Connecticut 2024 Regular Session

Connecticut House Bill HB05281 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1155 \\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-R01-
4		-	HB.docx
5		-	1 of 13
	3	+	LCO No. 1155 1 of 13
6	4
7	5		General Assembly Raised Bill No. 5281
8	6		February Session, 2024
9	7		LCO No. 1155
10	8
11	9
12	10		Referred to Committee on PUBLIC SAFETY AND SECURITY
13	11
14	12
15	13		Introduced by:
16	14		(PS)
	15	+
17	16
18	17
19	18
20	19		AN ACT ALLOWING A PERSONAL INCOME TAX DEDUCTION FOR
21	20		STIPENDS PAID TO VOLUNTEER FIREFIGHTING OR EMERGENCY
22	21		MEDICAL SERVICES PERSONNEL.
23	22		Be it enacted by the Senate and House of Representatives in General
24	23		Assembly convened:
25	24
26	25		Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
27	26		section 12-701 of the 2024 supplement to the general statutes is repealed 2
28	27		and the following is substituted in lieu thereof (Effective January 1, 2025, 3
29	28		and applicable to taxable years commencing on or after January 1, 2025): 4
30	29		(B) There shall be subtracted therefrom: 5
31	30		(i) To the extent properly includable in gross income for federal 6
32	31		income tax purposes, any income with respect to which taxation by any 7
33	32		state is prohibited by federal law; 8
34	33		(ii) To the extent allowable under section 12-718, exempt dividends 9
35	34		paid by a regulated investment company; 10
36	35		(iii) To the extent properly includable in gross income for federal 11
37		-	income tax purposes, the amount of any refund or credit for 12 Bill No. 5281
	36	+	income tax purposes, the amount of any refund or credit for 12 Raised Bill No. 5281
38	37
39	38
40		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
41		-	R01-HB.docx }
42		-	2 of 13
	39	+
	40	+	LCO No. 1155 2 of 13
43	41
44	42		overpayment of income taxes imposed by this state, or any other state 13
45	43		of the United States or a political subdivision thereof, or the District of 14
46	44		Columbia; 15
47	45		(iv) To the extent properly includable in gross income for federal 16
48	46		income tax purposes and not otherwise subtracted from federal 17
49	47		adjusted gross income pursuant to clause (x) of this subparagraph in 18
50	48		computing Connecticut adjusted gross income, any tier 1 railroad 19
51	49		retirement benefits; 20
52	50		(v) To the extent any additional allowance for depreciation under 21
53	51		Section 168(k) of the Internal Revenue Code for property placed in 22
54	52		service after September 27, 2017, was added to federal adjusted gross 23
55	53		income pursuant to subparagraph (A)(ix) of this subdivision in 24
56	54		computing Connecticut adjusted gross income, twenty-five per cent of 25
57	55		such additional allowance for depreciation in each of the four 26
58	56		succeeding taxable years; 27
59	57		(vi) To the extent properly includable in gross income for federal 28
60	58		income tax purposes, any interest income from obligations issued by or 29
61	59		on behalf of the state of Connecticut, any political subdivision thereof, 30
62	60		or public instrumentality, state or local authority, district or similar 31
63	61		public entity created under the laws of the state of Connecticut; 32
64	62		(vii) To the extent properly includable in determining the net gain or 33
65	63		loss from the sale or other disposition of capital assets for federal income 34
66	64		tax purposes, any gain from the sale or exchange of obligations issued 35
67	65		by or on behalf of the state of Connecticut, any political subdivision 36
68	66		thereof, or public instrumentality, state or local authority, district or 37
69	67		similar public entity created under the laws of the state of Connecticut, 38
70	68		in the income year such gain was recognized; 39
71	69		(viii) Any interest on indebtedness incurred or continued to purchase 40
72	70		or carry obligations or securities the interest on which is subject to tax 41
73	71		under this chapter but exempt from federal income tax, to the extent that 42
74		-	such interest on indebtedness is not deductible in determining federal 43 Bill No. 5281
	72	+	such interest on indebtedness is not deductible in determining federal 43
	73	+	adjusted gross income and is attributable to a trade or business carried 44 Raised Bill No. 5281
75	74
76	75
77		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
78		-	R01-HB.docx }
79		-	3 of 13
80	76
81		-	adjusted gross income and is attributable to a trade or business carried 44
