Connecticut 2025 Regular Session

Connecticut House Bill HB06876 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 20
	3	+	LCO No. 3807 1 of 21
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 6876
	5	+	General Assembly Raised Bill No. 6876
6	6		January Session, 2025
	7	+	LCO No. 3807
7	8
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
8	15
9	16
10	17
11	18
12	19		AN ACT ESTABLISHING FIRST -TIME HOMEBUYER SAVINGS
13	20		ACCOUNTS AND A RELATED TAX DEDUCTION AND CREDIT.
14	21		Be it enacted by the Senate and House of Representatives in General
15	22		Assembly convened:
16	23
17	24		Section 1. (NEW) (Effective January 1, 2026) (a) For the purposes of this 1
18	25		section: 2
19	26		(1) "Account holder" means an individual who, either individually or 3
20	27		jointly with another individual, establishes a first-time homebuyer 4
21	28		savings account; 5
22	29		(2) "Allowable closing costs" means the disbursements listed on a 6
23	30		settlement statement concerning a transaction involving the purchase of 7
24		-	a ~~one-to-four~~ family residence in this state by a qualified beneficiary to 8
25		-	~~serve~~ as the qualified beneficiary's primary residence; 9
	31	+	a single-family residence in this state by a qualified beneficiary to serve 8
	32	+	as the qualified beneficiary's primary residence; 9
26	33		(3) "Commissioner" means the Commissioner of Revenue Services; 10
27	34		(4) "Eligible costs" means the down payment and all allowable closing 11
28		-	costs paid or reimbursed by a qualified beneficiary to purchase a one-12
29		-	to-four family residence in this state to serve as the qualified 13
30		-	beneficiary's primary residence; 14
31		-	(5) "Financial institution" means a bank, out-of-state bank, 15
32		-	Connecticut credit union, federal credit union or out-of-state credit 16 Substitute Bill No. 6876
	35	+	costs paid or reimbursed by a qualified beneficiary to purchase a single-12
	36	+	family residence in this state to serve as the qualified beneficiary's 13
	37	+	Raised Bill No. 6876
33	38
34	39
35		-	LCO 2 of 20
36	40
	41	+	LCO No. 3807 2 of 21
	42	+
	43	+	primary residence; 14
	44	+	(5) "Financial institution" means a bank, out-of-state bank, 15
	45	+	Connecticut credit union, federal credit union or out-of-state credit 16
37	46		union, as those terms are defined in section 36a-2 of the general statutes, 17
38	47		and any affiliate or third-party provider of such entities; 18
39	48		(6) "First-time homebuyer" means an individual who did not own or 19
40		-	purchase, either individually or jointly with another person, a ~~one-to~~-20
41		-	~~four~~ family residence prior to the closing date of a real estate transaction 21
42		-	involving the purchase of a ~~one-to-four~~ family residence in this state by 22
43		-	~~the~~ individual; 23
	49	+	purchase, either individually or jointly with another person, a single-20
	50	+	family residence prior to the closing date of a real estate transaction 21
	51	+	involving the purchase of a single-family residence in this state by the 22
	52	+	individual; 23
44	53		(7) "First-time homebuyer savings account" means an account 24
45	54		established by one or more account holders with a financial institution 25
46	55		that the account holders designate as an account exclusively containing 26
47	56		funds to pay or reimburse eligible costs incurred by the qualified 27
48	57		beneficiary of the account; 28
49		-	(8) "One-to-four family residence" means a residential dwelling 29
50		-	consisting of not more than four dwelling units, including, but not 30
51		-	limited to, a mobile manufactured home, as defined in section 21-64 of 31
52		-	the general statutes, or a residential unit in a cooperative, common 32
53		-	interest community or condominium, as such terms are defined in 33
54		-	section 47-202 of the general statutes; 34
55		-	(9) "Qualified beneficiary" means a first-time homebuyer who (A) is 35
56		-	an account holder and designated as the qualified beneficiary of a first-36
57		-	time homebuyer savings account, and (B) resides in the one-to-four 37
58		-	family residence in this state that is purchased with the funds deposited 38
59		-	in such account; and 39
60		-	(10) "Settlement statement" means the statement of receipts and 40
61		-	disbursements for a transaction related to real estate, including, but not 41
62		-	limited to, a statement prescribed pursuant to the Real Estate Settlement 42
63		-	Procedures Act of 1974, 12 USC Section 2601 et seq., as amended from 43
64		-	time to time, and regulations adopted thereunder. 44
65		-	(b) For purposes of implementing the deduction allowed under 45
66		-	subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 46
67		-	of the general statutes, as amended by this act, and the credit allowed 47 Substitute Bill No. 6876
	58	+	(8) "Qualified beneficiary" means a first-time homebuyer who (A) is 29
	59	+	an account holder and designated as the qualified beneficiary of a first-30
	60	+	time homebuyer savings account, and (B) resides in the single-family 31
	61	+	residence in this state that is purchased with the funds deposited in such 32
	62	+	account; 33
	63	+	(9) "Settlement statement" means the statement of receipts and 34
	64	+	disbursements for a transaction related to real estate, including, but not 35
	65	+	limited to, a statement prescribed pursuant to the Real Estate Settlement 36
	66	+	Procedures Act of 1974, 12 USC Section 2601 et seq., as amended from 37
	67	+	time to time, and regulations adopted thereunder; and 38
	68	+	(10) "Single-family residence" means a single-family residential 39
	69	+	dwelling, including, but not limited to, a mobile manufactured home or 40
	70	+	a residential unit in a cooperative, common interest community or 41
	71	+	condominium. 42
	72	+	Raised Bill No. 6876
68	73
69	74
70		-	LCO 3 of 20
71	75
72		-	under section 3 of this act, the commissioner shall prepare forms for (1) 48
73		-	the designation of accounts as first-time homebuyer savings accounts, 49
74		-	(2) the designation of qualified beneficiaries, and (3) account holders to 50
75		-	submit to the commissioner the information described in subparagraph 51
76		-	(B) of subdivision (1) of subsection (d) of this section and any additional 52
77		-	information that the commissioner reasonably requires pursuant to the 53
78		-	provisions of this section. 54
79		-	(c) An individual may establish one or more first-time homebuyer 55
80		-	savings accounts with a financial institution. Two individuals may 56
81		-	jointly establish and serve as the account holders of a first-time 57
82		-	homebuyer savings account, provided such account holders shall file a 58
83		-	joint return for the tax imposed under chapter 229 of the general statutes 59
84		-	for each taxable year during which such account exists. The account 60
85		-	holder or account holders shall, not later than April fifteenth of the 61
86		-	taxable year immediately following the taxable year during which such 62
87		-	account holder or account holders established a first-time homebuyer 63
88		-	savings account, designate the qualified beneficiary of such account. 64
89		-	The account holder or account holders of a first-time homebuyer savings 65
90		-	account may designate a new qualified beneficiary of the account at any 66
91		-	time, provided there shall not be more than one qualified beneficiary of 67
92		-	such account at any time. No individual may establish or serve as an 68
93		-	account holder of multiple first-time homebuyer savings accounts that 69
94		-	have the same qualified beneficiary. First-time homebuyer savings 70
95		-	accounts shall exclusively contain cash and there shall be no limit on the 71
96		-	amount of contributions made to, or contained in, such accounts. Any 72
