of Revenue 1870
2809		-	Services for deposit in the General Fund; and 1871
2810		-	(IV) Sixty-five per cent or less, forty-five per cent of the balance 1872
2811		-	outstanding in the special account that is attributable to the immediately 1873
2812		-	preceding calendar quarter shall be paid by the deposit initiator on or 1874
2813		-	before the last day of the month next succeeding the close of such 1875
2814		-	quarter to the Commissioner of Revenue Services for deposit in the 1876
2815		-	General Fund. 1877
2816		-	(C) If the amount of the required payment pursuant to this 1878
2817		-	subdivision is not paid on or before the due date, a penalty of ten per 1879
2818		-	cent of the amount due and unpaid, or fifty dollars, whichever is greater, 1880
2819		-	shall be imposed. The amount due and unpaid shall bear interest at the 1881
2820		-	rate of one per cent per month or fraction thereof, from the due date. 1882
2821		-	Any such penalty or interest shall not be paid from funds maintained in 1883 Substitute Bill No. 981
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2827		-
2828		-	such special account. Such required payment shall be made by 1884
2829		-	electronic funds transfer to the Commissioner of Revenue Services, in 1885
2830		-	the manner provided by chapter 228g. 1886
2831		-	[(e)] (f) If moneys deposited in the special account are insufficient to 1887
2832		-	pay for withdrawals authorized pursuant to subsection (b) of this 1888
2833		-	section, the amount of such deficiency shall be subtracted from the next 1889
2834		-	succeeding payment or payments due pursuant to subsection [(d)] (e) of 1890
2835		-	this section until the amount of the deficiency has been subtracted in 1891
2836		-	full. 1892
2837		-	[(f)] (g) The Commissioner of Revenue Services may examine the 1893
2838		-	accounts and records of any deposit initiator maintained under this 1894
2839		-	section or sections 22a-243 to 22a-245, inclusive, and any related 1895
2840		-	accounts and records, including receipts, disbursements and such other 1896
2841		-	items as the Commissioner of Revenue Services deems appropriate. 1897
2842		-	[(g)] (h) The Attorney General may, independently or upon 1898
2843		-	complaint of the Commissioner of Energy and Environmental 1899
2844		-	Protection or the Commissioner of Revenue Services, institute any 1900
2845		-	appropriate action or proceeding to enforce any provision of this section 1901
2846		-	or any regulation adopted pursuant to section 22a-245 to implement the 1902
2847		-	provisions of this section. 1903
2848		-	[(h)] (i) The provisions of sections 12-548, 12-550 to 12-554, inclusive, 1904
2849		-	and 12-555a shall be deemed to apply to the provisions of this section, 1905
2850		-	except any provision of sections 12-548, 12-550 to 12-554, inclusive, and 1906
2851		-	12-555a that is inconsistent with the provision in this section. 1907
2852		-	[(i)] (j) Any payment required pursuant to this section shall be treated 1908
2853		-	as a tax for purposes of sections 12-30b, 12-33a, 12-35a, 12-39g and 12-1909
2854		-	39h. 1910
2855		-	[(j)] (k) Not later than July 1, 2010, the Department of Energy and 1911
2856		-	Environmental Protection or successor agency shall establish a 1912
2857		-	procedure that allows each such deposit initiator to take a credit against 1913
2858		-	any payment made pursuant to subsection [(d)] (e) of this section in the 1914 Substitute Bill No. 981
2859		-
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2864		-
2865		-	amount of the deposits refunded on beverage containers which such 1915
2866		-	deposit initiator donated for any charitable purpose. 1916
2867		-	Sec. 13. Subparagraph (J) of subdivision (37) of section 12-407 of the 1917
2868		-	general statutes is repealed and the following is substituted in lieu 1918
2869		-	thereof (Effective July 1, 2023, and applicable to sales occurring on or after 1919
2870		-	July 1, 2023): 1920
2871		-	(J) Business analysis, management, management consulting and 1921
2872		-	public relations services, excluding (i) any environmental consulting 1922
2873		-	services, (ii) any job-related or personnel training services, [provided by 1923
2874		-	an institution of higher education licensed or accredited by the Board of 1924
2875		-	Regents for Higher Education or authorized by the Office of Higher 1925
2876		-	Education pursuant to sections 10a-35a and 10a-34, respectively, and] or 1926
2877		-	(iii) on and after January 1, 1994, any business analysis, management, 1927
2878		-	management consulting and public relations services when such 1928
2879		-	services are rendered in connection with an aircraft leased or owned by 1929
2880		-	a certificated air carrier or in connection with an aircraft [which] that has 1930
2881		-	a maximum certificated take-off weight of six thousand pounds or more; 1931
2882		-	Sec. 14. Subsection (c) of section 12-217g of the general statutes is 1932
2883		-	repealed and the following is substituted in lieu thereof (Effective January 1933
2884		-	1, 2024, and applicable to income years commencing on or after January 1, 1934
2885		-	2024): 1935
2886		-	(c) There shall be allowed a credit for any taxpayer against the tax 1936
2887		-	imposed under this chapter for any income year with respect to wages 1937
2888		-	paid to apprentices in the construction trades by such taxpayer in such 1938
2889		-	year that the apprentice and taxpayer participate in a qualified 1939
2890		-	apprenticeship training program, as described in subsection (d) of this 1940
2891		-	section, [which] that (1) is at least four years in duration, (2) is certified 1941
2892		-	in accordance with regulations adopted in accordance with the 1942
2893		-	provisions of chapter 54 by the Labor Commissioner, and (3) is 1943
2894		-	registered with the Labor Department under section 31-22r, as amended 1944
2895		-	by this act. The tax credit shall be (A) in an amount equal to two dollars 1945
2896		-	per hour multiplied by the total number of hours completed by each 1946 Substitute Bill No. 981
2897		-
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2902		-
2903		-	apprentice toward completion of such program, and (B) awarded upon 1947
2904		-	completion and notification of completion of such program in the 1948
2905		-	income year in which such completion and notification occur, provided 1949
2906		-	the amount of credit allowed for such income year with respect to each 1950
2907		-	such apprentice may not exceed [four thousand] seven thousand five 1951
2908		-	hundred dollars or fifty per cent of actual wages paid over the first four 1952
2909		-	income years for such apprenticeship, whichever is less. 1953
2910		-	Sec. 15. Section 31-22r of the general statutes is repealed and the 1954
2911		-	following is substituted in lieu thereof (Effective January 1, 2024): 1955
2912		-	(a) (1) Each person who registered as an apprentice with the Labor 1956
2913		-	Department before July 1, 2003, and has no t completed an 1957
2914		-	apprenticeship as of July 9, 2003, shall pay to the Labor Department a 1958
2915		-	registration fee of twenty-five dollars on or before July 1, 2003, and a 1959
2916		-	renewal registration fee of twenty-five dollars on or before July first of 1960
2917		-	each subsequent year until (A) such registration is withdrawn, or (B) 1961
2918		-	such person has completed an apprenticeship and possesses a valid 1962
2919		-	journeyperson card of occupational license, if required. 1963
2920		-	(2) Each person who initially registers as an apprentice with the Labor 1964
2921		-	Department on or after July 1, 2003, shall pay to the Labor Department 1965
2922		-	a registration fee of fifty dollars at the time of registration and an annual 1966
2923		-	renewal registration fee of fifty dollars until (A) such registration is 1967
2924		-	withdrawn, or (B) such person has completed an apprenticeship and 1968
2925		-	possesses a valid journeyperson card of occupational license, if 1969
2926		-	required. 1970
2927		-	(b) Each person sponsoring an apprenticeship program registered 1971
2928		-	with the Labor Department as of July 1, 2003, shall pay to the Labor 1972
2929		-	Department an annual registration fee of sixty dollars for each 1973
2930		-	apprentice participating in such program until the apprentice has 1974
2931		-	completed the apprenticeship and possesses a valid journeyperson card 1975
2932		-	of occupational license, if required, or such program is cancelled by the 1976
2933		-	sponsor or deregistered for cause by the Labor Department in 1977
2934		-	accordance with regulations adopted pursuant to this chapter, 1978 Substitute Bill No. 981
2935		-
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2940		-
2941		-	whichever is earlier. 1979
2942		-	(c) Each person sponsoring an apprenticeship program registered 1980
2943		-	with the Labor Department as of July 1, 2024, shall annually submit the 1981
2944		-	following information along with such sponsor's annual registration fee: 1982
2945		-	(1) The current minimum completion rate of such sponsor's 1983
2946		-	apprenticeship program, (2) the number of registered apprentices 1984
2947		-	currently participating in such sponsor's program, (3) the number of 1985
2948		-	licensed journeypersons currently employed by such sponsor, (4) the 1986
2949		-	number of registered apprentices participating in such program who 1987
2950		-	have advanced a year since the date of such sponsor's previous 1988
2951		-	registration, or year to date for new sponsors, (5) the number of 1989
2952		-	apprentices who have separated from such sponsor's program since the 1990
2953		-	date of such sponsor's previous registration, or year to date for new 1991
2954		-	sponsors, (6) the number of apprentices who have completed an 1992
2955		-	apprenticeship program with such sponsor since the date of such 1993
2956		-	sponsor's previous registration, or year to date for new sponsors, and 1994
2957		-	(7) the number of apprentices who completed such sponsor's program 1995
2958		-	who have been issued an occupational license by the Department of 1996
2959		-	Consumer Protection and are currently employed by such sponsor. All 1997
2960		-	information shall be submitted in a form and manner as prescribed by 1998
2961		-	the commissioner and disaggregated by gender identity, race and 1999
2962		-	ethnicity. Notwithstanding the provisions of section 1-210, such 2000
2963		-	information provided by a sponsor shall be considered a public record 2001
2964		-	and all persons shall have the right to inspect and copy such records in 2002
2965		-	accordance with the provisions of section 1-212. 2003
2966		-	[(c)] (d) Fifty per cent of any amount collected by the Labor 2004
2967		-	Department pursuant to this section shall be deposited in the General 2005
2968		-	Fund and fifty per cent of such amount shall be credited to a separate 2006
2969		-	nonlapsing appropriation to the Labor Department, for the purpose of 2007
2970		-	administering the department's apprentice training program and 2008
2971		-	sections 31-22m to 31-22p, inclusive. 2009
2972		-	Sec. 16. Subdivision (1) of section 12-408 of the general statutes is 2010
2973		-	repealed and the following is substituted in lieu thereof (Effective July 1, 2011 Substitute Bill No. 981
2974		-
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2979		-
2980		-	2023, and applicable to sales occurring on or after July 1, 2023): 2012
2981		-	(1) (A) For the privilege of making any sales, as defined in 2013
2982		-	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 2014
2983		-	for a consideration, a tax is hereby imposed on all retailers at the rate of 2015
2984		-	six and thirty-five-hundredths per cent of the gross receipts of any 2016
2985		-	retailer from the sale of all tangible personal property sold at retail or 2017
2986		-	from the rendering of any services constituting a sale in accordance with 2018
2987		-	subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 2019
2988		-	rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 2020
2989		-	subdivision; 2021
2990		-	(B) (i) At a rate of fifteen per cent with respect to each transfer of 2022
2991		-	occupancy, from the total amount of rent received by a hotel or lodging 2023
2992		-	house for the first period not exceeding thirty consecutive calendar 2024
2993		-	days; 2025
2994		-	(ii) At a rate of eleven per cent with respect to each transfer of 2026
2995		-	occupancy, from the total amount of rent received by a bed and 2027
2996		-	breakfast establishment for the first period not exceeding thirty 2028
2997		-	consecutive calendar days; 2029
2998		-	(C) With respect to the sale of a motor vehicle to any individual who 2030
2999		-	is a member of the armed forces of the United States and is on full-time 2031
3000		-	active duty in Connecticut and who is considered, under 50 App USC 2032
3001		-	574, a resident of another state, or to any such individual and the spouse 2033
3002		-	thereof, at a rate of four and one-half per cent of the gross receipts of any 2034
3003		-	retailer from such sales, provided such retailer requires and maintains a 2035
3004		-	declaration by such individual, prescribed as to form by the 2036
3005		-	commissioner and bearing notice to the effect that false statements made 2037
3006		-	in such declaration are punishable, or other evidence, satisfactory to the 2038
3007		-	commissioner, concerning the purchaser's state of residence under 50 2039
3008		-	App USC 574; 2040
3009		-	(D) (i) With respect to the sales of computer and data processing 2041
3010		-	services occurring on or after July 1, 2001, at the rate of one per cent, and 2042 Substitute Bill No. 981
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3016		-
3017		-	(ii) with respect to sales of Internet access services, on and after July 1, 2043
3018		-	2001, such services shall be exempt from such tax; 2044
3019		-	(E) (i) With respect to the sales of labor that is otherwise taxable under 2045
3020		-	subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 2046
3021		-	12-407 on existing vessels and repair or maintenance services on vessels 2047
3022		-	occurring on and after July 1, 1999, such services shall be exempt from 2048
3023		-	such tax; 2049
3024		-	(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 2050
3025		-	used for transporting a vessel, at the rate of two and ninety-nine-2051
3026		-	hundredths per cent, except that the sale of a vessel shall be exempt from 2052
3027		-	such tax if such vessel is docked in this state for sixty or fewer days in a 2053
3028		-	calendar year; 2054
3029		-	(iii) With respect to the sale of dyed diesel fuel, as defined in 2055
3030		-	subsection (d) of section 12-487, sold by a marine fuel dock exclusively 2056
3031		-	for marine purposes, at the rate of two and ninety-nine-hundredths per 2057
3032		-	cent; 2058
3033		-	(F) With respect to patient care services for which payment is 2059
3034		-	received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 2060
3035		-	at the rate of five and three-fourths per cent and on and after July 1, 2001, 2061
3036		-	such services shall be exempt from such tax; 2062
3037		-	(G) With respect to the rental or leasing of a passenger motor vehicle 2063
3038		-	for a period of thirty consecutive calendar days or less, at a rate of nine 2064
3039		-	and thirty-five-hundredths per cent; 2065
3040		-	(H) With respect to the sale of (i) a motor vehicle for a sales price 2066
3041		-	exceeding fifty thousand dollars, at a rate of seven and three-fourths per 2067
3042		-	cent on the entire sales price, (ii) jewelry, whether real or imitation, for 2068
3043		-	a sales price exceeding five thousand dollars, at a rate of seven and 2069
3044		-	three-fourths per cent on the entire sales price, and (iii) an article of 2070
3045		-	clothing or footwear intended to be worn on or about the human body, 2071
3046		-	a handbag, luggage, umbrella, wallet or watch for a sales price 2072
3047		-	exceeding one thousand dollars, at a rate of seven and three-fourths per 2073 Substitute Bill No. 981
3048		-
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3053		-
3054		-	cent on the entire sales price. For purposes of this subparagraph, "motor 2074
3055		-	vehicle" has the meaning provided in section 14-1, but does not include 2075
3056		-	a motor vehicle subject to the provisions of subparagraph (C) of this 2076
3057		-	subdivision, a motor vehicle having a gross vehicle weight rating over 2077
3058		-	twelve thousand five hundred pounds, or a motor vehicle having a 2078
3059		-	gross vehicle weight rating of twelve thousand five hundred pounds or 2079
3060		-	less that is not used for private passenger purposes, but is designed or 2080
3061		-	used to transport merchandise, freight or persons in connection with 2081