	77	+	LCO No. 1155 3 of 13
	78	+
82	79		on by such individual; 45
83	80		(ix) Ordinary and necessary expenses paid or incurred during the 46
84	81		taxable year for the production or collection of income which is subject 47
85	82		to taxation under this chapter but exempt from federal income tax, or 48
86	83		the management, conservation or maintenance of property held for the 49
87	84		production of such income, and the amortizable bond premium for the 50
88	85		taxable year on any bond the interest on which is subject to tax under 51
89	86		this chapter but exempt from federal income tax, to the extent that such 52
90	87		expenses and premiums are not deductible in determining federal 53
91	88		adjusted gross income and are attributable to a trade or business carried 54
92	89		on by such individual; 55
93	90		(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
94	91		person who files a return under the federal income tax as an unmarried 57
95	92		individual whose federal adjusted gross income for such taxable year is 58
96	93		less than fifty thousand dollars, or as a married individual filing 59
97	94		separately whose federal adjusted gross income for such taxable year is 60
98	95		less than fifty thousand dollars, or for a husband and wife who file a 61
99	96		return under the federal income tax as married individuals filing jointly 62
100	97		whose federal adjusted gross income for such taxable year is less than 63
101	98		sixty thousand dollars or a person who files a return under the federal 64
102	99		income tax as a head of household whose federal adjusted gross income 65
103	100		for such taxable year is less than sixty thousand dollars, an amount 66
104	101		equal to the Social Security benefits includable for federal income tax 67
105	102		purposes; 68
106	103		(II) For taxable years commencing prior to January 1, 2019, for a 69
107	104		person who files a return under the federal income tax as an unmarried 70
108	105		individual whose federal adjusted gross income for such taxable year is 71
109	106		fifty thousand dollars or more, or as a married individual filing 72
110	107		separately whose federal adjusted gross income for such taxable year is 73
111	108		fifty thousand dollars or more, or for a husband and wife who file a 74
112	109		return under the federal income tax as married individuals filing jointly 75
113		-	whose federal adjusted gross income from such taxable year is sixty 76 Bill No. 5281
	110	+	whose federal adjusted gross income from such taxable year is sixty 76
	111	+	thousand dollars or more or for a person who files a return under the 77 Raised Bill No. 5281
114	112
115	113
116		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
117		-	R01-HB.docx }
118		-	4 of 13
119	114
120		-	thousand dollars or more or for a person who files a return under the 77
	115	+	LCO No. 1155 4 of 13
	116	+
121	117		federal income tax as a head of household whose federal adjusted gross 78
122	118		income for such taxable year is sixty thousand dollars or more, an 79
123	119		amount equal to the difference between the amount of Social Security 80
124	120		benefits includable for federal income tax purposes and the lesser of 81
125	121		twenty-five per cent of the Social Security benefits received during the 82
126	122		taxable year, or twenty-five per cent of the excess described in Section 83
127	123		86(b)(1) of the Internal Revenue Code; 84
128	124		(III) For the taxable year commencing January 1, 2019, and each 85
129	125		taxable year thereafter, for a person who files a return under the federal 86
130	126		income tax as an unmarried individual whose federal adjusted gross 87
131	127		income for such taxable year is less than seventy-five thousand dollars, 88
132	128		or as a married individual filing separately whose federal adjusted gross 89
133	129		income for such taxable year is less than seventy-five thousand dollars, 90
134	130		or for a husband and wife who file a return under the federal income tax 91
135	131		as married individuals filing jointly whose federal adjusted gross 92
136	132		income for such taxable year is less than one hundred thousand dollars 93
137	133		or a person who files a return under the federal income tax as a head of 94
138	134		household whose federal adjusted gross income for such taxable year is 95
139	135		less than one hundred thousand dollars, an amount equal to the Social 96
140	136		Security benefits includable for federal income tax purposes; and 97