97		-	person may contribute to a first-time homebuyer savings account, 73
98		-	including, but not limited to, employers of the account holder or account 74
99		-	holders of such account. If an account holder of a first-time homebuyer 75
100		-	savings account leaves employment with an employer that contributed 76
101		-	to such account while such account holder was employed by such 77
102		-	employer, such employer shall not seek reimbursement of any 78
103		-	contribution to such account. The account holder or account holders 79
104		-	may invest funds deposited in a first-time homebuyer savings account 80
105		-	in money market funds. 81 Substitute Bill No. 6876
	76	+	LCO No. 3807 3 of 21
	77	+
	78	+	(b) For purposes of implementing the deduction allowed under 43
	79	+	subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 44
	80	+	of the general statutes, as amended by this act, and the credit allowed 45
	81	+	under section 3 of this act, the commissioner shall prepare forms for (1) 46
	82	+	the designation of accounts as first-time homebuyer savings accounts, 47
	83	+	(2) the designation of qualified beneficiaries, and (3) account holders to 48
	84	+	submit to the commissioner the information described in subparagraph 49
	85	+	(B) of subdivision (1) of subsection (d) of this section and any additional 50
	86	+	information that the commissioner reasonably requires pursuant to the 51
	87	+	provisions of this section. 52
	88	+	(c) An individual may establish one or more first-time homebuyer 53
	89	+	savings accounts with a financial institution. Two individuals may 54
	90	+	jointly establish and serve as the account holders of a first-time 55
	91	+	homebuyer savings account, provided such account holders shall file a 56
	92	+	joint return for the tax imposed under chapter 229 of the general statutes 57
	93	+	for each taxable year during which such account exists. The account 58
	94	+	holder or account holders shall, not later than April fifteenth of the 59
	95	+	taxable year immediately following the taxable year during which such 60
	96	+	account holder or account holders established a first-time homebuyer 61
	97	+	savings account, designate the qualified beneficiary of such account. 62
	98	+	The account holder or account holders of a first-time homebuyer savings 63
	99	+	account may designate a new qualified beneficiary of the account at any 64
	100	+	time, provided there shall not be more than one qualified beneficiary of 65
	101	+	such account at any time. No individual may establish or serve as an 66
	102	+	account holder of multiple first-time homebuyer savings accounts that 67
	103	+	have the same qualified beneficiary. First-time homebuyer savings 68
	104	+	accounts shall exclusively contain cash and there shall be no limit on the 69
	105	+	amount of contributions made to, or contained in, such accounts. Any 70
	106	+	person may contribute to a first-time homebuyer savings account, 71
	107	+	including, but not limited to, employers of the account holder or account 72
	108	+	holders of such account. If an account holder of a first-time homebuyer 73
	109	+	savings account leaves employment with an employer that contributed 74
	110	+	to such account while such account holder was employed by such 75
	111	+	Raised Bill No. 6876
106	112
107	113
108		-	LCO 4 of 20
109	114
110		-	(d) (1) Each account holder shall: 82
111		-	(A) Not use any portion of the funds deposited in a first-time 83
112		-	homebuyer savings account to pay any administrative fees or expenses, 84
113		-	other than service fees imposed by the depository financial institution, 85
114		-	for such account; and 86
115		-	(B) Submit to the commissioner such account holder's tax return for 87
116		-	each taxable year beginning on or after January 1, 2026, during which a 88
117		-	first-time homebuyer savings account established by such account 89
118		-	holder exists, along with: 90
119		-	(i) Any information required by the commissioner concerning such 91
120		-	first-time homebuyer savings account for purposes of implementing the 92
121		-	deduction allowed under subparagraph (B) of subdivision (20) of 93
122		-	subsection (a) of section 12-701 of the general statutes, as amended by 94
123		-	this act, and the credit allowed under section 3 of this act; 95
124		-	(ii) The Internal Revenue Service Form 1099 issued by the depository 96
125		-	financial institution for such first-time homebuyer savings account; and 97
126		-	(iii) If such account holder withdrew funds from such first-time 98
127		-	homebuyer savings account during the taxable year that is the subject 99
128		-	of such return, a detailed accounting of all eligible costs and ineligible 100
129		-	costs paid or reimbursed using such funds during such taxable year and 101
130		-	the balance of funds remaining in such account. 102
131		-	(2) Each account holder may withdraw all, or any portion of, the 103
132		-	funds contributed to and deposited in a first-time homebuyer savings 104
133		-	account and deposit such funds in another first-time homebuyer savings 105
134		-	account established by such account holder at any financial institution. 106
135		-	(e) (1) The commissioner may require that financial institutions 107
136		-	furnish certain information about each first-time homebuyer savings 108
137		-	account. 109
138		-	(2) No financial institution shall be required to (A) designate an 110
139		-	account as a first-time homebuyer savings account, (B) track the use of 111 Substitute Bill No. 6876
	115	+	LCO No. 3807 4 of 21
	116	+
	117	+	employer, such employer shall not seek reimbursement of any 76
	118	+	contribution to such account. The account holder or account holders 77
	119	+	may invest funds deposited in a first-time homebuyer savings account 78
	120	+	in money market funds. 79
	121	+	(d) (1) Each account holder shall: 80
	122	+	(A) Not use any portion of the funds deposited in a first-time 81
	123	+	homebuyer savings account to pay any administrative fees or expenses, 82
	124	+	other than service fees imposed by the depository financial institution, 83
	125	+	for such account; and 84
	126	+	(B) Submit to the commissioner such account holder's tax return for 85
	127	+	each taxable year beginning on or after January 1, 2026, during which a 86
	128	+	first-time homebuyer savings account established by such account 87
	129	+	holder exists, along with: 88
	130	+	(i) Any information required by the commissioner concerning such 89
	131	+	first-time homebuyer savings account for purposes of implementing the 90
	132	+	deduction allowed under subparagraph (B) of subdivision (20) of 91
	133	+	subsection (a) of section 12-701 of the general statutes, as amended by 92
	134	+	this act, and the credit allowed under section 3 of this act; 93
	135	+	(ii) The Internal Revenue Service Form 1099 issued by the depository 94
	136	+	financial institution for such first-time homebuyer savings account; and 95
	137	+	(iii) If such account holder withdrew funds from such first-time 96
	138	+	homebuyer savings account during the taxable year that is the subject 97
	139	+	of such return, a detailed accounting of all eligible costs and ineligible 98
	140	+	costs paid or reimbursed using such funds during such taxable year and 99
	141	+	the balance of funds remaining in such account. 100
	142	+	(2) Each account holder may withdraw all, or any portion of, the 101
	143	+	funds contributed to and deposited in a first-time homebuyer savings 102
	144	+	account and deposit such funds in another first-time homebuyer savings 103
	145	+	account established by such account holder at any financial institution. 104
	146	+	Raised Bill No. 6876
140	147
141	148
142		-	LCO 5 of 20
143	149
144		-	any funds withdrawn from a first-time homebuyer savings account, or 112
