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General Assembly Substitute Bill No. 981
January Session, 2023
AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE
BIENNIAL BUDGET.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (4) of subsection (b) of section 12-214 of the 1
general statutes is repealed and the following is substituted in lieu 2
thereof (Effective from passage and applicable to income years commencing on 3
or after January 1, 2023): 4
(4) (A) With respect to income years commencing on or after January 5
1, 2018, and prior to January 1, [2023] 2026, any company subject to the 6
tax imposed in accordance with subsection (a) of this section shall pay, 7
for such income year, except when the tax so calculated is equal to two 8
hundred fifty dollars, an additional tax in an amount equal to ten per 9
cent of the tax calculated under said subsection (a) for such income year, 10
without reduction of the tax so calculated by the amount of any credit 11
against such tax. The additional amount of tax determined under this 12
subsection for any income year shall constitute a part of the tax imposed 13
by the provisions of said subsection (a) and shall become due and be 14
paid, collected and enforced as provided in this chapter. 15
(B) Any company whose gross income for the income year was less 16
than one hundred million dollars shall not be subject to the additional 17 Substitute Bill No. 981
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tax imposed under subparagraph (A) of this subdivision. This exception 18
shall not apply to taxable members of a combined group that files a 19
combined unitary tax return. 20
Sec. 2. Subdivision (4) of subsection (b) of section 12-219 of the general 21
statutes is repealed and the following is substituted in lieu thereof 22
(Effective from passage and applicable to income years commencing on or after 23
January 1, 2023): 24
(4) (A) With respect to income years commencing on or after January 25
1, 2018, and prior to January 1, [2023] 2026, the additional tax imposed 26
on any company and calculated in accordance with subsection (a) of this 27
section shall, for such income year, except when the tax so calculated is 28
equal to two hundred fifty dollars, be increased by adding thereto an 29
amount equal to ten per cent of the additional tax so calculated for such 30
income year, without reduction of the tax so calculated by the amount 31
of any credit against such tax. The increased amount of tax payable by 32
any company under this section, as determined in accordance with this 33
subsection, shall become due and be paid, collected and enforced as 34
provided in this chapter. 35
(B) Any company whose gross income for the income year was less 36
than one hundred million dollars shall not be subject to the additional 37
tax imposed under subparagraph (A) of this subdivision. This exception 38
shall not apply to taxable members of a combined group that files a 39
combined unitary tax return. 40
Sec. 3. (Effective from passage) The provisions of section 12-242d of the 41
general statutes shall not apply to any additional tax due as a result of 42
the changes made to subdivision (4) of subsection (b) of section 12-214 43
of the general statutes pursuant to section 1 of this act or to subdivision 44
(4) of section 12-219 of the general statutes pursuant to section 2 of this 45
act, for income years commencing on or after January 1, 2023, but prior 46
to the effective date of sections 1 and 2 of this act. 47
Sec. 4. Section 12-217x of the general statutes is repealed and the 48 Substitute Bill No. 981
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following is substituted in lieu thereof (Effective January 1, 2024): 49
(a) For purposes of this section, "human capital investment" means 50
the amount paid or incurred by a corporation on: 51
(1) [job] Job training [which] that occurs in this state for persons who 52
are employed in this state; 53
(2) [work] Work education programs in this state, including, but not 54
limited to, programs in public high schools and work education-55
diversified occupations programs in this state; 56
(3) [worker] Worker training and education for persons who are 57
employed in this state provided by institutions of higher education in 58
this state; 59
(4) [donations] Donations or capital contributions to institutions of 60
higher education in this state for improvements or advancements of 61
technology, including physical plant improvements; 62
(5) [planning] Planning, site preparation, construction, renovation or 63
acquisition of facilities in this state for the purpose of establishing a child 64
care center, as described in section 19a-77, in this state to be used 65
primarily by the children of employees who are employed in this state; 66
(6) [subsidies] Donations or capital contributions to an organization 67
exempt from taxation pursuant to Section 501(c)(3) of the Internal 68
Revenue Code of 1986, or any subsequent corresponding internal 69
revenue code of the United States, as amended from time to time, for the 70
planning, site preparation, construction, renovation or acquisition of 71
facilities in this state for the purpose of establishing a child care center 72
in this state to be used by children residing in the community, including 73
the children of employees who are employed in this state; 74
(7) Subsidies to employees who are employed in this state for child 75
care to be provided in this state; and 76 Substitute Bill No. 981
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[(7) contributions] (8) Contributions made to the Individual 77
Development Account Reserve Fund, as defined in section 31-51ww. 78
(b) There shall be allowed a credit for any corporation against the tax 79
imposed under this chapter in an amount spent by such corporation, as 80
a human capital investment as follows: (1) For any income year 81
commencing on or after January 1, 1998, and prior to January 1, 1999, 82
equal to three per cent of such amount paid or incurred by the 83
corporation during such income year; (2) for any income year 84
commencing on or after January 1, 1999, and prior to January 1, 2000, 85
equal to four per cent of such amount paid or incurred by the 86
corporation during such income year; [and] (3) for any income year 87
commencing on or after January 1, 2000, equal to five per cent of such 88
amount paid or incurred by the corporation during such income year; 89
and (4) for any income year commencing on or after January 1, 2024, (A) 90
equal to ten per cent of the amount paid or incurred by the corporation 91
during such income year for the purposes set forth in subdivisions (1) 92
to (4), inclusive, and subdivision (8) of subsection (a) of this section, and 93
(B) equal to twenty-five per cent of the amount paid or incurred by the 94
corporation during such income year for the purposes set forth in 95
subdivisions (5) to (7), inclusive, of subsection (a) of this section. 96
(c) The amount of credit allowed to any corporation under this 97
section shall not exceed the amount of tax due from such corporation 98
under this chapter with respect to such income year. 99
(d) No corporation claiming the credit under this section with respect 100
to a human capital investment as defined in subsection (a) of this section 101
shall claim a credit against any tax under any other provision of the 102
general statutes against any tax with respect to the same investment. 103
(e) Any tax credit not used in the income year during which the 104
investment was made may be carried forward for the five immediately 105
succeeding income years until the full credit has been allowed. 106
Sec. 5. Subsection (a) of section 12-704e of the general statutes is 107 Substitute Bill No. 981
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repealed and the following is substituted in lieu thereof (Effective from 108
passage): 109
(a) Any resident of this state, as defined in subdivision (1) of 110
subsection (a) of section 12-701, who is subject to the tax imposed under 111
this chapter for any taxable year shall be allowed a credit against the tax 112
otherwise due under this chapter in an amount equal to the applicable 113
percentage of the earned income credit claimed and allowed for the 114
same taxable year under Section 32 of the Internal Revenue Code, as 115
defined in subsection (a) of section 12-701, as amended by this act. As 116
used in this section, "applicable percentage" means (1) twenty-three per 117
cent for taxable years commencing prior to January 1, 2021, [and] (2) 118
thirty and one-half per cent for taxable years commencing on or after 119
January 1, 2021, and prior to January 1, 2023, and (3) forty-five per cent 120
for taxable years commencing on or after January 1, 2023. 121
Sec. 6. Subsection (a) of section 12-700 of the general statutes is 122
repealed and the following is substituted in lieu thereof (Effective January 123
1, 2024): 124
(a) There is hereby imposed on the Connecticut taxable income of 125
each resident of this state a tax: 126
(1) At the rate of four and one-half per cent of such Connecticut 127
taxable income for taxable years commencing on or after January 1, 128
1992, and prior to January 1, 1996. 129
(2) For taxable years commencing on or after January 1, 1996, but 130
prior to January 1, 1997, in accordance with the following schedule: 131
(A) For any person who files a return under the federal income tax 132
for such taxable year as an unmarried individual or as a married 133
individual filing separately: 134
T1
Connecticut Taxable Income Rate of Tax
T2
Not over $2,250 3.0% Substitute Bill No. 981
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T3
Over $2,250 $67.50, plus 4.5% of the
T4
excess over $2,250
(B) For any person who files a return under the federal income tax for 135
such taxable year as a head of household, as defined in Section 2(b) of 136
the Internal Revenue Code: 137
T5
Connecticut Taxable Income Rate of Tax
T6
Not over $3,500 3.0%
T7 Over $3,500 $105.00, plus 4.5% of the
T8 excess over $3,500
(C) For any husband and wife who file a return under the federal 138
income tax for such taxable year as married individuals filing jointly or 139
a person who files a return under the federal income tax as a surviving 140
spouse, as defined in Section 2(a) of the Internal Revenue Code: 141
T9
Connecticut Taxable Income Rate of Tax
T10 Not over $4,500 3.0%
T11 Over $4,500 $135.00, plus 4.5% of the
T12 excess over $4,500
(D) For trusts or estates, the rate of tax shall be 4.5% of their 142
Connecticut taxable income. 143
(3) For taxable years commencing on or after January 1, 1997, but 144
prior to January 1, 1998, in accordance with the following schedule: 145
(A) For any person who files a return under the federal income tax 146
for such taxable year as an unmarried individual or as a married 147
individual filing separately: 148
T13
Connecticut Taxable Income Rate of Tax Substitute Bill No. 981
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T14 Not over $6,250 3.0%
T15 Over $6,250 $187.50, plus 4.5% of the
T16 excess over $6,250
(B) For any person who files a return under the federal income tax for 149
such taxable year as a head of household, as defined in Section 2(b) of 150
the Internal Revenue Code: 151
T17
Connecticut Taxable Income Rate of Tax
T18 Not over $10,000 3.0%
T19 Over $10,000 $300.00, plus 4.5% of the
T20 excess over $10,000
(C) For any husband and wife who file a return under the federal 152
income tax for such taxable year as married individuals filing jointly or 153
any person who files a return under the federal income tax for such 154
taxable year as a surviving spouse, as defined in Section 2(a) of the 155
Internal Revenue Code: 156
T21
Connecticut Taxable Income Rate of Tax
T22 Not over $12,500 3.0%
T23 Over $12,500 $375.00, plus 4.5% of the
T24 excess over $12,500
(D) For trusts or estates, the rate of tax shall be 4.5% of their 157
Connecticut taxable income. 158
(4) For taxable years commencing on or after January 1, 1998, but 159
prior to January 1, 1999, in accordance with the following schedule: 160
(A) For any person who files a return under the federal income tax 161
for such taxable year as an unmarried individual or as a married 162
individual filing separately: 163 Substitute Bill No. 981
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T25
Connecticut Taxable Income Rate of Tax
T26
Not over $7,500 3.0%
T27
Over $7,500 $225.00, plus 4.5% of the
T28
excess over $7,500
(B) For any person who files a return under the federal income tax for 164
such taxable year as a head of household, as defined in Section 2(b) of 165
the Internal Revenue Code: 166
T29
Connecticut Taxable Income Rate of Tax
T30 Not over $12,000 3.0%
T31 Over $12,000 $360.00, plus 4.5% of the
T32
excess over $12,000
(C) For any husband and wife who file a return under the federal 167
income tax for such taxable year as married individuals filing jointly or 168
any person who files a return under the federal income tax for such 169
taxable year as a surviving spouse, as defined in Section 2(a) of the 170
Internal Revenue Code: 171
T33
Connecticut Taxable Income Rate of Tax
T34 Not over $15,000 3.0%
T35
Over $15,000 $450.00, plus 4.5% of the
T36
excess over $15,000
(D) For trusts or estates, the rate of tax shall be 4.5% of their 172
Connecticut taxable income. 173
(5) For taxable years commencing on or after January 1, 1999, but 174
prior to January 1, 2003, in accordance with the following schedule: 175
(A) For any person who files a return under the federal income tax 176
for such taxable year as an unmarried individual or as a married 177 Substitute Bill No. 981
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individual filing separately: 178
T37
Connecticut Taxable Income Rate of Tax
T38
Not over $10,000 3.0%
T39
Over $10,000 $300.00, plus 4.5% of the
T40
excess over $10,000
(B) For any person who files a return under the federal income tax for 179
such taxable year as a head of household, as defined in Section 2(b) of 180
the Internal Revenue Code: 181
T41
Connecticut Taxable Income Rate of Tax
T42 Not over $16,000 3.0%
T43
Over $16,000 $480.00, plus 4.5% of the
T44
excess over $16,000
(C) For any husband and wife who file a return under the federal 182
income tax for such taxable year as married individuals filing jointly or 183
any person who files a return under the federal income tax for such 184
taxable year as a surviving spouse, as defined in Section 2(a) of the 185
Internal Revenue Code: 186
T45
Connecticut Taxable Income Rate of Tax
T46
Not over $20,000 3.0%
T47
Over $20,000 $600.00, plus 4.5% of the
T48
excess over $20,000
(D) For trusts or estates, the rate of tax shall be 4.5% of their 187
Connecticut taxable income. 188
(6) For taxable years commencing on or after January 1, 2003, but 189
prior to January 1, 2009, in accordance with the following schedule: 190 Substitute Bill No. 981
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(A) For any person who files a return under the federal income tax 191
for such taxable year as an unmarried individual or as a married 192
individual filing separately: 193
T49
Connecticut Taxable Income Rate of Tax
T50
Not over $10,000 3.0%
T51
Over $10,000 $300.00, plus 5.0% of the
T52
excess over $10,000
(B) For any person who files a return under the federal income tax for 194
such taxable year as a head of household, as defined in Section 2(b) of 195
the Internal Revenue Code: 196
T53
Connecticut Taxable Income Rate of Tax
T54
Not over $16,000 3.0%
T55
Over $16,000 $480.00, plus 5.0% of the
T56
excess over $16,000
(C) For any husband and wife who file a return under the federal 197
income tax for such taxable year as married individuals filing jointly or 198
any person who files a return under the federal income tax for such 199
taxable year as a surviving spouse, as defined in Section 2(a) of the 200
Internal Revenue Code: 201
T57
Connecticut Taxable Income Rate of Tax
T58
Not over $20,000 3.0%
T59
Over $20,000 $600.00, plus 5.0% of the
T60
excess over $20,000
(D) For trusts or estates, the rate of tax shall be 5.0% of the 202
Connecticut taxable income. 203
(7) For taxable years commencing on or after January 1, 2009, but 204 Substitute Bill No. 981
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prior to January 1, 2011, in accordance with the following schedule: 205
(A) For any person who files a return under the federal income tax 206
for such taxable year as an unmarried individual: 207
T61
Connecticut Taxable Income Rate of Tax
T62
Not over $10,000 3.0%
T63
Over $10,000 but not $300.00, plus 5.0% of the
T64
over $500,000 excess over $10,000
T65
Over $500,000 $24,800, plus 6.5% of the
T66 excess over $500,000
(B) For any person who files a return under the federal income tax for 208
such taxable year as a head of household, as defined in Section 2(b) of 209
the Internal Revenue Code: 210
T67
Connecticut Taxable Income Rate of Tax
T68
Not over $16,000 3.0%
T69
Over $16,000 but not $480.00, plus 5.0% of the
T70
over $800,000 excess over $16,000
T71
Over $800,000 $39,680, plus 6.5% of the
T72 excess over $800,000
(C) For any husband and wife who file a return under the federal 211
income tax for such taxable year as married individuals filing jointly or 212
any person who files a return under the federal income tax for such 213
taxable year as a surviving spouse, as defined in Section 2(a) of the 214
Internal Revenue Code: 215
T73
Connecticut Taxable Income Rate of Tax
T74
Not over $20,000 3.0%
T75 Over $20,000 but not $600.00, plus 5.0% of the
T76
over $1,000,000 excess over $20,000 Substitute Bill No. 981
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T77
Over $1,000,000 $49,600, plus 6.5% of the
T78
excess over $1,000,000
(D) For any person who files a return under the federal income tax 216
for such taxable year as a married individual filing separately: 217
T79
Connecticut Taxable Income Rate of Tax
T80
Not over $10,000 3.0%
T81
Over $10,000 but not $300.00, plus 5.0% of the
T82 over $500,000 excess over $10,000
T83 Over $500,000 $24,800, plus 6.5% of the
T84
excess over $500,000
(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut 218
taxable income. 219
(8) For taxable years commencing on or after January 1, 2011, but 220
prior to January 1, 2015, in accordance with the following schedule: 221
(A) (i) For any person who files a return under the federal income tax 222
for such taxable year as an unmarried individual: 223
T85
Connecticut Taxable Income Rate of Tax
T86
Not over $10,000 3.0%
T87
Over $10,000 but not $300.00, plus 5.0% of the
T88
over $50,000 excess over $10,000
T89
Over $50,000 but not $2,300, plus 5.5% of the
T90
over $100,000 excess over $50,000
T91
Over $100,000 but not $5,050, plus 6.0% of the
T92
over $200,000 excess over $100,000
T93 Over $200,000 but not $11,050, plus 6.5% of the
T94
over $250,000 excess over $200,000
T95
Over $250,000 $14,300, plus 6.70% of the
T96
excess over $250,000 Substitute Bill No. 981
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(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 224
subdivision, for each taxpayer whose Connecticut adjusted gross 225
income exceeds fifty-six thousand five hundred dollars, the amount of 226
the taxpayer's Connecticut taxable income to which the three-per-cent 227
tax rate applies shall be reduced by one thousand dollars for each five 228
thousand dollars, or fraction thereof, by which the taxpayer's 229
Connecticut adjusted gross income exceeds said amount. Any such 230
amount of Connecticut taxable income to which, as provided in the 231
preceding sentence, the three-per-cent tax rate does not apply shall be 232
an amount to which the five-per-cent tax rate shall apply. 233
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 234
two hundred thousand dollars shall pay, in addition to the tax 235
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 236
this subdivision, an amount equal to seventy-five dollars for each five 237
thousand dollars, or fraction thereof, by which the taxpayer's 238
Connecticut adjusted gross income exceeds two hundred thousand 239
dollars, up to a maximum payment of two thousand two hundred fifty 240
dollars. 241
(B) (i) For any person who files a return under the federal income tax 242
for such taxable year as a head of household, as defined in Section 2(b) 243
of the Internal Revenue Code: 244
T97
Connecticut Taxable Income Rate of Tax
T98
Not over $16,000 3.0%
T99
Over $16,000 but not $480.00, plus 5.0% of the
T100 over $80,000 excess over $16,000
T101
Over $80,000 but not $3,680, plus 5.5% of the
T102
over $160,000 excess over $80,000
T103
Over $160,000 but not $8,080, plus 6.0% of the
T104
over $320,000 excess over $160,000
T105
Over $320,000 but not $17,680, plus 6.5% of the Substitute Bill No. 981
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T106
over $400,000 excess over $320,000
T107
Over $400,000 $22,880, plus 6.70% of the
T108
excess over $400,000
(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 245
subdivision, for each taxpayer whose Connecticut adjusted gross 246
income exceeds seventy-eight thousand five hundred dollars, the 247
amount of the taxpayer's Connecticut taxable income to which the three-248
per-cent tax rate applies shall be reduced by one thousand six hundred 249
dollars for each four thousand dollars, or fraction thereof, by which the 250
taxpayer's Connecticut adjusted gross income exceeds said amount. 251
Any such amount of Connecticut taxable income to which, as provided 252
in the preceding sentence, the three-per-cent tax rate does not apply 253
shall be an amount to which the five-per-cent tax rate shall apply. 254
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 255
three hundred twenty thousand dollars shall pay, in addition to the tax 256
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 257
this subdivision, an amount equal to one hundred twenty dollars for 258
each eight thousand dollars, or fraction thereof, by which the taxpayer's 259
Connecticut adjusted gross income exceeds three hundred twenty 260
thousand dollars, up to a maximum payment of three thousand six 261
hundred dollars. 262
(C) (i) For any husband and wife who file a return under the federal 263
income tax for such taxable year as married individuals filing jointly or 264
any person who files a return under the federal income tax for such 265
taxable year as a surviving spouse, as defined in Section 2(a) of the 266
Internal Revenue Code: 267
T109
Connecticut Taxable Income Rate of Tax
T110
Not over $20,000 3.0%
T111
Over $20,000 but not $600.00, plus 5.0% of the
T112
over $100,000 excess over $20,000 Substitute Bill No. 981
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T113
Over $100,000 but not $4,600, plus 5.5% of the
T114 over $200,000 excess over $100,000
T115
Over $200,000 but not $10,100, plus 6.0% of the
T116
over $400,000 excess over $200,000
T117
Over $400,000 but not $22,100, plus 6.5% of the
T118
over $500,000 excess over $400,000
T119 Over $500,000 $28,600, plus 6.70% of the
T120
excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 268
subdivision, for each taxpayer whose Connecticut adjusted gross 269
income exceeds one hundred thousand five hundred dollars, the 270
amount of the taxpayer's Connecticut taxable income to which the three-271
per-cent tax rate applies shall be reduced by two thousand dollars for 272
each five thousand dollars, or fraction thereof, by which the taxpayer's 273
Connecticut adjusted gross income exceeds said amount. Any such 274
amount of Connecticut taxable income to which, as provided in the 275
preceding sentence, the three-per-cent tax rate does not apply shall be 276
an amount to which the five-per-cent tax rate shall apply. 277
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 278
four hundred thousand dollars shall pay, in addition to the tax 279
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 280
this subdivision, an amount equal to one hundred fifty dollars for each 281
ten thousand dollars, or fraction thereof, by which the taxpayer's 282
Connecticut adjusted gross income exceeds four hundred thousand 283
dollars, up to a maximum payment of four thousand five hundred 284
dollars. 285
(D) (i) For any person who files a return under the federal income tax 286
for such taxable year as a married individual filing separately: 287
T121
Connecticut Taxable Income Rate of Tax Substitute Bill No. 981
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T122
Not over $10,000 3.0%
T123 Over $10,000 but not $300.00, plus 5.0% of the
T124
over $50,000 excess over $10,000
T125
Over $50,000 but not $2,300, plus 5.5% of the
T126
over $100,000 excess over $50,000
T127
Over $100,000 but not $5,050, plus 6.0% of the
T128 over $200,000 excess over $100,000
T129
Over $200,000 but not $11,050, plus 6.5% of the
T130
over $250,000 excess over $200,000
T131 Over $250,000 $14,300, plus 6.70% of the
T132
excess over $250,000
(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 288
subdivision, for each taxpayer whose Connecticut adjusted gross 289
income exceeds fifty thousand two hundred fifty dollars, the amount of 290
the taxpayer's Connecticut taxable income to which the three-per-cent 291
tax rate applies shall be reduced by one thousand dollars for each two 292
thousand five hundred dollars, or fraction thereof, by which the 293
taxpayer's Connecticut adjusted gross income exceeds said amount. 294
Any such amount of Connecticut taxable income to which, as provided 295
in the preceding sentence, the three-per-cent tax rate does not apply 296
shall be an amount to which the five-per-cent tax rate shall apply. 297
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 298
two hundred thousand dollars shall pay, in addition to the tax 299