141	137		(IV) For the taxable year commencing January 1, 2019, and each 98
142	138		taxable year thereafter, for a person who files a return under the federal 99
143	139		income tax as an unmarried individual whose federal adjusted gross 100
144	140		income for such taxable year is seventy-five thousand dollars or more, 101
145	141		or as a married individual filing separately whose federal adjusted gross 102
146	142		income for such taxable year is seventy-five thousand dollars or more, 103
147	143		or for a husband and wife who file a return under the federal income tax 104
148	144		as married individuals filing jointly whose federal adjusted gross 105
149	145		income from such taxable year is one hundred thousand dollars or more 106
150	146		or for a person who files a return under the federal income tax as a head 107
151	147		of household whose federal adjusted gross income for such taxable year 108
152		-	is one hundred thousand dollars or more, an amount equal to the 109 Bill No. 5281
	148	+	is one hundred thousand dollars or more, an amount equal to the 109
	149	+	difference between the amount of Social Security benefits includable for 110
	150	+	federal income tax purposes and the lesser of twenty-five per cent of the 111 Raised Bill No. 5281
153	151
154	152
155		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
156		-	R01-HB.docx }
157		-	5 of 13
158	153
159		-	~~difference between the amount~~ of ~~Social Security benefits includable for 110~~
160		-	~~federal income tax purposes and the lesser of twenty-five per cent of the 111~~
	154	+	LCO No. 1155 5 of 13
	155	+
161	156		Social Security benefits received during the taxable year, or twenty-five 112
162	157		per cent of the excess described in Section 86(b)(1) of the Internal 113
163	158		Revenue Code; 114
164	159		(xi) To the extent properly includable in gross income for federal 115
165	160		income tax purposes, any amount rebated to a taxpayer pursuant to 116
166	161		section 12-746; 117
167	162		(xii) To the extent properly includable in the gross income for federal 118
168	163		income tax purposes of a designated beneficiary, any distribution to 119
169	164		such beneficiary from any qualified state tuition program, as defined in 120
170	165		Section 529(b) of the Internal Revenue Code, established and 121
171	166		maintained by this state or any official, agency or instrumentality of the 122
172	167		state; 123
173	168		(xiii) To the extent allowable under section 12-701a, contributions to 124
174	169		accounts established pursuant to any qualified state tuition program, as 125
175	170		defined in Section 529(b) of the Internal Revenue Code, established and 126
176	171		maintained by this state or any official, agency or instrumentality of the 127
177	172		state; 128
178	173		(xiv) To the extent properly includable in gross income for federal 129
179	174		income tax purposes, the amount of any Holocaust victims' settlement 130
180	175		payment received in the taxable year by a Holocaust victim; 131
181	176		(xv) To the extent properly includable in the gross income for federal 132
182	177		income tax purposes of a designated beneficiary, as defined in section 133
183	178		3-123aa, interest, dividends or capital gains earned on contributions to 134
184	179		accounts established for the designated beneficiary pursuant to the 135
185	180		Connecticut Homecare Option Program for the Elderly established by 136
186	181		sections 3-123aa to 3-123ff, inclusive; 137
187	182		(xvi) To the extent properly includable in gross income for federal 138
188	183		income tax purposes, any income received from the United States 139
189		-	government as retirement pay for a retired member of (I) the Armed 140 Bill No. 5281
	184	+	government as retirement pay for a retired member of (I) the Armed 140
	185	+	Forces of the United States, as defined in Section 101 of Title 10 of the 141
	186	+	United States Code, or (II) the National Guard, as defined in Section 101 142 Raised Bill No. 5281
190	187
191	188
192		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
193		-	R01-HB.docx }
194		-	6 of 13
195	189
196		-	~~Forces~~ of ~~the United States, as defined in Section 101 of Title 10 of the 141~~
197		-	~~United States Code, or (II) the National Guard, as defined in Section 101 142~~
	190	+	LCO No. 1155 6 of 13
	191	+
198	192		of Title 10 of the United States Code; 143
199	193		(xvii) To the extent properly includable in gross income for federal 144