145		-	(C) allocate funds in a first-time homebuyer savings account among 113
146		-	account holders. 114
147		-	(3) No financial institution shall be liable or responsible for (A) 115
148		-	determining whether, or ensuring that, an account satisfies the 116
149		-	requirements established in this section concerning first-time 117
150		-	homebuyer savings accounts or the funds in first-time homebuyer 118
151		-	savings accounts are used to pay or reimburse eligible costs, or (B) 119
152		-	disclosing or remitting taxes or penalties concerning first-time 120
153		-	homebuyer savings accounts unless such disclosure or remittance is 121
154		-	required by applicable law. 122
155		-	(4) Upon receiving proof of the death of an account holder and all 123
156		-	other information required by any contract governing a first-time 124
157		-	homebuyer savings account established by the account holder, the 125
158		-	depository financial institution shall distribute the funds in the first-126
159		-	time homebuyer savings account in accordance with the terms of such 127
160		-	contract. 128
161		-	(f) (1) Except as provided in subdivision (2) of this subsection, each 129
162		-	account holder who withdraws funds from a first-time homebuyer 130
163		-	savings account for any reason other than paying or reimbursing the 131
164		-	qualified beneficiary of such account for eligible costs incurred by such 132
165		-	qualified beneficiary shall be liable to this state for a civil penalty in an 133
166		-	amount equal to ten per cent of the withdrawn amount. Such civil 134
167		-	penalty shall be collectible by the commissioner. If such funds were 135
168		-	deducted by an account holder in accordance with subparagraph (B) of 136
169		-	subdivision (20) of subsection (a) of section 12-701 of the general 137
170		-	statutes, as amended by this act, then such withdrawn funds shall be 138
171		-	considered income. 139
172		-	(2) No account holder shall be liable for a penalty under subdivision 140
173		-	(1) of this subsection, nor shall funds withdrawn from a first-time 141
174		-	homebuyer savings account be considered income, if the funds 142
175		-	withdrawn from the first-time homebuyer savings account: 143 Substitute Bill No. 6876
	150	+	LCO No. 3807 5 of 21
	151	+
	152	+	(e) (1) The commissioner may require that financial institutions 105
	153	+	furnish certain information about each first-time homebuyer savings 106
	154	+	account. 107
	155	+	(2) No financial institution shall be required to (A) designate an 108
	156	+	account as a first-time homebuyer savings account, (B) track the use of 109
	157	+	any funds withdrawn from a first-time homebuyer savings account, or 110
	158	+	(C) allocate funds in a first-time homebuyer savings account among 111
	159	+	account holders. 112
	160	+	(3) No financial institution shall be liable or responsible for (A) 113
	161	+	determining whether, or ensuring that, an account satisfies the 114
	162	+	requirements established in this section concerning first-time 115
	163	+	homebuyer savings accounts or the funds in first-time homebuyer 116
	164	+	savings accounts are used to pay or reimburse eligible costs, or (B) 117
	165	+	disclosing or remitting taxes or penalties concerning first-time 118
	166	+	homebuyer savings accounts unless such disclosure or remittance is 119
	167	+	required by applicable law. 120
	168	+	(4) Upon receiving proof of the death of an account holder and all 121
	169	+	other information required by any contract governing a first-time 122
	170	+	homebuyer savings account established by the account holder, the 123
	171	+	depository financial institution shall distribute the funds in the first-124
	172	+	time homebuyer savings account in accordance with the terms of such 125
	173	+	contract. 126
	174	+	(f) (1) Except as provided in subdivision (2) of this subsection, each 127
	175	+	account holder who withdraws funds from a first-time homebuyer 128
	176	+	savings account for any reason other than paying or reimbursing the 129
	177	+	qualified beneficiary of such account for eligible costs incurred by such 130
	178	+	qualified beneficiary shall be liable to this state for a civil penalty in an 131
	179	+	amount equal to ten per cent of the withdrawn amount. Such civil 132
	180	+	penalty shall be collectible by the commissioner. If such funds were 133
	181	+	deducted by an account holder in accordance with subparagraph (B) of 134
	182	+	subdivision (20) of subsection (a) of section 12-701 of the general 135
	183	+	Raised Bill No. 6876
176	184
177	185
178		-	LCO 6 of 20
179	186
180		-	(A) Are deposited in another first-time homebuyer savings account 144
181		-	pursuant to subdivision (2) of subsection (d) of this section; 145
182		-	(B) Are withdrawn due to the death or disability of an account holder 146
183		-	who established such account; 147
184		-	(C) Constitute a disbursement of the assets of such account pursuant 148
185		-	to a filing for protection under the United States Bankruptcy Code, as 149
186		-	amended from time to time; or 150
187		-	(D) Are not claimed as a deduction pursuant to subparagraph (B) of 151
188		-	subdivision (20) of subsection (a) of section 12-701 of the general 152
189		-	statutes, as amended by this act, by the account holder on a return for 153
190		-	the tax imposed under chapter 229 of the general statutes. 154
191		-	(g) The commissioner may adopt regulations, in accordance with the 155
192		-	provisions of chapter 54 of the general statutes, to implement the 156
193		-	provisions of this section. 157
194		-	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 158
195		-	section 12-701 of the general statutes is repealed and the following is 159
196		-	substituted in lieu thereof (Effective January 1, 2026): 160
197		-	(B) There shall be subtracted therefrom: 161
198		-	(i) To the extent properly includable in gross income for federal 162
199		-	income tax purposes, any income with respect to which taxation by any 163
200		-	state is prohibited by federal law; 164
201		-	(ii) To the extent allowable under section 12-718, exempt dividends 165
202		-	paid by a regulated investment company; 166
203		-	(iii) To the extent properly includable in gross income for federal 167
204		-	income tax purposes, the amount of any refund or credit for 168
205		-	overpayment of income taxes imposed by this state, or any other state 169
206		-	of the United States or a political subdivision thereof, or the District of 170
207		-	Columbia; 171 Substitute Bill No. 6876
	187	+	LCO No. 3807 6 of 21
	188	+
	189	+	statutes, as amended by this act, then such withdrawn funds shall be 136
	190	+	considered income. 137
	191	+	(2) No account holder shall be liable for a penalty under subdivision 138
	192	+	(1) of this subsection, nor shall funds withdrawn from a first-time 139
	193	+	homebuyer savings account be considered income, if the funds 140
	194	+	withdrawn from the first-time homebuyer savings account: 141
	195	+	(A) Are deposited in another first-time homebuyer savings account 142
	196	+	pursuant to subdivision (2) of subsection (d) of this section; 143
	197	+	(B) Are withdrawn due to the death or disability of an account holder 144
	198	+	who established such account; 145
	199	+	(C) Constitute a disbursement of the assets of such account pursuant 146
	200	+	to a filing for protection under the United States Bankruptcy Code, as 147
	201	+	amended from time to time; or 148
	202	+	(D) Are not claimed as a deduction pursuant to subparagraph (B) of 149
	203	+	subdivision (20) of subsection (a) of section 12-701 of the general 150
	204	+	statutes, as amended by this act, by the account holder on a return for 151
	205	+	the tax imposed under chapter 229 of the general statutes. 152