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 300
this subdivision, an amount equal to seventy-five dollars for each five 301
thousand dollars, or fraction thereof, by which the taxpayer's 302
Connecticut adjusted gross income exceeds two hundred thousand 303
dollars, up to a maximum payment of two thousand two hundred fifty 304
dollars. 305
(E) For trusts or estates, the rate of tax shall be 6.70% of the 306
Connecticut taxable income. 307 Substitute Bill No. 981
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(9) For taxable years commencing on or after January 1, 2015, but 308
prior to January 1, 2024, in accordance with the following schedule: 309
(A) (i) For any person who files a return under the federal income tax 310
for such taxable year as an unmarried individual: 311
T133 Connecticut Taxable Income Rate of Tax
T134
Not over $10,000 3.0%
T135
Over $10,000 but not $300.00, plus 5.0% of the
T136
over $50,000 excess over $10,000
T137
Over $50,000 but not $2,300, plus 5.5% of the
T138
over $100,000 excess over $50,000
T139
Over $100,000 but not $5,050, plus 6.0% of the
T140
over $200,000 excess over $100,000
T141
Over $200,000 but not $11,050, plus 6.5% of the
T142
over $250,000 excess over $200,000
T143
Over $250,000 but not $14,300, plus 6.9% of the
T144
over $500,000 excess over $250,000
T145
Over $500,000 $31,550, plus 6.99% of the
T146
excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 312
subdivision, for each taxpayer whose Connecticut adjusted gross 313
income exceeds fifty-six thousand five hundred dollars, the amount of 314
the taxpayer's Connecticut taxable income to which the three-per-cent 315
tax rate applies shall be reduced by one thousand dollars for each five 316
thousand dollars, or fraction thereof, by which the taxpayer's 317
Connecticut adjusted gross income exceeds said amount. Any such 318
amount of Connecticut taxable income to which, as provided in the 319
preceding sentence, the three-per-cent tax rate does not apply shall be 320
an amount to which the five-per-cent tax rate shall apply. 321
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 322
two hundred thousand dollars shall pay, in addition to the tax 323 Substitute Bill No. 981
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computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 324
this subdivision, an amount equal to ninety dollars for each five 325
thousand dollars, or fraction thereof, by which the taxpayer's 326
Connecticut adjusted gross income exceeds two hundred thousand 327
dollars, up to a maximum payment of two thousand seven hundred 328
dollars. 329
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 330
five hundred thousand dollars shall pay, in addition to the tax 331
computed under the provisions of subparagraphs (A)(i), (A)(ii) and 332
(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 333
thousand dollars, or fraction thereof, by which the taxpayer's 334
Connecticut adjusted gross income exceeds five hundred thousand 335
dollars, up to a maximum payment of four hundred fifty dollars. 336
(B) (i) For any person who files a return under the federal income tax 337
for such taxable year as a head of household, as defined in Section 2(b) 338
of the Internal Revenue Code: 339
T147 Connecticut Taxable Income Rate of Tax
T148
Not over $16,000 3.0%
T149
Over $16,000 but not $480.00, plus 5.0% of the
T150
over $80,000 excess over $16,000
T151
Over $80,000 but not $3,680, plus 5.5% of the
T152
over $160,000 excess over $80,000
T153
Over $160,000 but not $8,080, plus 6.0% of the
T154
over $320,000 excess over $160,000
T155
Over $320,000 but not $17,680, plus 6.5% of the
T156
over $400,000 excess over $320,000
T157
Over $400,000 but not $22,880, plus 6.9% of the
T158
over $800,000 excess over $400,000
T159
Over $800,000 $50,480, plus 6.99% of the
T160
excess over $800,000
(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 340 Substitute Bill No. 981
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subdivision, for each taxpayer whose Connecticut adjusted gross 341
income exceeds seventy-eight thousand five hundred dollars, the 342
amount of the taxpayer's Connecticut taxable income to which the three-343
per-cent tax rate applies shall be reduced by one thousand six hundred 344
dollars for each four thousand dollars, or fraction thereof, by which the 345
taxpayer's Connecticut adjusted gross income exceeds said amount. 346
Any such amount of Connecticut taxable income to which, as provided 347
in the preceding sentence, the three-per-cent tax rate does not apply 348
shall be an amount to which the five-per-cent tax rate shall apply. 349
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 350
three hundred twenty thousand dollars shall pay, in addition to the tax 351
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 352
this subdivision, an amount equal to one hundred forty dollars for each 353
eight thousand dollars, or fraction thereof, by which the taxpayer's 354
Connecticut adjusted gross income exceeds three hundred twenty 355
thousand dollars, up to a maximum payment of four thousand two 356
hundred dollars. 357
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 358
eight hundred thousand dollars shall pay, in addition to the tax 359
computed under the provisions of subparagraphs (B)(i), (B)(ii) and 360
(B)(iii) of this subdivision, an amount equal to eighty dollars for each 361
eight thousand dollars, or fraction thereof, by which the taxpayer's 362
Connecticut adjusted gross income exceeds eight hundred thousand 363
dollars, up to a maximum payment of seven hundred twenty dollars. 364
(C) (i) For any husband and wife who file a return under the federal 365
income tax for such taxable year as married individuals filing jointly or 366
any person who files a return under the federal income tax for such 367
taxable year as a surviving spouse, as defined in Section 2(a) of the 368
Internal Revenue Code: 369
T161
Connecticut Taxable Income Rate of Tax
T162 Not over $20,000 3.0% Substitute Bill No. 981
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T163 Over $20,000 but not $600.00, plus 5.0% of the
T164 over $100,000 excess over $20,000
T165 Over $100,000 but not $4,600, plus 5.5% of the
T166 over $200,000 excess over $100,000
T167 Over $200,000 but not $10,100, plus 6.0% of the
T168 over $400,000 excess over $200,000
T169 Over $400,000 but not $22,100, plus 6.5% of the
T170 over $500,000 excess over $400,000
T171 Over $500,000 but not $28,600, plus 6.9% of the
T172 over $1,000,000 excess over $500,000
T173 Over $1,000,000 $63,100, plus 6.99% of the
T174 excess over $1,000,000
(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 370
subdivision, for each taxpayer whose Connecticut adjusted gross 371
income exceeds one hundred thousand five hundred dollars, the 372
amount of the taxpayer's Connecticut taxable income to which the three-373
per-cent tax rate applies shall be reduced by two thousand dollars for 374
each five thousand dollars, or fraction thereof, by which the taxpayer's 375
Connecticut adjusted gross income exceeds said amount. Any such 376
amount of Connecticut taxable income to which, as provided in the 377
preceding sentence, the three-per-cent tax rate does not apply shall be 378
an amount to which the five-per-cent tax rate shall apply. 379
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 380
four hundred thousand dollars shall pay, in addition to the tax 381
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 382
this subdivision, an amount equal to one hundred eighty dollars for 383
each ten thousand dollars, or fraction thereof, by which the taxpayer's 384
Connecticut adjusted gross income exceeds four hundred thousand 385
dollars, up to a maximum payment of five thousand four hundred 386
dollars. 387
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 388 Substitute Bill No. 981
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one million dollars shall pay, in addition to the tax computed under the 389
provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 390
subdivision, an amount equal to one hundred dollars for each ten 391
thousand dollars, or fraction thereof, by which the taxpayer's 392
Connecticut adjusted gross income exceeds one million dollars, up to a 393
maximum payment of nine hundred dollars. 394
(D) (i) For any person who files a return under the federal income tax 395
for such taxable year as a married individual filing separately: 396
T175
Connecticut Taxable Income Rate of Tax
T176 Not over $10,000 3.0%
T177 Over $10,000 but not $300.00, plus 5.0% of the
T178 over $50,000 excess over $10,000
T179 Over $50,000 but not $2,300, plus 5.5% of the
T180 over $100,000 excess over $50,000
T181 Over $100,000 but not $5,050, plus 6.0% of the
T182 over $200,000 excess over $100,000
T183 Over $200,000 but not $11,050, plus 6.5% of the
T184 over $250,000 excess over $200,000
T185 Over $250,000 but not $14,300, plus 6.9% of the
T186 over $500,000 excess over $250,000
T187 Over $500,000 $31,550, plus 6.99% of the
T188 excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 397
subdivision, for each taxpayer whose Connecticut adjusted gross 398
income exceeds fifty thousand two hundred fifty dollars, the amount of 399
the taxpayer's Connecticut taxable income to which the three-per-cent 400
tax rate applies shall be reduced by one thousand dollars for each two 401
thousand five hundred dollars, or fraction thereof, by which the 402
taxpayer's Connecticut adjusted gross income exceeds said amount. 403
Any such amount of Connecticut taxable income to which, as provided 404 Substitute Bill No. 981
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in the preceding sentence, the three-per-cent tax rate does not apply 405
shall be an amount to which the five-per-cent tax rate shall apply. 406
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 407
two hundred thousand dollars shall pay, in addition to the tax 408
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 409
this subdivision, an amount equal to ninety dollars for each five 410
thousand dollars, or fraction thereof, by which the taxpayer's 411
Connecticut adjusted gross income exceeds two hundred thousand 412
dollars, up to a maximum payment of two thousand seven hundred 413
dollars. 414
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 415
five hundred thousand dollars shall pay, in addition to the tax 416
computed under the provisions of subparagraphs (D)(i), (D)(ii) and 417
(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 418
thousand dollars, or fraction thereof, by which the taxpayer's 419
Connecticut adjusted gross income exceeds five hundred thousand 420
dollars, up to a maximum payment of four hundred fifty dollars. 421
(E) For trusts or estates, the rate of tax shall be 6.99% of the 422
Connecticut taxable income. 423
(10) For taxable years commencing on or after January 1, 2024, in 424
accordance with the following schedule: 425
(A) (i) For any person who files a return under the federal income tax 426
for such taxable year as an unmarried individual: 427
T189 Connecticut Taxable Income Rate of Tax
T190
Not over $10,000 2.0%
T191
Over $10,000 but not $200.00, plus 4.75% of the
T192
over $50,000 excess over $10,000
T193
Over $50,000 but not $2,100, plus 5.5% of the
T194
over $100,000 excess over $50,000
T195
Over $100,000 but not $4,850, plus 6.0% of the Substitute Bill No. 981
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T196 over $200,000 excess over $100,000
T197 Over $200,000 but not $10,850, plus 6.5% of the
T198 over $250,000 excess over $200,000
T199 Over $250,000 but not $14,100, plus 6.9% of the
T200 over $500,000 excess over $250,000
T201 Over $500,000 $31,350, plus 6.99% of the
T202 excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 428
subdivision, for each taxpayer whose Connecticut adjusted gross 429
income exceeds fifty-six thousand five hundred dollars, the amount of 430
the taxpayer's Connecticut taxable income to which the two-per-cent tax 431
rate applies shall be reduced by one thousand dollars for each five 432
thousand dollars, or fraction thereof, by which the taxpayer's 433
Connecticut adjusted gross income exceeds said amount. Any such 434
amount of Connecticut taxable income to which, as provided in the 435
preceding sentence, the two-per-cent tax rate does not apply shall be an 436
amount to which the four-and-three-quarters-per-cent tax rate shall 437
apply. 438
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 439
two hundred thousand dollars shall pay, in addition to the tax 440
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 441
this subdivision, an amount equal to ninety dollars for each five 442
thousand dollars, or fraction thereof, by which the taxpayer's 443
Connecticut adjusted gross income exceeds two hundred thousand 444
dollars, up to a maximum payment of two thousand seven hundred 445
dollars. 446
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 447
five hundred thousand dollars shall pay, in addition to the tax 448
computed under the provisions of subparagraphs (A)(i), (A)(ii) and 449
(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 450
thousand dollars, or fraction thereof, by which the taxpayer's 451 Substitute Bill No. 981
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Connecticut adjusted gross income exceeds five hundred thousand 452
dollars, up to a maximum payment of four hundred fifty dollars. 453
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 454
two hundred thousand dollars shall pay, in addition to the tax 455
computed under the provisions of subparagraphs (A)(i), (A)(ii), (A)(iii) 456
and, if applicable, (A)(iv) of this subdivision, one hundred twenty-five 457
dollars. 458
(B) (i) For any person who files a return under the federal income tax 459
for such taxable year as a head of household, as defined in Section 2(b) 460
of the Internal Revenue Code: 461
T203 Connecticut Taxable Income Rate of Tax
T204 Not over $16,000 2.0%
T205 Over $16,000 but not $320.00, plus 4.75% of the
T206 over $80,000 excess over $16,000
T207 Over $80,000 but not $3,360, plus 5.5% of the
T208 over $160,000 excess over $80,000
T209 Over $160,000 but not $7,760, plus 6.0% of the
T210 over $320,000 excess over $160,000
T211 Over $320,000 but not $17,360, plus 6.5% of the
T212 over $400,000 excess over $320,000
T213 Over $400,000 but not $22,560, plus 6.9% of the
T214 over $800,000 excess over $400,000
T215 Over $800,000 $50,160, plus 6.99% of the
T216 excess over $800,000
(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 462
subdivision, for each taxpayer whose Connecticut adjusted gross 463
income exceeds seventy-eight thousand five hundred dollars, the 464
amount of the taxpayer's Connecticut taxable income to which the two-465
per-cent tax rate applies shall be reduced by one thousand six hundred 466
dollars for each four thousand dollars, or fraction thereof, by which the 467
taxpayer's Connecticut adjusted gross income exceeds said amount. 468 Substitute Bill No. 981
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Any such amount of Connecticut taxable income to which, as provided 469
in the preceding sentence, the two-per-cent tax rate does not apply shall 470
be an amount to which the four-and-three-quarters-per-cent tax rate 471
shall apply. 472
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 473
three hundred twenty thousand dollars shall pay, in addition to the tax 474
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 475
this subdivision, an amount equal to one hundred forty dollars for each 476
eight thousand dollars, or fraction thereof, by which the taxpayer's 477
Connecticut adjusted gross income exceeds three hundred twenty 478
thousand dollars, up to a maximum payment of four thousand two 479
hundred dollars. 480
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 481
eight hundred thousand dollars shall pay, in addition to the tax 482
computed under the provisions of subparagraphs (B)(i), (B)(ii) and 483
(B)(iii) of this subdivision, an amount equal to eighty dollars for each 484
eight thousand dollars, or fraction thereof, by which the taxpayer's 485
Connecticut adjusted gross income exceeds eight hundred thousand 486
dollars, up to a maximum payment of seven hundred twenty dollars. 487
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 488
three hundred twenty thousand dollars shall pay, in addition to the tax 489
computed under the provisions of subparagraphs (B)(i), (B)(ii), (B)(iii) 490
and, if applicable, (B)(iv) of this subdivision, two hundred dollars. 491
(C) (i) For any husband and wife who file a return under the federal 492
income tax for such taxable year as married individuals filing jointly or 493
any person who files a return under the federal income tax for such 494
taxable year as a surviving spouse, as defined in Section 2(a) of the 495
Internal Revenue Code: 496
T217
Connecticut Taxable Income Rate of Tax
T218 Not over $20,000 2.0% Substitute Bill No. 981
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T219 Over $20,000 but not $400.00, plus 4.75% of the
T220 over $100,000 excess over $20,000
T221 Over $100,000 but not $4,200, plus 5.5% of the
T222 over $200,000 excess over $100,000
T223 Over $200,000 but not $9,700, plus 6.0% of the
T224 over $400,000 excess over $200,000
T225 Over $400,000 but not $21,700, plus 6.5% of the
T226 over $500,000 excess over $400,000
T227 Over $500,000 but not $28,200, plus 6.9% of the
T228 over $1,000,000 excess over $500,000
T229 Over $1,000,000 $62,700, plus 6.99% of the
T230 excess over $1,000,000
(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 497
subdivision, for each taxpayer whose Connecticut adjusted gross 498
income exceeds one hundred thousand five hundred dollars, the 499
amount of the taxpayer's Connecticut taxable income to which the two-500
per-cent tax rate applies shall be reduced by two thousand dollars for 501
each five thousand dollars, or fraction thereof, by which the taxpayer's 502
Connecticut adjusted gross income exceeds said amount. Any such 503
amount of Connecticut taxable income to which, as provided in the 504
preceding sentence, the two-per-cent tax rate does not apply shall be an 505
amount to which the four-and-three-quarters-per-cent tax rate shall 506
apply. 507
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 508
four hundred thousand dollars shall pay, in addition to the tax 509
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 510
this subdivision, an amount equal to one hundred eighty dollars for 511
each ten thousand dollars, or fraction thereof, by which the taxpayer's 512
Connecticut adjusted gross income exceeds four hundred thousand 513
dollars, up to a maximum payment of five thousand four hundred 514
dollars. 515 Substitute Bill No. 981
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(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 516
one million dollars shall pay, in addition to the tax computed under the 517
provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 518
subdivision, an amount equal to one hundred dollars for each ten 519
thousand dollars, or fraction thereof, by which the taxpayer's 520
Connecticut adjusted gross income exceeds one million dollars, up to a 521
maximum payment of nine hundred dollars. 522
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 523
four hundred thousand dollars shall pay, in addition to the tax 524
computed under the provisions of subparagraphs (C)(i), (C)(ii), (C)(iii) 525
and, if applicable, (C)(iv) of this subdivision, two hundred fifty dollars. 526
(D) (i) For any person who files a return under the federal income tax 527
for such taxable year as a married individual filing separately: 528
T231
Connecticut Taxable Income Rate of Tax
T232 Not over $10,000 2.0%
T233 Over $10,000 but not $200.00, plus 4.75% of the
T234 over $50,000 excess over $10,000
T235 Over $50,000 but not $2,100, plus 5.5% of the
T236 over $100,000 excess over $50,000
T237 Over $100,000 but not $4,850, plus 6.0% of the
T238 over $200,000 excess over $100,000
T239 Over $200,000 but not $10,850, plus 6.5% of the
T240 over $250,000 excess over $200,000
T241 Over $250,000 but not $14,100, plus 6.9% of the
T242 over $500,000 excess over $250,000
T243 Over $500,000 $31,350, plus 6.99% of the
T244 excess over $500,000
(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 529
subdivision, for each taxpayer whose Connecticut adjusted gross 530
income exceeds fifty thousand two hundred fifty dollars, the amount of 531 Substitute Bill No. 981
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the taxpayer's Connecticut taxable income to which the two-per-cent tax 532
rate applies shall be reduced by one thousand dollars for each two 533
thousand five hundred dollars, or fraction thereof, by which the 534
taxpayer's Connecticut adjusted gross income exceeds said amount. 535
Any such amount of Connecticut taxable income to which, as provided 536
in the preceding sentence, the two-per-cent tax rate does not apply shall 537
be an amount to which the four-and-three-quarters-per-cent tax rate 538
shall apply. 539
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 540
two hundred thousand dollars shall pay, in addition to the tax 541
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 542
this subdivision, an amount equal to ninety dollars for each five 543
thousand dollars, or fraction thereof, by which the taxpayer's 544
Connecticut adjusted gross income exceeds two hundred thousand 545
dollars, up to a maximum payment of two thousand seven hundred 546
dollars. 547
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 548
five hundred thousand dollars shall pay, in addition to the tax 549
computed under the provisions of subparagraphs (D)(i), (D)(ii) and 550
(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 551
thousand dollars, or fraction thereof, by which the taxpayer's 552
Connecticut adjusted gross income exceeds five hundred thousand 553
dollars, up to a maximum payment of four hundred fifty dollars. 554
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 555
two hundred thousand dollars shall pay, in addition to the tax 556
computed under the provisions of subparagraphs (D)(i), (D)(ii), (D)(iii) 557
and, if applicable, (D)(iv) of this subdivision, one hundred twenty-five 558
dollars. 559
(E) For trusts or estates, the rate of tax shall be 6.99% of the 560
Connecticut taxable income. 561
[(10)] (11) The provisions of this subsection shall apply to resident 562 Substitute Bill No. 981
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trusts and estates and, wherever reference is made in this subsection to 563
residents of this state, such reference shall be construed to include 564
resident trusts and estates, provided any reference to a resident's 565
Connecticut adjusted gross income derived from sources without this 566
state or to a resident's Connecticut adjusted gross income shall be 567
construed, in the case of a resident trust or estate, to mean the resident 568
trust or estate's Connecticut taxable income derived from sources 569
without this state and the resident trust or estate's Connecticut taxable 570
income, respectively. 571
Sec. 7. Subparagraph (B) of subdivision (20) of subsection (a) of 572
section 12-701 of the general statutes is repealed and the following is 573
substituted in lieu thereof (Effective from passage and applicable to taxable 574
years commencing on or after January 1, 2023): 575
(B) There shall be subtracted therefrom: 576
(i) To the extent properly includable in gross income for federal 577
income tax purposes, any income with respect to which taxation by any 578
state is prohibited by federal law; 579
(ii) To the extent allowable under section 12-718, exempt dividends 580
paid by a regulated investment company; 581
(iii) To the extent properly includable in gross income for federal 582
income tax purposes, the amount of any refund or credit for 583
overpayment of income taxes imposed by this state, or any other state 584
of the United States or a political subdivision thereof, or the District of 585
Columbia; 586
(iv) To the extent properly includable in gross income for federal 587
income tax purposes and not otherwise subtracted from federal 588
adjusted gross income pursuant to clause (x) of this subparagraph in 589
computing Connecticut adjusted gross income, any tier 1 railroad 590
retirement benefits; 591
(v) To the extent any additional allowance for depreciation under 592 Substitute Bill No. 981
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Section 168(k) of the Internal Revenue Code for property placed in 593
service after September 27, 2017, was added to federal adjusted gross 594
income pursuant to subparagraph (A)(ix) of this subdivision in 595
computing Connecticut adjusted gross income, twenty-five per cent of 596
such additional allowance for depreciation in each of the four 597
succeeding taxable years; 598
(vi) To the extent properly includable in gross income for federal 599
income tax purposes, any interest income from obligations issued by or 600
on behalf of the state of Connecticut, any political subdivision thereof, 601
or public instrumentality, state or local authority, district or similar 602
public entity created under the laws of the state of Connecticut; 603
(vii) To the extent properly includable in determining the net gain or 604
loss from the sale or other disposition of capital assets for federal income 605
tax purposes, any gain from the sale or exchange of obligations issued 606
by or on behalf of the state of Connecticut, any political subdivision 607
thereof, or public instrumentality, state or local authority, district or 608
similar public entity created under the laws of the state of Connecticut, 609