200	194		income tax purposes for the taxable year, any income from the discharge 145
201	195		of indebtedness in connection with any reacquisition, after December 146
202	196		31, 2008, and before January 1, 2011, of an applicable debt instrument or 147
203	197		instruments, as those terms are defined in Section 108 of the Internal 148
204	198		Revenue Code, as amended by Section 1231 of the American Recovery 149
205	199		and Reinvestment Act of 2009, to the extent any such income was added 150
206	200		to federal adjusted gross income pursuant to subparagraph (A)(xi) of 151
207	201		this subdivision in computing Connecticut adjusted gross income for a 152
208	202		preceding taxable year; 153
209	203		(xviii) To the extent not deductible in determining federal adjusted 154
210	204		gross income, the amount of any contribution to a manufacturing 155
211	205		reinvestment account established pursuant to section 32-9zz in the 156
212	206		taxable year that such contribution is made; 157
213	207		(xix) To the extent properly includable in gross income for federal 158
214	208		income tax purposes, (I) for the taxable year commencing January 1, 159
215	209		2015, ten per cent of the income received from the state teachers' 160
216	210		retirement system, (II) for the taxable years commencing January 1, 161
217	211		2016, to January 1, 2020, inclusive, twenty-five per cent of the income 162
218	212		received from the state teachers' retirement system, and (III) for the 163
219	213		taxable year commencing January 1, 2021, and each taxable year 164
220	214		thereafter, fifty per cent of the income received from the state teachers' 165
221	215		retirement system or, for a taxpayer whose federal adjusted gross 166
222	216		income does not exceed the applicable threshold under clause (xx) of 167
223	217		this subparagraph, the percentage pursuant to said clause of the income 168
224	218		received from the state teachers' retirement system, whichever 169
225	219		deduction is greater; 170
226	220		(xx) To the extent properly includable in gross income for federal 171
227		-	income tax purposes, except for retirement benefits under clause (iv) of 172 Bill No. 5281
	221	+	income tax purposes, except for retirement benefits under clause (iv) of 172
	222	+	this subparagraph and retirement pay under clause (xvi) of this 173
	223	+	subparagraph, for a person who files a return under the federal income 174 Raised Bill No. 5281
228	224
229	225
230		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
231		-	R01-HB.docx }
232		-	7 of 13
233	226
234		-	~~this subparagraph and retirement pay under clause (xvi)~~ of ~~this 173~~
235		-	~~subparagraph, for a person who files a return under the federal income 174~~
	227	+	LCO No. 1155 7 of 13
	228	+
236	229		tax as an unmarried individual whose federal adjusted gross income for 175
237	230		such taxable year is less than seventy-five thousand dollars, or as a 176
238	231		married individual filing separately whose federal adjusted gross 177
239	232		income for such taxable year is less than seventy-five thousand dollars, 178
240	233		or as a head of household whose federal adjusted gross income for such 179
241	234		taxable year is less than seventy-five thousand dollars, or for a husband 180
242	235		and wife who file a return under the federal income tax as married 181
243	236		individuals filing jointly whose federal adjusted gross income for such 182
244	237		taxable year is less than one hundred thousand dollars, (I) for the taxable 183
245	238		year commencing January 1, 2019, fourteen per cent of any pension or 184
246	239		annuity income, (II) for the taxable year commencing January 1, 2020, 185
247	240		twenty-eight per cent of any pension or annuity income, (III) for the 186
248	241		taxable year commencing January 1, 2021, forty-two per cent of any 187
249	242		pension or annuity income, and (IV) for the taxable years commencing 188
250	243		January 1, 2022, and January 1, 2023, one hundred per cent of any 189
251	244		pension or annuity income; 190
252	245		(xxi) To the extent properly includable in gross income for federal 191
253	246		income tax purposes, except for retirement benefits under clause (iv) of 192
254	247		this subparagraph and retirement pay under clause (xvi) of this 193
255	248		subparagraph, any pension or annuity income for the taxable year 194
256	249		commencing on or after January 1, 2024, and each taxable year 195
257	250		thereafter, in accordance with the following schedule, for a person who 196