3062		-	any business enterprise and issued a commercial registration or more 2082
3063		-	specific type of registration by the Department of Motor Vehicles; 2083
3064		-	(I) With respect to the sale of meals, as defined in subdivision (13) of 2084
3065		-	section 12-412, sold by an eating establishment, caterer or grocery store; 2085
3066		-	and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 2086
3067		-	such as are ordinarily dispensed at bars and soda fountains, or in 2087
3068		-	connection therewith; in addition to the tax imposed under 2088
3069		-	subparagraph (A) of this subdivision, at the rate of one per cent; 2089
3070		-	(J) The rate of tax imposed by this chapter shall be applicable to all 2090
3071		-	retail sales upon the effective date of such rate, except that a new rate 2091
3072		-	that represents an increase in the rate applicable to the sale shall not 2092
3073		-	apply to any sales transaction wherein a binding sales contract without 2093
3074		-	an escalator clause has been entered into prior to the effective date of the 2094
3075		-	new rate and delivery is made within ninety days after the effective date 2095
3076		-	of the new rate. For the purposes of payment of the tax imposed under 2096
3077		-	this section, any retailer of services taxable under subdivision (37) of 2097
3078		-	subsection (a) of section 12-407, as amended by this act, who computes 2098
3079		-	taxable income, for purposes of taxation under the Internal Revenue 2099
3080		-	Code of 1986, or any subsequent corresponding internal revenue code 2100
3081		-	of the United States, as amended from time to time, on an accounting 2101
3082		-	basis that recognizes only cash or other valuable consideration actually 2102
3083		-	received as income and who is liable for such tax only due to the 2103
3084		-	rendering of such services may make payments related to such tax for 2104
3085		-	the period during which such income is received, without penalty or 2105
3086		-	interest, without regard to when such service is rendered; 2106 Substitute Bill No. 981
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3092		-
3093		-	(K) (i) For calendar quarters ending on or after September 30, 2019, 2107
3094		-	the commissioner shall deposit into the regional planning incentive 2108
3095		-	account, established pursuant to section 4-66k, six and seven-tenths per 2109
3096		-	cent of the amounts received by the state from the tax imposed under 2110
3097		-	subparagraph (B) of this subdivision and ten and seven-tenths per cent 2111
3098		-	of the amounts received by the state from the tax imposed under 2112
3099		-	subparagraph (G) of this subdivision; 2113
3100		-	(ii) For calendar quarters ending on or after September 30, 2018, the 2114
3101		-	commissioner shall deposit into the Tourism Fund established under 2115
3102		-	section 10-395b ten per cent of the amounts received by the state from 2116
3103		-	the tax imposed under subparagraph (B) of this subdivision; 2117
3104		-	(L) For calendar months commencing on or after July 1, 2021, the 2118
3105		-	commissioner shall deposit into the municipal revenue sharing account 2119
3106		-	established pursuant to section 4-66l seven and nine-tenths per cent of 2120
3107		-	the amounts received by the state from the tax imposed under 2121
3108		-	subparagraph (A) of this subdivision; [and] 2122
3109		-	(M) (i) For calendar months commencing on or after July 1, 2017, the 2123
3110		-	commissioner shall deposit into the Special Transportation Fund 2124
3111		-	established under section 13b-68 seven and nine-tenths per cent of the 2125
3112		-	amounts received by the state from the tax imposed under 2126
3113		-	subparagraph (A) of this subdivision; 2127
3114		-	(ii) For calendar months commencing on or after July 1, 2018, but 2128
3115		-	prior to July 1, 2019, the commissioner shall deposit into the Special 2129
3116		-	Transportation Fund established under section 13b-68 eight per cent of 2130
3117		-	the amounts received by the state from the tax imposed under 2131
3118		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 2132
3119		-	vehicle; 2133
3120		-	(iii) For calendar months commencing on or after July 1, 2019, but 2134
3121		-	prior to July 1, 2020, the commissioner shall deposit into the Special 2135
3122		-	Transportation Fund established under section 13b-68 seventeen per 2136
3123		-	cent of the amounts received by the state from the tax imposed under 2137 Substitute Bill No. 981
3124		-
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3129		-
3130		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 2138
3131		-	vehicle; 2139
3132		-	(iv) For calendar months commencing on or after July 1, 2020, but 2140
3133		-	prior to July 1, 2021, the commissioner shall deposit into the Special 2141
3134		-	Transportation Fund established under section 13b-68 twenty-five per 2142
3135		-	cent of the amounts received by the state from the tax imposed under 2143
3136		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 2144
3137		-	vehicle; 2145
3138		-	(v) For calendar months commencing on or after July 1, 2021, but 2146
3139		-	prior to July 1, 2022, the commissioner shall deposit into the Special 2147
3140		-	Transportation Fund established under section 13b-68 seventy-five per 2148
3141		-	cent of the amounts received by the state from the tax imposed under 2149
3142		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 2150
3143		-	vehicle; and 2151
3144		-	(vi) For calendar months commencing on or after July 1, 2022, the 2152
3145		-	commissioner shall deposit into the Special Transportation Fund 2153
3146		-	established under section 13b-68 one hundred per cent of the amounts 2154
3147		-	received by the state from the tax imposed under subparagraphs (A) 2155
3148		-	and (H) of this subdivision on the sale of a motor vehicle; and 2156
3149		-	(N) For calendar months commencing on or after July 1, 2023, the 2157
3150		-	commissioner shall deposit the following percentages of the amounts 2158
3151		-	received by the state from the tax imposed under subparagraph (I) of 2159
3152		-	this subdivision: (i) Fifty per cent into the municipal host grants account 2160
3153		-	established under section 18 of this act; (ii) twenty-five per cent into the 2161
3154		-	arts, culture and tourism account established under section 19 of this 2162
3155		-	act; and (iii) twenty-five per cent into the municipal needs capacity 2163
3156		-	account established under section 20 of this act. 2164
3157		-	Sec. 17. Subdivision (1) of section 12-411 of the general statutes is 2165
3158		-	repealed and the following is substituted in lieu thereof (Effective July 1, 2166
3159		-	2023, and applicable to sales occurring on or after July 1, 2023): 2167
3160		-	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 2168 Substitute Bill No. 981
3161		-
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3166		-
3167		-	consumption or any other use in this state of tangible personal property 2169
3168		-	purchased from any retailer for storage, acceptance, consumption or any 2170
3169		-	other use in this state, the acceptance or receipt of any services 2171
3170		-	constituting a sale in accordance with subdivision (2) of subsection (a) 2172
3171		-	of section 12-407, purchased from any retailer for consumption or use in 2173
3172		-	this state, or the storage, acceptance, consumption or any other use in 2174
3173		-	this state of tangible personal property which has been manufactured, 2175
3174		-	fabricated, assembled or processed from materials by a person, either 2176
3175		-	within or without this state, for storage, acceptance, consumption or any 2177
3176		-	other use by such person in this state, to be measured by the sales price 2178
3177		-	of materials, at the rate of six and thirty-five-hundredths per cent of the 2179
3178		-	sales price of such property or services, except, in lieu of said rate: 2180
3179		-	(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 2181
3180		-	house for the first period not exceeding thirty consecutive calendar 2182
3181		-	days; 2183
3182		-	(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 2184
3183		-	establishment for the first period not exceeding thirty consecutive 2185
3184		-	calendar days; 2186
3185		-	(C) With respect to the storage, acceptance, consumption or use in 2187
3186		-	this state of a motor vehicle purchased from any retailer for storage, 2188
3187		-	acceptance, consumption or use in this state by any individual who is a 2189
3188		-	member of the armed forces of the United States and is on full-time 2190
3189		-	active duty in Connecticut and who is considered, under 50 App USC 2191
3190		-	574, a resident of another state, or to any such individual and the spouse 2192
3191		-	of such individual at a rate of four and one-half per cent of the sales price 2193
3192		-	of such vehicle, provided such retailer requires and maintains a 2194
3193		-	declaration by such individual, prescribed as to form by the 2195
3194		-	commissioner and bearing notice to the effect that false statements made 2196
3195		-	in such declaration are punishable, or other evidence, satisfactory to the 2197
3196		-	commissioner, concerning the purchaser's state of residence under 50 2198
3197		-	App USC 574; 2199
3198		-	(D) (i) With respect to the acceptance or receipt in this state of labor 2200 Substitute Bill No. 981
3199		-
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3204		-
3205		-	that is otherwise taxable under subparagraph (C) or (G) of subdivision 2201
3206		-	(2) of subsection (a) of section 12-407 on existing vessels and repair or 2202
3207		-	maintenance services on vessels occurring on and after July 1, 1999, such 2203
3208		-	services shall be exempt from such tax; 2204
3209		-	(ii) (I) With respect to the storage, acceptance or other use of a vessel 2205
3210		-	in this state, at the rate of two and ninety-nine-hundredths per cent, 2206
3211		-	except that such storage, acceptance or other use shall be exempt from 2207
3212		-	such tax if such vessel is docked in this state for sixty or fewer days in a 2208
3213		-	calendar year; 2209
3214		-	(II) With respect to the storage, acceptance or other use of a motor for 2210
3215		-	a vessel or a trailer used for transporting a vessel in this state, at the rate 2211
3216		-	of two and ninety-nine-hundredths per cent; 2212
3217		-	(III) With respect to the storage, acceptance or other use of dyed diesel 2213
3218		-	fuel, as defined in subsection (d) of section 12-487, exclusively for 2214
3219		-	marine purposes, at the rate of two and ninety-nine-hundredths per 2215
3220		-	cent; 2216
3221		-	(E) (i) With respect to the acceptance or receipt in this state of 2217
3222		-	computer and data processing services purchased from any retailer for 2218
3223		-	consumption or use in this state occurring on or after July 1, 2001, at the 2219
3224		-	rate of one per cent of such services, and (ii) with respect to the 2220
3225		-	acceptance or receipt in this state of Internet access services, on and after 2221
3226		-	July 1, 2001, such services shall be exempt from such tax; 2222
3227		-	(F) With respect to the acceptance or receipt in this state of patient 2223
3228		-	care services purchased from any retailer for consumption or use in this 2224
3229		-	state for which payment is received by the hospital on or after July 1, 2225
3230		-	1999, and prior to July 1, 2001, at the rate of five and three-fourths per 2226
3231		-	cent and on and after July 1, 2001, such services shall be exempt from 2227
3232		-	such tax; 2228
3233		-	(G) With respect to the rental or leasing of a passenger motor vehicle 2229
3234		-	for a period of thirty consecutive calendar days or less, at a rate of nine 2230
3235		-	and thirty-five-hundredths per cent; 2231 Substitute Bill No. 981
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3241		-
3242		-	(H) With respect to the acceptance or receipt in this state of (i) a motor 2232
3243		-	vehicle for a sales price exceeding fifty thousand dollars, at a rate of 2233
3244		-	seven and three-fourths per cent on the entire sales price, (ii) jewelry, 2234
3245		-	whether real or imitation, for a sales price exceeding five thousand 2235
3246		-	dollars, at a rate of seven and three-fourths per cent on the entire sales 2236
3247		-	price, and (iii) an article of clothing or footwear intended to be worn on 2237
3248		-	or about the human body, a handbag, luggage, umbrella, wallet or 2238
3249		-	watch for a sales price exceeding one thousand dollars, at a rate of seven 2239
3250		-	and three-fourths per cent on the entire sales price. For purposes of this 2240
3251		-	subparagraph, "motor vehicle" has the meaning provided in section 14-2241
3252		-	1, but does not include a motor vehicle subject to the provisions of 2242
3253		-	subparagraph (C) of this subdivision, a motor vehicle having a gross 2243
3254		-	vehicle weight rating over twelve thousand five hundred pounds, or a 2244
3255		-	motor vehicle having a gross vehicle weight rating of twelve thousand 2245
3256		-	five hundred pounds or less that is not used for private passenger 2246
3257		-	purposes, but is designed or used to transport merchandise, freight or 2247
3258		-	persons in connection with any business enterprise and issued a 2248
3259		-	commercial registration or more specific type of registration by the 2249
3260		-	Department of Motor Vehicles; 2250
3261		-	(I) With respect to the acceptance or receipt in this state of meals, as 2251
3262		-	defined in subdivision (13) of section 12-412, sold by an eating 2252
3263		-	establishment, caterer or grocery store; and spirituous, malt or vinous 2253
3264		-	liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 2254
3265		-	at bars and soda fountains, or in connection therewith; in addition to the 2255
3266		-	tax imposed under subparagraph (A) of this subdivision, at the rate of 2256
3267		-	one per cent; 2257
3268		-	(J) (i) For calendar quarters ending on or after September 30, 2019, the 2258
3269		-	commissioner shall deposit into the regional planning incentive 2259
3270		-	account, established pursuant to section 4-66k, six and seven-tenths per 2260
3271		-	cent of the amounts received by the state from the tax imposed under 2261
3272		-	subparagraph (B) of this subdivision and ten and seven-tenths per cent 2262
3273		-	of the amounts received by the state from the tax imposed under 2263
3274		-	subparagraph (G) of this subdivision; 2264 Substitute Bill No. 981
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3280		-
3281		-	(ii) For calendar quarters ending on or after September 30, 2018, the 2265
3282		-	commissioner shall deposit into the Tourism Fund established under 2266
3283		-	section 10-395b ten per cent of the amounts received by the state from 2267
3284		-	the tax imposed under subparagraph (B) of this subdivision; 2268
3285		-	(K) For calendar months commencing on or after July 1, 2021, the 2269
3286		-	commissioner shall deposit into said municipal revenue sharing account 2270
3287		-	seven and nine-tenths per cent of the amounts received by the state from 2271
3288		-	the tax imposed under subparagraph (A) of this subdivision; [and] 2272
3289		-	(L) (i) For calendar months commencing on or after July 1, 2017, the 2273
3290		-	commissioner shall deposit into said Special Transportation Fund seven 2274
3291		-	and nine-tenths per cent of the amounts received by the state from the 2275
3292		-	tax imposed under subparagraph (A) of this subdivision; 2276
3293		-	(ii) For calendar months commencing on or after July 1, 2018, but 2277
3294		-	prior to July 1, 2019, the commissioner shall deposit into the Special 2278
3295		-	Transportation Fund established under section 13b-68 eight per cent of 2279
3296		-	the amounts received by the state from the tax imposed under 2280
3297		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 2281
3298		-	receipt in this state of a motor vehicle; 2282
3299		-	(iii) For calendar months commencing on or after July 1, 2019, but 2283
3300		-	prior to July 1, 2020, the commissioner shall deposit into the Special 2284
3301		-	Transportation Fund established under section 13b-68 seventeen per 2285
3302		-	cent of the amounts received by the state from the tax imposed under 2286
3303		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 2287
3304		-	receipt in this state of a motor vehicle; 2288
3305		-	(iv) For calendar months commencing on or after July 1, 2020, but 2289
3306		-	prior to July 1, 2021, the commissioner shall deposit into the Special 2290
3307		-	Transportation Fund established under section 13b-68 twenty-five per 2291
3308		-	cent of the amounts received by the state from the tax imposed under 2292
3309		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 2293