	206	+	(g) The commissioner may adopt regulations, in accordance with the 153
	207	+	provisions of chapter 54 of the general statutes, to implement the 154
	208	+	provisions of this section. 155
	209	+	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 156
	210	+	section 12-701 of the general statutes is repealed and the following is 157
	211	+	substituted in lieu thereof (Effective January 1, 2026): 158
	212	+	(B) There shall be subtracted therefrom: 159
	213	+	(i) To the extent properly includable in gross income for federal 160
	214	+	income tax purposes, any income with respect to which taxation by any 161
	215	+	state is prohibited by federal law; 162
	216	+	Raised Bill No. 6876
208	217
209	218
210		-	LCO 7 of 20
211	219
212		-	(iv) To the extent properly includable in gross income for federal 172
213		-	income tax purposes and not otherwise subtracted from federal 173
214		-	adjusted gross income pursuant to clause (x) of this subparagraph in 174
215		-	computing Connecticut adjusted gross income, any tier 1 railroad 175
216		-	retirement benefits; 176
217		-	(v) To the extent any additional allowance for depreciation under 177
218		-	Section 168(k) of the Internal Revenue Code for property placed in 178
219		-	service after September 27, 2017, was added to federal adjusted gross 179
220		-	income pursuant to subparagraph (A)(ix) of this subdivision in 180
221		-	computing Connecticut adjusted gross income, twenty-five per cent of 181
222		-	such additional allowance for depreciation in each of the four 182
223		-	succeeding taxable years; 183
224		-	(vi) To the extent properly includable in gross income for federal 184
225		-	income tax purposes, any interest income from obligations issued by or 185
226		-	on behalf of the state of Connecticut, any political subdivision thereof, 186
227		-	or public instrumentality, state or local authority, district or similar 187
228		-	public entity created under the laws of the state of Connecticut; 188
229		-	(vii) To the extent properly includable in determining the net gain or 189
230		-	loss from the sale or other disposition of capital assets for federal income 190
231		-	tax purposes, any gain from the sale or exchange of obligations issued 191
232		-	by or on behalf of the state of Connecticut, any political subdivision 192
233		-	thereof, or public instrumentality, state or local authority, district or 193
234		-	similar public entity created under the laws of the state of Connecticut, 194
235		-	in the income year such gain was recognized; 195
236		-	(viii) Any interest on indebtedness incurred or continued to purchase 196
237		-	or carry obligations or securities the interest on which is subject to tax 197
238		-	under this chapter but exempt from federal income tax, to the extent that 198
239		-	such interest on indebtedness is not deductible in determining federal 199
240		-	adjusted gross income and is attributable to a trade or business carried 200
241		-	on by such individual; 201
242		-	(ix) Ordinary and necessary expenses paid or incurred during the 202
243		-	taxable year for the production or collection of income which is subject 203 Substitute Bill No. 6876
	220	+	LCO No. 3807 7 of 21
	221	+
	222	+	(ii) To the extent allowable under section 12-718, exempt dividends 163
	223	+	paid by a regulated investment company; 164
	224	+	(iii) To the extent properly includable in gross income for federal 165
	225	+	income tax purposes, the amount of any refund or credit for 166
	226	+	overpayment of income taxes imposed by this state, or any other state 167
	227	+	of the United States or a political subdivision thereof, or the District of 168
	228	+	Columbia; 169
	229	+	(iv) To the extent properly includable in gross income for federal 170
	230	+	income tax purposes and not otherwise subtracted from federal 171
	231	+	adjusted gross income pursuant to clause (x) of this subparagraph in 172
	232	+	computing Connecticut adjusted gross income, any tier 1 railroad 173
	233	+	retirement benefits; 174
	234	+	(v) To the extent any additional allowance for depreciation under 175
	235	+	Section 168(k) of the Internal Revenue Code for property placed in 176
	236	+	service after September 27, 2017, was added to federal adjusted gross 177
	237	+	income pursuant to subparagraph (A)(ix) of this subdivision in 178
	238	+	computing Connecticut adjusted gross income, twenty-five per cent of 179
	239	+	such additional allowance for depreciation in each of the four 180
	240	+	succeeding taxable years; 181
	241	+	(vi) To the extent properly includable in gross income for federal 182
	242	+	income tax purposes, any interest income from obligations issued by or 183
	243	+	on behalf of the state of Connecticut, any political subdivision thereof, 184
	244	+	or public instrumentality, state or local authority, district or similar 185
	245	+	public entity created under the laws of the state of Connecticut; 186
	246	+	(vii) To the extent properly includable in determining the net gain or 187
	247	+	loss from the sale or other disposition of capital assets for federal income 188
	248	+	tax purposes, any gain from the sale or exchange of obligations issued 189
	249	+	by or on behalf of the state of Connecticut, any political subdivision 190
	250	+	thereof, or public instrumentality, state or local authority, district or 191
	251	+	similar public entity created under the laws of the state of Connecticut, 192
	252	+	in the income year such gain was recognized; 193
	253	+	Raised Bill No. 6876
244	254
245	255
246		-	LCO 8 of 20
247	256
248		-	to taxation under this chapter but exempt from federal income tax, or 204
249		-	the management, conservation or maintenance of property held for the 205
250		-	production of such income, and the amortizable bond premium for the 206
251		-	taxable year on any bond the interest on which is subject to tax under 207
252		-	this chapter but exempt from federal income tax, to the extent that such 208
253		-	expenses and premiums are not deductible in determining federal 209
254		-	adjusted gross income and are attributable to a trade or business carried 210
255		-	on by such individual; 211
256		-	(x) (I) For taxable years commencing prior to January 1, 2019, for a 212
257		-	person who files a return under the federal income tax as an unmarried 213
258		-	individual whose federal adjusted gross income for such taxable year is 214
259		-	less than fifty thousand dollars, or as a married individual filing 215
260		-	separately whose federal adjusted gross income for such taxable year is 216
261		-	less than fifty thousand dollars, or for a husband and wife who file a 217
262		-	return under the federal income tax as married individuals filing jointly 218
263		-	whose federal adjusted gross income for such taxable year is less than 219
264		-	sixty thousand dollars or a person who files a return under the federal 220
265		-	income tax as a head of household whose federal adjusted gross income 221
266		-	for such taxable year is less than sixty thousand dollars, an amount 222
267		-	equal to the Social Security benefits includable for federal income tax 223
268		-	purposes; 224
269		-	(II) For taxable years commencing prior to January 1, 2019, for a 225
270		-	person who files a return under the federal income tax as an unmarried 226
271		-	individual whose federal adjusted gross income for such taxable year is 227
272		-	fifty thousand dollars or more, or as a married individual filing 228
273		-	separately whose federal adjusted gross income for such taxable year is 229
274		-	fifty thousand dollars or more, or for a husband and wife who file a 230
275		-	return under the federal income tax as married individuals filing jointly 231
276		-	whose federal adjusted gross income from such taxable year is sixty 232