258	251		files a return under the federal income tax as an unmarried individual 197
259	252		whose federal adjusted gross income for such taxable year is less than 198
260	253		one hundred thousand dollars, or as a married individual filing 199
261	254		separately whose federal adjusted gross income for such taxable year is 200
262	255		less than one hundred thousand dollars, or as a head of household 201
263	256		whose federal adjusted gross income for such taxable year is less than 202
264	257		one hundred thousand dollars: 203
265		-	Bill No. 5281
266		-
267		-
268		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
269		-	R01-HB.docx }
270		-	8 of 13
271	258
272	259		T1
273	260		Federal Adjusted Gross Income Deduction
274	261		T2 Less than $75,000 100.0%
275		-	T3 $75,000 but not over $77,499 85.0%
	262	+	T3 $75,000 but not over $77,499 85.0% Raised Bill No. 5281
	263	+
	264	+
	265	+
	266	+	LCO No. 1155 8 of 13
	267	+
276	268		T4 $77,500 but not over $79,999 70.0%
277	269		T5 $80,000 but not over $82,499 55.0%
278	270		T6 $82,500 but not over $84,999 40.0%
279	271		T7 $85,000 but not over $87,499 25.0%
280	272		T8 $87,500 but not over $89,999 10.0%
281	273		T9 $90,000 but not over $94,999 5.0%
282	274		T10 $95,000 but not over $99,999 2.5%
283	275		T11 $100,000 and over 0.0%
284	276
285	277		(xxii) To the extent properly includable in gross income for federal 204
286	278		income tax purposes, except for retirement benefits under clause (iv) of 205
287	279		this subparagraph and retirement pay under clause (xvi) of this 206
288	280		subparagraph, any pension or annuity income for the taxable year 207
289	281		commencing on or after January 1, 2024, and each taxable year 208
290	282		thereafter, in accordance with the following schedule for married 209
291	283		individuals who file a return under the federal income tax as married 210
292	284		individuals filing jointly whose federal adjusted gross income for such 211
293	285		taxable year is less than one hundred fifty thousand dollars: 212
294	286
295	287		T12
296	288		Federal Adjusted Gross Income Deduction
297	289		T13 Less than $100,000 100.0%
298	290		T14 $100,000 but not over $104,999 85.0%
299	291		T15 $105,000 but not over $109,999 70.0%
300	292		T16 $110,000 but not over $114,999 55.0%
301	293		T17 $115,000 but not over $119,999 40.0%
302	294		T18 $120,000 but not over $124,999 25.0%
303	295		T19 $125,000 but not over $129,999 10.0%
304	296		T20 $130,000 but not over $139,999 5.0%
305	297		T21 $140,000 but not over $149,999 2.5%
306	298		T22 $150,000 and over 0.0%
307		-	Bill No. 5281
308		-
309		-
310		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
311		-	R01-HB.docx }
312		-	9 of 13
313	299
314	300		(xxiii) The amount of lost wages and medical, travel and housing 213
315	301		expenses, not to exceed ten thousand dollars in the aggregate, incurred 214
316	302		by a taxpayer during the taxable year in connection with the donation 215
317		-	to another person of an organ for organ transplantation occurring on or 216
	303	+	to another person of an organ for organ transplantation occurring on or 216 Raised Bill No. 5281
	304	+
	305	+
	306	+
	307	+	LCO No. 1155 9 of 13
	308	+
318	309		after January 1, 2017; 217
319	310		(xxiv) To the extent properly includable in gross income for federal 218
320	311		income tax purposes, the amount of any financial assistance received 219
321	312		from the Crumbling Foundations Assistance Fund or paid to or on 220
322	313		behalf of the owner of a residential building pursuant to sections 8-442 221
323	314		and 8-443; 222
324	315		(xxv) To the extent properly includable in gross income for federal 223
325	316		income tax purposes, the amount calculated pursuant to subsection (b) 224
326	317		of section 12-704g for income received by a general partner of a venture 225
327	318		capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 226
328	319		time; 227
329	320		(xxvi) To the extent any portion of a deduction under Section 179 of 228
330	321		the Internal Revenue Code was added to federal adjusted gross income 229
331	322		pursuant to subparagraph (A)(xiv) of this subdivision in computing 230
332	323		Connecticut adjusted gross income, twenty-five per cent of such 231
333	324		disallowed portion of the deduction in each of the four succeeding 232
334	325		taxable years; 233
335	326		(xxvii) To the extent properly includable in gross income for federal 234
336	327		income tax purposes, for a person who files a return under the federal 235