3310		-	receipt in this state of a motor vehicle; 2294
3311		-	(v) For calendar months commencing on or after July 1, 2021, but 2295 Substitute Bill No. 981
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3317		-
3318		-	prior to July 1, 2022, the commissioner shall deposit into the Special 2296
3319		-	Transportation Fund established under section 13b-68 seventy-five per 2297
3320		-	cent of the amounts received by the state from the tax imposed under 2298
3321		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 2299
3322		-	receipt in this state of a motor vehicle; and 2300
3323		-	(vi) For calendar months commencing on or after July 1, 2022, the 2301
3324		-	commissioner shall deposit into the Special Transportation Fund 2302
3325		-	established under section 13b-68 one hundred per cent of the amounts 2303
3326		-	received by the state from the tax imposed under subparagraphs (A) 2304
3327		-	and (H) of this subdivision on the acceptance or receipt in this state of a 2305
3328		-	motor vehicle; and 2306
3329		-	(M) For calendar months commencing on or after July 1, 2023, the 2307
3330		-	commissioner shall deposit the following percentages of the amount 2308
3331		-	received by the state from the tax imposed under subparagraph (I) of 2309
3332		-	this subdivision: (i) Fifty per cent into the municipal host grants account 2310
3333		-	established under section 18 of this act; (ii) twenty-five per cent into the 2311
3334		-	arts, culture and tourism account established under section 19 of this 2312
3335		-	act; and (iii) twenty-five per cent into the municipal needs capacity 2313
3336		-	account established under section 20 of this act. 2314
3337		-	Sec. 18. (NEW) (Effective July 1, 2023) There is established an account 2315
3338		-	to be known as the "municipal host grants account" which shall be a 2316
3339		-	separate, nonlapsing account within the General Fund. The account 2317
3340		-	shall contain any moneys required by law to be deposited in the account. 2318
3341		-	Moneys in the account shall be expended by the Office of Policy and 2319
3342		-	Management for the purpose of distributing funds to municipalities in 2320
3343		-	which businesses that have remitted the tax under subparagraph (I) of 2321
3344		-	subdivision (1) of section 12-408 of the general statutes, as amended by 2322
3345		-	this act, and subparagraph (I) of subdivision (1) of section 12-411 of the 2323
3346		-	general statutes, as amended by this act, are located. 2324
3347		-	Sec. 19. (NEW) (Effective July 1, 2023) There is established an account 2325
3348		-	to be known as the "arts, culture and tourism account" which shall be a 2326
3349		-	separate, nonlapsing account within the General Fund. The account 2327 Substitute Bill No. 981
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3355		-
3356		-	shall contain any moneys required by law to be deposited in the account. 2328
3357		-	Moneys in the account shall be expended by the Department of 2329
3358		-	Economic and Community Development for the purpose of providing 2330
3359		-	arts, culture and tourism grants in accordance with the department's 2331
3360		-	duties under chapter 184b of the general statutes. 2332
3361		-	Sec. 20. (NEW) (Effective July 1, 2023) There is established an account 2333
3362		-	to be known as the "municipal needs capacity account" which shall be a 2334
3363		-	separate, nonlapsing account within the General Fund. The account 2335
3364		-	shall contain any moneys required by law to be deposited in the account. 2336
3365		-	Moneys in the account shall be expended by the Office of Policy and 2337
3366		-	Management for the purpose of distributing funds to municipalities 2338
3367		-	according to each municipality's municipal needs capacity gap metric, 2339
3368		-	as calculated by the Secretary of the Office of Policy and Management 2340
3369		-	in accordance with the methodologies used in the May, 2015 New 2341
3370		-	England Public Policy Center Research Report 15-1. 2342
3371		-	Sec. 21. (NEW) (Effective from passage) (a) Commencing July 1, 2023, 2343
3372		-	the Commissioner of Revenue Services shall track and record the source 2344
3373		-	of the revenue received by the state each fiscal year from the tax 2345
3374		-	imposed under chapters 208, 219 and 229 of the general statutes, for the 2346
3375		-	purpose of accurately and fairly attributing to each municipality 2347
3376		-	revenue received from each such tax. The commissioner shall determine 2348
3377		-	the sourcing method for the revenue from the tax imposed under 2349
3378		-	chapters 208 and 219 of the general statutes, provided such revenue is 2350
3379		-	sourced to each municipality in which the taxpayer has an office or 2351
3380		-	facility in the state. The revenue from the tax imposed under chapter 229 2352
3381		-	of the general statutes shall be sourced to the municipality in which the 2353
3382		-	employer's office or facility is located, for the employees who work 2354
3383		-	primarily at such location. Taxpayers paying a tax specified in this 2355
3384		-	subsection shall provide disaggregated information and such other data 2356
3385		-	the commissioner requests to carry out the provisions of this section. On 2357
3386		-	or before June 30, 2024, and annually thereafter, the commissioner shall 2358
3387		-	post on the Department of Revenue Service's Internet web site a list of 2359
3388		-	all municipalities and the amount of revenue from each such tax 2360 Substitute Bill No. 981
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3394		-
3395		-	attributed to the municipality for the applicable fiscal year. 2361
3396		-	(b) (1) Prior to July 1, 2023, and annually thereafter, the Secretary of 2362
3397		-	the Office of Policy and Management shall calculate, based on the 2363
3398		-	statement of estimated revenue supplied by the joint standing 2364
3399		-	committee of the General Assembly having cognizance of matters 2365
3400		-	relating to state finance, revenue and bonding pursuant to subsection 2366
3401		-	(b) of section 2-35 of the general statutes, growth rate projections on a 2367
3402		-	municipal basis for each tax specified in subsection (a) of this section. 2368
3403		-	(2) On or before January 1, 2024, and annually thereafter, the 2369
3404		-	secretary shall calculate and post on the Office of Policy and 2370
3405		-	Management's Internet web site a municipal needs capacity gap metric 2371
3406		-	for each municipality. Such metric shall be calculated in accordance with 2372
3407		-	the methodologies used in the May, 2015 New England Public Policy 2373
3408		-	Center Research Report 15-1. 2374
3409		-	(c) There is established an account to be known as the "municipal tax 2375
3410		-	revenue account" which shall be a separate, nonlapsing account within 2376
3411		-	the General Fund. The account shall contain any moneys required by 2377
3412		-	law to be deposited in the account. Moneys in the account shall be 2378
3413		-	expended by the Secretary of the Office of Policy and Management for 2379
3414		-	the purposes of this section. 2380
3415		-	(d) Commencing with the fiscal year ending June 30, 2025, and each 2381
3416		-	fiscal year thereafter, the Comptroller shall transfer from the General 2382
3417		-	Fund to the municipal tax revenue account, established under 2383
3418		-	subsection (c) of this section, any amount of each tax set forth in 2384
3419		-	subsection (a) of this section that exceeds the projected growth rate 2385
3420		-	calculated for such tax pursuant to subdivision (1) of subsection (b) of 2386
3421		-	this section. 2387
3422		-	(e) (1) When the amount in the municipal tax revenue account reaches 2388
3423		-	forty million dollars, the Secretary of the Office of Policy and 2389
3424		-	Management shall commence disbursing grants to municipalities on an 2390
3425		-	annual basis in accordance with the provisions of this subsection, 2391 Substitute Bill No. 981
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3431		-
3432		-	provided the balance in the account may not fall below twenty million 2392
3433		-	dollars. 2393
3434		-	(2) The secretary shall calculate, for each municipality for which the 2394
3435		-	Commissioner of Revenue Services has attributed tax revenue under 2395
3436		-	subsection (a) of this section, the portion of the excess revenue deposited 2396
3437		-	in the account from each tax that is attributable to such municipality. 2397
3438		-	Each such municipality shall receive a grant of sixty per cent of such 2398
3439		-	portion. 2399
3440		-	(3) If any funds in the account remain available for disbursement after 2400
3441		-	the grants under subdivision (2) of this subsection have been paid for 2401
3442		-	the fiscal year, the Secretary of the Office of Policy and Management 2402
3443		-	shall distribute additional grants proportionately to municipalities for 2403
3444		-	which the secretary has calculated a positive gap metric under 2404
3445		-	subdivision (2) of subsection (b) of this section. 2405
3446		-	Sec. 22. (Effective from passage) (a) For each of the fiscal years ending 2406
3447		-	June 30, 2023, and June 30, 2024, up to three hundred million dollars of 2407
3448		-	the resources of the General Fund that exceed the statement of estimated 2408
3449		-	revenue supplied by the joint standing committee of the General 2409
3450		-	Assembly having cognizance of matters relating to state finance, 2410
3451		-	revenue and bonding pursuant to subsection (b) of section 2-35 of the 2411
3452		-	general statutes shall be transferred to the supplemental grants in lieu 2412
3453		-	of taxes account established under subsection (b) of this section. 2413
3454		-	(b) There is established an account to be known as the "supplemental 2414
3455		-	grants in lieu of taxes account" which shall be a separate, nonlapsing 2415
3456		-	account within the General Fund. The account shall contain any moneys 2416
3457		-	required by law to be deposited in the account. Moneys in the account 2417
3458		-	shall be expended by the Secretary of the Office of Policy and 2418
3459		-	Management for the purposes of paying the grants under section 12-18b 2419
3460		-	of the general statutes. 2420
3461		-	Sec. 23. Subdivision (4) of subsection (a) of section 12-217 of the 2421
3462		-	general statutes is repealed and the following is substituted in lieu 2422 Substitute Bill No. 981
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3468		-
3469		-	thereof (Effective October 1, 2023): 2423
3470		-	(4) Notwithstanding any provision of this section: [to the contrary,] 2424
3471		-	(A) [any] Any excess of the deductions provided in this section for 2425
3472		-	any income year commencing on or after January 1, 1973, over the gross 2426
3473		-	income for such year or the amount of such excess apportioned to this 2427
3474		-	state under the provisions of this chapter, shall be an operating loss of 2428
3475		-	such income year and shall be deductible as an operating loss carry-over 2429
3476		-	for operating losses incurred prior to income years commencing January 2430
3477		-	1, 2000, in each of the five income years following such loss year; [, and] 2431
3478		-	for operating losses incurred in income years commencing on or after 2432
3479		-	January 1, 2000, and prior to January 1, 2015, in each of the twenty 2433
3480		-	income years following such loss year; [,] and for operating losses 2434
3481		-	incurred in income years commencing on or after January 1, 2015, in 2435
3482		-	each of the thirty income years following such loss year; except that: 2436
3483		-	(i) [for] For income years commencing prior to January 1, 2015, the 2437
3484		-	portion of such operating loss [which] that may be deducted as an 2438
3485		-	operating loss carry-over in any income year following such loss year 2439
3486		-	shall be limited to the lesser of (I) any net income greater than zero of 2440
3487		-	such income year following such loss year, or in the case of a company 2441
3488		-	entitled to apportion its net income under the provisions of this chapter, 2442
3489		-	the amount of such net income [which] that is apportioned to this state 2443
3490		-	pursuant thereto, or (II) the excess, if any, of such operating loss over 2444
3491		-	the total of such net income for each of any prior income years following 2445
3492		-	such loss year, such net income of each of such prior income years 2446
3493		-	following such loss year for such purposes being computed without 2447
3494		-	regard to any operating loss carry-over from such loss year allowed 2448
3495		-	under this subparagraph and being regarded as not less than zero, and 2449
3496		-	provided further the operating loss of any income year shall be 2450
3497		-	deducted in any subsequent year, to the extent available for such 2451
3498		-	deduction, before the operating loss of any subsequent income year is 2452
3499		-	deducted; [,] 2453
3500		-	(ii) [for] For income years commencing on or after January 1, 2015, 2454 Substitute Bill No. 981
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3506		-
3507		-	the portion of such operating loss [which] that may be deducted as an 2455
3508		-	operating loss carry-over in any income year following such loss year 2456
3509		-	shall be limited to the lesser of (I) fifty per cent of net income of such 2457
3510		-	income year following such loss year, or in the case of a company 2458
3511		-	entitled to apportion its net income under the provisions of this chapter, 2459
3512		-	fifty per cent of such net income [which] that is apportioned to this state 2460
3513		-	pursuant thereto, or (II) the excess, if any, of such operating loss over 2461
3514		-	the operating loss deductions allowable with respect to such operating 2462
3515		-	loss under this subparagraph for each of any prior income years 2463
3516		-	following such loss year, such net income of each of such prior income 2464
3517		-	years following such loss year for such purposes being computed 2465
3518		-	without regard to any operating loss carry-over from such loss year 2466
3519		-	allowed under this subparagraph and being regarded as not less than 2467
3520		-	zero, and provided further the operating loss of any income year shall 2468
3521		-	be deducted in any subsequent year, to the extent available for such 2469
3522		-	deduction, before the operating loss of any subsequent income year is 2470
3523		-	deducted; [,] and 2471
3524		-	(iii) [if] If a combined group so elects, the combined group shall 2472
3525		-	relinquish fifty per cent of its unused operating losses incurred prior to 2473
3526		-	the income year commencing on or after January 1, 2015, and before 2474
3527		-	January 1, 2016, and may utilize the remaining operating loss carry-over 2475
3528		-	without regard to the limitations prescribed in subparagraph (A)(ii) of 2476
3529		-	this subdivision. The portion of such operating loss carry-over that may 2477
3530		-	be deducted shall be limited to the amount required to reduce a 2478
3531		-	combined group's tax under this chapter, prior to surtax and prior to the 2479
3532		-	application of credits, to two million five hundred thousand dollars in 2480
3533		-	any income year commencing on or after January 1, 2015. Only after the 2481
3534		-	combined group's remaining operating loss carry-over for operating 2482
3535		-	losses incurred prior to income years commencing January 1, 2015, has 2483
3536		-	been fully utilized, will the limitations prescribed in subparagraph 2484
3537		-	(A)(ii) of this subdivision apply. The combined group, or any member 2485
3538		-	thereof, shall make such election on its return for the income year 2486
3539		-	beginning on or after January 1, 2015, and before January 1, 2016, by the 2487
3540		-	due date for such return, including any extensions. Only combined 2488 Substitute Bill No. 981
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3546		-
3547		-	groups with unused operating losses in excess of six billion dollars from 2489
3548		-	income years beginning prior to January 1, 2013, may make the election 2490
3549		-	prescribed in this clause; [,] and 2491
3550		-	(B) [any] Any net capital loss, as defined in the Internal Revenue Code 2492
3551		-	effective and in force on the last day of the income year, for any income 2493
3552		-	year commencing on or after January 1, 1973, shall be allowed as a 2494
3553		-	capital loss carry-over to reduce, but not below zero, any net capital 2495
3554		-	gain, as so defined, in each of the five following income years, in order 2496
3555		-	of sequence, to the extent not exhausted by the net capital gain of any of 2497
3556		-	the preceding of such five following income years; [,] and 2498
3557		-	(C) [any] Any net capital losses allowed and carried forward from 2499