277		-	thousand dollars or more or for a person who files a return under the 233
278		-	federal income tax as a head of household whose federal adjusted gross 234
279		-	income for such taxable year is sixty thousand dollars or more, an 235
280		-	amount equal to the difference between the amount of Social Security 236
281		-	benefits includable for federal income tax purposes and the lesser of 237 Substitute Bill No. 6876
	257	+	LCO No. 3807 8 of 21
	258	+
	259	+	(viii) Any interest on indebtedness incurred or continued to purchase 194
	260	+	or carry obligations or securities the interest on which is subject to tax 195
	261	+	under this chapter but exempt from federal income tax, to the extent that 196
	262	+	such interest on indebtedness is not deductible in determining federal 197
	263	+	adjusted gross income and is attributable to a trade or business carried 198
	264	+	on by such individual; 199
	265	+	(ix) Ordinary and necessary expenses paid or incurred during the 200
	266	+	taxable year for the production or collection of income which is subject 201
	267	+	to taxation under this chapter but exempt from federal income tax, or 202
	268	+	the management, conservation or maintenance of property held for the 203
	269	+	production of such income, and the amortizable bond premium for the 204
	270	+	taxable year on any bond the interest on which is subject to tax under 205
	271	+	this chapter but exempt from federal income tax, to the extent that such 206
	272	+	expenses and premiums are not deductible in determining federal 207
	273	+	adjusted gross income and are attributable to a trade or business carried 208
	274	+	on by such individual; 209
	275	+	(x) (I) For taxable years commencing prior to January 1, 2019, for a 210
	276	+	person who files a return under the federal income tax as an unmarried 211
	277	+	individual whose federal adjusted gross income for such taxable year is 212
	278	+	less than fifty thousand dollars, or as a married individual filing 213
	279	+	separately whose federal adjusted gross income for such taxable year is 214
	280	+	less than fifty thousand dollars, or for a husband and wife who file a 215
	281	+	return under the federal income tax as married individuals filing jointly 216
	282	+	whose federal adjusted gross income for such taxable year is less than 217
	283	+	sixty thousand dollars or a person who files a return under the federal 218
	284	+	income tax as a head of household whose federal adjusted gross income 219
	285	+	for such taxable year is less than sixty thousand dollars, an amount 220
	286	+	equal to the Social Security benefits includable for federal income tax 221
	287	+	purposes; 222
	288	+	(II) For taxable years commencing prior to January 1, 2019, for a 223
	289	+	person who files a return under the federal income tax as an unmarried 224
	290	+	individual whose federal adjusted gross income for such taxable year is 225
	291	+	Raised Bill No. 6876
282	292
283	293
284		-	LCO 9 of 20
285	294
286		-	twenty-five per cent of the Social Security benefits received during the 238
287		-	taxable year, or twenty-five per cent of the excess described in Section 239
288		-	86(b)(1) of the Internal Revenue Code; 240
289		-	(III) For the taxable year commencing January 1, 2019, and each 241
290		-	taxable year thereafter, for a person who files a return under the federal 242
291		-	income tax as an unmarried individual whose federal adjusted gross 243
	295	+	LCO No. 3807 9 of 21
	296	+
	297	+	fifty thousand dollars or more, or as a married individual filing 226
	298	+	separately whose federal adjusted gross income for such taxable year is 227
	299	+	fifty thousand dollars or more, or for a husband and wife who file a 228
	300	+	return under the federal income tax as married individuals filing jointly 229
	301	+	whose federal adjusted gross income from such taxable year is sixty 230
	302	+	thousand dollars or more or for a person who files a return under the 231
	303	+	federal income tax as a head of household whose federal adjusted gross 232
	304	+	income for such taxable year is sixty thousand dollars or more, an 233
	305	+	amount equal to the difference between the amount of Social Security 234
	306	+	benefits includable for federal income tax purposes and the lesser of 235
	307	+	twenty-five per cent of the Social Security benefits received during the 236
	308	+	taxable year, or twenty-five per cent of the excess described in Section 237
	309	+	86(b)(1) of the Internal Revenue Code; 238
	310	+	(III) For the taxable year commencing January 1, 2019, and each 239
	311	+	taxable year thereafter, for a person who files a return under the federal 240
	312	+	income tax as an unmarried individual whose federal adjusted gross 241
	313	+	income for such taxable year is less than seventy-five thousand dollars, 242
	314	+	or as a married individual filing separately whose federal adjusted gross 243
292	315		income for such taxable year is less than seventy-five thousand dollars, 244
293		-	or as a ~~married individual filing separately whose~~ federal ~~adjusted gross~~ 245
294		-	~~income for such taxable year is less than seventy-five thousand dollars,~~ 246
295		-	or for ~~a husband and wife who file a return under the federal income tax~~ 247
296		-	~~as married individuals filing jointly whose~~ federal ~~adjusted gross~~ 248
297		-	income for such taxable year is ~~less than one hundred thousand dollars~~ 249
298		-	~~or a person who files a return under~~ the ~~federal income tax as a head of~~ 250
299		-	~~household whose~~ federal ~~adjusted gross~~ income ~~for such taxable year is~~ 251
300		-	~~less than one hundred thousand dollars, an amount equal to~~ the ~~Social~~ 252
301		-	~~Security benefits includable~~ for federal ~~income tax purposes; and~~ 253
302		-	~~(IV) For the taxable year commencing January 1,~~ ~~2019, and each~~ 254
303		-	taxable year ~~thereafter~~, ~~for a person who files a return under the federal~~ 255
304		-	~~income tax~~ as ~~an unmarried~~ individual whose federal adjusted gross 256
	316	+	or for a husband and wife who file a return under the federal income tax 245
	317	+	as married individuals filing jointly whose federal adjusted gross 246
	318	+	income for such taxable year is less than one hundred thousand dollars 247
	319	+	or a person who files a return under the federal income tax as a head of 248
	320	+	household whose federal adjusted gross income for such taxable year is 249
	321	+	less than one hundred thousand dollars, an amount equal to the Social 250
	322	+	Security benefits includable for federal income tax purposes; and 251
	323	+	(IV) For the taxable year commencing January 1, 2019, and each 252
	324	+	taxable year thereafter, for a person who files a return under the federal 253
	325	+	income tax as an unmarried individual whose federal adjusted gross 254
	326	+	income for such taxable year is seventy-five thousand dollars or more, 255
	327	+	or as a married individual filing separately whose federal adjusted gross 256
305	328		income for such taxable year is seventy-five thousand dollars or more, 257
306		-	or as a married individual filing separately whose federal adjusted gross 258
307		-	income for such taxable year is seventy-five thousand dollars or more, 259
308		-	or for a husband and wife who file a return under the federal income tax 260
309		-	as married individuals filing jointly whose federal adjusted gross 261
310		-	income from such taxable year is one hundred thousand dollars or more 262
311		-	or for a person who files a return under the federal income tax as a head 263
312		-	of household whose federal adjusted gross income for such taxable year 264
313		-	is one hundred thousand dollars or more, an amount equal to the 265