in the income year such gain was recognized; 610
(viii) Any interest on indebtedness incurred or continued to purchase 611
or carry obligations or securities the interest on which is subject to tax 612
under this chapter but exempt from federal income tax, to the extent that 613
such interest on indebtedness is not deductible in determining federal 614
adjusted gross income and is attributable to a trade or business carried 615
on by such individual; 616
(ix) Ordinary and necessary expenses paid or incurred during the 617
taxable year for the production or collection of income which is subject 618
to taxation under this chapter but exempt from federal income tax, or 619
the management, conservation or maintenance of property held for the 620
production of such income, and the amortizable bond premium for the 621
taxable year on any bond the interest on which is subject to tax under 622
this chapter but exempt from federal income tax, to the extent that such 623
expenses and premiums are not deductible in determining federal 624 Substitute Bill No. 981
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adjusted gross income and are attributable to a trade or business carried 625
on by such individual; 626
(x) (I) For taxable years commencing prior to January 1, 2019, for a 627
person who files a return under the federal income tax as an unmarried 628
individual whose federal adjusted gross income for such taxable year is 629
less than fifty thousand dollars, or as a married individual filing 630
separately whose federal adjusted gross income for such taxable year is 631
less than fifty thousand dollars, or for a husband and wife who file a 632
return under the federal income tax as married individuals filing jointly 633
whose federal adjusted gross income for such taxable year is less than 634
sixty thousand dollars or a person who files a return under the federal 635
income tax as a head of household whose federal adjusted gross income 636
for such taxable year is less than sixty thousand dollars, an amount 637
equal to the Social Security benefits includable for federal income tax 638
purposes; 639
(II) For taxable years commencing prior to January 1, 2019, for a 640
person who files a return under the federal income tax as an unmarried 641
individual whose federal adjusted gross income for such taxable year is 642
fifty thousand dollars or more, or as a married individual filing 643
separately whose federal adjusted gross income for such taxable year is 644
fifty thousand dollars or more, or for a husband and wife who file a 645
return under the federal income tax as married individuals filing jointly 646
whose federal adjusted gross income from such taxable year is sixty 647
thousand dollars or more or for a person who files a return under the 648
federal income tax as a head of household whose federal adjusted gross 649
income for such taxable year is sixty thousand dollars or more, an 650
amount equal to the difference between the amount of Social Security 651
benefits includable for federal income tax purposes and the lesser of 652
twenty-five per cent of the Social Security benefits received during the 653
taxable year, or twenty-five per cent of the excess described in Section 654
86(b)(1) of the Internal Revenue Code; 655
(III) For the taxable year commencing January 1, 2019, and each 656
taxable year thereafter, for a person who files a return under the federal 657 Substitute Bill No. 981
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income tax as an unmarried individual whose federal adjusted gross 658
income for such taxable year is less than seventy-five thousand dollars, 659
or as a married individual filing separately whose federal adjusted gross 660
income for such taxable year is less than seventy-five thousand dollars, 661
or for a husband and wife who file a return under the federal income tax 662
as married individuals filing jointly whose federal adjusted gross 663
income for such taxable year is less than one hundred thousand dollars 664
or a person who files a return under the federal income tax as a head of 665
household whose federal adjusted gross income for such taxable year is 666
less than one hundred thousand dollars, an amount equal to the Social 667
Security benefits includable for federal income tax purposes; and 668
(IV) For the taxable year commencing January 1, 2019, and each 669
taxable year thereafter, for a person who files a return under the federal 670
income tax as an unmarried individual whose federal adjusted gross 671
income for such taxable year is seventy-five thousand dollars or more, 672
or as a married individual filing separately whose federal adjusted gross 673
income for such taxable year is seventy-five thousand dollars or more, 674
or for a husband and wife who file a return under the federal income tax 675
as married individuals filing jointly whose federal adjusted gross 676
income from such taxable year is one hundred thousand dollars or more 677
or for a person who files a return under the federal income tax as a head 678
of household whose federal adjusted gross income for such taxable year 679
is one hundred thousand dollars or more, an amount equal to the 680
difference between the amount of Social Security benefits includable for 681
federal income tax purposes and the lesser of twenty-five per cent of the 682
Social Security benefits received during the taxable year, or twenty-five 683
per cent of the excess described in Section 86(b)(1) of the Internal 684
Revenue Code; 685
(xi) To the extent properly includable in gross income for federal 686
income tax purposes, any amount rebated to a taxpayer pursuant to 687
section 12-746; 688
(xii) To the extent properly includable in the gross income for federal 689
income tax purposes of a designated beneficiary, any distribution to 690 Substitute Bill No. 981
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such beneficiary from any qualified state tuition program, as defined in 691
Section 529(b) of the Internal Revenue Code, established and 692
maintained by this state or any official, agency or instrumentality of the 693
state; 694
(xiii) To the extent allowable under section 12-701a, contributions to 695
accounts established pursuant to any qualified state tuition program, as 696
defined in Section 529(b) of the Internal Revenue Code, established and 697
maintained by this state or any official, agency or instrumentality of the 698
state; 699
(xiv) To the extent properly includable in gross income for federal 700
income tax purposes, the amount of any Holocaust victims' settlement 701
payment received in the taxable year by a Holocaust victim; 702
(xv) To the extent properly includable in gross income for federal 703
income tax purposes of an account holder, as defined in section 31-704
51ww, interest earned on funds deposited in the individual 705
development account, as defined in section 31-51ww, of such account 706
holder; 707
(xvi) To the extent properly includable in the gross income for federal 708
income tax purposes of a designated beneficiary, as defined in section 709
3-123aa, interest, dividends or capital gains earned on contributions to 710
accounts established for the designated beneficiary pursuant to the 711
Connecticut Homecare Option Program for the Elderly established by 712
sections 3-123aa to 3-123ff, inclusive; 713
(xvii) To the extent properly includable in gross income for federal 714
income tax purposes, any income received from the United States 715
government as retirement pay for a retired member of (I) the Armed 716
Forces of the United States, as defined in Section 101 of Title 10 of the 717
United States Code, or (II) the National Guard, as defined in Section 101 718
of Title 10 of the United States Code; 719
(xviii) To the extent properly includable in gross income for federal 720
income tax purposes for the taxable year, any income from the discharge 721 Substitute Bill No. 981
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of indebtedness in connection with any reacquisition, after December 722
31, 2008, and before January 1, 2011, of an applicable debt instrument or 723
instruments, as those terms are defined in Section 108 of the Internal 724
Revenue Code, as amended by Section 1231 of the American Recovery 725
and Reinvestment Act of 2009, to the extent any such income was added 726
to federal adjusted gross income pursuant to subparagraph (A)(xi) of 727
this subdivision in computing Connecticut adjusted gross income for a 728
preceding taxable year; 729
(xix) To the extent not deductible in determining federal adjusted 730
gross income, the amount of any contribution to a manufacturing 731
reinvestment account established pursuant to section 32-9zz in the 732
taxable year that such contribution is made; 733
(xx) To the extent properly includable in gross income for federal 734
income tax purposes, (I) for the taxable year commencing January 1, 735
2015, ten per cent of the income received from the state teachers' 736
retirement system, (II) for the taxable years commencing January 1, 737
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 738
received from the state teachers' retirement system, and (III) for the 739
taxable year commencing January 1, 2021, and each taxable year 740
thereafter, fifty per cent of the income received from the state teachers' 741
retirement system or, for a taxpayer whose federal adjusted gross 742
income does not exceed the applicable threshold under clause (xxi) of 743
this subparagraph, the percentage pursuant to said clause of the income 744
received from the state teachers' retirement system, whichever 745
deduction is greater; 746
(xxi) To the extent properly includable in gross income for federal 747
income tax purposes, except for retirement benefits under clause (iv) of 748
this subparagraph and retirement pay under clause (xvii) of this 749
subparagraph, for a person who files a return under the federal income 750
tax as an unmarried individual whose federal adjusted gross income for 751
such taxable year is less than seventy-five thousand dollars, or as a 752
married individual filing separately whose federal adjusted gross 753
income for such taxable year is less than seventy-five thousand dollars, 754 Substitute Bill No. 981
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or as a head of household whose federal adjusted gross income for such 755
taxable year is less than seventy-five thousand dollars, or for a husband 756
and wife who file a return under the federal income tax as married 757
individuals filing jointly whose federal adjusted gross income for such 758
taxable year is less than one hundred thousand dollars, (I) for the taxable 759
year commencing January 1, 2019, fourteen per cent of any pension or 760
annuity income, (II) for the taxable year commencing January 1, 2020, 761
twenty-eight per cent of any pension or annuity income, (III) for the 762
taxable year commencing January 1, 2021, forty-two per cent of any 763
pension or annuity income, and (IV) for the taxable year commencing 764
January 1, 2022, [and each taxable year thereafter,] one hundred per cent 765
of any pension or annuity income; 766
(xxii) To the extent properly includable in gross income for federal 767
income tax purposes, except for retirement benefits under clause (iv) of 768
this subparagraph and retirement pay under clause (xvii) of this 769
subparagraph, any pension or annuity income for the taxable year 770
commencing on or after January 1, 2023, and each taxable year 771
thereafter, in accordance with the following schedule, for a person who 772
files a return under the federal income tax as an unmarried individual 773
whose federal adjusted gross income for such taxable year is less than 774
one hundred thousand dollars, or as a married individual filing 775
separately whose federal adjusted gross income for such taxable year is 776
less than one hundred thousand dollars, or as a head of household 777
whose federal adjusted gross income for such taxable year is less than 778
one hundred thousand dollars: 779
T245
Federal Adjusted Gross Income Deduction
T246
Less than $75,000 100.0%
T247
$75,000 but not over $77,499 85.0%
T248
$77,500 but not over $79,999 70.0%
T249
$80,000 but not over $82,499 55.0%
T250
$82,500 but not over $84,999 40.0%
T251
$85,000 but not over $87,499 25.0%
T252 $87,500 but not over $89,999 10.0% Substitute Bill No. 981
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T253
$90,000 but not over $94,999 5.0%
T254
$95,000 but not over $99,999 2.5%
T255
$100,000 and over 0.0%
(xxiii) To the extent properly includable in gross income for federal 780
income tax purposes, except for retirement benefits under clause (iv) of 781
this subparagraph and retirement pay under clause (xvii) of this 782
subparagraph, any pension or annuity income for the taxable year 783
commencing on or after January 1, 2023, and each taxable year 784
thereafter, in accordance with the following schedule for married 785
individuals who file a return under the federal income tax as married 786
individuals filing jointly whose federal adjusted gross income for such 787
taxable year is less than one hundred fifty thousand dollars: 788
T256
Federal Adjusted Gross Income Deduction
T257
Less than $100,000 100.0%
T258
$100,000 but not over $104,999 85.0%
T259
$105,000 but not over $109,999 70.0%
T260 $110,000 but not over $114,999 55.0%
T261
$115,000 but not over $119,999 40.0%
T262
$120,000 but not over $124,999 25.0%
T263
$125,000 but not over $129,999 10.0%
T264
$130,000 but not over $139,999 5.0%
T265
$140,000 but not over $149,999 2.5%
T266
$150,000 and over 0.0%
[(xxii)] (xxiv) The amount of lost wages and medical, travel and 789
housing expenses, not to exceed ten thousand dollars in the aggregate, 790
incurred by a taxpayer during the taxable year in connection with the 791
donation to another person of an organ for organ transplantation 792
occurring on or after January 1, 2017; 793
[(xxiii)] (xxv) To the extent properly includable in gross income for 794 Substitute Bill No. 981
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federal income tax purposes, the amount of any financial assistance 795
received from the Crumbling Foundations Assistance Fund or paid to 796
or on behalf of the owner of a residential building pursuant to sections 797
8-442 and 8-443; 798
[(xxiv)] (xxvi) To the extent properly includable in gross income for 799
federal income tax purposes, the amount calculated pursuant to 800
subsection (b) of section 12-704g for income received by a general 801
partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as 802
amended from time to time; 803
[(xxv)] (xxvii) To the extent any portion of a deduction under Section 804
179 of the Internal Revenue Code was added to federal adjusted gross 805
income pursuant to subparagraph (A)(xiv) of this subdivision in 806
computing Connecticut adjusted gross income, twenty-five per cent of 807
such disallowed portion of the deduction in each of the four succeeding 808
taxable years; 809
[(xxvi)] (xxviii) To the extent properly includable in gross income for 810
federal income tax purposes, for a person who files a return under the 811
federal income tax as an unmarried individual whose federal adjusted 812
gross income for such taxable year is less than [seventy-five] one 813
hundred thousand dollars, or as a married individual filing separately 814
whose federal adjusted gross income for such taxable year is less than 815
[seventy-five] one hundred thousand dollars, or as a head of household 816
whose federal adjusted gross income for such taxable year is less than 817
[seventy-five] one hundred thousand dollars, [or for a husband and wife 818
who file a return under the federal income tax as married individuals 819
filing jointly whose federal adjusted gross income for such taxable year 820
is less than one hundred thousand dollars,] (I) for the taxable year 821
commencing January 1, 2023, twenty-five per cent of any distribution 822
from an individual retirement account other than a Roth individual 823
retirement account, (II) for the taxable year commencing January 1, 2024, 824
fifty per cent of any distribution from an individual retirement account 825
other than a Roth individual retirement account, (III) for the taxable year 826
commencing January 1, 2025, seventy-five per cent of any distribution 827 Substitute Bill No. 981
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from an individual retirement account other than a Roth individual 828
retirement account, and (IV) for the taxable year commencing January 829
1, 2026, and each taxable year thereafter, any distribution from an 830
individual retirement account other than a Roth individual retirement 831
account. [; and] The subtraction under this clause shall be made in 832
accordance with the following schedule: 833
T267
Federal Adjusted Gross Income Deduction
T268
Less than $75,000 100.0%
T269 $75,000 but not over $77,499 85.0%
T270 $77,500 but not over $79,999 70.0%
T271
$80,000 but not over $82,499 55.0%
T272
$82,500 but not over $84,999 40.0%
T273
$85,000 but not over $87,499 25.0%
T274
$87,500 but not over $89,999 10.0%
T275
$90,000 but not over $94,999 5.0%
T276
$95,000 but not over $99,999 2.5%
T277
$100,000 and over 0.0%
(xxix) To the extent properly includable in gross income for federal 834
income tax purposes, for married individuals who file a return under 835
the federal income tax as married individuals filing jointly whose 836
federal adjusted gross income for such taxable year is less than one 837
hundred fifty thousand dollars, (I) for the taxable year commencing 838
January 1, 2023, twenty-five per cent of any distribution from an 839
individual retirement account other than a Roth individual retirement 840
account, (II) for the taxable year commencing January 1, 2024, fifty per 841
cent of any distribution from an individual retirement account other 842
than a Roth individual retirement account, (III) for the taxable year 843
commencing January 1, 2025, seventy-five per cent of any distribution 844
from an individual retirement account other than a Roth individual 845
retirement account, and (IV) for the taxable year commencing January 846
1, 2026, and each taxable year thereafter, any distribution from an 847
individual retirement account other than a Roth individual retirement 848 Substitute Bill No. 981
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account. The subtraction under this clause shall be made in accordance 849
with the following schedule: 850
T278
Federal Adjusted Gross Income Deduction
T279
Less than $100,000 100.0%
T280
$100,000 but not over $104,999 85.0%
T281
$105,000 but not over $109,999 70.0%
T282
$110,000 but not over $114,999 55.0%
T283
$115,000 but not over $119,999 40.0%
T284 $120,000 but not over $124,999 25.0%
T285 $125,000 but not over $129,999 10.0%
T286
$130,000 but not over $139,999 5.0%
T287
$140,000 but not over $149,999 2.5%
T288
$150,000 and over 0.0%
[(xxvii)] (xxx) To the extent properly includable in gross income for 851
federal income tax purposes, for the taxable year commencing January 852
1, 2022, the amount or amounts paid or otherwise credited to any 853
eligible resident of this state under (I) the 2020 Earned Income Tax 854
Credit enhancement program from funding allocated to the state 855
through the Coronavirus Relief Fund established under the Coronavirus 856
Aid, Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 857
Earned Income Tax Credit enhancement program from funding 858
allocated to the state pursuant to Section 9901 of Subtitle M of Title IX of 859
the American Rescue Plan Act of 2021, P.L. 117-2; 860
(xxxi) For a taxpayer licensed under the provisions of chapter 420f or 861
420h, the amount of the expenditures that would be eligible to be 862
claimed as a deduction for federal income tax purposes but that are 863
disallowed under Section 280E of the Internal Revenue Code because 864
marijuana is a controlled substance under the federal Controlled 865
Substance Act. 866
Sec. 8. Section 12-217 of the general statutes is repealed and the 867 Substitute Bill No. 981
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following is substituted in lieu thereof (Effective from passage and 868
applicable to income years commencing on or after January 1, 2023): 869
(a) (1) In arriving at net income as defined in section 12-213, whether 870
or not the taxpayer is taxable under the federal corporation net income 871
tax, there shall be deducted from gross income: [,] 872
(A) [all] All items deductible under the Internal Revenue Code 873
effective and in force on the last day of the income year, except (i) any 874
taxes imposed under the provisions of this chapter [which] that are paid 875
or accrued in the income year and in the income year commencing 876
January 1, 1989, and thereafter, any taxes in any state of the United 877
States or any political subdivision of such state, or the District of 878
Columbia, imposed on or measured by the income or profits of a 879
corporation [which] that are paid or accrued in the income year, (ii) 880
deductions for depreciation, which shall be allowed as provided in 881
subsection (b) of this section, (iii) deductions for qualified domestic 882
production activities income, as provided in Section 199 of the Internal 883
Revenue Code, and (iv) in the case of any captive real estate investment 884
trust, the deduction for dividends paid provided under Section 857(b)(2) 885
of the Internal Revenue Code; [,] and 886
(B) [additionally] Additionally, in the case of a regulated investment 887
company, the sum of (i) the exempt-interest dividends, as defined in the 888
Internal Revenue Code, and (ii) expenses, bond premium, and interest 889
related to tax-exempt income that are disallowed as deductions under 890
the Internal Revenue Code; [,] and 891
(C) [in] In the case of a taxpayer maintaining an international banking 892
facility as defined in the laws of the United States or the regulations of 893
the Board of Governors of the Federal Reserve System, as either may be 894
amended from time to time, the gross income attributable to the 895
international banking facility, provided [,] no expense or loss 896
attributable to the international banking facility shall be a deduction 897
under any provision of this section; [,] and 898 Substitute Bill No. 981
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(D) [additionally] Additionally, in the case of all taxpayers, all 899
dividends as defined in the Internal Revenue Code effective and in force 900
on the last day of the income year not otherwise deducted from gross 901
income, including dividends received from a DISC or former DISC as 902
defined in Section 992 of the Internal Revenue Code and dividends 903
deemed to have been distributed by a DISC or former DISC as provided 904
in Section 995 of said Internal Revenue Code, other than thirty per cent 905
of dividends received from a domestic corporation in which the 906
taxpayer owns less than twenty per cent of the total voting power and 907
value of the stock of such corporation; [,] and 908
(E) [additionally] Additionally, in the case of all taxpayers, the value 909
of any capital gain realized from the sale of any land, or interest in land, 910
to the state, any political subdivision of the state, or to any nonprofit 911
land conservation organization where such land is to be permanently 912
preserved as protected open space or to a water company, as defined in 913
section 25-32a, where such land is to be permanently preserved as 914
protected open space or as Class I or Class II water company land; [,] 915
and 916
(F) [in] In the case of [manufacturers] a manufacturer, the amount of 917
any contribution to a manufacturing reinvestment account established 918
pursuant to section 32-9zz in the income year that such contribution is 919
made to the extent not deductible for federal income tax purposes; [,] 920
and 921
(G) [the] The amount of any contribution made on or after December 922
23, 2017, by the state of Connecticut or a political subdivision thereof to 923
the extent included in a company's gross income under Section 118(b)(2) 924
of the Internal Revenue Code; and 925
(H) In the case of a taxpayer licensed under the provisions of chapter 926
420f or 420h, the amount of the expenditures that would be eligible to 927
be claimed as a deduction for federal income tax purposes but that are 928
disallowed under Section 280E of the Internal Revenue Code because 929
marijuana is a controlled substance under the federal Controlled 930 Substitute Bill No. 981
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Substance Act. 931
(2) (A) No deduction shall be allowed for (i) expenses related to 932
dividends that are allowable as a deduction or credit under the Internal 933
Revenue Code, and (ii) federal taxes on income or profits, losses of other 934
calendar or fiscal years, retroactive to include all calendar or fiscal years 935
beginning after January 1, 1935, interest received from federal, state and 936
local government securities, if any such deductions are allowed by the 937
federal government. 938
(B) For purposes of this subdivision, expenses related to dividends 939
shall equal five per cent of all dividends received by a company during 940
an income year. The net income associated with the disallowance of 941
expenses related to dividends shall be apportioned, if the company 942
conducts business within and without the state or is required to 943
apportion its income under section 12-218b, in accordance with this 944
chapter. 945
(3) Notwithstanding any provision of this section to the contrary, no 946
dividend received from a real estate investment trust shall be deductible 947