3558		-	prior years to income years beginning on or after January 1, 1973, for 2500
3559		-	federal income tax purposes by companies entitled to a deduction for 2501
3560		-	dividends paid under the Internal Revenue Code other than companies 2502
3561		-	subject to the gross earnings taxes imposed under chapters 211 and 212, 2503
3562		-	shall be allowed as a capital loss carry-over. 2504
3563		-	Sec. 24. Section 12-217w of the general statutes is repealed and the 2505
3564		-	following is substituted in lieu thereof (Effective January 1, 2024): 2506
3565		-	(a) For purposes of this section: [, "fixed capital"] 2507
3566		-	(1) "Fixed capital" means tangible personal property [which (1)] that 2508
3567		-	(A) has a class life, in years, of more than four years, as described in 2509
3568		-	Section 168(e) of the Internal Revenue Code of 1986, or any subsequent 2510
3569		-	corresponding internal revenue code of the United States, as amended 2511
3570		-	from time to time, [amended, (2)] (B) is acquired by purchase from a 2512
3571		-	person other than a related person, [(3)] (C) is not acquired to be leased, 2513
3572		-	and is not leased, to another person or persons during the twelve full 2514
3573		-	months following its acquisition, and [(4)] (D) will be held and used in 2515
3574		-	this state by (i) for purposes of subdivision (1) of subsection (b) of this 2516
3575		-	section, a corporation in the ordinary course of the corporation's trade 2517
3576		-	or business in this state for not less than five full years following its 2518
3577		-	acquisition, or (ii) for purposes of subdivision (2) of subsection (b) of this 2519 Substitute Bill No. 981
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3583		-
3584		-	section, a limited liability company in the ordinary course of the limited 2520
3585		-	liability company's trade or business in this state for not less than five 2521
3586		-	full years following its acquisition. "Fixed capital" does not include 2522
3587		-	inventory, land, buildings or structures [,] or mobile transportation 2523
3588		-	property; [. With] 2524
3589		-	(2) "Related person" means, with respect to a corporation claiming a 2525
3590		-	credit under this section, [a "related person" means] (A) a corporation, 2526
3591		-	partnership, association or trust controlled by such corporation, [;] (B) 2527
3592		-	an individual, corporation, partnership, association or trust that is in 2528
3593		-	control of such corporation, [;] (C) a corporation, partnership, 2529
3594		-	association or trust controlled by an individual, corporation, 2530
3595		-	partnership, association or trust that is in control of such corporation, [;] 2531
3596		-	or (D) a member of the same controlled group as such corporation; [. For 2532
3597		-	purposes of this section, "control",] 2533
3598		-	(3) "Control" means (A) with respect to a corporation, [means] 2534
3599		-	ownership, directly or indirectly, of stock possessing fifty per cent or 2535
3600		-	more of the total combined voting power of all classes of the stock of 2536
3601		-	such corporation entitled to vote, [;] or (B) with respect to a trust, 2537
3602		-	[means] ownership, directly or indirectly, of fifty per cent or more of the 2538
3603		-	beneficial interest in the principal or income of such trust. The 2539
3604		-	ownership of stock in a corporation, of a capital or profits interest in a 2540
3605		-	partnership or association or of a beneficial interest in a trust shall be 2541
3606		-	determined in accordance with the rules for constructive ownership of 2542
3607		-	stock provided in Section 267(c) of the Internal Revenue Code of 1986, 2543
3608		-	or any subsequent corresponding internal revenue code of the United 2544
3609		-	States, as amended from time to time, [amended,] other than paragraph 2545
3610		-	(3) of [such] said section. 2546
3611		-	(b) (1) There shall be allowed a credit for any corporation against the 2547
3612		-	tax imposed under this chapter in an amount paid or incurred by such 2548
3613		-	corporation for any new fixed capital investment during the income 2549
3614		-	year in which such fixed capital is acquired as follows: For any income 2550
3615		-	year commencing on or after [January 1, 1998, and prior to January 1, 2551
3616		-	1999, equal to three per cent of such amount paid or incurred by the 2552 Substitute Bill No. 981
3617		-
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3622		-
3623		-	corporation during such income year; for any income year commencing 2553
3624		-	on or after] January 1, 1999, and prior to January 1, 2000, equal to four 2554
3625		-	per cent of such amount paid or incurred by the corporation during such 2555
3626		-	income year; and for any income year commencing on or after January 2556
3627		-	1, 2000, equal to five per cent of such amount paid or incurred by the 2557
3628		-	corporation during such income year. 2558
3629		-	(2) There shall be allowed an additional credit against the tax 2559
3630		-	imposed under this chapter for any corporation that owns at least eighty 2560
3631		-	per cent, directly or indirectly, of a limited liability company that is, for 2561
3632		-	federal income tax purposes, treated as a partnership or disregarded as 2562
3633		-	an entity separate from its owner, in an amount paid or incurred by such 2563
3634		-	limited liability company for any new fixed capital investment during 2564
3635		-	the income year in which such fixed capital is acquired as follows: For 2565
3636		-	any income year commencing on or after January 1, 2024, equal to five 2566
3637		-	per cent of such amount paid or incurred by the limited liability 2567
3638		-	company. 2568
3639		-	(c) The total amount of [such credit] the credits allowed to any 2569
3640		-	corporation under this section shall not exceed the amount of tax due 2570
3641		-	from such corporation under this chapter with respect to such income 2571
3642		-	year. 2572
3643		-	(d) No corporation claiming [the] a credit under this section and no 2573
3644		-	limited liability for which a corporation is claiming a credit under this 2574
3645		-	section, with respect to the acquisition of fixed capital, [as defined in 2575
3646		-	subsection (a) of this section,] may claim a credit against any tax under 2576
3647		-	any other provision of the general statutes with respect to the same 2577
3648		-	acquisition. 2578
3649		-	(e) Any tax credit not used in the income year during which the 2579
3650		-	acquisition was made may be carried forward for the five immediately 2580
3651		-	succeeding income years until the full credit has been allowed. 2581
3652		-	(f) If the fixed capital on account of which a corporation has claimed 2582
3653		-	the credit allowed by this section is not held and used in this state in the 2583 Substitute Bill No. 981
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3659		-
3660		-	ordinary course of the corporation's trade or business in this state for 2584
3661		-	three full years following its acquisition as provided in subsection (a) of 2585
3662		-	this section, the corporation shall recapture one hundred per cent of the 2586
3663		-	amount of the credit allowed under this section on its corporation 2587
3664		-	business tax return required to be filed for the income year immediately 2588
3665		-	succeeding the income year during which such three-year period 2589
3666		-	expires. If the fixed capital on account of which a corporation has 2590
3667		-	claimed the credit allowed by this section is not held and used in this 2591
3668		-	state in the ordinary course of the corporation's trade or business in this 2592
3669		-	state for five full years following its acquisition as provided in 2593
3670		-	subsection (a) of this section, the corporation shall recapture fifty per 2594
3671		-	cent of the amount of the credit allowed under this section on its 2595
3672		-	corporation business tax return required to be filed for the income year 2596
3673		-	immediately succeeding the income year during which such five-year 2597
3674		-	period expires. The provisions of this subsection shall not apply if the 2598
3675		-	property that is the subject of the credit under this section is replaced. If 2599
3676		-	any amount of credit required to be recaptured has not been paid to the 2600
3677		-	commissioner on or before the first day of the fourth month next 2601
3678		-	succeeding the end of the income year immediately succeeding the 2602
3679		-	income year during which the three-year or five-year period, as the case 2603
3680		-	may be, expires, such amount shall bear interest at the rate of one per 2604
3681		-	cent per month or fraction thereof from such date to the date of 2605
3682		-	payment. 2606
3683		-	Sec. 25. (NEW) (Effective July 1, 2023) (a) The Commissioner of 2607
3684		-	Revenue Services shall annually: 2608
3685		-	(1) Estimate the state tax gap and develop an overall strategy to 2609
3686		-	promote compliance and discourage tax avoidance. Such estimate shall 2610
3687		-	include an analysis of income distribution and population distribution 2611
3688		-	expressed for (A) every ten percentage points, (B) the top five per cent 2612
3689		-	of all income taxpayers, (C) the top one per cent of all income taxpayers, 2613
3690		-	and (D) the top one-half of one per cent of all income taxpayers. As used 2614
3691		-	in this section, "tax gap" means the difference between taxes owed under 2615
3692		-	full compliance with all state tax laws and the state taxes voluntarily 2616 Substitute Bill No. 981
3693		-
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3697		-	95 of 99
3698		-
3699		-	paid, where such difference may be due to a failure to file taxes, 2617
3700		-	underreporting of tax liability or not paying all taxes owing; 2618
3701		-	(2) Evaluate the specific staffing needs of the Department of Revenue 2619
3702		-	Services to implement such overall strategy and reduce the state tax gap 2620
3703		-	and determine the progress made, if any, towards filling such staffing 2621
3704		-	needs; and 2622
3705		-	(3) Conduct (A) a cost benefit analysis of each major tax compliance 2623
3706		-	initiative undertaken by the department in the preceding fiscal year, 2624
3707		-	including tax amnesty programs, and (B) an analysis of audit rates, by 2625
3708		-	income level, undertaken by the department in the preceding fiscal year. 2626
3709		-	(b) On or before December 15, 2023, and annually thereafter, the 2627
3710		-	commissioner shall submit a report, in accordance with the provisions 2628
3711		-	of section 11-4a of the general statutes, to the joint standing committee 2629
3712		-	of the General Assembly having cognizance of matters relating to 2630
3713		-	finance, revenue and bonding and appropriations. Such report shall be 2631
3714		-	posted on the Department of Revenue Service's Internet web site and 2632
3715		-	shall include (1) the tax gap estimate and analysis and the compliance 2633
3716		-	strategy developed under subdivision (1) of subsection (a) of this section 2634
3717		-	and any information supporting the amount of the tax gap estimate, (2) 2635
3718		-	a summary of the evaluation and determination of the department's 2636
3719		-	staffing needs under subdivision (2) of subsection (a) of this section, and 2637
3720		-	(3) the findings of the analyses conducted under subdivision (3) of 2638
3721		-	subsection (a) of this section. 2639
3722		-	(c) On or before July 1, 2024, the commissioner shall publish a 2640
3723		-	strategic plan that includes the department's mission, measurable goals 2641
3724		-	that define how the mission is to be accomplished, specific strategies to 2642
3725		-	achieve the goals and a timetable to measure progress toward achieving 2643
3726		-	those goals. Such plan shall be posted on the department's Internet web 2644
3727		-	site and updated annually. 2645
3728		-	Sec. 26. Section 12-7c of the general statutes is repealed and the 2646
3729		-	following is substituted in lieu thereof (Effective July 1, 2023): 2647 Substitute Bill No. 981
3730		-
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3734		-	96 of 99
3735		-
3736		-	(a) The Commissioner of Revenue Services shall, on or before 2648
3737		-	December 15, 2023, and biennially thereafter, submit to the joint 2649
3738		-	standing committee of the General Assembly having cognizance of 2650
3739		-	matters relating to finance, revenue and bonding, and post on the 2651
3740		-	department's Internet web site a report on the overall incidence of the 2652
3741		-	personal income tax, the affected business entity tax, sales and excise 2653
3742		-	taxes, the corporation business tax, [and] property tax and any other tax 2654
3743		-	that generated at least one hundred million dollars in the most recent 2655
3744		-	fiscal year prior to the submission of each report, for each of the most 2656
3745		-	recent ten tax years for which complete data are available. 2657
3746		-	(1) The report shall include incidence projections for each such tax 2658
3747		-	and shall present information on the distribution of the tax burden as 2659
3748		-	follows: 2660
3749		-	[(1)] (A) For individuals: 2661
3750		-	[(A)] (i) Income classes, including income distribution and 2662
3751		-	population distribution expressed for [(i)] (I) every ten percentage 2663
3752		-	points, [(ii)] (II) the top five per cent of all income taxpayers, [and (iii)] 2664
3753		-	(III) the top one per cent of all income taxpayers, [;] and (IV) the top one-2665
3754		-	half of one per cent of all income taxpayers; 2666
3755		-	(ii) For each income class, the percentage of taxpayers who (I) are 2667
3756		-	homeowners, (II) are single, (III) are married, (IV) are seniors, or (V) 2668
3757		-	have children; 2669
3758		-	(iii) For each income class, the average market value of a home and 2670
3759		-	the average monthly rent; 2671
3760		-	(iv) Effective tax rates by population distribution expressed as state 2672
3761		-	taxes compared to local taxes; 2673
3762		-	(v) Effective tax rates by population distribution expressed as taxes 2674
3763		-	imposed on businesses compared to taxes imposed on individuals; and 2675
3764		-	[(B)] (vi) Other appropriate taxpayer characteristics, as determined 2676 Substitute Bill No. 981
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3769		-	97 of 99
3770		-
3771		-	by said commissioner. 2677
3772		-	[(2)] (B) For businesses: 2678
3773		-	[(A)] (i) Business size as established by gross receipts; 2679
3774		-	[(B)] (ii) Legal organization; and 2680
3775		-	[(C)] (iii) Industry by NAICS code. 2681
3776		-	(2) In addition to the information required under subdivision (1) of 2682
3777		-	this subsection, the report shall include the following: 2683
3778		-	(A) For the personal income tax, information on the distribution of 2684
3779		-	the property tax credit under section 12-704c, the earned income tax 2685
3780		-	credit under section 12-704e, as amended by this act, the affected 2686
3781		-	business entity tax credit under section 12-699 and any other credit 2687
3782		-	against the personal income tax that resulted in a revenue loss to the 2688
3783		-	state of at least twenty-five million dollars in the most recent fiscal year 2689
3784		-	prior to the submission of each report; 2690
3785		-	(B) For property tax, information on the distribution of residential 2691
3786		-	and commercial property and for residential property, the distribution 2692
3787		-	of homeowners and renters; and 2693
3788		-	(C) For any other tax other than the personal income tax or property 2694
3789		-	tax that generated at least one hundred million dollars in the most recent 2695
3790		-	fiscal year prior to the submission of each report, information on the 2696
3791		-	distribution of any credit against such tax that resulted in a revenue loss 2697
3792		-	to the state of at least twenty-five million dollars in the most recent fiscal 2698
3793		-	year prior to the submission of each report. 2699
3794		-	(b) The Commissioner of Revenue Services may enter into a contract 2700
3795		-	with any public or private entity for the purpose of preparing the report 2701
3796		-	required pursuant to subsection (a) of this section, provided, if the 2702
3797		-	commissioner enters into such contract, the commissioner shall include 2703
3798		-	in such report the resources that the commissioner deems necessary to 2704 Substitute Bill No. 981
3799		-
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3803		-	98 of 99
3804		-
3805		-	allow the Department of Revenue Services to prepare such report in-2705
3806		-	house. 2706
3807		-	Sec. 27. Section 453 of public act 21-2 of the June special session, as 2707
3808		-	amended by section 471 of public act 22-118, is repealed. (Effective from 2708
3809		-	passage) 2709