314		-	difference between the amount of Social Security benefits includable for 266
315		-	federal income tax purposes and the lesser of twenty-five per cent of the 267
316		-	Social Security benefits received during the taxable year, or twenty-five 268
317		-	per cent of the excess described in Section 86(b)(1) of the Internal 269
318		-	Revenue Code; 270 Substitute Bill No. 6876
	329	+	or for a husband and wife who file a return under the federal income tax 258
	330	+	Raised Bill No. 6876
319	331
320	332
321		-	LCO 10 of 20
322	333
323		-	(xi) To the extent properly includable in gross income for federal 271
324		-	income tax purposes, any amount rebated to a taxpayer pursuant to 272
325		-	section 12-746; 273
326		-	(xii) To the extent properly includable in the gross income for federal 274
327		-	income tax purposes of a designated beneficiary, any distribution to 275
328		-	such beneficiary from any qualified state tuition program, as defined in 276
329		-	Section 529(b) of the Internal Revenue Code, established and 277
330		-	maintained by this state or any official, agency or instrumentality of the 278
331		-	state; 279
332		-	(xiii) To the extent allowable under section 12-701a, contributions to 280
333		-	accounts established pursuant to any qualified state tuition program, as 281
334		-	defined in Section 529(b) of the Internal Revenue Code, established and 282
335		-	maintained by this state or any official, agency or instrumentality of the 283
336		-	state; 284
337		-	(xiv) To the extent properly includable in gross income for federal 285
338		-	income tax purposes, the amount of any Holocaust victims' settlement 286
339		-	payment received in the taxable year by a Holocaust victim; 287
340		-	(xv) To the extent properly includable in the gross income for federal 288
341		-	income tax purposes of a designated beneficiary, as defined in section 289
342		-	3-123aa, interest, dividends or capital gains earned on contributions to 290
343		-	accounts established for the designated beneficiary pursuant to the 291
344		-	Connecticut Homecare Option Program for the Elderly established by 292
345		-	sections 3-123aa to 3-123ff, inclusive; 293
346		-	(xvi) To the extent properly includable in gross income for federal 294
347		-	income tax purposes, any income received from the United States 295
348		-	government as retirement pay for a retired member of (I) the Armed 296
349		-	Forces of the United States, as defined in Section 101 of Title 10 of the 297
350		-	United States Code, or (II) the National Guard, as defined in Section 101 298
351		-	of Title 10 of the United States Code; 299
352		-	(xvii) To the extent properly includable in gross income for federal 300
353		-	income tax purposes for the taxable year, any income from the discharge 301 Substitute Bill No. 6876
	334	+	LCO No. 3807 10 of 21
	335	+
	336	+	as married individuals filing jointly whose federal adjusted gross 259
	337	+	income from such taxable year is one hundred thousand dollars or more 260
	338	+	or for a person who files a return under the federal income tax as a head 261
	339	+	of household whose federal adjusted gross income for such taxable year 262
	340	+	is one hundred thousand dollars or more, an amount equal to the 263
	341	+	difference between the amount of Social Security benefits includable for 264
	342	+	federal income tax purposes and the lesser of twenty-five per cent of the 265
	343	+	Social Security benefits received during the taxable year, or twenty-five 266
	344	+	per cent of the excess described in Section 86(b)(1) of the Internal 267
	345	+	Revenue Code; 268
	346	+	(xi) To the extent properly includable in gross income for federal 269
	347	+	income tax purposes, any amount rebated to a taxpayer pursuant to 270
	348	+	section 12-746; 271
	349	+	(xii) To the extent properly includable in the gross income for federal 272
	350	+	income tax purposes of a designated beneficiary, any distribution to 273
	351	+	such beneficiary from any qualified state tuition program, as defined in 274
	352	+	Section 529(b) of the Internal Revenue Code, established and 275
	353	+	maintained by this state or any official, agency or instrumentality of the 276
	354	+	state; 277
	355	+	(xiii) To the extent allowable under section 12-701a, contributions to 278
	356	+	accounts established pursuant to any qualified state tuition program, as 279
	357	+	defined in Section 529(b) of the Internal Revenue Code, established and 280
	358	+	maintained by this state or any official, agency or instrumentality of the 281
	359	+	state; 282
	360	+	(xiv) To the extent properly includable in gross income for federal 283
	361	+	income tax purposes, the amount of any Holocaust victims' settlement 284
	362	+	payment received in the taxable year by a Holocaust victim; 285
	363	+	(xv) To the extent properly includable in the gross income for federal 286
	364	+	income tax purposes of a designated beneficiary, as defined in section 287
	365	+	3-123aa, interest, dividends or capital gains earned on contributions to 288
	366	+	accounts established for the designated beneficiary pursuant to the 289
	367	+	Raised Bill No. 6876
354	368
355	369
356		-	LCO 11 of 20
357	370
358		-	of indebtedness in connection with any reacquisition, after December 302
359		-	31, 2008, and before January 1, 2011, of an applicable debt instrument or 303
360		-	instruments, as those terms are defined in Section 108 of the Internal 304
361		-	Revenue Code, as amended by Section 1231 of the American Recovery 305
362		-	and Reinvestment Act of 2009, to the extent any such income was added 306
363		-	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 307
364		-	this subdivision in computing Connecticut adjusted gross income for a 308
365		-	preceding taxable year; 309
366		-	(xviii) To the extent not deductible in determining federal adjusted 310
367		-	gross income, the amount of any contribution to a manufacturing 311
368		-	reinvestment account established pursuant to section 32-9zz in the 312
369		-	taxable year that such contribution is made; 313
370		-	(xix) To the extent properly includable in gross income for federal 314
371		-	income tax purposes, (I) for the taxable year commencing January 1, 315
372		-	2015, ten per cent of the income received from the state teachers' 316
373		-	retirement system, (II) for the taxable years commencing January 1, 317
374		-	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 318
375		-	received from the state teachers' retirement system, and (III) for the 319
376		-	taxable year commencing January 1, 2021, and each taxable year 320
377		-	thereafter, fifty per cent of the income received from the state teachers' 321
378		-	retirement system or, for a taxpayer whose federal adjusted gross 322
379		-	income does not exceed the applicable threshold under clause (xx) of 323
380		-	this subparagraph, the percentage pursuant to said clause of the income 324
381		-	received from the state teachers' retirement system, whichever 325
382		-	deduction is greater; 326
383		-	(xx) To the extent properly includable in gross income for federal 327
384		-	income tax purposes, except for retirement benefits under clause (iv) of 328
385		-	this subparagraph and retirement pay under clause (xvi) of this 329
386		-	subparagraph, for a person who files a return under the federal income 330
387		-	tax as an unmarried individual whose federal adjusted gross income for 331
388		-	such taxable year is less than seventy-five thousand dollars, or as a 332
389		-	married individual filing separately whose federal adjusted gross 333
390		-	income for such taxable year is less than seventy-five thousand dollars, 334 Substitute Bill No. 6876
	371	+	LCO No. 3807 11 of 21
	372	+
	373	+	Connecticut Homecare Option Program for the Elderly established by 290