under this section by the recipient unless the dividend is: (A) Deductible 948
under Section 243 of the Internal Revenue Code; (B) received by a 949
qualified dividend recipient from a qualified real estate investment trust 950
and, as of the last day of the period for which such dividend is paid, 951
persons, not including the qualified dividend recipient or any person 952
that is either a related person to, or an employee or director of, the 953
qualified dividend recipient, have outstanding cash capital 954
contributions to the qualified real estate investment trust that, in the 955
aggregate, exceed five per cent of the fair market value of the aggregate 956
real estate assets, valued as of the last day of the period for which such 957
dividend is paid, then held by the qualified real estate investment trust; 958
or (C) received from a captive real estate investment trust that is subject 959
to the tax imposed under this chapter. For purposes of this section, 960
"related person" has the same meaning as provided in section 12-217ii, 961
"real estate assets" has the same meaning as provided in Section 856 of 962
the Internal Revenue Code, "qualified dividend recipient" means a 963 Substitute Bill No. 981
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dividend recipient who has invested in a qualified real estate investment 964
trust prior to April 1, 1997, and "qualified real estate investment trust" 965
means an entity that both was incorporated and had contributed to it a 966
minimum of five hundred million dollars' worth of real estate assets 967
prior to April 1, 1997, and that elects to be a real estate investment trust 968
under Section 856 of the Internal Revenue Code prior to April 1, 1998. 969
(4) Notwithstanding any provision of this section: [to the contrary,] 970
(A) [any] Any excess of the deductions provided in this section for 971
any income year commencing on or after January 1, 1973, over the gross 972
income for such year or the amount of such excess apportioned to this 973
state under the provisions of this chapter, shall be an operating loss of 974
such income year and shall be deductible as an operating loss carry-over 975
for operating losses incurred prior to income years commencing January 976
1, 2000, in each of the five income years following such loss year, and 977
for operating losses incurred in income years commencing on or after 978
January 1, 2000, in each of the twenty income years following such loss 979
year, except that: 980
(i) [for] For income years commencing prior to January 1, 2015, the 981
portion of such operating loss [which] that may be deducted as an 982
operating loss carry-over in any income year following such loss year 983
shall be limited to the lesser of (I) any net income greater than zero of 984
such income year following such loss year, or in the case of a company 985
entitled to apportion its net income under the provisions of this chapter, 986
the amount of such net income [which] that is apportioned to this state 987
pursuant thereto, or (II) the excess, if any, of such operating loss over 988
the total of such net income for each of any prior income years following 989
such loss year, such net income of each of such prior income years 990
following such loss year for such purposes being computed without 991
regard to any operating loss carry-over from such loss year allowed 992
under this subparagraph and being regarded as not less than zero, and 993
provided further the operating loss of any income year shall be 994
deducted in any subsequent year, to the extent available for such 995
deduction, before the operating loss of any subsequent income year is 996 Substitute Bill No. 981
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deducted; [,] 997
(ii) [for] For income years commencing on or after January 1, 2015, 998
the portion of such operating loss [which] that may be deducted as an 999
operating loss carry-over in any income year following such loss year 1000
shall be limited to the lesser of (I) fifty per cent of net income of such 1001
income year following such loss year, or in the case of a company 1002
entitled to apportion its net income under the provisions of this chapter, 1003
fifty per cent of such net income [which] that is apportioned to this state 1004
pursuant thereto, or (II) the excess, if any, of such operating loss over 1005
the operating loss deductions allowable with respect to such operating 1006
loss under this subparagraph for each of any prior income years 1007
following such loss year, such net income of each of such prior income 1008
years following such loss year for such purposes being computed 1009
without regard to any operating loss carry-over from such loss year 1010
allowed under this subparagraph and being regarded as not less than 1011
zero, and provided further the operating loss of any income year shall 1012
be deducted in any subsequent year, to the extent available for such 1013
deduction, before the operating loss of any subsequent income year is 1014
deducted; [,] and 1015
(iii) [if] If a combined group so elects, the combined group shall 1016
relinquish fifty per cent of its unused operating losses incurred prior to 1017
the income year commencing on or after January 1, 2015, and before 1018
January 1, 2016, and may utilize the remaining operating loss carry-over 1019
without regard to the limitations prescribed in subparagraph (A)(ii) of 1020
this subdivision. The portion of such operating loss carry-over that may 1021
be deducted shall be limited to the amount required to reduce a 1022
combined group's tax under this chapter, prior to surtax and prior to the 1023
application of credits, to two million five hundred thousand dollars in 1024
any income year commencing on or after January 1, 2015. Only after the 1025
combined group's remaining operating loss carry-over for operating 1026
losses incurred prior to income years commencing January 1, 2015, has 1027
been fully utilized, will the limitations prescribed in subparagraph 1028
(A)(ii) of this subdivision apply. The combined group, or any member 1029 Substitute Bill No. 981
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thereof, shall make such election on its return for the income year 1030
beginning on or after January 1, 2015, and before January 1, 2016, by the 1031
due date for such return, including any extensions. Only combined 1032
groups with unused operating losses in excess of six billion dollars from 1033
income years beginning prior to January 1, 2013, may make the election 1034
prescribed in this clause; [,] and 1035
(B) [any] Any net capital loss, as defined in the Internal Revenue Code 1036
effective and in force on the last day of the income year, for any income 1037
year commencing on or after January 1, 1973, shall be allowed as a 1038
capital loss carry-over to reduce, but not below zero, any net capital 1039
gain, as so defined, in each of the five following income years, in order 1040
of sequence, to the extent not exhausted by the net capital gain of any of 1041
the preceding of such five following income years; [,] and 1042
(C) [any] Any net capital losses allowed and carried forward from 1043
prior years to income years beginning on or after January 1, 1973, for 1044
federal income tax purposes by companies entitled to a deduction for 1045
dividends paid under the Internal Revenue Code other than companies 1046
subject to the gross earnings taxes imposed under chapters 211 and 212, 1047
shall be allowed as a capital loss carry-over. 1048
(5) This section shall not apply to a life insurance company as defined 1049
in the Internal Revenue Code effective and in force on the last day of the 1050
income year. For purposes of this section, the unpaid loss reserve 1051
adjustment required for nonlife insurance companies under the 1052
provisions of Section 832(b)(5) of the Internal Revenue Code of 1986, or 1053
any subsequent corresponding internal revenue code of the United 1054
States, as from time to time amended, shall be applied without making 1055
the adjustment in Subparagraph (B) of said Section 832(b)(5). 1056
(6) For purposes of determining net income under this section for 1057
income years commencing on or after January 1, 2018, the deduction 1058
allowed for business interest paid or accrued shall be determined as 1059
provided under the Internal Revenue Code, except that in making such 1060
determination, the provisions of Section 163(j) shall not apply. 1061 Substitute Bill No. 981
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(b) (1) For purposes of determining net income under this section, the 1062
deduction allowed for depreciation shall be determined as provided 1063
under the Internal Revenue Code of 1986, or any subsequent 1064
corresponding internal revenue code of the United States, as from time 1065
to time amended, provided in making such determination, the 1066
provisions of Section 168(k) of said code shall not apply. 1067
(2) (A) For purposes of determining net income under this section for 1068
taxable years ending after December 31, 2008, and to the extent any 1069
income from the discharge of indebtedness, under Section 108 of the 1070
Internal Revenue Code, as amended by Section 1231 of the American 1071
Recovery and Reinvestment Act of 2009, in connection with any 1072
reacquisition, after December 31, 2008, and before January 1, 2011, of an 1073
applicable debt instrument or instruments, as those terms are defined in 1074
said Section 108, as amended by said Section 1231, is not properly 1075
includable in gross income for federal income tax purposes for the 1076
taxable year, any deferral of the recognition of any such income shall 1077
not be allowed. 1078
(B) To the extent that any income from the discharge of indebtedness 1079
in connection with any reacquisition, after December 31, 2008, and 1080
before January 1, 2011, of an applicable debt instrument or instruments, 1081
as those terms are defined in Section 108 of the Internal Revenue Code, 1082
as amended by Section 1231 of the American Recov ery and 1083
Reinvestment Act of 2009, is properly includable in gross income for 1084
federal income tax purposes for the taxable year, any such income shall 1085
be deductible in computing net income under this section for a taxable 1086
year ending after December 31, 2008, to the extent that the deferral of 1087
recognition of such income from such discharge was not allowed 1088
pursuant to subparagraph (A) of this subdivision in computing net 1089
income for a preceding taxable year. 1090
(C) For income years commencing on or after January 1, 2018, eighty 1091
per cent of any deduction claimed under Section 179 of the Internal 1092
Revenue Code for federal income tax purposes shall be disallowed. To 1093
the extent such a deduction is disallowed for purposes of computing the 1094 Substitute Bill No. 981
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tax under this chapter, twenty-five per cent of the disallowed portion of 1095
the deduction shall be allowed as a deduction in each of the four 1096
succeeding income years. 1097
(c) (1) Notwithstanding the provisions of subsections (a) and (b) of 1098
this section, "net income", in the case of an S corporation, means the 1099
percentage of the nonseparately computed income or loss, as defined in 1100
Section 1366(a)(2) of the Internal Revenue Code, of such S corporation, 1101
without separate state adjustment pursuant to section 12-233 or 12-226a 1102
for the compensation of any officer or employee, to which shall be added 1103
(A) any taxes imposed under the provisions of this chapter [which] that 1104
are paid or accrued in the income year, and (B) any taxes in any state of 1105
the United States or any political subdivision of such state, or the District 1106
of Columbia, imposed on or measured by the income or profits of a 1107
corporation [which] that are paid or accrued in the income year as 1108
provided in subdivision (2) of this subsection. 1109
(2) For income years commencing prior to January 1, 1997, "net 1110
income" means one hundred per cent of the amount computed under 1111
subdivision (1) of this subsection; for income years commencing on or 1112
after January 1, 1997, and prior to January 1, 1998, "net income" means 1113
ninety per cent of the amount computed under subdivision (1) of this 1114
subsection; for income years commencing on or after January 1, 1998, 1115
and prior to January 1, 1999, "net income" means seventy-five per cent 1116
of the amount computed under subdivision (1) of this subsection; for 1117
income years commencing on or after January 1, 1999, and prior to 1118
January 1, 2000, "net income" means fifty-five per cent of the amount 1119
computed under subdivision (1) of this subsection; for income years 1120
commencing on or after January 1, 2000, and prior to January 1, 2001, 1121
"net income" means thirty per cent of the amount computed under 1122
subdivision (1) of this subsection; for income years commencing on or 1123
after January 1, 2001, net income of S corporations as computed under 1124
subdivision (1) of this subsection shall not be subject to the tax under 1125
this chapter. Any S corporation subject to the tax on net income as 1126
provided in this section shall be eligible for any credit against the tax 1127 Substitute Bill No. 981
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otherwise available to taxpayers under this chapter only to the extent 1128
and in the same percentage as net income of such S corporation is subject 1129
to taxation under this chapter, except that any S corporation with an 1130
income year commencing on or after January 1, 1999, but before 1131
December 31, 2000, shall be eligible for the entire credit available under 1132
sections 8-395, 12-633, 12-634, 12-635 and 12-635a. 1133
(d) The commissioner may adopt regulations in accordance with 1134
chapter 54, relating to mergers or consolidations of corporations 1135
providing for the deduction, by the surviving or new corporation 1136
provided for in the plan of consolidation, of operating losses that were 1137
incurred by a merging or consolidating corporation, respectively, before 1138
the merger or consolidation, respectively. Such regulations may follow 1139
the provisions of the Internal Revenue Code of 1986, or any subsequent 1140
corresponding internal revenue code of the United States, as from time 1141
to time amended, or the regulations thereunder. 1142
(e) Where a combined group is required to file a combined unitary 1143
tax return pursuant to section 12-222, the combined group's net income 1144
shall be computed as provided in subsection (a) of section 12-218e. 1145
(f) Where a combined group is required to file a combined unitary tax 1146
return pursuant to section 12-222, a taxable member's net operating loss 1147
apportioned to this state shall be deducted and carried over by the 1148
taxable member as provided in subsection (d) of section 12-218e. 1149
Sec. 9. Section 12-217jj of the general statutes is repealed and the 1150
following is substituted in lieu thereof (Effective January 1, 2024): 1151
(a) As used in this section: 1152
(1) "Commissioner" means the Commissioner of Revenue Services. 1153
(2) "Department" means the Department of Economic and 1154
Community Development. 1155
(3) (A) "Qualified production" means entertainment content created 1156 Substitute Bill No. 981
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in whole or in part within the state, including motion pictures, except as 1157
otherwise provided in this subparagraph; documentaries; long-form, 1158
specials, mini-series, series, sound recordings, videos and music videos 1159
and interstitials television programming; interactive television; 1160
relocated television production; interactive games; videogames; 1161
commercials; any format of digital media, including an interactive web 1162
site, created for distribution or exhibition to the general public; and any 1163
trailer, pilot, video teaser or demo created primarily to stimulate the 1164
sale, marketing, promotion or exploitation of future investment in either 1165
a product or a qualified production via any means and media in any 1166
digital media format, film or videotape, provided such program meets 1167
all the underlying criteria of a qualified production. For state fiscal years 1168
ending on or after June 30, 2014, "qualified production" shall not include 1169
a motion picture that has not been designated as a state-certified 1170
qualified production prior to July 1, 2013, and no tax credit voucher for 1171
such motion picture may be issued for such motion picture, except, for 1172
state fiscal years ending on or after June 30, 2015, "qualified production" 1173
shall include a motion picture for which twenty-five per cent or more of 1174
the principal photography shooting days are in this state at a facility that 1175
receives not less than twenty-five million dollars in private investment 1176
and opens for business on or after July 1, 2013, and a tax credit voucher 1177
may be issued for such motion picture. 1178
(B) "Qualified production" shall not include any ongoing television 1179
program created primarily as news, weather or financial market reports; 1180
a production featuring current events, other than a relocated television 1181
production, sporting events, an awards show or other gala event; a 1182
production whose sole purpose is fundraising; a long-form production 1183
that primarily markets a product or service; a production used for 1184
corporate training or in-house corporate advertising or other similar 1185
productions; or any production for which records are required to be 1186
maintained under 18 USC 2257, as amended from time to time, with 1187
respect to sexually explicit content. 1188
(4) "Eligible production company" means a corporation, partnership, 1189 Substitute Bill No. 981
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limited liability company, or other business entity engaged in the 1190
business of producing qualified productions on a one-time or ongoing 1191
basis, and qualified by the Secretary of the State to engage in business 1192
in the state. 1193
(5) "Production expenses or costs" means all expenditures clearly and 1194
demonstrably incurred in the state in the preproduction, production or 1195
postproduction costs of a qualified production, including: 1196
(A) Expenditures incurred in the state in the form of either 1197
compensation or purchases including production work, production 1198
equipment not eligible for the infrastructure tax credit provided in 1199
section 12-217kk, production software, postproduction work, 1200
postproduction equipment, postproduction software, set design, set 1201
construction, props, lighting, wardrobe, makeup, makeup accessories, 1202
special effects, visual effects, audio effects, film processing, music, 1203
sound mixing, editing, location fees, soundstages and any and all other 1204
costs or services directly incurred in connection with a state-certified 1205
qualified production; 1206
(B) Expenditures for distribution, including preproduction, 1207
production or postproduction costs relating to the creation of trailers, 1208
marketing videos, commercials, point-of-purchase videos and any and 1209
all content created on film or digital media, including the duplication of 1210
films, videos, CDs, DVDs and any and all digital files now in existence 1211
and those yet to be created for mass consumer consumption; the 1212
purchase, by a company in the state, of any and all equipment relating 1213
to the duplication or mass market distribution of any content created or 1214
produced in the state by any digital media format which is now in use 1215
and those formats yet to be created for mass consumer consumption; 1216
and 1217
(C) "Production expenses or costs" does not include the following: (i) 1218
On and after January 1, 2008, compensation in excess of fifteen million 1219
dollars paid to any individual or entity representing an individual, for 1220
services provided in the production of a qualified production and on or 1221 Substitute Bill No. 981
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after January 1, 2010, compensation subject to Connecticut personal 1222
income tax in excess of twenty million dollars paid in the aggregate to 1223
any individuals or entities representing individuals, for star talent 1224
provided in the production of a qualified production; (ii) media buys, 1225
promotional events or gifts or public relations associated with the 1226
promotion or marketing of any qualified production; (iii) deferred, 1227
leveraged or profit participation costs relating to any and all personnel 1228
associated with any and all aspects of the production, including, but not 1229
limited to, producer fees, director fees, talent fees and writer fees; (iv) 1230
costs relating to the transfer of the production tax credits; (v) any 1231
amounts paid to persons or businesses as a result of their participation 1232
in profits from the exploitation of the qualified production; and (vi) any 1233
expenses or costs relating to an independent certification, as required by 1234
subsection (h) of this section, or as the department may otherwise 1235
require, pertaining to the amount of production expenses or costs set 1236
forth by an eligible production company in its application for a 1237
production tax credit. 1238
(6) "Sound recording" means a recording of music, poetry or spoken-1239
word performance, but does not include the audio portions of dialogue 1240
or words spoken and recorded as part of a motion picture, video, 1241
theatrical production, television news coverage or athletic event. 1242
(7) "State-certified qualified production" means a qualified 1243
production produced by an eligible production company that (A) is in 1244
compliance with regulations adopted pursuant to subsection (l) of this 1245
section, (B) is authorized to conduct business in this state, and (C) has 1246
been approved by the department as qualifying for a production tax 1247
credit under this section. 1248
(8) "Interactive web site" means a web site, the production costs of 1249
which (A) exceed five hundred thousand dollars per income year, and 1250
(B) is primarily (i) interactive games or end user applications, or (ii) 1251
animation, simulation, sound, graphics, story lines or video created or 1252
repurposed for distribution over the Internet. An interactive web site 1253
does not include a web site primarily used for institutional, private, 1254 Substitute Bill No. 981
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industrial, retail or wholesale marketing or promotional purposes, or 1255
which contains obscene content. 1256
(9) "Post-certification remedy" means the recapture, disallowance, 1257
recovery, reduction, repayment, forfeiture, decertification or any other 1258
remedy that would have the effect of reducing or otherwise limiting the 1259
use of a tax credit provided by this section. 1260
(10) "Compensation" means base salary or wages and does not 1261
include bonus pay, stock options, restricted stock units or similar 1262
arrangements. 1263
(11) "Relocated television production" means: 1264
(A) An ongoing television program all of the prior seasons of which 1265
were filmed outside this state, and may include current events shows, 1266
except those referenced in subparagraph (B)(i) of this subdivision. 1267
(B) An eligible production company's television programming in this 1268
state that (i) is not a general news program, sporting event or game 1269
broadcast, and (ii) is created at a qualified production facility that has 1270
had a minimum investment of twenty-five million dollars made by such 1271
eligible production company on or after January 1, 2012, at which 1272
facility the eligible production company creates ongoing television 1273
programming as defined in subparagraph (A) of this subdivision, and 1274
creates at least two hundred new jobs in Connecticut on or after January 1275
1, 2012. For purposes of this subdivision, "new job" means a full-time 1276
job, as defined in section 12-217ii, that did not exist in this state prior to 1277
January 1, 2012, and is filled by a new employee, and "new employee" 1278
includes a person who was employed outside this state by the eligible 1279
production company prior to January 1, 2012, but does not include a 1280
person who was employed in this state by the eligible production 1281
company or a related person, as defined in section 12-217ii, with respect 1282
to the eligible production company during the prior twelve months. 1283
(C) A relocated television production may be a state-certified 1284
qualified production for not more than ten successive income years, 1285 Substitute Bill No. 981
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after which period the eligible production company shall be ineligible 1286
to resubmit an application for certification. 1287
(b) (1) The Department of Economic and Community Development 1288
shall administer a system of tax credit vouchers within the resources, 1289
requirements and purposes of this section for eligible production 1290
companies producing a state-certified qualified production in the state. 1291
(2) Any eligible production company incurring production expenses 1292
or costs shall be eligible for a credit (A) for income years commencing 1293
on or after January 1, 2010, but prior to January 1, 2018, against the tax 1294
imposed under chapter 207 or this chapter, (B) for income years 1295
commencing on or after January 1, 2018, but prior to January 1, 2022, 1296
against the tax imposed under chapter 207 or 211 or this chapter, and 1297