	1560	+	(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 914
	1561	+	subdivision, for each taxpayer whose Connecticut adjusted gross 915
	1562	+	income exceeds fifty thousand two hundred fifty dollars, the amount of 916
	1563	+	the taxpayer's Connecticut taxable income to which the two-per-cent tax 917
	1564	+	rate applies shall be reduced by one thousand dollars for each two 918
	1565	+	thousand five hundred dollars, or fraction thereof, by which the 919
	1566	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 920
	1567	+	Any such amount of Connecticut taxable income to which, as provided 921
	1568	+	in the preceding sentence, the two-per-cent tax rate does not apply shall 922
	1569	+	be an amount to which the four-and-one-half-per-cent tax rate shall 923
	1570	+	apply. 924
	1571	+	(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 925
	1572	+	two hundred thousand dollars shall pay, in addition to the tax 926
	1573	+	computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 927
	1574	+	this subdivision, an amount equal to ninety-eight dollars for each five 928
	1575	+	thousand dollars, or fraction thereof, by which the taxpayer's 929 Governor's Bill No. 981
	1576	+
	1577	+
	1578	+
	1579	+	LCO No. 4026 40 of 64
	1580	+
	1581	+	Connecticut adjusted gross income exceeds two hundred thousand 930
	1582	+	dollars, up to a maximum payment of two thousand nine hundred forty 931
	1583	+	dollars. 932
	1584	+	(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 933
	1585	+	five hundred thousand dollars shall pay, in addition to the tax 934
	1586	+	computed under the provisions of subparagraphs (D)(i), (D)(ii) and 935
	1587	+	(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 936
	1588	+	thousand dollars, or fraction thereof, by which the taxpayer's 937
	1589	+	Connecticut adjusted gross income exceeds five hundred thousand 938
	1590	+	dollars, up to a maximum payment of four hundred fifty dollars. 939
	1591	+	(E) For trusts or estates, the rate of tax shall be 6.99% of the 940
	1592	+	Connecticut taxable income. 941
	1593	+	[(10)] (11) The provisions of this subsection shall apply to resident 942
	1594	+	trusts and estates and, wherever reference is made in this subsection to 943
	1595	+	residents of this state, such reference shall be construed to include 944
	1596	+	resident trusts and estates, provided any reference to a resident's 945
	1597	+	Connecticut adjusted gross income derived from sources without this 946
	1598	+	state or to a resident's Connecticut adjusted gross income shall be 947
	1599	+	construed, in the case of a resident trust or estate, to mean the resident 948
	1600	+	trust or estate's Connecticut taxable income derived from sources 949
	1601	+	without this state and the resident trust or estate's Connecticut taxable 950
	1602	+	income, respectively. 951
	1603	+	Sec. 14. Section 12-699 of the general statutes is repealed and the 952
	1604	+	following is substituted in lieu thereof (Effective January 1, 2024, and 953
	1605	+	applicable to taxable years commencing on or after January 1, 2024): 954
	1606	+	(a) As used in this chapter: 955
	1607	+	(1) "Partnership" has the same meaning as provided in Section 956
	1608	+	7701(a)(2) of the Internal Revenue Code, as defined in section 12-213, 957
	1609	+	and regulations adopted thereunder. "Partnership" includes a limited 958
	1610	+	liability company that is treated as a partnership for federal income tax 959
	1611	+	purposes; 960 Governor's Bill No. 981
	1612	+
	1613	+
	1614	+
	1615	+	LCO No. 4026 41 of 64
	1616	+
	1617	+	(2) "S corporation" means a corporation or a limited liability company 961
	1618	+	that is treated as an S corporation for federal income tax purposes; 962
	1619	+	(3) "Affected business entity" means a partnership or an S 963
	1620	+	corporation, but does not include a publicly-traded partnership, as 964
	1621	+	defined in Section 7704(b) of the Internal Revenue Code, that has agreed 965
	1622	+	to file an annual return pursuant to section 12-726 reporting the name, 966
	1623	+	address, Social Security number or federal employer identification 967
	1624	+	number and such other information required by the Commissioner of 968
	1625	+	Revenue Services of each unitholder whose distributive share of 969
	1626	+	partnership income derived from or connected with sources within this 970
	1627	+	state was more than five hundred dollars; 971
	1628	+	(4) "Member" means (A) a shareholder of an S corporation, (B) a 972
	1629	+	partner in (i) a general partnership, (ii) a limited partnership, or (iii) a 973
	1630	+	limited liability partnership, or (C) a member of a limited liability 974
	1631	+	company that is treated as a partnership or an S corporation for federal 975
	1632	+	income tax purposes; [and] 976
	1633	+	(5) "Taxable year" means the taxable year of an affected business 977
	1634	+	entity for federal income tax purposes; 978
	1635	+	(6) "Resident of this state" has the same meaning as provided in 979
	1636	+	section 12-701; 980
	1637	+	(7) "Resident portion of unsourced income" means unsourced income 981
	1638	+	multiplied by a percentage equal to the sum of the ownership interests 982
	1639	+	in the affected business entity owned by members who are residents of 983
	1640	+	this state; 984
	1641	+	(8) "Unsourced income" means the separately and nonseparately 985
	1642	+	computed items, as described in Section 702(a) of the Internal Revenue 986
	1643	+	Code with respect to a partnership or Section 1366 of the Internal 987
	1644	+	Revenue Code with respect to an S corporation, of the affected business 988
	1645	+	entity, excluding any item treated as an itemized deduction for federal 989
	1646	+	income tax purposes, plus any item described in Section 707(c) of the 990
	1647	+	Internal Revenue Code with respect to a partnership, regardless of the 991 Governor's Bill No. 981
	1648	+
	1649	+
	1650	+
	1651	+	LCO No. 4026 42 of 64
	1652	+
	1653	+	location from which such item is derived or connected, as increased or 992
	1654	+	decreased by any modification described in section 12-701, that relates 993
	1655	+	to an item of the affected business entity's income, gain, loss or 994
	1656	+	deduction, regardless of the location from which such item is derived or 995
	1657	+	connected, less (A) Connecticut source income, and (B) (i) the separately 996
	1658	+	and nonseparately computed items, as described in Section 702(a) of the 997
	1659	+	Internal Revenue Code, of the affected business entity, excluding any 998
	1660	+	item treated as an itemized deduction for federal income tax purposes, 999
	1661	+	plus any item described in Section 707(c) of the Internal Revenue Code 1000
	1662	+	with respect to a partnership, to the extent any such items under this 1001
	1663	+	clause are derived from or connected with sources within another state 1002
	1664	+	that has jurisdiction to tax the affected business entity and actually 1003
	1665	+	imposes tax on the affected business entity or its members who are 1004
	1666	+	residents of this state, with respect to such items, (ii) as increased or 1005
	1667	+	decreased by any modification described in section 12-701, that relates 1006
	1668	+	to an item of the affected business entity's income, gain, loss or 1007
	1669	+	deduction, to the extent derived from or connected with sources within 1008
	1670	+	another state that has jurisdiction to tax the affected business entity and 1009
	1671	+	actually imposes tax on the affected business entity or its members who 1010
	1672	+	are residents of this state, with respect to such items; 1011
	1673	+	(9) "Modified Connecticut source income" means Connecticut source 1012
	1674	+	income multiplied by a percentage equal to the sum of the ownership 1013
	1675	+	interests in the affected business entity owned by members that are (A) 1014
	1676	+	subject to tax under chapter 229, or (B) affected business entities to the 1015
	1677	+	extent such entities are directly or indirectly owned by persons subject 1016
	1678	+	to tax under chapter 229. A member that is an affected business entity 1017
	1679	+	shall be presumed to be directly or indirectly owned by persons subject 1018
	1680	+	to tax under chapter 229 unless the affected business entity that has 1019
	1681	+	elected to pay the tax under this section can establish otherwise by clear 1020
	1682	+	and convincing evidence to the satisfaction of the commissioner; and 1021
	1683	+	(10) "Connecticut source income" means (A) the separately and 1022
	1684	+	nonseparately computed items, as described in Section 702(a) of the 1023
	1685	+	Internal Revenue Code with respect to a partnership or Section 1366 of 1024
	1686	+	the Internal Revenue Code with respect to an S corporation, of the 1025 Governor's Bill No. 981
	1687	+
	1688	+
	1689	+
	1690	+	LCO No. 4026 43 of 64
	1691	+
	1692	+	affected business entity, excluding any item treated as an itemized 1026
	1693	+	deduction for federal income tax purposes, plus any item described in 1027
	1694	+	Section 707(c) of the Internal Revenue Code with respect to a 1028
	1695	+	partnership, to the extent any such items under this subparagraph are 1029
	1696	+	derived from or connected with sources within this state, as determined 1030
	1697	+	under the provisions of chapter 229, (B) as increased or decreased by 1031
	1698	+	any modification described in section 12-701 that relates to an item of 1032
	1699	+	the affected business entity's income, gain, loss or deduction, to the 1033
	1700	+	extent derived from or connected with sources within this state, as 1034
	1701	+	determined under the provisions of chapter 229. 1035
	1702	+	(b) [Each] For taxable years commencing on or after January 1, 2024, 1036
	1703	+	an affected business entity that is required to file a return under the 1037
	1704	+	provisions of section 12-726 may elect to pay to the commissioner a tax 1038
	1705	+	as determined under this section. Any affected business entity making 1039
	1706	+	such election shall submit written notice of such election to the 1040
	1707	+	commissioner (1) not later than the due date or, if an extension of time 1041
	1708	+	to file has been requested and granted, the extended due date, of the 1042
	1709	+	return due from such entity, and (2) for each taxable year such entity 1043
	1710	+	makes the election under this subsection. Each affected business entity 1044
	1711	+	that has made the election under this subsection shall pay to the 1045
	1712	+	commissioner, on or before the fifteenth day of the third month 1046
	1713	+	following the close of each taxable year [, pay to the commissioner] that 1047
	1714	+	such entity makes such election, a tax as determined under this section. 1048
	1715	+	(c) The tax due under subsection (b) of this section shall be equal to 1049
	1716	+	[(1) (A) the separately and nonseparately computed items, as described 1050
	1717	+	in Section 702(a) of the Internal Revenue Code with respect to a 1051
	1718	+	partnership or Section 1366 of the Internal Revenue Code with respect 1052
	1719	+	to an S corporation, of the affected business entity, excluding any item 1053
	1720	+	treated as an itemized deduction for federal income tax purposes, plus 1054
	1721	+	any item described in Section 707(c) of the Internal Revenue Code with 1055
	1722	+	respect to a partnership, to the extent any such items under this 1056
	1723	+	subparagraph are derived from or connected with sources within this 1057
	1724	+	state, as determined under the provisions of chapter 229, (B) as 1058
	1725	+	increased or decreased by any modification described in section 12-701 1059 Governor's Bill No. 981
	1726	+
	1727	+
	1728	+
	1729	+	LCO No. 4026 44 of 64
	1730	+
	1731	+	that relates to an item of the affected business entity's income, gain, loss 1060
	1732	+	or deduction, to the extent derived from or connected with sources 1061
	1733	+	within this state, as determined under the provisions of chapter 229, (2) 1062
	1734	+	multiplied by six and ninety-nine-hundredths per cent. If the amount 1063
	1735	+	calculated under subdivision (1) of this subsection results in a net loss, 1064
	1736	+	such net loss may be carried forward to succeeding taxable years until 1065
	1737	+	fully used] six and ninety-nine-hundredths per cent multiplied by the 1066
	1738	+	tax base. The tax base shall be equal to the resident portion of unsourced 1067
	1739	+	income plus modified Connecticut source income. 1068
	1740	+	(d) If an affected business entity, the lower-tier entity, is a member of 1069
	1741	+	another affected business entity, the upper-tier entity, the lower-tier 1070
	1742	+	entity shall, when calculating [the amount under subdivision (1) of 1071
	1743	+	subsection (c) of this section] its Connecticut source income, subtract its 1072
	1744	+	distributive share of income or add its distributive share of loss from the 1073
	1745	+	upper-tier entity to the extent that the income or loss was derived from 1074
	1746	+	or connected with sources within this state. 1075
	1747	+	[(e) A nonresident individual who is a member of an affected 1076
	1748	+	business entity shall not be required to file an income tax return under 1077
	1749	+	the provisions of chapter 229 for a taxable year if, for such taxable year, 1078
	1750	+	the only source of income derived from or connected with sources 1079
	1751	+	within this state for such member, or the member and the member's 1080
	1752	+	spouse if a joint federal income tax return is or shall be filed, is from one 1081
	1753	+	or more affected business entities and such nonresident individual 1082
	1754	+	member's tax under chapter 229 would be fully satisfied by the credit 1083
	1755	+	allowed to such individual under subparagraph (A) of subdivision (1) 1084
	1756	+	of subsection (g) of this section.] 1085
	1757	+	[(f)] (e) Each affected business entity shall report to each of its 1086
	1758	+	members, for each taxable year, such member's direct share of the tax 1087
	1759	+	imposed under this section on such affected business entity and indirect 1088
	1760	+	share of the tax imposed on any upper-tier entity of which such affected 1089
	1761	+	business entity is a member. 1090
	1762	+	[(g) (1) (A)] (f) (1) Each person that is subject to the tax imposed under 1091 Governor's Bill No. 981
	1763	+
	1764	+
	1765	+
	1766	+	LCO No. 4026 45 of 64
	1767	+
	1768	+	chapter 229 and is a member of an affected business entity shall be 1092
	1769	+	entitled to a credit against the tax imposed under said chapter, other 1093
	1770	+	than the tax imposed under section 12-707. Such credit shall be in an 1094
	1771	+	amount equal to such person's direct and indirect share of the tax due 1095
	1772	+	and paid under this section by any affected business entity of which 1096
	1773	+	such person is a member multiplied by [eighty-seven and one-half] 1097
	1774	+	ninety-three and one-hundredths per cent. If the amount of the credit 1098
	1775	+	allowed pursuant to this subdivision exceeds such person's tax liability 1099
	1776	+	for the tax imposed under said chapter, the commissioner shall treat 1100
	1777	+	such excess as an overpayment and, except as provided in section 12-1101
	1778	+	739 or 12-742, shall refund the amount of such excess, without interest, 1102
	1779	+	to such person. 1103
	1780	+	[(B)] (2) Each person that is subject to the tax imposed under chapter 1104
	1781	+	229 as a resident or a part-year resident of this state and is a member of 1105
	1782	+	an affected business entity shall also be entitled to a credit against the 1106
	1783	+	tax imposed under said chapter, other than the tax imposed under 1107
	1784	+	section 12-707, for such person's direct and indirect share of taxes paid 1108
	1785	+	to another state of the United States or the District of Columbia, on 1109
	1786	+	income of any affected business entity of which such person is a member 1110
	1787	+	that is derived therefrom, provided the taxes paid to another state of the 1111
	1788	+	United States or the District of Columbia results from a tax that [the 1112
	1789	+	commissioner determines] is substantially similar to the tax imposed 1113
	1790	+	under this section. Any such credit shall be calculated in [the] a manner 1114
	1791	+	[prescribed by the commissioner, which shall be] consistent with the 1115
	1792	+	provisions of section 12-704. 1116
	1793	+	[(2) Each company that is subject to the tax imposed under chapter 1117
	1794	+	208 and is a member of an affected business entity shall be entitled to a 1118
	1795	+	credit against the tax imposed under said chapter. Such credit shall be 1119
	1796	+	in an amount equal to such company's direct and indirect share of the 1120
	1797	+	tax paid under this section by any affected business entity of which such 1121
	1798	+	company is a member multiplied by eighty-seven and one-half per cent. 1122
	1799	+	Such credit shall be applied after all other credits are applied and shall 1123