	374	+	sections 3-123aa to 3-123ff, inclusive; 291
	375	+	(xvi) To the extent properly includable in gross income for federal 292
	376	+	income tax purposes, any income received from the United States 293
	377	+	government as retirement pay for a retired member of (I) the Armed 294
	378	+	Forces of the United States, as defined in Section 101 of Title 10 of the 295
	379	+	United States Code, or (II) the National Guard, as defined in Section 101 296
	380	+	of Title 10 of the United States Code; 297
	381	+	(xvii) To the extent properly includable in gross income for federal 298
	382	+	income tax purposes for the taxable year, any income from the discharge 299
	383	+	of indebtedness in connection with any reacquisition, after December 300
	384	+	31, 2008, and before January 1, 2011, of an applicable debt instrument or 301
	385	+	instruments, as those terms are defined in Section 108 of the Internal 302
	386	+	Revenue Code, as amended by Section 1231 of the American Recovery 303
	387	+	and Reinvestment Act of 2009, to the extent any such income was added 304
	388	+	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 305
	389	+	this subdivision in computing Connecticut adjusted gross income for a 306
	390	+	preceding taxable year; 307
	391	+	(xviii) To the extent not deductible in determining federal adjusted 308
	392	+	gross income, the amount of any contribution to a manufacturing 309
	393	+	reinvestment account established pursuant to section 32-9zz in the 310
	394	+	taxable year that such contribution is made; 311
	395	+	(xix) To the extent properly includable in gross income for federal 312
	396	+	income tax purposes, (I) for the taxable year commencing January 1, 313
	397	+	2015, ten per cent of the income received from the state teachers' 314
	398	+	retirement system, (II) for the taxable years commencing January 1, 315
	399	+	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 316
	400	+	received from the state teachers' retirement system, and (III) for the 317
	401	+	taxable year commencing January 1, 2021, and each taxable year 318
	402	+	thereafter, fifty per cent of the income received from the state teachers' 319
	403	+	retirement system or, for a taxpayer whose federal adjusted gross 320
	404	+	Raised Bill No. 6876
391	405
392	406
393		-	LCO 12 of 20
394	407
395		-	or as a head of household whose federal adjusted gross income for such 335
396		-	taxable year is less than seventy-five thousand dollars, or for a husband 336
397		-	and wife who file a return under the federal income tax as married 337
398		-	individuals filing jointly whose federal adjusted gross income for such 338
399		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 339
400		-	year commencing January 1, 2019, fourteen per cent of any pension or 340
401		-	annuity income, (II) for the taxable year commencing January 1, 2020, 341
402		-	twenty-eight per cent of any pension or annuity income, (III) for the 342
403		-	taxable year commencing January 1, 2021, forty-two per cent of any 343
404		-	pension or annuity income, and (IV) for the taxable years commencing 344
405		-	January 1, 2022, and January 1, 2023, one hundred per cent of any 345
406		-	pension or annuity income; 346
407		-	(xxi) To the extent properly includable in gross income for federal 347
408		-	income tax purposes, except for retirement benefits under clause (iv) of 348
409		-	this subparagraph and retirement pay under clause (xvi) of this 349
410		-	subparagraph, any pension or annuity income for the taxable year 350
411		-	commencing on or after January 1, 2024, and each taxable year 351
412		-	thereafter, in accordance with the following schedule, for a person who 352
413		-	files a return under the federal income tax as an unmarried individual 353
414		-	whose federal adjusted gross income for such taxable year is less than 354
415		-	one hundred thousand dollars, or as a married individual filing 355
416		-	separately whose federal adjusted gross income for such taxable year is 356
417		-	less than one hundred thousand dollars, or as a head of household 357
418		-	whose federal adjusted gross income for such taxable year is less than 358
419		-	one hundred thousand dollars: 359
	408	+	LCO No. 3807 12 of 21
	409	+
	410	+	income does not exceed the applicable threshold under clause (xx) of 321
	411	+	this subparagraph, the percentage pursuant to said clause of the income 322
	412	+	received from the state teachers' retirement system, whichever 323
	413	+	deduction is greater; 324
	414	+	(xx) To the extent properly includable in gross income for federal 325
	415	+	income tax purposes, except for retirement benefits under clause (iv) of 326
	416	+	this subparagraph and retirement pay under clause (xvi) of this 327
	417	+	subparagraph, for a person who files a return under the federal income 328
	418	+	tax as an unmarried individual whose federal adjusted gross income for 329
	419	+	such taxable year is less than seventy-five thousand dollars, or as a 330
	420	+	married individual filing separately whose federal adjusted gross 331
	421	+	income for such taxable year is less than seventy-five thousand dollars, 332
	422	+	or as a head of household whose federal adjusted gross income for such 333
	423	+	taxable year is less than seventy-five thousand dollars, or for a husband 334
	424	+	and wife who file a return under the federal income tax as married 335
	425	+	individuals filing jointly whose federal adjusted gross income for such 336
	426	+	taxable year is less than one hundred thousand dollars, (I) for the taxable 337
	427	+	year commencing January 1, 2019, fourteen per cent of any pension or 338
	428	+	annuity income, (II) for the taxable year commencing January 1, 2020, 339
	429	+	twenty-eight per cent of any pension or annuity income, (III) for the 340
	430	+	taxable year commencing January 1, 2021, forty-two per cent of any 341
	431	+	pension or annuity income, and (IV) for the taxable years commencing 342
	432	+	January 1, 2022, and January 1, 2023, one hundred per cent of any 343
	433	+	pension or annuity income; 344
	434	+	(xxi) To the extent properly includable in gross income for federal 345
	435	+	income tax purposes, except for retirement benefits under clause (iv) of 346
	436	+	this subparagraph and retirement pay under clause (xvi) of this 347
	437	+	subparagraph, any pension or annuity income for the taxable year 348
	438	+	commencing on or after January 1, 2024, and each taxable year 349
	439	+	thereafter, in accordance with the following schedule, for a person who 350
	440	+	files a return under the federal income tax as an unmarried individual 351
	441	+	whose federal adjusted gross income for such taxable year is less than 352
	442	+	one hundred thousand dollars, or as a married individual filing 353
	443	+	Raised Bill No. 6876
	444	+
	445	+
	446	+
	447	+	LCO No. 3807 13 of 21
	448	+
	449	+	separately whose federal adjusted gross income for such taxable year is 354
	450	+	less than one hundred thousand dollars, or as a head of household 355
	451	+	whose federal adjusted gross income for such taxable year is less than 356
	452	+	one hundred thousand dollars: 357
420	453		T1
421	454		Federal Adjusted Gross Income Deduction
422	455		T2
423	456		Less than $75,000 100.0%
424	457		T3
425	458		$75,000 but not over $77,499 85.0%
426	459		T4
427	460		$77,500 but not over $79,999 70.0%
428	461		T5
429	462		$80,000 but not over $82,499 55.0%
430		-	T6
431		-	$82,500 but not over $84,999 40.0%
	463	+	T6 $82,500 but not over $84,999 40.0%
432	464		T7
433	465		$85,000 but not over $87,499 25.0%
434		-	T8 $87,500 but not over $89,999 10.0% Substitute Bill No. 6876
435		-
436		-
437		-	LCO 13 of 20
438		-
	466	+	T8
	467	+	$87,500 but not over $89,999 10.0%
439	468		T9
440	469		$90,000 but not over $94,999 5.0%