337	328		income tax as an unmarried individual whose federal adjusted gross 236
338	329		income for such taxable year is less than seventy-five thousand dollars, 237
339	330		or as a married individual filing separately whose federal adjusted gross 238
340	331		income for such taxable year is less than seventy-five thousand dollars, 239
341	332		or as a head of household whose federal adjusted gross income for such 240
342	333		taxable year is less than seventy-five thousand dollars, or for a husband 241
343	334		and wife who file a return under the federal income tax as married 242
344	335		individuals filing jointly whose federal adjusted gross income for such 243
345		-	taxable year is less than one hundred thousand dollars, for the taxable 244 Bill No. 5281
346		-
347		-
348		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
349		-	R01-HB.docx }
350		-	10 of 13
351		-
	336	+	taxable year is less than one hundred thousand dollars, for the taxable 244
352	337		year commencing January 1, 2023, twenty-five per cent of any 245
353	338		distribution from an individual retirement account other than a Roth 246
354	339		individual retirement account; 247
355		-	(xxviii) To the extent properly includable in gross income for federal 248
	340	+	(xxviii) To the extent properly includable in gross income for federal 248 Raised Bill No. 5281
	341	+
	342	+
	343	+
	344	+	LCO No. 1155 10 of 13
	345	+
356	346		income tax purposes, for a person who files a return under the federal 249
357	347		income tax as an unmarried individual whose federal adjusted gross 250
358	348		income for such taxable year is less than one hundred thousand dollars, 251
359	349		or as a married individual filing separately whose federal adjusted gross 252
360	350		income for such taxable year is less than one hundred thousand dollars, 253
361	351		or as a head of household whose federal adjusted gross income for such 254
362	352		taxable year is less than one hundred thousand dollars, (I) for the taxable 255
363	353		year commencing January 1, 2024, fifty per cent of any distribution from 256
364	354		an individual retirement account other than a Roth individual 257
365	355		retirement account, (II) for the taxable year commencing January 1, 2025, 258
366	356		seventy-five per cent of any distribution from an individual retirement 259
367	357		account other than a Roth individual retirement account, and (III) for 260
368	358		the taxable year commencing January 1, 2026, and each taxable year 261
369	359		thereafter, any distribution from an individual retirement account other 262
370	360		than a Roth individual retirement account. The subtraction under this 263
371	361		clause shall be made in accordance with the following schedule: 264
372	362
373	363		T23
374	364		Federal Adjusted Gross Income Deduction
375	365		T24 Less than $75,000 100.0%
376	366		T25 $75,000 but not over $77,499 85.0%
377	367		T26 $77,500 but not over $79,999 70.0%
378	368		T27 $80,000 but not over $82,499 55.0%
379	369		T28 $82,500 but not over $84,999 40.0%
380	370		T29 $85,000 but not over $87,499 25.0%
381	371		T30 $87,500 but not over $89,999 10.0%
382	372		T31 $90,000 but not over $94,999 5.0%
383	373		T32 $95,000 but not over $99,999 2.5%
384	374		T33 $100,000 and over 0.0%
385		-	Bill No. 5281
386		-
387		-
388		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
389		-	R01-HB.docx }
390		-	11 of 13
391	375
392	376		(xxix) To the extent properly includable in gross income for federal 265
393	377		income tax purposes, for married individuals who file a return under 266
394	378		the federal income tax as married individuals filing jointly whose 267
395	379		federal adjusted gross income for such taxable year is less than one 268
396		-	hundred fifty thousand dollars, (I) for the taxable year commencing 269
	380	+	hundred fifty thousand dollars, (I) for the taxable year commencing 269 Raised Bill No. 5281
	381	+
	382	+
	383	+
	384	+	LCO No. 1155 11 of 13
	385	+
397	386		January 1, 2024, fifty per cent of any distribution from an individual 270
398	387		retirement account other than a Roth individual retirement account, (II) 271
399	388		for the taxable year commencing January 1, 2025, seventy-five per cent 272
400	389		of any distribution from an individual retirement account other than a 273
401	390		Roth individual retirement account, and (III) for the taxable year 274
402	391		commencing January 1, 2026, and each taxable year thereafter, any 275