	1800	+	not be subject to the limits imposed under section 12-217zz. Any credit 1124
	1801	+	that is not used in the income year during which the affected business 1125 Governor's Bill No. 981
	1802	+
	1803	+
	1804	+
	1805	+	LCO No. 4026 46 of 64
	1806	+
	1807	+	entity incurs the tax under this section shall be carried forward to each 1126
	1808	+	of the succeeding income years by the company until such credit is fully 1127
	1809	+	taken against the tax under chapter 208.] 1128
	1810	+	[(h)] (g) Upon the failure of any affected business entity to pay the tax 1129
	1811	+	due under this section within thirty days of the due date, the provisions 1130
	1812	+	of section 12-35 shall apply with respect to the enforcement of this 1131
	1813	+	section and the collection of such tax. The warrant therein provided for 1132
	1814	+	shall be signed by the commissioner or an authorized agent of the 1133
	1815	+	commissioner. The amount of any such tax, penalty and interest shall be 1134
	1816	+	a lien, from the last day of the last month of the taxable year next 1135
	1817	+	preceding the due date of such tax until discharged by payment, against 1136
	1818	+	all real estate of the taxpayer within the state, and a certificate of such 1137
	1819	+	lien signed by the commissioner may be recorded in the office of the 1138
	1820	+	clerk of any town in which such real estate is situated, provided no such 1139
	1821	+	lien shall be effective as against any bona fide purchaser or qualified 1140
	1822	+	encumbrancer of any interest in any such property. When any tax with 1141
	1823	+	respect to which a lien has been recorded under the provisions of this 1142
	1824	+	section has been satisfied, the commissioner, upon request of any 1143
	1825	+	interested party, shall issue a certificate discharging such lien, which 1144
	1826	+	certificate shall be recorded in the same office in which the lien was 1145
	1827	+	recorded. Any action for the foreclosure of such lien shall be brought by 1146
	1828	+	the Attorney General in the name of the state in the superior court for 1147
	1829	+	the judicial district in which the property subject to such lien is situated, 1148
	1830	+	or, if such property is located in two or more judicial districts, in the 1149
	1831	+	superior court for any one such judicial district, and the court may limit 1150
	1832	+	the time for redemption or order the sale of such property or make such 1151
	1833	+	other or further decree as it judges equitable. 1152
	1834	+	[(i)] (h) If any tax is not paid when due as provided in this section, 1153
	1835	+	there shall be added to the amount of the tax interest at the rate of one 1154
	1836	+	per cent per month or fraction thereof from the date the tax became due 1155
	1837	+	until it is paid. 1156
	1838	+	[(j) (1) Any affected business entity subject to tax under this section 1157
	1839	+	may elect to file a combined return together with one or more other 1158 Governor's Bill No. 981
	1840	+
	1841	+
	1842	+
	1843	+	LCO No. 4026 47 of 64
	1844	+
	1845	+	commonly-owned affected business entities subject to tax under this 1159
	1846	+	section. Each affected business entity making such election shall submit 1160
	1847	+	written notice of such election to file a combined return, including the 1161
	1848	+	written consent of the other commonly-owned affected business entities 1162
	1849	+	to such election, to the commissioner not later than the due date, or if an 1163
	1850	+	extension of time to file has been requested and granted, the extended 1164
	1851	+	due date, of the returns due from such entities. An affected business 1165
	1852	+	entity shall submit such written notice and consent for each taxable year 1166
	1853	+	such entity makes the election under this subdivision. Each affected 1167
	1854	+	business entity electing to file a combined return under this subdivision 1168
	1855	+	shall be jointly and severally liable for the tax due under this section. For 1169
	1856	+	the purposes of this subdivision, "commonly-owned" means that more 1170
	1857	+	than eighty per cent of the voting control of an affected business entity 1171
	1858	+	is directly or indirectly owned by a common owner or owners, either 1172
	1859	+	corporate or noncorporate. Whether voting control is indirectly owned 1173
	1860	+	shall be determined in accordance with Section 318 of the Internal 1174
	1861	+	Revenue Code. 1175
	1862	+	(2) Except as provided in subdivision (5) of this subsection, affected 1176
	1863	+	business entities that elect to file a combined return under subdivision 1177
	1864	+	(1) of this subsection shall net the amounts each such entity calculates 1178
	1865	+	under subdivision (1) of subsection (c) of this section after such amounts 1179
	1866	+	are separately apportioned or allocated by each affected business entity 1180
	1867	+	in accordance with this section. 1181
	1868	+	(3) Affected business entities that elect to file a combined return 1182
	1869	+	under subdivision (1) of this subsection shall report to the commissioner 1183
	1870	+	the portion of the direct and indirect share of the tax paid with the 1184
	1871	+	combined return that is allocated to each of their members. Such report 1185
	1872	+	shall be filed with the combined return and the allocation reported shall 1186
	1873	+	be irrevocable. 1187
	1874	+	(4) The election made under this subsection shall not affect the 1188
	1875	+	calculation of tax due under any other provision of the general statutes 1189
	1876	+	other than with respect to the calculation of the credits under subsection 1190
	1877	+	(g) of this section. 1191 Governor's Bill No. 981
	1878	+
	1879	+
	1880	+
	1881	+	LCO No. 4026 48 of 64
	1882	+
	1883	+	(5) Affected business entities that elect to file a combined return 1192
	1884	+	under subdivision (1) of this subsection shall calculate their tax due in 1193
	1885	+	accordance with subsection (c) of this section unless each such entity 1194
	1886	+	elects under subsection (k) of this section to calculate its tax due on the 1195
	1887	+	alternative basis under subsection (l) of this section. If such election is 1196
	1888	+	made, the affected business entities shall net their alternative tax bases 1197
	1889	+	instead of netting the amounts under subdivision (2) of this subsection. 1198
	1890	+	(k) In lieu of calculating the tax due in accordance with subsection (c) 1199
	1891	+	of this section, any affected business entity may elect to calculate the tax 1200
	1892	+	due on the alternative basis under subsection (l) of this section. An 1201
	1893	+	affected business entity making such election shall submit to the 1202
	1894	+	commissioner written notice of such election not later than the due date, 1203
	1895	+	or if an extension of time to file has been requested and granted, the 1204
	1896	+	extended due date, of the return due from such entity. An affected 1205
	1897	+	business entity shall submit such written notice for each taxable year 1206
	1898	+	such entity makes the election under this subsection. The election made 1207
	1899	+	under this subsection shall not affect the calculation of tax due under 1208
	1900	+	any other provision of the general statutes other than with respect to the 1209
	1901	+	calculation of the credits under subsection (g) of this section. 1210
	1902	+	(l) (1) The tax due from an affected business entity making the 1211
	1903	+	election under subsection (k) of this section shall be equal to six and 1212
	1904	+	ninety-nine-hundredths per cent multiplied by the alternative tax base. 1213
	1905	+	The alternative tax base shall be equal to the resident portion of 1214
	1906	+	unsourced income plus modified Connecticut source income. 1215
	1907	+	(2) For the purposes of this subsection: 1216
	1908	+	(A) "Resident portion of unsourced income" means unsourced 1217
	1909	+	income multiplied by a percentage equal to the sum of the ownership 1218
	1910	+	interests in the affected business entity owned by members who are 1219
	1911	+	residents of this state, as defined in section 12-701; 1220
	1912	+	(B) "Unsourced income" means the separately and nonseparately 1221
	1913	+	computed items, as described in Section 702(a) of the Internal Revenue 1222
	1914	+	Code with respect to a partnership or Section 1366 of the Internal 1223 Governor's Bill No. 981
	1915	+
	1916	+
	1917	+
	1918	+	LCO No. 4026 49 of 64
	1919	+
	1920	+	Revenue Code with respect to an S corporation, of the affected business 1224
	1921	+	entity, excluding any item treated as an itemized deduction for federal 1225
	1922	+	income tax purposes, plus any item described in Section 707(c) of the 1226
	1923	+	Internal Revenue Code with respect to a partnership, regardless of the 1227
	1924	+	location from which such item is derived or connected, as increased or 1228
	1925	+	decreased by any modification described in section 12-701, that relates 1229
	1926	+	to an item of the affected business entity's income, gain, loss or 1230
	1927	+	deduction, regardless of the location from which such item is derived or 1231
	1928	+	connected, less (i) the amount determined under subdivision (1) of 1232
	1929	+	subsection (c) of this section, determined without regard to subsection 1233
	1930	+	(d) of this section, and (ii) (I) the separately and nonseparately 1234
	1931	+	computed items, as described in Section 702(a) of the Internal Revenue 1235
	1932	+	Code, of the affected business entity, excluding any item treated as an 1236
	1933	+	itemized deduction for federal income tax purposes, plus any item 1237
	1934	+	described in Section 707(c) of the Internal Revenue Code with respect to 1238
	1935	+	a partnership, to the extent any such items under this subclause are 1239
	1936	+	derived from or connected with sources within another state that has 1240
	1937	+	jurisdiction to subject the affected business entity to tax, as determined 1241
	1938	+	under the provisions of chapter 229, (II) as increased or decreased by 1242
	1939	+	any modification described in section 12-701, that relates to an item of 1243
	1940	+	the affected business entity's income, gain or deduction, to the extent 1244
	1941	+	derived from or connected with sources within another state that has 1245
	1942	+	jurisdiction to subject the affected business entity to tax, as determined 1246
	1943	+	under the provisions of chapter 229; and 1247
	1944	+	(C) "Modified Connecticut source income" means the amount 1248
	1945	+	calculated under subdivision (1) of subsection (c) of this section 1249
	1946	+	multiplied by a percentage equal to the sum of the ownership interests 1250
	1947	+	in the affected business entity owned by members that are (i) subject to 1251
	1948	+	tax under chapter 229, or (ii) affected business entities to the extent such 1252
	1949	+	entities are directly or indirectly owned by persons subject to tax under 1253
	1950	+	chapter 229. A member that is an affected business entity shall be 1254
	1951	+	presumed to be directly or indirectly owned by persons subject to tax 1255
	1952	+	under chapter 229 unless the affected business entity subject to tax 1256
	1953	+	under this section can establish otherwise by clear and convincing 1257 Governor's Bill No. 981
	1954	+
	1955	+
	1956	+
	1957	+	LCO No. 4026 50 of 64
	1958	+
	1959	+	evidence to the satisfaction of the commissioner.] 1258
	1960	+	[(m)] (i) The provisions of sections 12-723, 12-725 and 12-728 to 12-1259
	1961	+	737, inclusive, shall apply to the provisions of this section in the same 1260
	1962	+	manner and with the same force and effect as if the language of said 1261
	1963	+	sections had been incorporated in full into this section and had expressly 1262
	1964	+	referred to the tax under this section, except to the extent that any such 1263
	1965	+	provision is inconsistent with a provision of this section. 1264
	1966	+	Sec. 15. Section 12-699a of the general statutes is repealed and the 1265
	1967	+	following is substituted in lieu thereof (Effective January 1, 2024, and 1266
	1968	+	applicable to taxable years commencing on or after January 1, 2024): 1267
	1969	+	(a) As used in this section, "required annual payment" means the 1268
	1970	+	lesser of (1) ninety per cent of the tax under section 12-699, as amended 1269
	1971	+	by this act, that is reported on the return filed for the taxable year or, if 1270
	1972	+	no return is filed, ninety per cent of the tax due under section 12-699, as 1271
	1973	+	amended by this act, or (2) if the preceding taxable year was a taxable 1272
	1974	+	year of twelve months and the affected business entity filed a return for 1273
	1975	+	such taxable year, one hundred per cent of the tax under section 12-699, 1274
	1976	+	as amended by this act, that is reported on such return. 1275
	1977	+	(b) (1) Each affected business entity required to pay or, with respect 1276
	1978	+	to taxable years commencing on or after January 1, 2024, elects to pay, 1277
	1979	+	the tax imposed under section 12-699, as amended by this act, and 1278
	1980	+	whose required annual payment for the taxable year is greater than or 1279
	1981	+	equal to one thousand dollars shall make the required annual payment 1280
	1982	+	each taxable year, in four required estimated tax installments on the 1281
	1983	+	following due dates: (A) For the first required installment, the fifteenth 1282
	1984	+	day of the fourth month of the taxable year; (B) for the second required 1283
	1985	+	installment, the fifteenth day of the sixth month of the taxable year; (C) 1284
	1986	+	for the third required installment, the fifteenth day of the ninth month 1285
	1987	+	of the taxable year; and (D) for the fourth required installment, the 1286
	1988	+	fifteenth day of the first month of the next succeeding taxable year. An 1287
	1989	+	affected business entity may elect to pay any required installment prior 1288
	1990	+	to the specified due date. Except as provided in subdivision (2) of this 1289 Governor's Bill No. 981
	1991	+
	1992	+
	1993	+
	1994	+	LCO No. 4026 51 of 64
	1995	+
	1996	+	subsection, the amount of each required installment shall be twenty-five 1290
	1997	+	per cent of the required annual payment. 1291
	1998	+	(2) (A) For any required installment, if the affected business entity 1292
	1999	+	establishes that its annualized income installment calculated pursuant 1293
	2000	+	to subparagraph (B) of this subdivision is less than the amount 1294
	2001	+	determined under subsection (a) of this section, the amount of such 1295
	2002	+	required installment shall be the annualized income installment. Any 1296
	2003	+	reduction in a required installment resulting pursuant to this 1297
	2004	+	subdivision shall be recaptured by increasing the amount of the next 1298
	2005	+	required installment by the amount of such reduction and by increasing 1299
	2006	+	subsequent required installments to the extent such reduction has not 1300
	2007	+	previously been recaptured under this subdivision. 1301
	2008	+	(B) The annualized income installment is the amount by which (i) the 1302
	2009	+	amount equal to the applicable percentage, as set forth in subparagraph 1303
	2010	+	(C) of this subdivision, multiplied by the tax imposed under section 12-1304
	2011	+	699, as amended by this act, for the taxable year that would be due if 1305
	2012	+	income subject to tax under said section for the months in the taxable 1306
	2013	+	year ending before the due date of the installment was annualized, (ii) 1307
	2014	+	exceeds the aggregate amount of any prior required installments for the 1308
	2015	+	taxable year. 1309
	2016	+	(C) For the purposes of subparagraph (B) of this subdivision, the 1310
	2017	+	applicable percentages shall be as follows: (i) For the first required 1311
	2018	+	installment, twenty-two and one-half per cent; (ii) for the second 1312
	2019	+	required installment, forty-five per cent; (iii) for the third required 1313
	2020	+	installment, sixty-seven and one-half per cent; and (iv) for the fourth 1314
	2021	+	required installment, ninety per cent. 1315
	2022	+	(c) (1) Except as otherwise provided in this section, in the case of any 1316
	2023	+	underpayment of estimated tax by an affected business entity, there 1317
	2024	+	shall be added to the tax imposed under section 12-699, as amended by 1318
	2025	+	this act, an amount determined by applying interest (A) at the rate of 1319
	2026	+	one per cent per month or fraction thereof, (B) to the amount of the 1320
	2027	+	underpayment, (C) for the period of the underpayment. 1321 Governor's Bill No. 981
	2028	+
	2029	+
	2030	+
	2031	+	LCO No. 4026 52 of 64
	2032	+
	2033	+	(2) For the purposes of subdivision (1) of this subsection, (A) the 1322
	2034	+	amount of the underpayment is the amount by which the required 1323
	2035	+	installment exceeds the amount, if any, of the installment paid on or 1324