(C) for income years commencing on or after January 1, 2022, against the 1298
tax imposed under chapter 207, 211, 219 or this chapter, as follows: (i) 1299
For any such company incurring such expenses or costs of not less than 1300
one hundred thousand dollars, but not more than five hundred 1301
thousand dollars, a credit equal to ten per cent of such expenses or costs, 1302
(ii) for any such company incurring such expenses or costs of more than 1303
five hundred thousand dollars, but not more than one million dollars, a 1304
credit equal to fifteen per cent of such expenses or costs, and (iii) for any 1305
such company incurring such expenses or costs of more than one million 1306
dollars, a credit equal to thirty per cent of such expenses or costs. 1307
(c) No eligible production company incurring an amount of 1308
production expenses or costs that qualifies for such credit shall be 1309
eligible for such credit unless on or after January 1, 2010, such company 1310
conducts (1) not less than fifty per cent of principal photography days 1311
within the state, or (2) expends not less than fifty per cent of 1312
postproduction costs within the state, or (3) expends not less than one 1313
million dollars of postproduction costs within the state. 1314
(d) For income years commencing on or after January 1, 2010, no 1315
expenses or costs incurred outside the state and used within the state 1316
shall be eligible for a credit, and one hundred per cent of such expenses 1317 Substitute Bill No. 981
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or costs shall be counted toward such credit when incurred within the 1318
state and used within the state. 1319
(e) (1) On and after July 1, 2006, and for income years commencing 1320
on or after January 1, 2006, any credit allowed pursuant to this section 1321
may be sold, assigned or otherwise transferred, in whole or in part, to 1322
one or more taxpayers, provided (A) no credit, after issuance, may be 1323
sold, assigned or otherwise transferred, in whole or in part, more than 1324
three times, (B) in the case of a credit allowed for the income year 1325
commencing on or after January 1, 2011, [and] but prior to January 1, 1326
2012, any entity that is not subject to tax under chapter 207 or this 1327
chapter may transfer not more than fifty per cent of such credit in any 1328
one income year, and (C) in the case of a credit allowed for an income 1329
year commencing on or after January 1, 2012, any entity that is not 1330
subject to tax under chapter 207 or this chapter may transfer not more 1331
than twenty-five per cent of such credit in any one income year. 1332
(2) Notwithstanding the provisions of subdivision (1) of this 1333
subsection, any entity that is not subject to tax under this chapter or 1334
chapter 207 shall not be subject to the limitations on the transfer of 1335
credits provided in subparagraphs (B) and (C) of said subdivision (1), 1336
provided such entity owns not less than fifty per cent, directly or 1337
indirectly, of a business entity, as defined in section 12-284b. 1338
(3) Notwithstanding the provisions of subdivision (1) of this 1339
subsection, any qualified production that is created in whole or in 1340
significant part, as determined by the Commissioner of Economic and 1341
Community Development, at a qualified production facility shall not be 1342
subject to the limitations of subparagraph (B) or (C) of said subdivision 1343
(1). For purposes of this subdivision, "qualified production facility" 1344
means a facility (A) located in this state, (B) intended for film, television 1345
or digital media production, and (C) that has had a minimum 1346
investment of three million dollars, or less if the Commissioner of 1347
Economic and Community D evelopment determines such facility 1348
otherwise qualifies. 1349 Substitute Bill No. 981
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(4) (A) For the income year commencing on or after January 1, 2018, 1350
but prior to January 1, 2019, any credit that is sold, assigned or otherwise 1351
transferred, in whole or in part, to one or more taxpayers pursuant to 1352
subdivision (1) of this subsection may be claimed against the tax 1353
imposed under chapter 211 only if there is common ownership of at least 1354
fifty per cent between such taxpayer and the eligible production 1355
company that sold, assigned or otherwise transferred such credit. Such 1356
taxpayer may only claim ninety-two per cent of the amount of such 1357
credit entered by the department on the production tax credit voucher. 1358
(B) For income years commencing on or after January 1, 2019, any 1359
credit that is sold, assigned or otherwise transferred, in whole or in part, 1360
to one or more taxpayers pursuant to subdivision (1) of this subsection, 1361
which credit is claimed against the tax imposed under chapter 211, shall 1362
be subject to the following limits: 1363
(i) The taxpayer may only claim ninety-five per cent of the amount of 1364
such credit entered by the department on the production tax credit 1365
voucher; and 1366
(ii) If there is common ownership of at least fifty per cent between 1367
such taxpayer and the eligible production company that sold, assigned 1368
or otherwise transferred such credit, such taxpayer may only claim 1369
ninety-two per cent of the amount of such credit entered by the 1370
department on the production tax credit voucher. 1371
(5) (A) For income years commencing on or after January 1, 2022, but 1372
prior to January 1, 2024, any credit that is claimed against the tax 1373
imposed under chapter 219 shall be subject to the following limits: 1374
[(A)] (i) Any credit that is sold, assigned or otherwise transferred, in 1375
whole or in part, to one or more taxpayers pursuant to subdivision (1) 1376
of this subsection may be claimed against the tax imposed under chapter 1377
219 only if there is common ownership of at least fifty per cent between 1378
such taxpayer and the eligible production company that sold, assigned 1379
or otherwise transferred such credit; and 1380 Substitute Bill No. 981
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[(B)] (ii) The eligible production company or taxpayer claiming the 1381
credit against the tax imposed under chapter 219 may only claim 1382
seventy-eight per cent of the amount of such credit entered by the 1383
department on the production tax credit voucher. 1384
(B) For income years commencing on or after January 1, 2024, any 1385
credit that is claimed against the tax imposed under chapter 219 shall be 1386
subject to the following limits: 1387
(i) Any credit that is sold, assigned or otherwise transferred, in whole 1388
or in part, to one or more taxpayers pursuant to subdivision (1) of this 1389
subsection may be claimed against the tax imposed under chapter 219 1390
only if there is common ownership of at least fifty per cent between such 1391
taxpayer and the eligible production company that sold, assigned or 1392
otherwise transferred such credit; and 1393
(ii) The eligible production company or taxpayer claiming the credit 1394
against the tax imposed under chapter 219 may only claim ninety-two 1395
per cent of the amount of such credit entered by the department on the 1396
production tax credit voucher. 1397
(f) (1) On and after July 1, 2006, and for income years commencing on 1398
or after January 1, 2006, but prior to January 1, 2015, all or part of any 1399
such credit allowed under this section may be claimed against the tax 1400
imposed under chapter 207 or this chapter for the income year in which 1401
the production expenses or costs were incurred, or in the three 1402
immediately succeeding income years. 1403
(2) For production tax credit vouchers issued on or after July 1, 2015, 1404
but prior to January 1, 2018, all or part of any such credit may be claimed 1405
against the tax imposed under chapter 207 or this chapter, for the 1406
income year in which the production expenses or costs were incurred, 1407
or in the five immediately succeeding income years. 1408
(3) For production tax credit vouchers issued on or after July 1, 2018, 1409
but prior to January 1, 2022, all or part of any such credit may be claimed 1410
against the tax imposed under chapter 207 or 211 or this chapter, for the 1411 Substitute Bill No. 981
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income year in which the production expenses or costs were incurred, 1412
or in the five immediately succeeding income years. 1413
(4) For production tax credit vouchers issued on or after January 1, 1414
2022, all or part of any such credit may be claimed against the tax 1415
imposed under chapter 207, 211, 219 or this chapter, for the income year 1416
in which the production expenses or costs were incurred, or in the five 1417
immediately succeeding income years. 1418
(g) Any production tax credit allowed under this section shall be 1419
nonrefundable. 1420
(h) (1) An eligible production company shall apply to the department 1421
for a tax credit voucher on an annual basis, but not later than ninety days 1422
after the first production expenses or costs are incurred in the 1423
production of a qualified production, and shall provide with such 1424
application such information as the department may require to 1425
determine such company's eligibility to claim a credit under this section. 1426
No production expenses or costs may be listed more than once for 1427
purposes of the tax credit voucher pursuant to this section, or pursuant 1428
to section 12-217kk or 12-217ll, and if a production expense or cost has 1429
been included in a claim for a credit, such production expense or cost 1430
may not be included in any subsequent claim for a credit. 1431
(2) Not later than ninety days after the end of the annual period, or 1432
after the last production expenses or costs are incurred in the production 1433
of a qualified production, an eligible production company shall apply 1434
to the department for a production tax credit voucher, and shall provide 1435
with such application (A) a report that includes the number of full-time 1436
jobs and the number of part-time jobs created by the eligible production 1437
company during the annual period, a description of each such job and 1438
an explanation of what the eligible production company considers to be 1439
job creation for purposes of the report, and (B) such information and 1440
independent certification as the department may require pertaining to 1441
the amount of such company's production expenses or costs. Such 1442
independent certification shall be provided by an audit professional 1443 Substitute Bill No. 981
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chosen from a list compiled by the department. If the department 1444
determines that such company is eligible to be issued a production tax 1445
credit voucher, the department shall enter on the voucher the amount 1446
of production expenses or costs that has been established to the 1447
satisfaction of the department and the amount of such company's credit 1448
under this section. The department shall provide a copy of such voucher 1449
to the commissioner, upon request. 1450
(3) The department shall charge a reasonable administrative fee 1451
sufficient to cover the department's costs to analyze applications 1452
submitted under this section. 1453
(i) If an eligible production company sells, assigns or otherwise 1454
transfers a credit under this section to another taxpayer, the transferor 1455
and transferee shall jointly submit written notification of such transfer 1456
to the department not later than thirty days after such transfer. If such 1457
transferee sells, assigns or otherwise transfers a credit under this section 1458
to a subsequent transferee, such transferee and such subsequent 1459
transferee shall jointly submit written notification of such transfer to the 1460
department not later than thirty days after such transfer. The 1461
notification after each transfer shall include the credit voucher number, 1462
the date of transfer, the amount of such credit transferred, the tax credit 1463
balance before and after the transfer, the tax identification numbers for 1464
both the transferor and the transferee, and any other information 1465
required by the department. Failure to comply with this subsection will 1466
result in a disallowance of the tax credit until there is full compliance on 1467
the part of the transferor and the transferee, and for a second or third 1468
transfer, on the part of all subsequent transferors and transferees. The 1469
department shall provide a copy of the notification of assignment to the 1470
commissioner upon request. 1471
(j) Any eligible production company that submits information to the 1472
department that it knows to be fraudulent or false shall, in addition to 1473
any other penalties provided by law, be liable for a penalty equal to the 1474
amount of such company's credit entered on the production tax credit 1475
voucher issued under this section. 1476 Substitute Bill No. 981
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(k) No tax credits transferred pursuant to this section shall be subject 1477
to a post-certification remedy, and the department and the 1478
commissioner shall have no right, except in the case of possible material 1479
misrepresentation or fraud, to conduct any further or additional review, 1480
examination or audit of the expenditures or costs for which such tax 1481
credits were issued. The sole and exclusive remedy of the department 1482
and the commissioner shall be to seek collection of the amount of such 1483
tax credits from the entity that committed the fraud or 1484
misrepresentation. 1485
(l) The department, in consultation with the commissioner, shall 1486
adopt regulations, in accordance with the provisions of chapter 54, as 1487
may be necessary for the administration of this section. 1488
Sec. 10. Subsection (a) of section 32-1m of the general statutes is 1489
repealed and the following is substituted in lieu thereof (Effective January 1490
1, 2024): 1491
(a) Not later than February first, annually, the Commissioner of 1492
Economic and Community Development shall submit a report to the 1493
Governor, the Auditors of Public Accounts and the joint standing 1494
committees of the General Assembly having cognizance of matters 1495
relating to appropriations and the budgets of state agencies, finance, 1496
revenue and bonding and commerce, in accordance with the provisions 1497
of section 11-4a. Not later than thirty days after submission of the report, 1498
said commissioner shall post the report on the Department of Economic 1499
and Community Development's web site. Such report shall include, but 1500
not be limited to, the following information with regard to the activities 1501
of the Department of Economic and Community Development and to 1502
business assistance programs administered by Connecticut Innovations, 1503
Incorporated, during the preceding state fiscal year: 1504
(1) A brief description and assessment of the state's economy during 1505
such year, utilizing the most recent and reasonably available data, and 1506
including: 1507 Substitute Bill No. 981
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(A) Connecticut employment by industry; 1508
(B) Connecticut and national average unemployment; and 1509
(C) Connecticut gross state product, by industry. 1510
(2) An analysis of the economic development portfolio of the 1511
department, including, but not limited to, each business assistance or 1512
incentive program, including any business tax credit or abatement 1513
program, grant, loan, forgivable loan or other form of assistance, 1514
enacted for the purpose of improving economic development. The 1515
analysis shall include: 1516
(A) The Internet web site address of the state's open data portal and 1517
an indication of where the name, address and location of each recipient 1518
of the department's assistance is published on the site along with the 1519
following information concerning each recipient: (i) Business activities, 1520
(ii) standard industrial classification codes or North American industrial 1521
classification codes, (iii) whether the recipient is a minority or woman-1522
owned business, (iv) a summary of the terms and conditions for the 1523
assistance, including the type and amount of state financial assistance 1524
and job creation or retention requirements, (v) the amount of 1525
investments from private and other nonstate sources that have been 1526
leveraged by the assistance, and (vi) the amount of state investment; 1527
(B) A portfolio analysis, including an analysis of the wages paid by 1528
recipients of financial assistance by industry; 1529
(C) An investment analysis, including (i) total portfolio value, (ii) 1530
total investment by industry, (iii) portfolio dollar per job average, and 1531
(iv) portfolio leverage ratio; 1532
(D) An overview of the business assistance and incentive programs 1533
administered by the department and an analysis of their estimated 1534
economic impact on the state's economy. The analysis shall include, for 1535
each business assistance or incentive program for which such data is 1536
available, the number of new jobs created, the borrowing cost to the 1537 Substitute Bill No. 981
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state and the estimated impact of such program on annual state 1538
revenues; 1539
(E) An analysis of whether the statutory and programmatic goals of 1540
each business or incentive program are being met, with obstacles to such 1541
goals identified, if possible; 1542
(F) (i) Recommendations as to whether any existing business 1543
assistance or incentive program should be continued, modified or 1544
repealed and the basis or bases for such recommendations, and (ii) any 1545
recommendations for additional data collection by the state to better 1546
inform future evaluations of such programs; and 1547
(G) The methodologies and assumptions used in carrying out the 1548
analyses under this subdivision. 1549
(3) An analysis of the community development portfolio of the 1550
department, including: 1551
(A) The Internet web site address of the state's open data portal and 1552
an indication of where the name, address and location of each recipient 1553
of the department's assistance is published on the site along with the 1554
following information concerning each recipient: (i) Amount of state 1555
investment, (ii) a summary of the terms and conditions for the 1556
department's assistance, including the type and amount of state 1557
financial assistance, and (iii) the amount of investments from private 1558
and other nonstate sources that have been leveraged by such assistance; 1559
and 1560
(B) An investment analysis, including (i) total active portfolio value, 1561
(ii) total investments made in the preceding state fiscal year, and (iii) 1562
total portfolio leverage ratio. 1563
(4) An analysis of each business assistance or incentive program, 1564
including any business tax credit or abatement program, grant, loan, 1565
forgivable loan or other form of assistance, enacted for the purpose of 1566
improving economic development, that (A) (i) had ten or more 1567 Substitute Bill No. 981
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recipients of assistance in the preceding state fiscal year, or (ii) credited, 1568
abated or distributed more than one million dollars in the preceding 1569
state fiscal year, and (B) is administered by the department or 1570
Connecticut Innovations, Incorporated. The analysis shall include: 1571
(i) An overview of the business assistance or incentive program and 1572
an analysis of its estimated economic effects on the state's economy, 1573
including, for each program where such data is available, the number of 1574
new jobs created and the estimated impact of such program on annual 1575
state revenues; 1576
(ii) An analysis of whether the statutory and programmatic goals of 1577
each business assistance or incentive program are being met, with 1578
obstacles to such goals identified, if possible; 1579
(iii) Recommendations as to whether any such existing business 1580
assistance or incentive program should be continued, modified or 1581
repealed and the basis or bases for such recommendations, and any 1582
recommendations for additional data collection by the state to better 1583
inform future evaluations of such programs; and 1584
(iv) The methodologies and assumptions used in carrying out the 1585
analysis under this subdivision. 1586
(5) A summary of the department's international trade efforts in the 1587
preceding state fiscal year, and, to the extent possible, a summary of 1588
foreign direct investment that occurred in the state in such year. 1589
(6) A summary of the total social and economic impact of the 1590
department's efforts and activities in the areas of economic and 1591
community development, and an assessment of the department's 1592
performance in terms of meeting its stated goals and objectives. 1593
(7) With regard to the Small Business Express program established 1594
pursuant to section 32-7g, data on (A) the number of small businesses 1595
that received assistance under said program and the general categories 1596
of such businesses, (B) the amounts and types of assistance provided, 1597 Substitute Bill No. 981
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(C) the total number of jobs on the date of application and the number 1598
proposed to be created or retained, (D) the most recent employment 1599
figures of the small businesses receiving assistance, (E) the default rate 1600
of small businesses that received assistance under said program, and (F) 1601
the progress of the lenders participating in said program in becoming 1602
self-sustainable. 1603
(8) With regard to airport development zones established pursuant 1604
to section 32-75d, a summary of the economic and cost benefits of each 1605
zone and any recommended revisions to any such zones. 1606
(9) An overview of the department's activities related to tourism, the 1607
arts and historic preservation. 1608
(10) An overview of the department's activities concerning digital 1609
media, motion pictures and related production activity, and an analysis 1610
of the use of the film production tax credit established under section 12-1611
217jj, as amended by this act, the entertainment industry infrastructure 1612
tax credit established under section 12-217kk and the digital animation 1613
production tax credit established under section 12-217ll, including the 1614
amount of any tax credit issued under said sections, [and] the total 1615
amount of production expenses or costs incurred in the state by the 1616
taxpayer who was issued such a tax credit and the information 1617
submitted in the report required under subparagraph (A) of subdivision 1618
(1) of subsection (h) of section 12-217jj, as amended by this act. 1619
(11) A summary of the department's and the office of the permit 1620
ombudsman's brownfield-related efforts and activities in the preceding 1621
fiscal year. 1622
(12) A summary of the department's dry cleaning establishment 1623
remediation account activities in the preceding fiscal year. 1624
Sec. 11. Section 12-217ee of the general statutes is repealed and the 1625
following is substituted in lieu thereof (Effective July 1, 2023): 1626
(a) (1) Any taxpayer that [(1)] (A) is a qualified small business, [(2)] 1627 Substitute Bill No. 981
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(B) qualifies for a credit under section 12-217j or section 12-217n, and 1628
[(3)] (C) cannot take such credit in the taxable year in which the credit 1629
could otherwise be taken as a result of having no tax liability under this 1630
chapter may elect to carry such credit forward under this chapter or may 1631
apply to the commissioner as provided in subsection (b) of this section 1632
to exchange such credit with the state for a credit refund equal to sixty-1633
five per cent of the value of the credit or, for a biotechnology company, 1634
equal to eighty per cent of the value of the credit. 1635
(2) Any amount of credit refunded under this section shall be 1636
refunded to the taxpayer under the provisions of this chapter, except 1637
that such credit refund shall not be subject to the provisions of section 1638
12-227. Payment of the capital base tax under section 12-219, as 1639
amended by this act, for an income year commencing on or after January 1640
1, 2002, in which year the taxpayer reports no net income, as defined in 1641
section 12-213, or payment of the minimum tax of two hundred fifty 1642
dollars under section 12-219, as amended by this act, or 12-223c for any 1643
income year, shall not be considered a tax liability for purposes of this 1644
section. 1645
(b) An application for refund of such credit amount shall be made to 1646
the Commissioner of Revenue Services, at the same time such taxpayer 1647
files its return for the income year on or before the original due date or, 1648
if applicable, the extended due date of such [year’s] year's return, on 1649
such forms and containing such information as prescribed by said 1650
commissioner. No application for refund of such credit amount may be 1651
made after the due date or extended due date, as the case may be, of 1652
such return. 1653
(c) If the commissioner determines that the taxpayer qualifies for a 1654
credit refund under this section, the commissioner shall notify, no later 1655
than one hundred twenty days from receipt of the application for such 1656
credit refund, the State Comptroller of the name of the eligible taxpayer, 1657
and the State Comptroller shall draw an order on the State Treasurer. 1658