403	392		distribution from an individual retirement account other than a Roth 276
404	393		individual retirement account. The subtraction under this clause shall 277
405	394		be made in accordance with the following schedule: 278
406	395
407	396		T34
408	397		Federal Adjusted Gross Income Deduction
409	398		T35 Less than $100,000 100.0%
410	399		T36 $100,000 but not over $104,999 85.0%
411	400		T37 $105,000 but not over $109,999 70.0%
412	401		T38 $110,000 but not over $114,999 55.0%
413	402		T39 $115,000 but not over $119,999 40.0%
414	403		T40 $120,000 but not over $124,999 25.0%
415	404		T41 $125,000 but not over $129,999 10.0%
416	405		T42 $130,000 but not over $139,999 5.0%
417	406		T43 $140,000 but not over $149,999 2.5%
418	407		T44 $150,000 and over 0.0%
419	408
420	409		(xxx) To the extent properly includable in gross income for federal 279
421	410		income tax purposes, for the taxable year commencing January 1, 2022, 280
422	411		the amount or amounts paid or otherwise credited to any eligible 281
423	412		resident of this state under (I) the 2020 Earned Income Tax Credit 282
424	413		enhancement program from funding allocated to the state through the 283
425	414		Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 284
426		-	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 285 Bill No. 5281
427		-
428		-
429		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
430		-	R01-HB.docx }
431		-	12 of 13
432		-
	415	+	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 285
433	416		Income Tax Credit enhancement program from funding allocated to the 286
434	417		state pursuant to Section 9901 of Subtitle M of Title IX of the American 287
435	418		Rescue Plan Act of 2021, P.L. 117-2; 288
436	419		(xxxi) For the taxable year commencing January 1, 2023, and each 289
437		-	taxable year thereafter, for a taxpayer licensed under the provisions of 290
	420	+	taxable year thereafter, for a taxpayer licensed under the provisions of 290 Raised Bill No. 5281
	421	+
	422	+
	423	+
	424	+	LCO No. 1155 12 of 13
	425	+
438	426		chapter 420f or 420h, the amount of ordinary and necessary expenses 291
439	427		that would be eligible to be claimed as a deduction for federal income 292
440	428		tax purposes under Section 162(a) of the Internal Revenue Code but that 293
441	429		are disallowed under Section 280E of the Internal Revenue Code 294
442	430		because marijuana is a controlled substance under the federal 295
443	431		Controlled Substance Act; 296
444	432		(xxxii) To the extent properly includable in gross income for federal 297
445	433		income tax purposes, for the taxable year commencing on or after 298
446	434		January 1, 2025, and each taxable year thereafter, any common stock 299
447	435		received by the taxpayer during the taxable year under a share plan, as 300
448	436		defined in section 12-217ss; 301
449	437		(xxxiii) To the extent properly includable in gross income for federal 302
450	438		income tax purposes, the amount of any student loan reimbursement 303
451	439		payment received by a taxpayer pursuant to section 10a-19m; [and] 304
452	440		(xxxiv) Contributions to an ABLE account established pursuant to 305
453	441		sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 306
454	442		each individual taxpayer or ten thousand dollars for taxpayers filing a 307
455	443		joint return; and 308
456	444		(xxxv) To the extent properly includable in gross income for federal 309
457	445		income tax purposes, any qualified payment, as defined in Section 139B 310
458	446		of the Internal Revenue Code, not to exceed two thousand dollars in the 311
459	447		aggregate. 312
460	448		This act shall take effect as follows and shall amend the following
461	449		sections:
462		-	Bill No. 5281
463		-
464		-
465		-	LCO 1155 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05281-
466		-	R01-HB.docx }
467		-	13 of 13
468	450
469	451		Section 1 January 1, 2025, and
470	452		applicable to taxable years
471	453		commencing on or after
472	454		January 1, 2025
473	455		12-701(a)(20)(B)
474	456
475		-	PS Joint Favorable
	457	+	Statement of Purpose:
	458	+	To allow a personal income tax deduction for a stipend paid by a
	459	+	municipality to a volunteer firefighter, fire police officer or ambulance
	460	+	member. Raised Bill No. 5281
	461	+
	462	+
	463	+
	464	+	LCO No. 1155 13 of 13
	465	+
	466	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	467	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	468	+	underlined.]
476	469