	2036	+	before the due date of the installment, and (B) the period of the 1325
	2037	+	underpayment runs from the due date of the installment to whichever 1326
	2038	+	date is earlier: (i) The fifteenth day of the third month of the next 1327
	2039	+	succeeding taxable year, or (ii) with respect to any portion of the 1328
	2040	+	underpayment, the date on which such portion is paid. Any payment of 1329
	2041	+	estimated tax under this section shall be credited against unpaid or 1330
	2042	+	underpaid required installments in the order in which such installments 1331
	2043	+	are required to be paid. 1332
	2044	+	(d) Payment of the estimated tax under this section or any required 1333
	2045	+	installment thereof shall be considered payment on account of the tax 1334
	2046	+	imposed under section 12-699, as amended by this act, for the taxable 1335
	2047	+	year. If an affected business entity makes payment of estimated tax 1336
	2048	+	pursuant to this section against the tax due under this chapter for a 1337
	2049	+	taxable year and (1) does not make the election under subsection (b) of 1338
	2050	+	section 12-699, as amended by this act, or (2) such payments exceed the 1339
	2051	+	amount due under said subsection for such taxable year, such payments 1340
	2052	+	shall be deemed to be made against the tax liability of the affected 1341
	2053	+	business entity under section 12-719, as amended by this act. 1342
	2054	+	(e) For taxable years of less than twelve months, the provisions of this 1343
	2055	+	section shall apply in a manner consistent with the regulations adopted 1344
	2056	+	under chapter 229 pertaining to such taxable years. 1345
	2057	+	Sec. 16. Section 12-719 of the general statutes is repealed and the 1346
	2058	+	following is substituted in lieu thereof (Effective January 1, 2024, and 1347
	2059	+	applicable to taxable years commencing on or after January 1, 2024): 1348
	2060	+	(a) The income tax return required under this chapter shall be filed 1349
	2061	+	on or before the fifteenth day of the [fourth] third month following the 1350
	2062	+	close of the taxpayer's taxable year. A person required to make and file 1351
	2063	+	a return shall, without assessment, notice or demand, pay any tax due 1352
	2064	+	thereon to the Commissioner of Revenue Services on or before the date 1353 Governor's Bill No. 981
	2065	+
	2066	+
	2067	+
	2068	+	LCO No. 4026 53 of 64
	2069	+
	2070	+	fixed for filing such return, determined without regard to any extension 1354
	2071	+	of time for filing the return. 1355
	2072	+	(b) (1) (A) The provisions of this subsection shall not apply to taxable 1356
	2073	+	years commencing on or after January 1, 2018, and prior to January 1, 1357
	2074	+	2024. 1358
	2075	+	(B) With respect to each of its nonresident partners, each partnership 1359
	2076	+	doing business in this state or having income derived from or connected 1360
	2077	+	with sources within this state shall, for each taxable year, make payment 1361
	2078	+	to the commissioner as provided in subdivision (2) of this subsection. 1362
	2079	+	(C) For taxable years commencing on or after January 1, 2024, the 1363
	2080	+	payment due with respect to each nonresident partner under this 1364
	2081	+	subsection shall be reduced by such partner's direct and indirect credit 1365
	2082	+	properly reported by the partnership under subdivision (1) of 1366
	2083	+	subsection (f) of section 12-699, as amended by this act. In no event shall 1367
	2084	+	the payment with respect to any nonresident partner be less than zero. 1368
	2085	+	(2) (A) Any payment under this subdivision shall be in an amount 1369
	2086	+	equal to the highest marginal tax rate in effect under section 12-700, as 1370
	2087	+	amended by this act, for the taxable year multiplied by the subject 1371
	2088	+	partner's distributive share of (i) such partnership's separately and 1372
	2089	+	nonseparately computed items, as described in Section 702(a) of the 1373
	2090	+	Internal Revenue Code, to the extent derived from or connected with 1374
	2091	+	sources within this state, as determined under this chapter, and (ii) any 1375
	2092	+	modification described in section 12-701 which relates to an item of such 1376
	2093	+	partnership's income, gain, loss or deduction, to the extent derived from 1377
	2094	+	or connected with sources within this state, as determined under this 1378
	2095	+	chapter. Any amount paid by a partnership to this state with respect to 1379
	2096	+	any taxable year pursuant to this subdivision shall be considered to be 1380
	2097	+	a payment by the partner on account of the income tax imposed on the 1381
	2098	+	partner for such taxable year pursuant to this chapter. A partnership 1382
	2099	+	shall not be liable to, and shall be entitled to recover a payment made 1383
	2100	+	pursuant to this subdivision from, the partner on whose behalf the 1384
	2101	+	payment was made. Any payment for a taxable year shall be made on 1385 Governor's Bill No. 981
	2102	+
	2103	+
	2104	+
	2105	+	LCO No. 4026 54 of 64
	2106	+
	2107	+	or before the date the annual return for such taxable year is required to 1386
	2108	+	be filed pursuant to section 12-726. The partnership shall furnish, on a 1387
	2109	+	form prescribed by the commissioner, to each partner on whose behalf 1388
	2110	+	payment was made under this subdivision no later than the fifteenth 1389
	2111	+	day of the [fourth] third month following the close of the partnership's 1390
	2112	+	taxable year a record of the amount of the tax paid on behalf of such 1391
	2113	+	partner by the partnership with respect to the taxable year. 1392
	2114	+	(B) (i) If income from one or more pass-through entities, as defined in 1393
	2115	+	subparagraph (D) of this subdivision, is the only source of income 1394
	2116	+	derived from or connected with Connecticut sources of a partner, or the 1395
	2117	+	partner and his or her spouse if a joint federal income tax return is or 1396
	2118	+	shall be made, the filing by the partnership of an annual return pursuant 1397
	2119	+	to section 12-726 and the payment by the partnership on behalf of the 1398
	2120	+	partner of the tax prescribed under subparagraph (A) of this subdivision 1399
	2121	+	shall satisfy the filing and payment requirements otherwise separately 1400
	2122	+	imposed on the partner by this chapter. The commissioner may make 1401
	2123	+	any deficiency assessment against, at the commissioner's sole discretion, 1402
	2124	+	either the partnership or the partner, provided any such assessment 1403
	2125	+	against the partner shall be limited to the partner's share thereof. Except 1404
	2126	+	as otherwise provided in section 12-733, as amended by this act, any 1405
	2127	+	such assessment shall be made not later than three years after the 1406
	2128	+	partnership's annual return pursuant to section 12-726 is filed. The 1407
	2129	+	commissioner may refund or credit any overpayment to either the 1408
	2130	+	partnership or the partner, in the commissioner's sole discretion. Except 1409
	2131	+	as otherwise provided in section 12-732, any such overpayment shall be 1410
	2132	+	refunded or credited not later than three years from the due date of the 1411
	2133	+	partnership's annual return pursuant to section 12-726 or, if the time for 1412
	2134	+	filing such return was extended, not later than three years from the date 1413
	2135	+	on which such return is filed or the extended due date of such return, 1414
	2136	+	whichever is earlier. 1415
	2137	+	(ii) If income from one or more pass-through entities, as defined in 1416
	2138	+	subparagraph (D) of this subdivision, is not the only source of income 1417
	2139	+	derived from or connected with Connecticut sources of a partner, or the 1418
	2140	+	partner and his or her spouse if a joint federal income tax return is or 1419 Governor's Bill No. 981
	2141	+
	2142	+
	2143	+
	2144	+	LCO No. 4026 55 of 64
	2145	+
	2146	+	shall be made, nothing in this subdivision shall be construed as excusing 1420
	2147	+	the partner from the obligation to file his or her own separate tax return 1421
	2148	+	under this chapter. In such event, the partner shall receive credit for the 1422
	2149	+	income tax paid under this subdivision by the partnership on his or her 1423
	2150	+	behalf. The commissioner may make any deficiency assessment that is 1424
	2151	+	related to the partner's share of partnership items against either, in the 1425
	2152	+	commissioner's sole discretion, the partnership or the partner. If the 1426
	2153	+	commissioner chooses to make any deficiency assessment against the 1427
	2154	+	partnership, then, except as otherwise provided in section 12-733, as 1428
	2155	+	amended by this act, any such assessment shall be made not later than 1429
	2156	+	three years after the partnership's annual return pursuant to section 12-1430
	2157	+	726 is filed. The commissioner may refund or credit any overpayment 1431
	2158	+	that is related to the partner's share of partnership items to either, in the 1432
	2159	+	commissioner's sole discretion, the partnership or the partner. If the 1433
	2160	+	commissioner chooses to refund or credit any overpayment to the 1434
	2161	+	partnership, then, except as otherwise provided in section 12-732, any 1435
	2162	+	such overpayment shall be refunded or credited not later than three 1436
	2163	+	years from the due date of the partnership's annual return pursuant to 1437
	2164	+	section 12-726 or, if the time for filing such return was extended, not 1438
	2165	+	later than three years from the date on which such return is filed or the 1439
	2166	+	extended due date of such return, whichever is earlier. 1440
	2167	+	(C) Notwithstanding any provision of subparagraph (A) of this 1441
	2168	+	subdivision, a partnership shall not be required to make a payment on 1442
	2169	+	account of the income tax imposed on a partner for a taxable year 1443
	2170	+	pursuant to this chapter if (i) the partner's distributive share of 1444
	2171	+	partnership income, to the extent derived from or connected with 1445
	2172	+	sources within this state, as reflected on the partnership's annual return 1446
	2173	+	for the taxable year under section 12-726, is less than one thousand 1447
	2174	+	dollars; (ii) the department has determined by regulation, ruling or 1448
	2175	+	instruction that the partner's income is not subject to the provisions of 1449
	2176	+	this subdivision; or (iii) the partnership is a publicly traded partnership, 1450
	2177	+	as defined in Section 7704(b) of the Internal Revenue Code, that is 1451
	2178	+	treated as a partnership for federal income tax purposes and that has 1452
	2179	+	agreed to file the annual return pursuant to section 12-726, and to report 1453 Governor's Bill No. 981
	2180	+
	2181	+
	2182	+
	2183	+	LCO No. 4026 56 of 64
	2184	+
	2185	+	therewith the name, address, Social Security number or federal 1454
	2186	+	employer identification number, and other information required by the 1455
	2187	+	department concerning each unitholder whose distributive share of 1456
	2188	+	partnership income, to the extent derived from or connected with 1457
	2189	+	sources within this state, as reflected on such annual return, is more than 1458
	2190	+	five hundred dollars. 1459
	2191	+	(D) If a member of a pass-through entity, referred to in this 1460
	2192	+	subparagraph as an "upper-tier pass-through entity", is itself a pass-1461
	2193	+	through entity, the member, referred to in this subparagraph as a 1462
	2194	+	"lower-tier pass-through entity", shall be subject to the same 1463
	2195	+	requirements to make payment, on behalf of its members, of the income 1464
	2196	+	tax imposed on those members pursuant to this chapter that apply to 1465
	2197	+	the upper-tier pass-through entity under this subdivision. The 1466
	2198	+	department shall apply the income tax paid by the upper-tier pass-1467
	2199	+	through entity, on behalf of the lower-tier pass-through entity, to the 1468
	2200	+	income tax required to paid by the lower-tier pass-through entity, on 1469
	2201	+	behalf of its members. For purposes of this subdivision, "pass-through 1470
	2202	+	entity" means an S corporation, general partnership, limited 1471
	2203	+	partnership, limited liability partnership or limited liability company 1472
	2204	+	that is treated as a partnership for federal income tax purposes; and 1473
	2205	+	"member" means a shareholder of an S corporation, a partner in a 1474
	2206	+	general partnership, a limited partnership, or a limited liability 1475
	2207	+	partnership and a member of a limited liability company that is treated 1476
	2208	+	as a partnership for federal income tax purposes. 1477
	2209	+	(E) For purposes of section 12-740, a nonresident individual who is a 1478
	2210	+	member of a pass-through entity, as defined in subparagraph (D) of this 1479
	2211	+	subdivision, shall not be required to file an income tax return under this 1480
	2212	+	chapter for a taxable year if, for such taxable year, the only source of 1481
	2213	+	income derived from or connected with Connecticut sources of such 1482
	2214	+	member, or the member and his or her spouse if a joint federal income 1483
	2215	+	tax return is or shall be made, is from one or more pass-through entities, 1484
	2216	+	and the sum of such income derived from or connected with 1485
	2217	+	Connecticut sources from such one or more pass-through entities is less 1486
	2218	+	than one thousand dollars. 1487 Governor's Bill No. 981
	2219	+
	2220	+
	2221	+
	2222	+	LCO No. 4026 57 of 64
	2223	+
	2224	+	(c) (1) (A) The provisions of this subsection shall not apply to taxable 1488
	2225	+	years commencing on or after January 1, 2018, and prior to January 1, 1489
	2226	+	2024. 1490
	2227	+	(B) With respect to each of its nonresident shareholders, each S 1491
	2228	+	corporation doing business in this state or having income derived from 1492
	2229	+	or connected with sources within this state shall, for each taxable year, 1493
	2230	+	make payment to the commissioner as provided in subdivision (2) of 1494
	2231	+	this subsection. 1495
	2232	+	(C) For taxable years commencing on or after January 1, 2024, the 1496
	2233	+	payment due with respect to each nonresident shareholder under this 1497
	2234	+	subsection shall be reduced by such shareholder's direct and indirect 1498
	2235	+	credit properly reported by the S corporation under subdivision (1) of 1499
	2236	+	subsection (f) of section 12-699, as amended by this act. In no event shall 1500
	2237	+	the payment with respect to any nonresident shareholder be less than 1501
	2238	+	zero. 1502
	2239	+	(2) (A) Any payment under this subdivision shall be in an amount 1503
	2240	+	equal to the highest marginal tax rate in effect under section 12-700, as 1504
	2241	+	amended by this act, for the taxable year multiplied by the subject 1505
	2242	+	shareholder's pro rata share of (i) such S corporation's separately and 1506
	2243	+	nonseparately computed items, as described in Section 1366 of the 1507
	2244	+	Internal Revenue Code, to the extent derived from or connected with 1508
	2245	+	sources within this state, as determined under this chapter, and (ii) any 1509
	2246	+	modification described in section 12-701 which relates to an item of such 1510
	2247	+	S corporation's income, gain, loss or deduction, to the extent derived 1511
	2248	+	from or connected with sources within this state, as determined under 1512
	2249	+	this chapter. Any amount paid by an S corporation to this state with 1513
	2250	+	respect to any taxable year pursuant to this subdivision shall be 1514
	2251	+	considered to be a payment by the shareholder on account of the income 1515
	2252	+	tax imposed on the shareholder for such taxable year pursuant to this 1516
	2253	+	chapter. An S corporation shall not be liable to, and shall be entitled to 1517
	2254	+	recover a payment made pursuant to this subdivision from, the 1518
	2255	+	shareholder on whose behalf the payment was made. Any payment for 1519
	2256	+	a taxable year shall be made at or before the date the annual return for 1520 Governor's Bill No. 981
	2257	+
	2258	+
	2259	+
	2260	+	LCO No. 4026 58 of 64
	2261	+
	2262	+	such taxable year is required to be filed pursuant to section 12-726. The 1521
	2263	+	S corporation shall furnish, on a form prescribed by the department, to 1522
	2264	+	each shareholder on whose behalf payment was made under this 1523
	2265	+	subdivision no later than the fifteenth day of the [fourth] third month 1524
	2266	+	following the close of the S corporation's taxable year a record of the 1525
	2267	+	amount of the tax paid on behalf of such shareholder by the S 1526
	2268	+	corporation with respect to the taxable year. 1527
	2269	+	(B) (i) If income from one or more pass-through entities, as defined in 1528