The amount of the credit refund shall be limited as follows: 1659 Substitute Bill No. 981
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(1) In the case of an application for such credit refund filed by the 1660
taxpayer for income years beginning during 2000 or 2001 where such 1661
credit refund has not been paid as of July 1, 2002, the taxpayer shall be 1662
entitled to receive no more than one million dollars during the [state’s] 1663
state's fiscal year in which the initial refund is paid, with any remaining 1664
unpaid balance to be paid in two equal installments during the [state’s] 1665
state's next two succeeding fiscal years; and 1666
(2) [in] In the case of an application for such credit refund filed by the 1667
taxpayer for the income years beginning during 2002 or thereafter, the 1668
taxpayer shall be entitled to receive no more than one million five 1669
hundred thousand dollars for any one such income year. 1670
(d) The Commissioner of Revenue Services may disallow the credit 1671
refund of any credit otherwise allowable for a taxable year under this 1672
section if the company claiming the exchange has any amount of taxes 1673
due and unpaid to the state including interest, penalties, fees and other 1674
charges related thereto for which a period in excess of thirty days has 1675
elapsed following the date on which such taxes were due and which are 1676
not the subject of a timely filed administrative appeal to the 1677
commissioner or of a timely filed appeal pending before any court of 1678
competent jurisdiction. Before any such disallowance, the commissioner 1679
shall send written notice to the company, stating that it may pay the 1680
amount of such delinquent tax or enter into an agreement with the 1681
commissioner for the payment thereof, by the date set forth in said 1682
notice, provided, such date shall not be less than thirty days after the 1683
date of such notice. Failure on the part of the company to pay the 1684
amount of the delinquent tax or enter into an agreement to pay the 1685
amount thereof by said date shall result in a disallowance of the credit 1686
refund being claimed. 1687
(e) For purposes of this section, (1) "qualified small business" means 1688
a company that [(1)] (A) has gross income for the previous income year 1689
that does not exceed seventy million dollars, and [(2)] (B) has not, in the 1690
determination of the commissioner, met the gross income test through 1691
transactions with a related person, as defined in section 12-217w, as 1692 Substitute Bill No. 981
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amended by this act, and (2) "biotechnology company" has the same 1693
meaning as provided in subsection (b) of section 12-217j. 1694
Sec. 12. Section 22a-245a of the general statutes is repealed and the 1695
following is substituted in lieu thereof (Effective from passage): 1696
(a) Each deposit initiator shall open a special interest-bearing account 1697
at a Connecticut branch of a financial institution, as defined in section 1698
45a-557a, to the credit of the deposit initiator. Each deposit initiator shall 1699
deposit in such account an amount equal to the refund value established 1700
pursuant to subsection (a) of section 22a-244, for each beverage 1701
container sold by such deposit initiator. Such deposit shall be made not 1702
more than one month after the date such beverage container is sold, 1703
provided for any beverage container sold during the period from 1704
December 1, 2008, to December 31, 2008, inclusive, such deposit shall be 1705
made not later than January 5, 2009. All interest, dividends and returns 1706
earned on the special account shall be paid directly into such account. 1707
Such moneys shall be kept separate and apart from all other moneys in 1708
the possession of the deposit initiator. The amount required to be 1709
deposited pursuant to this section, when deposited, shall be held to be 1710
a special fund in trust for the state. 1711
(b) (1) Any reimbursement of the refund value for a redeemed 1712
beverage container shall be paid from the deposit initiator's special 1713
account, with such payment to be computed, subject to the provisions 1714
of subdivision (2) of this subsection, under the cash receipts and 1715
disbursements method of accounting, as described in Section 446(c)(1) 1716
of the Internal Revenue Code of 1986, or any subsequent corresponding 1717
Internal Revenue Code of the United States, as amended from time to 1718
time. 1719
(2) A deposit initiator may petition the Commissioner of Revenue 1720
Services for an alternate method of accounting by filing with such 1721
deposit initiator's return a statement of objections and other proposed 1722
alternate method of accounting, as such deposit initiator believes proper 1723
and equitable under the circumstances, that is accompanied by 1724 Substitute Bill No. 981
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supporting details and proof. The Commissioner of Revenue Services 1725
shall promptly notify such deposit initiator whether the proposed 1726
alternate method is accepted as reasonable and equitable and, if so 1727
accepted, shall adjust such deposit initiator's return and payment of 1728
reimbursement accordingly. 1729
(c) Not later than August 1, 2024, and annually thereafter, the 1730
Commissioner of Energy and Environmental Protection shall calculate 1731
and publish the average state-wide redemption rate for the preceding 1732
fiscal year, calculated as the number of beverage containers redeemed 1733
for the deposit divided by the number of beverage containers sold. 1734
[(c)] (d) (1) Each deposit initiator shall submit a report on March 15, 1735
2009, for the period from December 1, 2008, to February 28, 2009, 1736
inclusive. Each deposit initiator shall submit a report on July 31, 2009, 1737
for the period from March 1, 2009, to June 30, 2009, inclusive, and 1738
thereafter shall submit a quarterly report for the immediately preceding 1739
calendar quarter one month after the close of such quarter. Each such 1740
report shall be submitted to the Commissioner of Energy and 1741
Environmental Protection, on a form prescribed by the commissioner 1742
and with such information as the commissioner deems necessary, 1743
including, but not limited to: (A) The balance in the special account at 1744
the beginning of the quarter for which the report is prepared; (B) a list 1745
of all deposits credited to such account during such quarter, including 1746
all refund values paid to the deposit initiator and all interest, dividends 1747
or returns received on the account; (C) a list of all withdrawals from 1748
such account during such quarter, all service charges and overdraft 1749
charges on the account and all payments made pursuant to subsection 1750
[(d)] (e) of this section; and (D) the balance in the account at the close of 1751
the quarter for which the report is prepared. 1752
(2) Each deposit initiator shall submit a report on October 31, 2010, 1753
for the calendar quarter beginning July 1, 2010. Subsequently, each 1754
deposit initiator shall submit a quarterly report for the immediately 1755
preceding calendar quarter, on or before the last day of the month next 1756
succeeding the close of such quarter. Each such report shall be 1757 Substitute Bill No. 981
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submitted to the Commissioner of Revenue Services, on a form 1758
prescribed by the Commissioner of Revenue Services, and with such 1759
information as the Commissioner of Revenue Services deems necessary, 1760
including, but not limited to, the following information: (A) The balance 1761
in the special account at the beginning of the quarter for which the 1762
report is prepared, (B) all deposits credited to such account during such 1763
quarter, including all refund values paid to the deposit initiator and all 1764
interest, dividends or returns received on such account, (C) all 1765
withdrawals from such account during such quarter, including all 1766
service charges and overdraft charges on such account and all payments 1767
made pursuant to subsection [(d)] (e) of this section, and (D) the balance 1768
in such account at the close of the quarter for which the report is 1769
prepared. Such quarterly report shall be filed electronically with the 1770
Commissioner of Revenue Services, in the manner provided by chapter 1771
228g. 1772
[(d)] (e) (1) On or before April 30, 2009, each deposit initiator shall 1773
pay the balance outstanding in the special account that is attributable to 1774
the period from December 1, 2008, to March 31, 2009, inclusive, to the 1775
Commissioner of Energy and Environmental Protection for deposit in 1776
the General Fund. Thereafter, the balance outstanding in the special 1777
account that is attributable to the immediately preceding calendar 1778
quarter shall be paid by the deposit initiator one month after the close 1779
of such quarter to the Commissioner of Energy and Environmental 1780
Protection for deposit in the General Fund. If the amount of the required 1781
payment pursuant to this subdivision is not paid by the date seven days 1782
after the due date, a penalty of ten per cent of the amount due shall be 1783
added to the amount due. The amount due shall bear interest at the rate 1784
of one and one-half per cent per month or fraction thereof, from the due 1785
date. Any such penalty or interest shall not be paid from funds 1786
maintained in the special account. 1787
(2) (A) On or before October 31, 2010, each deposit initiator shall pay 1788
the balance outstanding in the special account that is attributable to the 1789
period from July 1, 2010, to September 30, 2010, inclusive, to the 1790 Substitute Bill No. 981
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Commissioner of Revenue Services for deposit in the General Fund. 1791
(B) Subsequently: [, for] 1792
(i) For the fiscal year ending June 30, 2023, ninety-five per cent of the 1793
balance outstanding in the special account that is attributable to the 1794
immediately preceding calendar quarter shall be paid by the deposit 1795
initiator on or before the last day of the month next succeeding the close 1796
of such quarter to the Commissioner of Revenue Services for deposit in 1797
the General Fund; [, for] 1798
(ii) For the fiscal year ending June 30, 2024, sixty-five per cent of the 1799
balance outstanding in the special account that is attributable to the 1800
immediately preceding calendar quarter shall be paid by the deposit 1801
initiator on or before the last day of the month next succeeding the close 1802
of such quarter to the Commissioner of Revenue Services for deposit in 1803
the General Fund, except that for the calendar quarters ending 1804
September 30, 2023, and December 31, 2023, the balances outstanding in 1805
the special account that are attributable to said calendar quarters shall 1806
be retained in the special account by the deposit initiator for the purpose 1807
of reimbursement of the refund value in effect on January 1, 2024, for a 1808
redeemed beverage container in accordance with the provisions of 1809
subsection (b) of this section and section 22a-244; 1810
(iii) For the fiscal year ending June 30, 2025, [fifty-five] fifty per cent 1811
of the balance outstanding in the special account that is attributable to 1812
the immediately preceding calendar quarter shall be paid by the deposit 1813
initiator on or before the last day of the month next succeeding the close 1814
of such quarter to the Commissioner of Revenue Services for deposit in 1815
the General Fund; [and for] 1816
(iv) For the fiscal year ending June 30, 2026, [and each subsequent 1817
fiscal year thereafter, forty-five] if the redemption rate calculated under 1818
subsection (c) of this section for the preceding fiscal year is: 1819
(I) At least sixty-five per cent, twenty-five per cent of the balance 1820
outstanding in the special account that is attributable to the immediately 1821 Substitute Bill No. 981
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preceding calendar quarter shall be paid by the deposit initiator on or 1822
before the last day of the month next succeeding the close of such 1823
quarter to the Commissioner of Revenue Services for deposit in the 1824
General Fund; and 1825
(II) Less than sixty-five per cent, forty-five per cent of the balance 1826
outstanding in the special account that is attributable to the immediately 1827
preceding calendar quarter shall be paid by the deposit initiator on or 1828
before the last day of the month next succeeding the close of such 1829
quarter to the Commissioner of Revenue Services for deposit in the 1830
General Fund; 1831
(v) For the fiscal year ending June 30, 2027, if the redemption rate 1832
calculated under subsection (c) of this section for the preceding fiscal 1833
year is: 1834
(I) At least seventy per cent, five per cent of the balance outstanding 1835
in the special account that is attributable to the immediately preceding 1836
calendar quarter shall be paid by the deposit initiator on or before the 1837
last day of the month next succeeding the close of such quarter to the 1838
Commissioner of Revenue Services for deposit in the General Fund; 1839
(II) Less than seventy per cent but more than sixty-five per cent, 1840
twenty-five per cent of the balance outstanding in the special account 1841
that is attributable to the immediately preceding calendar quarter shall 1842
be paid by the deposit initiator on or before the last day of the month 1843
next succeeding the close of such quarter to the Commissioner of 1844
Revenue Services for deposit in the General Fund; and 1845
(III) Sixty-five per cent or less, forty-five per cent of the balance 1846
outstanding in the special account that is attributable to the immediately 1847
preceding calendar quarter shall be paid by the deposit initiator on or 1848
before the last day of the month next succeeding the close of such 1849
quarter to the Commissioner of Revenue Services for deposit in the 1850
General Fund; and 1851
(vi) For the fiscal year ending June 30, 2028, and each fiscal year 1852 Substitute Bill No. 981
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thereafter, if the redemption rate calculated under subsection (c) of this 1853
section for the preceding fiscal year is: 1854
(I) At least eighty per cent, five per cent of the balance outstanding in 1855
the special account that is attributable to the immediately preceding 1856
calendar quarter shall be paid by the deposit initiator on or before the 1857
last day of the month next succeeding the close of such quarter to the 1858
Commissioner of Revenue Services for deposit in the General Fund; 1859
(II) Less than eighty per cent but more than seventy per cent, ten per 1860
cent of the balance outstanding in the special account that is attributable 1861
to the immediately preceding calendar quarter shall be paid by the 1862
deposit initiator on or before the last day of the month next succeeding 1863
the close of such quarter to the Commissioner of Revenue Services for 1864
deposit in the General Fund; 1865
(III) Seventy per cent or less but more than sixty-five per cent, twenty-1866
five per cent of the balance outstanding in the special account that is 1867
attributable to the immediately preceding calendar quarter shall be paid 1868
by the deposit initiator on or before the last day of the month next 1869
succeeding the close of such quarter to the Commissioner of Revenue 1870
Services for deposit in the General Fund; and 1871
(IV) Sixty-five per cent or less, forty-five per cent of the balance 1872
outstanding in the special account that is attributable to the immediately 1873
preceding calendar quarter shall be paid by the deposit initiator on or 1874
before the last day of the month next succeeding the close of such 1875
quarter to the Commissioner of Revenue Services for deposit in the 1876
General Fund. 1877
(C) If the amount of the required payment pursuant to this 1878
subdivision is not paid on or before the due date, a penalty of ten per 1879
cent of the amount due and unpaid, or fifty dollars, whichever is greater, 1880
shall be imposed. The amount due and unpaid shall bear interest at the 1881
rate of one per cent per month or fraction thereof, from the due date. 1882
Any such penalty or interest shall not be paid from funds maintained in 1883 Substitute Bill No. 981
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such special account. Such required payment shall be made by 1884
electronic funds transfer to the Commissioner of Revenue Services, in 1885
the manner provided by chapter 228g. 1886
[(e)] (f) If moneys deposited in the special account are insufficient to 1887
pay for withdrawals authorized pursuant to subsection (b) of this 1888
section, the amount of such deficiency shall be subtracted from the next 1889
succeeding payment or payments due pursuant to subsection [(d)] (e) of 1890
this section until the amount of the deficiency has been subtracted in 1891
full. 1892
[(f)] (g) The Commissioner of Revenue Services may examine the 1893
accounts and records of any deposit initiator maintained under this 1894
section or sections 22a-243 to 22a-245, inclusive, and any related 1895
accounts and records, including receipts, disbursements and such other 1896
items as the Commissioner of Revenue Services deems appropriate. 1897
[(g)] (h) The Attorney General may, independently or upon 1898
complaint of the Commissioner of Energy and Environmental 1899
Protection or the Commissioner of Revenue Services, institute any 1900
appropriate action or proceeding to enforce any provision of this section 1901
or any regulation adopted pursuant to section 22a-245 to implement the 1902
provisions of this section. 1903
[(h)] (i) The provisions of sections 12-548, 12-550 to 12-554, inclusive, 1904
and 12-555a shall be deemed to apply to the provisions of this section, 1905
except any provision of sections 12-548, 12-550 to 12-554, inclusive, and 1906
12-555a that is inconsistent with the provision in this section. 1907
[(i)] (j) Any payment required pursuant to this section shall be treated 1908
as a tax for purposes of sections 12-30b, 12-33a, 12-35a, 12-39g and 12-1909
39h. 1910
[(j)] (k) Not later than July 1, 2010, the Department of Energy and 1911
Environmental Protection or successor agency shall establish a 1912
procedure that allows each such deposit initiator to take a credit against 1913
any payment made pursuant to subsection [(d)] (e) of this section in the 1914 Substitute Bill No. 981
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amount of the deposits refunded on beverage containers which such 1915
deposit initiator donated for any charitable purpose. 1916
Sec. 13. Subparagraph (J) of subdivision (37) of section 12-407 of the 1917
general statutes is repealed and the following is substituted in lieu 1918
thereof (Effective July 1, 2023, and applicable to sales occurring on or after 1919
July 1, 2023): 1920
(J) Business analysis, management, management consulting and 1921
public relations services, excluding (i) any environmental consulting 1922
services, (ii) any job-related or personnel training services, [provided by 1923
an institution of higher education licensed or accredited by the Board of 1924
Regents for Higher Education or authorized by the Office of Higher 1925
Education pursuant to sections 10a-35a and 10a-34, respectively, and] or 1926
(iii) on and after January 1, 1994, any business analysis, management, 1927
management consulting and public relations services when such 1928
services are rendered in connection with an aircraft leased or owned by 1929
a certificated air carrier or in connection with an aircraft [which] that has 1930
a maximum certificated take-off weight of six thousand pounds or more; 1931
Sec. 14. Subsection (c) of section 12-217g of the general statutes is 1932
repealed and the following is substituted in lieu thereof (Effective January 1933
1, 2024, and applicable to income years commencing on or after January 1, 1934
2024): 1935
(c) There shall be allowed a credit for any taxpayer against the tax 1936
imposed under this chapter for any income year with respect to wages 1937
paid to apprentices in the construction trades by such taxpayer in such 1938
year that the apprentice and taxpayer participate in a qualified 1939
apprenticeship training program, as described in subsection (d) of this 1940
section, [which] that (1) is at least four years in duration, (2) is certified 1941
in accordance with regulations adopted in accordance with the 1942
provisions of chapter 54 by the Labor Commissioner, and (3) is 1943
registered with the Labor Department under section 31-22r, as amended 1944
by this act. The tax credit shall be (A) in an amount equal to two dollars 1945
per hour multiplied by the total number of hours completed by each 1946 Substitute Bill No. 981
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apprentice toward completion of such program, and (B) awarded upon 1947
completion and notification of completion of such program in the 1948
income year in which such completion and notification occur, provided 1949
the amount of credit allowed for such income year with respect to each 1950
such apprentice may not exceed [four thousand] seven thousand five 1951
hundred dollars or fifty per cent of actual wages paid over the first four 1952
income years for such apprenticeship, whichever is less. 1953
Sec. 15. Section 31-22r of the general statutes is repealed and the 1954
following is substituted in lieu thereof (Effective January 1, 2024): 1955
(a) (1) Each person who registered as an apprentice with the Labor 1956
Department before July 1, 2003, and has no t completed an 1957
apprenticeship as of July 9, 2003, shall pay to the Labor Department a 1958
registration fee of twenty-five dollars on or before July 1, 2003, and a 1959
renewal registration fee of twenty-five dollars on or before July first of 1960
each subsequent year until (A) such registration is withdrawn, or (B) 1961
such person has completed an apprenticeship and possesses a valid 1962
journeyperson card of occupational license, if required. 1963
(2) Each person who initially registers as an apprentice with the Labor 1964
Department on or after July 1, 2003, shall pay to the Labor Department 1965
a registration fee of fifty dollars at the time of registration and an annual 1966
renewal registration fee of fifty dollars until (A) such registration is 1967
withdrawn, or (B) such person has completed an apprenticeship and 1968
possesses a valid journeyperson card of occupational license, if 1969
required. 1970
(b) Each person sponsoring an apprenticeship program registered 1971
with the Labor Department as of July 1, 2003, shall pay to the Labor 1972
Department an annual registration fee of sixty dollars for each 1973
apprentice participating in such program until the apprentice has 1974
completed the apprenticeship and possesses a valid journeyperson card 1975
of occupational license, if required, or such program is cancelled by the 1976
sponsor or deregistered for cause by the Labor Department in 1977
accordance with regulations adopted pursuant to this chapter, 1978 Substitute Bill No. 981
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whichever is earlier. 1979
(c) Each person sponsoring an apprenticeship program registered 1980
with the Labor Department as of July 1, 2024, shall annually submit the 1981
following information along with such sponsor's annual registration fee: 1982
(1) The current minimum completion rate of such sponsor's 1983
apprenticeship program, (2) the number of registered apprentices 1984
currently participating in such sponsor's program, (3) the number of 1985
licensed journeypersons currently employed by such sponsor, (4) the 1986
number of registered apprentices participating in such program who 1987
have advanced a year since the date of such sponsor's previous 1988
registration, or year to date for new sponsors, (5) the number of 1989
apprentices who have separated from such sponsor's program since the 1990
date of such sponsor's previous registration, or year to date for new 1991
sponsors, (6) the number of apprentices who have completed an 1992
apprenticeship program with such sponsor since the date of such 1993
sponsor's previous registration, or year to date for new sponsors, and 1994
(7) the number of apprentices who completed such sponsor's program 1995
who have been issued an occupational license by the Department of 1996
Consumer Protection and are currently employed by such sponsor. All 1997
information shall be submitted in a form and manner as prescribed by 1998
the commissioner and disaggregated by gender identity, race and 1999
ethnicity. Notwithstanding the provisions of section 1-210, such 2000
information provided by a sponsor shall be considered a public record 2001
and all persons shall have the right to inspect and copy such records in 2002
accordance with the provisions of section 1-212. 2003
[(c)] (d) Fifty per cent of any amount collected by the Labor 2004
Department pursuant to this section shall be deposited in the General 2005
Fund and fifty per cent of such amount shall be credited to a separate 2006
nonlapsing appropriation to the Labor Department, for the purpose of 2007
administering the department's apprentice training program and 2008
sections 31-22m to 31-22p, inclusive. 2009
Sec. 16. Subdivision (1) of section 12-408 of the general statutes is 2010
repealed and the following is substituted in lieu thereof (Effective July 1, 2011 Substitute Bill No. 981
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2023, and applicable to sales occurring on or after July 1, 2023): 2012
(1) (A) For the privilege of making any sales, as defined in 2013
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 2014
for a consideration, a tax is hereby imposed on all retailers at the rate of 2015
six and thirty-five-hundredths per cent of the gross receipts of any 2016
retailer from the sale of all tangible personal property sold at retail or 2017
from the rendering of any services constituting a sale in accordance with 2018
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 2019
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 2020
subdivision; 2021
(B) (i) At a rate of fifteen per cent with respect to each transfer of 2022
occupancy, from the total amount of rent received by a hotel or lodging 2023
house for the first period not exceeding thirty consecutive calendar 2024
days; 2025
(ii) At a rate of eleven per cent with respect to each transfer of 2026
occupancy, from the total amount of rent received by a bed and 2027
breakfast establishment for the first period not exceeding thirty 2028
consecutive calendar days; 2029
(C) With respect to the sale of a motor vehicle to any individual who 2030
is a member of the armed forces of the United States and is on full-time 2031
active duty in Connecticut and who is considered, under 50 App USC 2032
574, a resident of another state, or to any such individual and the spouse 2033
thereof, at a rate of four and one-half per cent of the gross receipts of any 2034
retailer from such sales, provided such retailer requires and maintains a 2035
declaration by such individual, prescribed as to form by the 2036
commissioner and bearing notice to the effect that false statements made 2037
in such declaration are punishable, or other evidence, satisfactory to the 2038
commissioner, concerning the purchaser's state of residence under 50 2039
App USC 574; 2040
(D) (i) With respect to the sales of computer and data processing 2041
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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(ii) with respect to sales of Internet access services, on and after July 1, 2043
2001, such services shall be exempt from such tax; 2044
(E) (i) With respect to the sales of labor that is otherwise taxable under 2045
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 2046
12-407 on existing vessels and repair or maintenance services on vessels 2047
occurring on and after July 1, 1999, such services shall be exempt from 2048
such tax; 2049
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 2050
used for transporting a vessel, at the rate of two and ninety-nine-2051
hundredths per cent, except that the sale of a vessel shall be exempt from 2052
such tax if such vessel is docked in this state for sixty or fewer days in a 2053
calendar year; 2054
(iii) With respect to the sale of dyed diesel fuel, as defined in 2055
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 2056
for marine purposes, at the rate of two and ninety-nine-hundredths per 2057
cent; 2058
(F) With respect to patient care services for which payment is 2059
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 2060
at the rate of five and three-fourths per cent and on and after July 1, 2001, 2061
such services shall be exempt from such tax; 2062
(G) With respect to the rental or leasing of a passenger motor vehicle 2063
for a period of thirty consecutive calendar days or less, at a rate of nine 2064
and thirty-five-hundredths per cent; 2065
(H) With respect to the sale of (i) a motor vehicle for a sales price 2066
exceeding fifty thousand dollars, at a rate of seven and three-fourths per 2067
cent on the entire sales price, (ii) jewelry, whether real or imitation, for 2068
a sales price exceeding five thousand dollars, at a rate of seven and 2069
three-fourths per cent on the entire sales price, and (iii) an article of 2070
clothing or footwear intended to be worn on or about the human body, 2071
a handbag, luggage, umbrella, wallet or watch for a sales price 2072
exceeding one thousand dollars, at a rate of seven and three-fourths per 2073 Substitute Bill No. 981
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cent on the entire sales price. For purposes of this subparagraph, "motor 2074
vehicle" has the meaning provided in section 14-1, but does not include 2075
a motor vehicle subject to the provisions of subparagraph (C) of this 2076
subdivision, a motor vehicle having a gross vehicle weight rating over 2077
twelve thousand five hundred pounds, or a motor vehicle having a 2078
gross vehicle weight rating of twelve thousand five hundred pounds or 2079
less that is not used for private passenger purposes, but is designed or 2080
used to transport merchandise, freight or persons in connection with 2081
any business enterprise and issued a commercial registration or more 2082
specific type of registration by the Department of Motor Vehicles; 2083
(I) With respect to the sale of meals, as defined in subdivision (13) of 2084
section 12-412, sold by an eating establishment, caterer or grocery store; 2085
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 2086
such as are ordinarily dispensed at bars and soda fountains, or in 2087
connection therewith; in addition to the tax imposed under 2088
subparagraph (A) of this subdivision, at the rate of one per cent; 2089
(J) The rate of tax imposed by this chapter shall be applicable to all 2090
retail sales upon the effective date of such rate, except that a new rate 2091
that represents an increase in the rate applicable to the sale shall not 2092
apply to any sales transaction wherein a binding sales contract without 2093
an escalator clause has been entered into prior to the effective date of the 2094
new rate and delivery is made within ninety days after the effective date 2095
of the new rate. For the purposes of payment of the tax imposed under 2096
this section, any retailer of services taxable under subdivision (37) of 2097
subsection (a) of section 12-407, as amended by this act, who computes 2098
taxable income, for purposes of taxation under the Internal Revenue 2099
Code of 1986, or any subsequent corresponding internal revenue code 2100
of the United States, as amended from time to time, on an accounting 2101
basis that recognizes only cash or other valuable consideration actually 2102
received as income and who is liable for such tax only due to the 2103
rendering of such services may make payments related to such tax for 2104
the period during which such income is received, without penalty or 2105
interest, without regard to when such service is rendered; 2106 Substitute Bill No. 981
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(K) (i) For calendar quarters ending on or after September 30, 2019, 2107
the commissioner shall deposit into the regional planning incentive 2108
account, established pursuant to section 4-66k, six and seven-tenths per 2109
cent of the amounts received by the state from the tax imposed under 2110
subparagraph (B) of this subdivision and ten and seven-tenths per cent 2111
of the amounts received by the state from the tax imposed under 2112
subparagraph (G) of this subdivision; 2113
(ii) For calendar quarters ending on or after September 30, 2018, the 2114
commissioner shall deposit into the Tourism Fund established under 2115
section 10-395b ten per cent of the amounts received by the state from 2116
the tax imposed under subparagraph (B) of this subdivision; 2117
(L) For calendar months commencing on or after July 1, 2021, the 2118
commissioner shall deposit into the municipal revenue sharing account 2119
established pursuant to section 4-66l seven and nine-tenths per cent of 2120
the amounts received by the state from the tax imposed under 2121
subparagraph (A) of this subdivision; [and] 2122
(M) (i) For calendar months commencing on or after July 1, 2017, the 2123
commissioner shall deposit into the Special Transportation Fund 2124
established under section 13b-68 seven and nine-tenths per cent of the 2125
amounts received by the state from the tax imposed under 2126
subparagraph (A) of this subdivision; 2127
(ii) For calendar months commencing on or after July 1, 2018, but 2128
prior to July 1, 2019, the commissioner shall deposit into the Special 2129
Transportation Fund established under section 13b-68 eight per cent of 2130
the amounts received by the state from the tax imposed under 2131
subparagraphs (A) and (H) of this subdivision on the sale of a motor 2132
vehicle; 2133
(iii) For calendar months commencing on or after July 1, 2019, but 2134
prior to July 1, 2020, the commissioner shall deposit into the Special 2135
Transportation Fund established under section 13b-68 seventeen per 2136
cent of the amounts received by the state from the tax imposed under 2137 Substitute Bill No. 981
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subparagraphs (A) and (H) of this subdivision on the sale of a motor 2138
vehicle; 2139
(iv) For calendar months commencing on or after July 1, 2020, but 2140
prior to July 1, 2021, the commissioner shall deposit into the Special 2141
Transportation Fund established under section 13b-68 twenty-five per 2142
cent of the amounts received by the state from the tax imposed under 2143
subparagraphs (A) and (H) of this subdivision on the sale of a motor 2144
vehicle; 2145
(v) For calendar months commencing on or after July 1, 2021, but 2146
prior to July 1, 2022, the commissioner shall deposit into the Special 2147
Transportation Fund established under section 13b-68 seventy-five per 2148
cent of the amounts received by the state from the tax imposed under 2149
subparagraphs (A) and (H) of this subdivision on the sale of a motor 2150
vehicle; and 2151
(vi) For calendar months commencing on or after July 1, 2022, the 2152
commissioner shall deposit into the Special Transportation Fund 2153
established under section 13b-68 one hundred per cent of the amounts 2154
received by the state from the tax imposed under subparagraphs (A) 2155
and (H) of this subdivision on the sale of a motor vehicle; and 2156
(N) For calendar months commencing on or after July 1, 2023, the 2157
commissioner shall deposit the following percentages of the amounts 2158
received by the state from the tax imposed under subparagraph (I) of 2159
this subdivision: (i) Fifty per cent into the municipal host grants account 2160
established under section 18 of this act; (ii) twenty-five per cent into the 2161
arts, culture and tourism account established under section 19 of this 2162
act; and (iii) twenty-five per cent into the municipal needs capacity 2163
account established under section 20 of this act. 2164
Sec. 17. Subdivision (1) of section 12-411 of the general statutes is 2165
repealed and the following is substituted in lieu thereof (Effective July 1, 2166
2023, and applicable to sales occurring on or after July 1, 2023): 2167
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 2168 Substitute Bill No. 981
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consumption or any other use in this state of tangible personal property 2169
purchased from any retailer for storage, acceptance, consumption or any 2170
other use in this state, the acceptance or receipt of any services 2171
constituting a sale in accordance with subdivision (2) of subsection (a) 2172
of section 12-407, purchased from any retailer for consumption or use in 2173
this state, or the storage, acceptance, consumption or any other use in 2174
this state of tangible personal property which has been manufactured, 2175
fabricated, assembled or processed from materials by a person, either 2176
within or without this state, for storage, acceptance, consumption or any 2177
other use by such person in this state, to be measured by the sales price 2178
of materials, at the rate of six and thirty-five-hundredths per cent of the 2179
sales price of such property or services, except, in lieu of said rate: 2180
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 2181
house for the first period not exceeding thirty consecutive calendar 2182
days; 2183
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 2184
establishment for the first period not exceeding thirty consecutive 2185
calendar days; 2186
(C) With respect to the storage, acceptance, consumption or use in 2187
this state of a motor vehicle purchased from any retailer for storage, 2188
acceptance, consumption or use in this state by any individual who is a 2189
member of the armed forces of the United States and is on full-time 2190
active duty in Connecticut and who is considered, under 50 App USC 2191
574, a resident of another state, or to any such individual and the spouse 2192
of such individual at a rate of four and one-half per cent of the sales price 2193
of such vehicle, provided such retailer requires and maintains a 2194
declaration by such individual, prescribed as to form by the 2195
commissioner and bearing notice to the effect that false statements made 2196
in such declaration are punishable, or other evidence, satisfactory to the 2197
commissioner, concerning the purchaser's state of residence under 50 2198
App USC 574; 2199
(D) (i) With respect to the acceptance or receipt in this state of labor 2200 Substitute Bill No. 981
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that is otherwise taxable under subparagraph (C) or (G) of subdivision 2201
(2) of subsection (a) of section 12-407 on existing vessels and repair or 2202
maintenance services on vessels occurring on and after July 1, 1999, such 2203
services shall be exempt from such tax; 2204
(ii) (I) With respect to the storage, acceptance or other use of a vessel 2205
in this state, at the rate of two and ninety-nine-hundredths per cent, 2206
except that such storage, acceptance or other use shall be exempt from 2207
such tax if such vessel is docked in this state for sixty or fewer days in a 2208
calendar year; 2209
(II) With respect to the storage, acceptance or other use of a motor for 2210
a vessel or a trailer used for transporting a vessel in this state, at the rate 2211
of two and ninety-nine-hundredths per cent; 2212
(III) With respect to the storage, acceptance or other use of dyed diesel 2213
fuel, as defined in subsection (d) of section 12-487, exclusively for 2214
marine purposes, at the rate of two and ninety-nine-hundredths per 2215
cent; 2216
(E) (i) With respect to the acceptance or receipt in this state of 2217
computer and data processing services purchased from any retailer for 2218
consumption or use in this state occurring on or after July 1, 2001, at the 2219
rate of one per cent of such services, and (ii) with respect to the 2220
acceptance or receipt in this state of Internet access services, on and after 2221
July 1, 2001, such services shall be exempt from such tax; 2222
(F) With respect to the acceptance or receipt in this state of patient 2223
care services purchased from any retailer for consumption or use in this 2224
state for which payment is received by the hospital on or after July 1, 2225
1999, and prior to July 1, 2001, at the rate of five and three-fourths per 2226
cent and on and after July 1, 2001, such services shall be exempt from 2227
such tax; 2228
(G) With respect to the rental or leasing of a passenger motor vehicle 2229
for a period of thirty consecutive calendar days or less, at a rate of nine 2230
and thirty-five-hundredths per cent; 2231 Substitute Bill No. 981
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(H) With respect to the acceptance or receipt in this state of (i) a motor 2232
vehicle for a sales price exceeding fifty thousand dollars, at a rate of 2233
seven and three-fourths per cent on the entire sales price, (ii) jewelry, 2234
whether real or imitation, for a sales price exceeding five thousand 2235
dollars, at a rate of seven and three-fourths per cent on the entire sales 2236
price, and (iii) an article of clothing or footwear intended to be worn on 2237
or about the human body, a handbag, luggage, umbrella, wallet or 2238
watch for a sales price exceeding one thousand dollars, at a rate of seven 2239
and three-fourths per cent on the entire sales price. For purposes of this 2240
subparagraph, "motor vehicle" has the meaning provided in section 14-2241
1, but does not include a motor vehicle subject to the provisions of 2242
subparagraph (C) of this subdivision, a motor vehicle having a gross 2243
vehicle weight rating over twelve thousand five hundred pounds, or a 2244
motor vehicle having a gross vehicle weight rating of twelve thousand 2245
five hundred pounds or less that is not used for private passenger 2246
purposes, but is designed or used to transport merchandise, freight or 2247
persons in connection with any business enterprise and issued a 2248
commercial registration or more specific type of registration by the 2249
Department of Motor Vehicles; 2250
(I) With respect to the acceptance or receipt in this state of meals, as 2251
defined in subdivision (13) of section 12-412, sold by an eating 2252
establishment, caterer or grocery store; and spirituous, malt or vinous 2253
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 2254
at bars and soda fountains, or in connection therewith; in addition to the 2255
tax imposed under subparagraph (A) of this subdivision, at the rate of 2256
one per cent; 2257
(J) (i) For calendar quarters ending on or after September 30, 2019, the 2258
commissioner shall deposit into the regional planning incentive 2259
account, established pursuant to section 4-66k, six and seven-tenths per 2260
cent of the amounts received by the state from the tax imposed under 2261
subparagraph (B) of this subdivision and ten and seven-tenths per cent 2262
of the amounts received by the state from the tax imposed under 2263
subparagraph (G) of this subdivision; 2264 Substitute Bill No. 981
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(ii) For calendar quarters ending on or after September 30, 2018, the 2265
commissioner shall deposit into the Tourism Fund established under 2266
section 10-395b ten per cent of the amounts received by the state from 2267
the tax imposed under subparagraph (B) of this subdivision; 2268
(K) For calendar months commencing on or after July 1, 2021, the 2269
commissioner shall deposit into said municipal revenue sharing account 2270
seven and nine-tenths per cent of the amounts received by the state from 2271
the tax imposed under subparagraph (A) of this subdivision; [and] 2272
(L) (i) For calendar months commencing on or after July 1, 2017, the 2273
commissioner shall deposit into said Special Transportation Fund seven 2274
and nine-tenths per cent of the amounts received by the state from the 2275
tax imposed under subparagraph (A) of this subdivision; 2276
(ii) For calendar months commencing on or after July 1, 2018, but 2277
prior to July 1, 2019, the commissioner shall deposit into the Special 2278
Transportation Fund established under section 13b-68 eight per cent of 2279
the amounts received by the state from the tax imposed under 2280
subparagraphs (A) and (H) of this subdivision on the acceptance or 2281
receipt in this state of a motor vehicle; 2282
(iii) For calendar months commencing on or after July 1, 2019, but 2283
prior to July 1, 2020, the commissioner shall deposit into the Special 2284
Transportation Fund established under section 13b-68 seventeen per 2285
cent of the amounts received by the state from the tax imposed under 2286
subparagraphs (A) and (H) of this subdivision on the acceptance or 2287
receipt in this state of a motor vehicle; 2288
(iv) For calendar months commencing on or after July 1, 2020, but 2289
prior to July 1, 2021, the commissioner shall deposit into the Special 2290
Transportation Fund established under section 13b-68 twenty-five per 2291
cent of the amounts received by the state from the tax imposed under 2292
subparagraphs (A) and (H) of this subdivision on the acceptance or 2293
receipt in this state of a motor vehicle; 2294
(v) For calendar months commencing on or after July 1, 2021, but 2295 Substitute Bill No. 981
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prior to July 1, 2022, the commissioner shall deposit into the Special 2296
Transportation Fund established under section 13b-68 seventy-five per 2297
cent of the amounts received by the state from the tax imposed under 2298
subparagraphs (A) and (H) of this subdivision on the acceptance or 2299
receipt in this state of a motor vehicle; and 2300
(vi) For calendar months commencing on or after July 1, 2022, the 2301
commissioner shall deposit into the Special Transportation Fund 2302
established under section 13b-68 one hundred per cent of the amounts 2303
received by the state from the tax imposed under subparagraphs (A) 2304
and (H) of this subdivision on the acceptance or receipt in this state of a 2305
motor vehicle; and 2306
(M) For calendar months commencing on or after July 1, 2023, the 2307
commissioner shall deposit the following percentages of the amount 2308
received by the state from the tax imposed under subparagraph (I) of 2309
this subdivision: (i) Fifty per cent into the municipal host grants account 2310
established under section 18 of this act; (ii) twenty-five per cent into the 2311
arts, culture and tourism account established under section 19 of this 2312
act; and (iii) twenty-five per cent into the municipal needs capacity 2313
account established under section 20 of this act. 2314
Sec. 18. (NEW) (Effective July 1, 2023) There is established an account 2315
to be known as the "municipal host grants account" which shall be a 2316
separate, nonlapsing account within the General Fund. The account 2317
shall contain any moneys required by law to be deposited in the account. 2318
Moneys in the account shall be expended by the Office of Policy and 2319
Management for the purpose of distributing funds to municipalities in 2320
which businesses that have remitted the tax under subparagraph (I) of 2321
subdivision (1) of section 12-408 of the general statutes, as amended by 2322
this act, and subparagraph (I) of subdivision (1) of section 12-411 of the 2323
general statutes, as amended by this act, are located. 2324
Sec. 19. (NEW) (Effective July 1, 2023) There is established an account 2325
to be known as the "arts, culture and tourism account" which shall be a 2326
separate, nonlapsing account within the General Fund. The account 2327 Substitute Bill No. 981
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shall contain any moneys required by law to be deposited in the account. 2328
Moneys in the account shall be expended by the Department of 2329
Economic and Community Development for the purpose of providing 2330
arts, culture and tourism grants in accordance with the department's 2331
duties under chapter 184b of the general statutes. 2332
Sec. 20. (NEW) (Effective July 1, 2023) There is established an account 2333
to be known as the "municipal needs capacity account" which shall be a 2334
separate, nonlapsing account within the General Fund. The account 2335
shall contain any moneys required by law to be deposited in the account. 2336
Moneys in the account shall be expended by the Office of Policy and 2337
Management for the purpose of distributing funds to municipalities 2338
according to each municipality's municipal needs capacity gap metric, 2339
as calculated by the Secretary of the Office of Policy and Management 2340
in accordance with the methodologies used in the May, 2015 New 2341
England Public Policy Center Research Report 15-1. 2342
Sec. 21. (NEW) (Effective from passage) (a) Commencing July 1, 2023, 2343
the Commissioner of Revenue Services shall track and record the source 2344
of the revenue received by the state each fiscal year from the tax 2345
imposed under chapters 208, 219 and 229 of the general statutes, for the 2346
purpose of accurately and fairly attributing to each municipality 2347
revenue received from each such tax. The commissioner shall determine 2348
the sourcing method for the revenue from the tax imposed under 2349
chapters 208 and 219 of the general statutes, provided such revenue is 2350
sourced to each municipality in which the taxpayer has an office or 2351
facility in the state. The revenue from the tax imposed under chapter 229 2352
of the general statutes shall be sourced to the municipality in which the 2353
employer's office or facility is located, for the employees who work 2354
primarily at such location. Taxpayers paying a tax specified in this 2355
subsection shall provide disaggregated information and such other data 2356
the commissioner requests to carry out the provisions of this section. On 2357
or before June 30, 2024, and annually thereafter, the commissioner shall 2358
post on the Department of Revenue Service's Internet web site a list of 2359
all municipalities and the amount of revenue from each such tax 2360 Substitute Bill No. 981
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attributed to the municipality for the applicable fiscal year. 2361
(b) (1) Prior to July 1, 2023, and annually thereafter, the Secretary of 2362
the Office of Policy and Management shall calculate, based on the 2363
statement of estimated revenue supplied by the joint standing 2364
committee of the General Assembly having cognizance of matters 2365
relating to state finance, revenue and bonding pursuant to subsection 2366
(b) of section 2-35 of the general statutes, growth rate projections on a 2367
municipal basis for each tax specified in subsection (a) of this section. 2368
(2) On or before January 1, 2024, and annually thereafter, the 2369
secretary shall calculate and post on the Office of Policy and 2370
Management's Internet web site a municipal needs capacity gap metric 2371
for each municipality. Such metric shall be calculated in accordance with 2372