	2270	+	subparagraph (D) of this subdivision, is the only source of income 1529
	2271	+	derived from or connected with Connecticut sources of a shareholder, 1530
	2272	+	or the shareholder and his or her spouse if a joint federal income tax 1531
	2273	+	return is or shall be made, the filing by the S corporation of an annual 1532
	2274	+	return pursuant to section 12-726 and the payment by the S corporation 1533
	2275	+	on behalf of the shareholder of the tax prescribed under subparagraph 1534
	2276	+	(A) of this subdivision shall satisfy the filing and payment requirements 1535
	2277	+	otherwise separately imposed on the shareholder by this chapter. The 1536
	2278	+	commissioner may make any deficiency assessment against, at the 1537
	2279	+	commissioner's sole discretion, either the S corporation or the 1538
	2280	+	shareholder, provided any such assessment against the shareholder 1539
	2281	+	shall be limited to the shareholder's share thereof. Except as otherwise 1540
	2282	+	provided in section 12-733, as amended by this act, any such assessment 1541
	2283	+	shall be made not later than three years after the S corporation's annual 1542
	2284	+	return pursuant to section 12-726 is filed. The commissioner may refund 1543
	2285	+	or credit any overpayment to either the S corporation or the shareholder, 1544
	2286	+	in the commissioner's sole discretion. Except as otherwise provided in 1545
	2287	+	section 12-732, any such overpayment shall be refunded or credited not 1546
	2288	+	later than three years from the due date of the S corporation's annual 1547
	2289	+	return pursuant to section 12-726 or, if the time for filing such return 1548
	2290	+	was extended, not later than three years from the date on which such 1549
	2291	+	return is filed or the extended due date of such return, whichever is 1550
	2292	+	earlier. 1551
	2293	+	(ii) If income from one or more pass-through entities, as defined in 1552
	2294	+	subparagraph (D) of subdivision (2) of subsection (b) of this section, is 1553
	2295	+	not the only source of income derived from or connected with 1554 Governor's Bill No. 981
	2296	+
	2297	+
	2298	+
	2299	+	LCO No. 4026 59 of 64
	2300	+
	2301	+	Connecticut sources of a shareholder, or the shareholder and his or her 1555
	2302	+	spouse if a joint federal income tax return is or shall be made, nothing 1556
	2303	+	in this subdivision shall be construed as excusing the shareholder from 1557
	2304	+	the obligation to file his or her own separate tax return under this 1558
	2305	+	chapter. In such event, the shareholder shall receive credit for the 1559
	2306	+	income tax paid under this subdivision by the S corporation on his or 1560
	2307	+	her behalf. The commissioner may make any deficiency assessment that 1561
	2308	+	is related to the shareholder's share of S corporation items against either, 1562
	2309	+	in the commissioner's sole discretion, the S corporation or the 1563
	2310	+	shareholder. If the commissioner chooses to make any deficiency 1564
	2311	+	assessment against the S corporation, then, except as otherwise 1565
	2312	+	provided in section 12-733, as amended by this act, any such assessment 1566
	2313	+	shall be made not later than three years after the S corporation's annual 1567
	2314	+	return pursuant to section 12-726 is filed. The commissioner may refund 1568
	2315	+	or credit any overpayment that is related to the shareholder's share of S 1569
	2316	+	corporation items to either, in the commissioner's sole discretion, the S 1570
	2317	+	corporation or the shareholder. If the commissioner chooses to refund 1571
	2318	+	or credit any overpayment to the S corporation, then, except as 1572
	2319	+	otherwise provided in section 12-732, any such overpayment shall be 1573
	2320	+	refunded or credited not later than three years from the due date of the 1574
	2321	+	S corporation's annual return pursuant to section 12-726 or, if the time 1575
	2322	+	for filing such return was extended, not later than three years from the 1576
	2323	+	date on which such return is filed or the extended due date of such 1577
	2324	+	return, whichever is earlier. 1578
	2325	+	(C) Notwithstanding the provisions of subparagraph (A) of this 1579
	2326	+	subdivision, an S corporation shall not be required to make a payment 1580
	2327	+	on account of the income tax imposed on a shareholder for a taxable 1581
	2328	+	year pursuant to this chapter if (i) the shareholder's distributive share of 1582
	2329	+	S corporation income, to the extent derived from or connected with 1583
	2330	+	sources within this state, as reflected on the S corporation's annual 1584
	2331	+	return for the taxable year under section 12-726, is less than one 1585
	2332	+	thousand dollars; or (ii) the department has determined by regulation, 1586
	2333	+	ruling or instruction that the shareholder's income is not subject to the 1587
	2334	+	provisions of this subdivision. 1588 Governor's Bill No. 981
	2335	+
	2336	+
	2337	+
	2338	+	LCO No. 4026 60 of 64
	2339	+
	2340	+	(D) For purposes of this subdivision, the provisions of subparagraphs 1589
	2341	+	(D) and (E) of subdivision (2) of subsection (b) of this section apply. 1590
	2342	+	(d) (1) In lieu of filing a return pursuant to this section, the 1591
	2343	+	commissioner may, if he determines that the enforcement of this chapter 1592
	2344	+	would not be adversely affected and pursuant to requirements and 1593
	2345	+	conditions set forth in forms and instructions, provide for the filing of a 1594
	2346	+	composite return for every qualifying nonresident member of a 1595
	2347	+	professional athletic team by such team, if such team is doing business 1596
	2348	+	in this state or the members of such team have compensation which is 1597
	2349	+	received for services rendered as members of such team and which is 1598
	2350	+	derived from or connected with sources within this state. 1599
	2351	+	(2) If a professional athletic team is required to file a composite return 1600
	2352	+	pursuant to this subsection, the commissioner may, if he determines that 1601
	2353	+	the enforcement of this chapter would not be adversely affected, require 1602
	2354	+	such team, in lieu of deducting and withholding Connecticut income tax 1603
	2355	+	as may otherwise be required under section 12-705, to make payment to 1604
	2356	+	the commissioner of tax, estimated tax, additions to tax, interest and 1605
	2357	+	penalties otherwise required to be paid to the commissioner by such 1606
	2358	+	qualifying nonresident members. 1607
	2359	+	(3) The commissioner may, if he determines that the enforcement of 1608
	2360	+	this chapter would not be adversely affected, require a professional 1609
	2361	+	athletic team, in lieu of deducting and withholding Connecticut income 1610
	2362	+	tax as may otherwise be required under section 12-705, to make 1611
	2363	+	payment to the commissioner of tax, estimated tax, additions to tax, 1612
	2364	+	interest and penalties otherwise required to be paid to the commissioner 1613
	2365	+	by every (A) resident member, but only with respect to compensation 1614
	2366	+	which is received for services rendered as a member of a professional 1615
	2367	+	athletic team and (B) nonresident member who is not a qualifying 1616
	2368	+	nonresident member, but only with respect to compensation which is 1617
	2369	+	received for services rendered as a member of a professional athletic 1618
	2370	+	team and which is derived from or connected with sources within this 1619
	2371	+	state. 1620 Governor's Bill No. 981
	2372	+
	2373	+
	2374	+
	2375	+	LCO No. 4026 61 of 64
	2376	+
	2377	+	(4) Any amount paid by a professional athletic team to this state with 1621
	2378	+	respect to any taxable period pursuant to this subsection shall be 1622
	2379	+	considered to be a payment by the member on account of the income tax 1623
	2380	+	imposed on the member for such taxable period pursuant to this 1624
	2381	+	chapter. The team shall be entitled to recover a payment made pursuant 1625
	2382	+	to this subsection from the member on whose behalf the payment was 1626
	2383	+	made. 1627
	2384	+	(5) For purposes of this subsection, "qualifying nonresident member" 1628
	2385	+	means a member of a professional athletic team who is a nonresident 1629
	2386	+	individual for the entire taxable year, who does not maintain a 1630
	2387	+	permanent place of abode in Connecticut at any time during the taxable 1631
	2388	+	year, who does not have income derived from or connected with sources 1632
	2389	+	within this state other than compensation which is received for services 1633
	2390	+	rendered as a member of a professional athletic team and which is 1634
	2391	+	derived from or connected with sources within this state. 1635
	2392	+	Sec. 17. Subparagraph (B) of subdivision (2) of subsection (a) of 1636
	2393	+	section 12-217g of the general statutes is repealed and the following is 1637
	2394	+	substituted in lieu thereof (Effective January 1, 2024, and applicable to 1638
	2395	+	income years commencing on or after January 1, 2024): 1639
	2396	+	(B) For taxable years commencing on or after January 1, 2022, with 1640
	2397	+	respect to an affected business entity claiming a credit under this 1641
	2398	+	subsection against the tax due under chapter 228z, the credit available 1642
	2399	+	to the members of such entity pursuant to subdivision (1) of subsection 1643
	2400	+	[(g)] (f) of section 12-699, as amended by this act, shall be based upon 1644
	2401	+	the amount of tax due under chapter 228z from such entity prior to the 1645
	2402	+	application of the credit granted under this subsection and any other 1646
	2403	+	payments made against such tax due. 1647
	2404	+	Sec. 18. Subdivision (4) of subsection (b) of section 12-733 of the 1648
	2405	+	general statutes is repealed and the following is substituted in lieu 1649
	2406	+	thereof (Effective January 1, 2024, and applicable to taxable years commencing 1650
	2407	+	on or after January 1, 2024): 1651
	2408	+	(4) If an affected business entity, as defined in section 12-699, as 1652 Governor's Bill No. 981
	2409	+
	2410	+
	2411	+
	2412	+	LCO No. 4026 62 of 64
	2413	+
	2414	+	amended by this act, omits from the Connecticut adjusted gross income 1653
	2415	+	derived from or connected with sources within Connecticut of any 1654
	2416	+	member of such affected business entity an amount properly includable 1655
	2417	+	therein that is in excess of twenty-five per cent of the amount of 1656
	2418	+	Connecticut adjusted gross income derived from or connected with 1657
	2419	+	sources within Connecticut stated in the return [required under] filed 1658
	2420	+	pursuant to section 12-699, as amended by this act, or section 12-719, as 1659
	2421	+	amended by this act, a notice of a proposed deficiency assessment may 1660
	2422	+	be mailed to the taxpayer not later than six years after the date on which 1661
	2423	+	the return is filed. For purposes of this subdivision, there shall not be 1662
	2424	+	taken into account any amount that is omitted in the return if such 1663
	2425	+	amount is disclosed in the return, or in a statement attached to the 1664
	2426	+	return, in a manner adequate to apprise the commissioner of the nature 1665
	2427	+	and the amount of such item. 1666
	2428	+	Sec. 19. Section 32-7u of the general statutes is repealed and the 1667
	2429	+	following is substituted in lieu thereof (Effective January 1, 2024, and 1668
	2430	+	applicable to taxable years commencing on or after January 1, 2024): 1669
	2431	+	As used in this section, "affected business entity" and "member" have 1670
	2432	+	the same meanings as provided in subsection (a) of section 12-699, as 1671
	2433	+	amended by this act. An affected business entity that receives a rebate 1672
	2434	+	under section 32-7t shall claim such rebate as a credit against the tax due 1673
	2435	+	under chapter 228z. If the amount of the rebate allowed pursuant to 1674
	2436	+	section 32-7t exceeds the liability for the tax imposed under chapter 1675
	2437	+	228z, the Commissioner of Revenue Services shall treat such excess as 1676
	2438	+	an overpayment and shall refund the amount of such excess, without 1677
	2439	+	interest, to the taxpayer. With respect to an affected business entity 1678
	2440	+	granted a rebate pursuant to section 32-7t, the credit available to the 1679
	2441	+	members of such entity pursuant to subdivision (1) of subsection [(g)] 1680
	2442	+	(f) of section 12-699, as amended by this act, shall be based upon the 1681
	2443	+	amount of tax due under chapter 228z from such entity prior to the 1682
	2444	+	application of the rebate granted pursuant to section 32-7t and any other 1683
	2445	+	payments made against such tax due. 1684
	2446	+	Sec. 20. Section 12-699b of the general statutes is repealed. (Effective 1685 Governor's Bill No. 981
	2447	+
	2448	+
	2449	+
	2450	+	LCO No. 4026 63 of 64
	2451	+
	2452	+	January 1, 2024) 1686
	2453	+	Sec. 21. Section 453 of public act 21-2 of the June special session, as 1687
	2454	+	amended by section 471 of public act 22-118, is repealed. (Effective from 1688
	2455	+	passage)1689
3810	2456		This act shall take effect as follows and shall amend the following
3811	2457		sections:
3812	2458
3813	2459		Section 1 from passage and
3814	2460		applicable to income years
3815	2461		commencing on or after
3816	2462		January 1, 2023
3817	2463		12-214(b)(4)
3818	2464		Sec. 2 from passage and
3819	2465		applicable to income years
3820	2466		commencing on or after
3821	2467		January 1, 2023
3822	2468		12-219(b)(4)
3823	2469		Sec. 3 from passage New section
3824		-	Sec. 4 January 1, 2024 12-217x
3825		-	Sec. 5 from passage 12-704e(a)
3826		-	Sec. 6 January 1, 2024 12-700(a)
3827		-	Sec. 7 from passage and
	2470	+	Sec. 4 from passage 12-217x
	2471	+	Sec. 5 from passage 12-217zz(a)
	2472	+	Sec. 6 July 1, 2023 12-392(a)
	2473	+	Sec. 7 July 1, 2023 12-704d
	2474	+	Sec. 8 July 1, 2023 21a-420f(c)
	2475	+	Sec. 9 from passage 12-704e(a)
	2476	+	Sec. 10 from passage 3-20(bb)
	2477	+	Sec. 11 July 1, 2023 3-20j(p)
	2478	+	Sec. 12 July 1, 2023 4-28e(c)
	2479	+	Sec. 13 January 1, 2024 12-700(a)
	2480	+	Sec. 14 January 1, 2024, and
3828	2481		applicable to taxable years
3829	2482		commencing on or after
3830		-	January 1, ~~2023~~
3831		-	12-~~701(a)(20)(B)~~
3832		-	Sec. ~~8 from passage~~ and
3833		-	applicable to ~~income~~ years
	2483	+	January 1, 2024
	2484	+	12-699
	2485	+	Sec. 15 January 1, 2024, and
	2486	+	applicable to taxable years
3834	2487		commencing on or after
3835		-	January 1, 2023
3836		-	12-217
3837		-	Sec. 9 January 1, 2024 12-217jj
3838		-	Sec. 10 January 1, 2024 32-1m(a)
3839		-	Sec. 11 July 1, 2023 12-217ee
3840		-	Sec. 12 from passage 22a-245a
3841		-	Sec. 13 July 1, 2023, and
3842		-	applicable to sales
3843		-	occurring on or after July
3844		-	1, 2023
3845		-	12-407(37)(J) Substitute Bill No. 981
3846		-
3847		-
3848		-	LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB-
3849		-	00981-R01-SB.docx }
3850		-	99 of 99
3851		-
3852		-	Sec. 14 January 1, 2024, and
	2488	+	January 1, 2024
	2489	+	12-699a
	2490	+	Sec. 16 January 1, 2024, and
	2491	+	applicable to taxable years
	2492	+	commencing on or after
	2493	+	January 1, 2024
	2494	+	12-719 Governor's Bill No. 981
	2495	+
	2496	+
	2497	+
	2498	+	LCO No. 4026 64 of 64
	2499	+
	2500	+	Sec. 17 January 1, 2024, and
3853	2501		applicable to income years
3854	2502		commencing on or after
3855	2503		January 1, 2024
3856		-	12-217g(c)
3857		-	Sec. 15 January 1, 2024 31-22r
3858		-	Sec. 16 July 1, 2023, and
3859		-	applicable to sales
3860		-	occurring on or after July
3861		-	1, 2023
3862		-	12-408(1)
3863		-	Sec. 17 July 1, 2023, and
3864		-	applicable to sales
3865		-	occurring on or after July
3866		-	1, 2023
3867		-	12-411(1)
3868		-	Sec. 18 July 1, 2023 New section
3869		-	Sec. 19 July 1, 2023 New section
3870		-	Sec. 20 July 1, 2023 New section
3871		-	Sec. 21 from passage New section
3872		-	Sec. 22 from passage New section
3873		-	Sec. 23 October 1, 2023 12-217(a)(4)
3874		-	Sec. 24 January 1, 2024 12-217w
3875		-	Sec. 25 July 1, 2023 New section
3876		-	Sec. 26 July 1, 2023 12-7c
3877		-	Sec. 27 from passage Repealer section
3878		-
3879		-	FIN Joint Favorable Subst.
	2504	+	12-217g(a)(2)(B)
	2505	+	Sec. 18 January 1, 2024, and
	2506	+	applicable to taxable years
	2507	+	commencing on or after
	2508	+	January 1, 2024
	2509	+	12-733(b)(4)
	2510	+	Sec. 19 January 1, 2024, and
	2511	+	applicable to taxable years
	2512	+	commencing on or after
	2513	+	January 1, 2024
	2514	+	32-7u
	2515	+	Sec. 20 January 1, 2024 Repealer section
	2516	+	Sec. 21 from passage Repealer section
	2517	+
	2518	+	Statement of Purpose:
	2519	+	To implement the Governor's budget recommendations.
	2520	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	2521	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	2522	+	underlined.]
3880	2523