the methodologies used in the May, 2015 New England Public Policy 2373
Center Research Report 15-1. 2374
(c) There is established an account to be known as the "municipal tax 2375
revenue account" which shall be a separate, nonlapsing account within 2376
the General Fund. The account shall contain any moneys required by 2377
law to be deposited in the account. Moneys in the account shall be 2378
expended by the Secretary of the Office of Policy and Management for 2379
the purposes of this section. 2380
(d) Commencing with the fiscal year ending June 30, 2025, and each 2381
fiscal year thereafter, the Comptroller shall transfer from the General 2382
Fund to the municipal tax revenue account, established under 2383
subsection (c) of this section, any amount of each tax set forth in 2384
subsection (a) of this section that exceeds the projected growth rate 2385
calculated for such tax pursuant to subdivision (1) of subsection (b) of 2386
this section. 2387
(e) (1) When the amount in the municipal tax revenue account reaches 2388
forty million dollars, the Secretary of the Office of Policy and 2389
Management shall commence disbursing grants to municipalities on an 2390
annual basis in accordance with the provisions of this subsection, 2391 Substitute Bill No. 981
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provided the balance in the account may not fall below twenty million 2392
dollars. 2393
(2) The secretary shall calculate, for each municipality for which the 2394
Commissioner of Revenue Services has attributed tax revenue under 2395
subsection (a) of this section, the portion of the excess revenue deposited 2396
in the account from each tax that is attributable to such municipality. 2397
Each such municipality shall receive a grant of sixty per cent of such 2398
portion. 2399
(3) If any funds in the account remain available for disbursement after 2400
the grants under subdivision (2) of this subsection have been paid for 2401
the fiscal year, the Secretary of the Office of Policy and Management 2402
shall distribute additional grants proportionately to municipalities for 2403
which the secretary has calculated a positive gap metric under 2404
subdivision (2) of subsection (b) of this section. 2405
Sec. 22. (Effective from passage) (a) For each of the fiscal years ending 2406
June 30, 2023, and June 30, 2024, up to three hundred million dollars of 2407
the resources of the General Fund that exceed the statement of estimated 2408
revenue supplied by the joint standing committee of the General 2409
Assembly having cognizance of matters relating to state finance, 2410
revenue and bonding pursuant to subsection (b) of section 2-35 of the 2411
general statutes shall be transferred to the supplemental grants in lieu 2412
of taxes account established under subsection (b) of this section. 2413
(b) There is established an account to be known as the "supplemental 2414
grants in lieu of taxes account" which shall be a separate, nonlapsing 2415
account within the General Fund. The account shall contain any moneys 2416
required by law to be deposited in the account. Moneys in the account 2417
shall be expended by the Secretary of the Office of Policy and 2418
Management for the purposes of paying the grants under section 12-18b 2419
of the general statutes. 2420
Sec. 23. Subdivision (4) of subsection (a) of section 12-217 of the 2421
general statutes is repealed and the following is substituted in lieu 2422 Substitute Bill No. 981
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thereof (Effective October 1, 2023): 2423
(4) Notwithstanding any provision of this section: [to the contrary,] 2424
(A) [any] Any excess of the deductions provided in this section for 2425
any income year commencing on or after January 1, 1973, over the gross 2426
income for such year or the amount of such excess apportioned to this 2427
state under the provisions of this chapter, shall be an operating loss of 2428
such income year and shall be deductible as an operating loss carry-over 2429
for operating losses incurred prior to income years commencing January 2430
1, 2000, in each of the five income years following such loss year; [, and] 2431
for operating losses incurred in income years commencing on or after 2432
January 1, 2000, and prior to January 1, 2015, in each of the twenty 2433
income years following such loss year; [,] and for operating losses 2434
incurred in income years commencing on or after January 1, 2015, in 2435
each of the thirty income years following such loss year; except that: 2436
(i) [for] For income years commencing prior to January 1, 2015, the 2437
portion of such operating loss [which] that may be deducted as an 2438
operating loss carry-over in any income year following such loss year 2439
shall be limited to the lesser of (I) any net income greater than zero of 2440
such income year following such loss year, or in the case of a company 2441
entitled to apportion its net income under the provisions of this chapter, 2442
the amount of such net income [which] that is apportioned to this state 2443
pursuant thereto, or (II) the excess, if any, of such operating loss over 2444
the total of such net income for each of any prior income years following 2445
such loss year, such net income of each of such prior income years 2446
following such loss year for such purposes being computed without 2447
regard to any operating loss carry-over from such loss year allowed 2448
under this subparagraph and being regarded as not less than zero, and 2449
provided further the operating loss of any income year shall be 2450
deducted in any subsequent year, to the extent available for such 2451
deduction, before the operating loss of any subsequent income year is 2452
deducted; [,] 2453
(ii) [for] For income years commencing on or after January 1, 2015, 2454 Substitute Bill No. 981
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the portion of such operating loss [which] that may be deducted as an 2455
operating loss carry-over in any income year following such loss year 2456
shall be limited to the lesser of (I) fifty per cent of net income of such 2457
income year following such loss year, or in the case of a company 2458
entitled to apportion its net income under the provisions of this chapter, 2459
fifty per cent of such net income [which] that is apportioned to this state 2460
pursuant thereto, or (II) the excess, if any, of such operating loss over 2461
the operating loss deductions allowable with respect to such operating 2462
loss under this subparagraph for each of any prior income years 2463
following such loss year, such net income of each of such prior income 2464
years following such loss year for such purposes being computed 2465
without regard to any operating loss carry-over from such loss year 2466
allowed under this subparagraph and being regarded as not less than 2467
zero, and provided further the operating loss of any income year shall 2468
be deducted in any subsequent year, to the extent available for such 2469
deduction, before the operating loss of any subsequent income year is 2470
deducted; [,] and 2471
(iii) [if] If a combined group so elects, the combined group shall 2472
relinquish fifty per cent of its unused operating losses incurred prior to 2473
the income year commencing on or after January 1, 2015, and before 2474
January 1, 2016, and may utilize the remaining operating loss carry-over 2475
without regard to the limitations prescribed in subparagraph (A)(ii) of 2476
this subdivision. The portion of such operating loss carry-over that may 2477
be deducted shall be limited to the amount required to reduce a 2478
combined group's tax under this chapter, prior to surtax and prior to the 2479
application of credits, to two million five hundred thousand dollars in 2480
any income year commencing on or after January 1, 2015. Only after the 2481
combined group's remaining operating loss carry-over for operating 2482
losses incurred prior to income years commencing January 1, 2015, has 2483
been fully utilized, will the limitations prescribed in subparagraph 2484
(A)(ii) of this subdivision apply. The combined group, or any member 2485
thereof, shall make such election on its return for the income year 2486
beginning on or after January 1, 2015, and before January 1, 2016, by the 2487
due date for such return, including any extensions. Only combined 2488 Substitute Bill No. 981
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groups with unused operating losses in excess of six billion dollars from 2489
income years beginning prior to January 1, 2013, may make the election 2490
prescribed in this clause; [,] and 2491
(B) [any] Any net capital loss, as defined in the Internal Revenue Code 2492
effective and in force on the last day of the income year, for any income 2493
year commencing on or after January 1, 1973, shall be allowed as a 2494
capital loss carry-over to reduce, but not below zero, any net capital 2495
gain, as so defined, in each of the five following income years, in order 2496
of sequence, to the extent not exhausted by the net capital gain of any of 2497
the preceding of such five following income years; [,] and 2498
(C) [any] Any net capital losses allowed and carried forward from 2499
prior years to income years beginning on or after January 1, 1973, for 2500
federal income tax purposes by companies entitled to a deduction for 2501
dividends paid under the Internal Revenue Code other than companies 2502
subject to the gross earnings taxes imposed under chapters 211 and 212, 2503
shall be allowed as a capital loss carry-over. 2504
Sec. 24. Section 12-217w of the general statutes is repealed and the 2505
following is substituted in lieu thereof (Effective January 1, 2024): 2506
(a) For purposes of this section: [, "fixed capital"] 2507
(1) "Fixed capital" means tangible personal property [which (1)] that 2508
(A) has a class life, in years, of more than four years, as described in 2509
Section 168(e) of the Internal Revenue Code of 1986, or any subsequent 2510
corresponding internal revenue code of the United States, as amended 2511
from time to time, [amended, (2)] (B) is acquired by purchase from a 2512
person other than a related person, [(3)] (C) is not acquired to be leased, 2513
and is not leased, to another person or persons during the twelve full 2514
months following its acquisition, and [(4)] (D) will be held and used in 2515
this state by (i) for purposes of subdivision (1) of subsection (b) of this 2516
section, a corporation in the ordinary course of the corporation's trade 2517
or business in this state for not less than five full years following its 2518
acquisition, or (ii) for purposes of subdivision (2) of subsection (b) of this 2519 Substitute Bill No. 981
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section, a limited liability company in the ordinary course of the limited 2520
liability company's trade or business in this state for not less than five 2521
full years following its acquisition. "Fixed capital" does not include 2522
inventory, land, buildings or structures [,] or mobile transportation 2523
property; [. With] 2524
(2) "Related person" means, with respect to a corporation claiming a 2525
credit under this section, [a "related person" means] (A) a corporation, 2526
partnership, association or trust controlled by such corporation, [;] (B) 2527
an individual, corporation, partnership, association or trust that is in 2528
control of such corporation, [;] (C) a corporation, partnership, 2529
association or trust controlled by an individual, corporation, 2530
partnership, association or trust that is in control of such corporation, [;] 2531
or (D) a member of the same controlled group as such corporation; [. For 2532
purposes of this section, "control",] 2533
(3) "Control" means (A) with respect to a corporation, [means] 2534
ownership, directly or indirectly, of stock possessing fifty per cent or 2535
more of the total combined voting power of all classes of the stock of 2536
such corporation entitled to vote, [;] or (B) with respect to a trust, 2537
[means] ownership, directly or indirectly, of fifty per cent or more of the 2538
beneficial interest in the principal or income of such trust. The 2539
ownership of stock in a corporation, of a capital or profits interest in a 2540
partnership or association or of a beneficial interest in a trust shall be 2541
determined in accordance with the rules for constructive ownership of 2542
stock provided in Section 267(c) of the Internal Revenue Code of 1986, 2543
or any subsequent corresponding internal revenue code of the United 2544
States, as amended from time to time, [amended,] other than paragraph 2545
(3) of [such] said section. 2546
(b) (1) There shall be allowed a credit for any corporation against the 2547
tax imposed under this chapter in an amount paid or incurred by such 2548
corporation for any new fixed capital investment during the income 2549
year in which such fixed capital is acquired as follows: For any income 2550
year commencing on or after [January 1, 1998, and prior to January 1, 2551
1999, equal to three per cent of such amount paid or incurred by the 2552 Substitute Bill No. 981
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corporation during such income year; for any income year commencing 2553
on or after] January 1, 1999, and prior to January 1, 2000, equal to four 2554
per cent of such amount paid or incurred by the corporation during such 2555
income year; and for any income year commencing on or after January 2556
1, 2000, equal to five per cent of such amount paid or incurred by the 2557
corporation during such income year. 2558
(2) There shall be allowed an additional credit against the tax 2559
imposed under this chapter for any corporation that owns at least eighty 2560
per cent, directly or indirectly, of a limited liability company that is, for 2561
federal income tax purposes, treated as a partnership or disregarded as 2562
an entity separate from its owner, in an amount paid or incurred by such 2563
limited liability company for any new fixed capital investment during 2564
the income year in which such fixed capital is acquired as follows: For 2565
any income year commencing on or after January 1, 2024, equal to five 2566
per cent of such amount paid or incurred by the limited liability 2567
company. 2568
(c) The total amount of [such credit] the credits allowed to any 2569
corporation under this section shall not exceed the amount of tax due 2570
from such corporation under this chapter with respect to such income 2571
year. 2572
(d) No corporation claiming [the] a credit under this section and no 2573
limited liability for which a corporation is claiming a credit under this 2574
section, with respect to the acquisition of fixed capital, [as defined in 2575
subsection (a) of this section,] may claim a credit against any tax under 2576
any other provision of the general statutes with respect to the same 2577
acquisition. 2578
(e) Any tax credit not used in the income year during which the 2579
acquisition was made may be carried forward for the five immediately 2580
succeeding income years until the full credit has been allowed. 2581
(f) If the fixed capital on account of which a corporation has claimed 2582
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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ordinary course of the corporation's trade or business in this state for 2584
three full years following its acquisition as provided in subsection (a) of 2585
this section, the corporation shall recapture one hundred per cent of the 2586
amount of the credit allowed under this section on its corporation 2587
business tax return required to be filed for the income year immediately 2588
succeeding the income year during which such three-year period 2589
expires. If the fixed capital on account of which a corporation has 2590
claimed the credit allowed by this section is not held and used in this 2591
state in the ordinary course of the corporation's trade or business in this 2592
state for five full years following its acquisition as provided in 2593
subsection (a) of this section, the corporation shall recapture fifty per 2594
cent of the amount of the credit allowed under this section on its 2595
corporation business tax return required to be filed for the income year 2596
immediately succeeding the income year during which such five-year 2597
period expires. The provisions of this subsection shall not apply if the 2598
property that is the subject of the credit under this section is replaced. If 2599
any amount of credit required to be recaptured has not been paid to the 2600
commissioner on or before the first day of the fourth month next 2601
succeeding the end of the income year immediately succeeding the 2602
income year during which the three-year or five-year period, as the case 2603
may be, expires, such amount shall bear interest at the rate of one per 2604
cent per month or fraction thereof from such date to the date of 2605
payment. 2606
Sec. 25. (NEW) (Effective July 1, 2023) (a) The Commissioner of 2607
Revenue Services shall annually: 2608
(1) Estimate the state tax gap and develop an overall strategy to 2609
promote compliance and discourage tax avoidance. Such estimate shall 2610
include an analysis of income distribution and population distribution 2611
expressed for (A) every ten percentage points, (B) the top five per cent 2612
of all income taxpayers, (C) the top one per cent of all income taxpayers, 2613
and (D) the top one-half of one per cent of all income taxpayers. As used 2614
in this section, "tax gap" means the difference between taxes owed under 2615
full compliance with all state tax laws and the state taxes voluntarily 2616 Substitute Bill No. 981
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paid, where such difference may be due to a failure to file taxes, 2617
underreporting of tax liability or not paying all taxes owing; 2618
(2) Evaluate the specific staffing needs of the Department of Revenue 2619
Services to implement such overall strategy and reduce the state tax gap 2620
and determine the progress made, if any, towards filling such staffing 2621
needs; and 2622
(3) Conduct (A) a cost benefit analysis of each major tax compliance 2623
initiative undertaken by the department in the preceding fiscal year, 2624
including tax amnesty programs, and (B) an analysis of audit rates, by 2625
income level, undertaken by the department in the preceding fiscal year. 2626
(b) On or before December 15, 2023, and annually thereafter, the 2627
commissioner shall submit a report, in accordance with the provisions 2628
of section 11-4a of the general statutes, to the joint standing committee 2629
of the General Assembly having cognizance of matters relating to 2630
finance, revenue and bonding and appropriations. Such report shall be 2631
posted on the Department of Revenue Service's Internet web site and 2632
shall include (1) the tax gap estimate and analysis and the compliance 2633
strategy developed under subdivision (1) of subsection (a) of this section 2634
and any information supporting the amount of the tax gap estimate, (2) 2635
a summary of the evaluation and determination of the department's 2636
staffing needs under subdivision (2) of subsection (a) of this section, and 2637
(3) the findings of the analyses conducted under subdivision (3) of 2638
subsection (a) of this section. 2639
(c) On or before July 1, 2024, the commissioner shall publish a 2640
strategic plan that includes the department's mission, measurable goals 2641
that define how the mission is to be accomplished, specific strategies to 2642
achieve the goals and a timetable to measure progress toward achieving 2643
those goals. Such plan shall be posted on the department's Internet web 2644
site and updated annually. 2645
Sec. 26. Section 12-7c of the general statutes is repealed and the 2646
following is substituted in lieu thereof (Effective July 1, 2023): 2647 Substitute Bill No. 981
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(a) The Commissioner of Revenue Services shall, on or before 2648
December 15, 2023, and biennially thereafter, submit to the joint 2649
standing committee of the General Assembly having cognizance of 2650
matters relating to finance, revenue and bonding, and post on the 2651
department's Internet web site a report on the overall incidence of the 2652
personal income tax, the affected business entity tax, sales and excise 2653
taxes, the corporation business tax, [and] property tax and any other tax 2654
that generated at least one hundred million dollars in the most recent 2655
fiscal year prior to the submission of each report, for each of the most 2656
recent ten tax years for which complete data are available. 2657
(1) The report shall include incidence projections for each such tax 2658
and shall present information on the distribution of the tax burden as 2659
follows: 2660
[(1)] (A) For individuals: 2661
[(A)] (i) Income classes, including income distribution and 2662
population distribution expressed for [(i)] (I) every ten percentage 2663
points, [(ii)] (II) the top five per cent of all income taxpayers, [and (iii)] 2664
(III) the top one per cent of all income taxpayers, [;] and (IV) the top one-2665
half of one per cent of all income taxpayers; 2666
(ii) For each income class, the percentage of taxpayers who (I) are 2667
homeowners, (II) are single, (III) are married, (IV) are seniors, or (V) 2668
have children; 2669
(iii) For each income class, the average market value of a home and 2670
the average monthly rent; 2671
(iv) Effective tax rates by population distribution expressed as state 2672
taxes compared to local taxes; 2673
(v) Effective tax rates by population distribution expressed as taxes 2674
imposed on businesses compared to taxes imposed on individuals; and 2675
[(B)] (vi) Other appropriate taxpayer characteristics, as determined 2676 Substitute Bill No. 981
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by said commissioner. 2677
[(2)] (B) For businesses: 2678
[(A)] (i) Business size as established by gross receipts; 2679
[(B)] (ii) Legal organization; and 2680
[(C)] (iii) Industry by NAICS code. 2681
(2) In addition to the information required under subdivision (1) of 2682
this subsection, the report shall include the following: 2683
(A) For the personal income tax, information on the distribution of 2684
the property tax credit under section 12-704c, the earned income tax 2685
credit under section 12-704e, as amended by this act, the affected 2686
business entity tax credit under section 12-699 and any other credit 2687
against the personal income tax that resulted in a revenue loss to the 2688
state of at least twenty-five million dollars in the most recent fiscal year 2689
prior to the submission of each report; 2690
(B) For property tax, information on the distribution of residential 2691
and commercial property and for residential property, the distribution 2692
of homeowners and renters; and 2693
(C) For any other tax other than the personal income tax or property 2694
tax that generated at least one hundred million dollars in the most recent 2695
fiscal year prior to the submission of each report, information on the 2696
distribution of any credit against such tax that resulted in a revenue loss 2697
to the state of at least twenty-five million dollars in the most recent fiscal 2698
year prior to the submission of each report. 2699
(b) The Commissioner of Revenue Services may enter into a contract 2700
with any public or private entity for the purpose of preparing the report 2701
required pursuant to subsection (a) of this section, provided, if the 2702
commissioner enters into such contract, the commissioner shall include 2703
in such report the resources that the commissioner deems necessary to 2704 Substitute Bill No. 981
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allow the Department of Revenue Services to prepare such report in-2705
house. 2706
Sec. 27. Section 453 of public act 21-2 of the June special session, as 2707
amended by section 471 of public act 22-118, is repealed. (Effective from 2708
passage) 2709
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage and
applicable to income years
commencing on or after
January 1, 2023
12-214(b)(4)
Sec. 2 from passage and
applicable to income years
commencing on or after
January 1, 2023
12-219(b)(4)
Sec. 3 from passage New section
Sec. 4 January 1, 2024 12-217x
Sec. 5 from passage 12-704e(a)
Sec. 6 January 1, 2024 12-700(a)
Sec. 7 from passage and
applicable to taxable years
commencing on or after
January 1, 2023
12-701(a)(20)(B)
Sec. 8 from passage and
applicable to income years
commencing on or after
January 1, 2023
12-217
Sec. 9 January 1, 2024 12-217jj
Sec. 10 January 1, 2024 32-1m(a)
Sec. 11 July 1, 2023 12-217ee
Sec. 12 from passage 22a-245a
Sec. 13 July 1, 2023, and
applicable to sales
occurring on or after July
1, 2023
12-407(37)(J) Substitute Bill No. 981
LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB-
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99 of 99
Sec. 14 January 1, 2024, and
applicable to income years
commencing on or after
January 1, 2024
12-217g(c)
Sec. 15 January 1, 2024 31-22r
Sec. 16 July 1, 2023, and
applicable to sales
occurring on or after July
1, 2023
12-408(1)
Sec. 17 July 1, 2023, and
applicable to sales
occurring on or after July
1, 2023
12-411(1)
Sec. 18 July 1, 2023 New section
Sec. 19 July 1, 2023 New section
Sec. 20 July 1, 2023 New section
Sec. 21 from passage New section
Sec. 22 from passage New section
Sec. 23 October 1, 2023 12-217(a)(4)
Sec. 24 January 1, 2024 12-217w
Sec. 25 July 1, 2023 New section
Sec. 26 July 1, 2023 12-7c
Sec. 27 from passage Repealer section
FIN Joint Favorable Subst.