441	470		T10
442	471		$95,000 but not over $99,999 2.5%
443	472		T11
444	473		$100,000 and over 0.0%
445	474
446		-	(xxii) To the extent properly includable in gross income for federal ~~360~~
447		-	income tax purposes, except for retirement benefits under clause (iv) of ~~361~~
448		-	this subparagraph and retirement pay under clause (xvi) of this ~~362~~
449		-	subparagraph, any pension or annuity income for the taxable year ~~363~~
450		-	commencing on or after January 1, 2024, and each taxable year ~~364~~
451		-	thereafter, in accordance with the following schedule for married ~~365~~
452		-	individuals who file a return under the federal income tax as married ~~366~~
453		-	individuals filing jointly whose federal adjusted gross income for such ~~367~~
454		-	taxable year is less than one hundred fifty thousand dollars: ~~368~~
	475	+	(xxii) To the extent properly includable in gross income for federal 358
	476	+	income tax purposes, except for retirement benefits under clause (iv) of 359
	477	+	this subparagraph and retirement pay under clause (xvi) of this 360
	478	+	subparagraph, any pension or annuity income for the taxable year 361
	479	+	commencing on or after January 1, 2024, and each taxable year 362
	480	+	thereafter, in accordance with the following schedule for married 363
	481	+	individuals who file a return under the federal income tax as married 364
	482	+	individuals filing jointly whose federal adjusted gross income for such 365
	483	+	taxable year is less than one hundred fifty thousand dollars: 366
455	484		T12
456	485		Federal Adjusted Gross Income Deduction
457	486		T13
458	487		Less than $100,000 100.0%
459	488		T14 $100,000 but not over $104,999 85.0%
460		-	T15 $105,000 but not over $109,999 70.0%
	489	+	T15
	490	+	$105,000 but not over $109,999 70.0%
461	491		T16
462	492		$110,000 but not over $114,999 55.0%
463	493		T17
464	494		$115,000 but not over $119,999 40.0%
465		-	T18
466		-	$120,000 but not over $124,999 25.0%
	495	+	Raised Bill No. 6876
	496	+
	497	+
	498	+
	499	+	LCO No. 3807 14 of 21
	500	+
	501	+	T18 $120,000 but not over $124,999 25.0%
467	502		T19
468	503		$125,000 but not over $129,999 10.0%
469	504		T20
470	505		$130,000 but not over $139,999 5.0%
471	506		T21
472	507		$140,000 but not over $149,999 2.5%
473	508		T22
474	509		$150,000 and over 0.0%
475	510
476		-	(xxiii) The amount of lost wages and medical, travel and housing 369
477		-	expenses, not to exceed ten thousand dollars in the aggregate, incurred 370
478		-	by a taxpayer during the taxable year in connection with the donation 371
479		-	to another person of an organ for organ transplantation occurring on or 372
480		-	after January 1, 2017; 373
481		-	(xxiv) To the extent properly includable in gross income for federal 374
482		-	income tax purposes, the amount of any financial assistance received 375
483		-	from the Crumbling Foundations Assistance Fund or paid to or on 376
484		-	behalf of the owner of a residential building pursuant to sections 8-442 377 Substitute Bill No. 6876
	511	+	(xxiii) The amount of lost wages and medical, travel and housing 367
	512	+	expenses, not to exceed ten thousand dollars in the aggregate, incurred 368
	513	+	by a taxpayer during the taxable year in connection with the donation 369
	514	+	to another person of an organ for organ transplantation occurring on or 370
	515	+	after January 1, 2017; 371
	516	+	(xxiv) To the extent properly includable in gross income for federal 372
	517	+	income tax purposes, the amount of any financial assistance received 373
	518	+	from the Crumbling Foundations Assistance Fund or paid to or on 374
	519	+	behalf of the owner of a residential building pursuant to sections 8-442 375
	520	+	and 8-443; 376
	521	+	(xxv) To the extent properly includable in gross income for federal 377
	522	+	income tax purposes, the amount calculated pursuant to subsection (b) 378
	523	+	of section 12-704g for income received by a general partner of a venture 379
	524	+	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 380
	525	+	time; 381
	526	+	(xxvi) To the extent any portion of a deduction under Section 179 of 382
	527	+	the Internal Revenue Code was added to federal adjusted gross income 383
	528	+	pursuant to subparagraph (A)(xiv) of this subdivision in computing 384
	529	+	Connecticut adjusted gross income, twenty-five per cent of such 385
	530	+	disallowed portion of the deduction in each of the four succeeding 386
	531	+	taxable years; 387
	532	+	(xxvii) To the extent properly includable in gross income for federal 388
	533	+	income tax purposes, for a person who files a return under the federal 389
	534	+	income tax as an unmarried individual whose federal adjusted gross 390
	535	+	income for such taxable year is less than seventy-five thousand dollars, 391
	536	+	Raised Bill No. 6876
485	537
486	538
487		-	LCO 14 of 20
488	539
489		-	and 8-443; 378
490		-	(xxv) To the extent properly includable in gross income for federal 379
491		-	income tax purposes, the amount calculated pursuant to subsection (b) 380
492		-	of section 12-704g for income received by a general partner of a venture 381
493		-	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 382
494		-	time; 383
495		-	(xxvi) To the extent any portion of a deduction under Section 179 of 384
496		-	the Internal Revenue Code was added to federal adjusted gross income 385
497		-	pursuant to subparagraph (A)(xiv) of this subdivision in computing 386
498		-	Connecticut adjusted gross income, twenty-five per cent of such 387
499		-	disallowed portion of the deduction in each of the four succeeding 388
500		-	taxable years; 389
501		-	(xxvii) To the extent properly includable in gross income for federal 390
502		-	income tax purposes, for a person who files a return under the federal 391
503		-	income tax as an unmarried individual whose federal adjusted gross 392
	540	+	LCO No. 3807 15 of 21
	541	+
	542	+	or as a married individual filing separately whose federal adjusted gross 392
504	543		income for such taxable year is less than seventy-five thousand dollars, 393
505		-	or as a ~~married individual filing separately~~ whose federal adjusted gross 394
506		-	~~income for such~~ taxable year is less than seventy-five thousand dollars, 395
507		-	or as ~~a head of household whose federal adjusted gross income for such~~ 396
508		-	~~taxable year is less than seventy-five~~ ~~thousand dollars, or~~ for ~~a husband~~ 397
509		-	~~and wife who file a return under~~ the ~~federal income tax as married~~ 398
510		-	~~individuals filing jointly whose federal adjusted gross income for such~~ 399
511		-	~~taxable year is less~~ than ~~one hundred thousand dollars, for the taxable~~ 400
512		-	~~year commencing January 1, 2023, twenty-five per cent of any~~ 401
513		-	~~distribution from an individual retirement account other than a Roth~~ 402
514		-	~~individual retirement account;~~ 403
515		-	~~(xxviii) To the extent properly includable in~~ gross ~~income for federal~~ 404
516		-	income ~~tax purposes,~~ for ~~a person who files a return under the federal~~ 405
517		-	~~income tax~~ as ~~an unmarried~~ individual whose federal adjusted gross 406
	544	+	or as a head of household whose federal adjusted gross income for such 394
	545	+	taxable year is less than seventy-five thousand dollars, or for a husband 395
	546	+	and wife who file a return under the federal income tax as married 396
	547	+	individuals filing jointly whose federal adjusted gross income for such 397
	548	+	taxable year is less than one hundred thousand dollars, for the taxable 398
	549	+	year commencing January 1, 2023, twenty-five per cent of any 399
	550	+	distribution from an individual retirement account other than a Roth 400
	551	+	individual retirement account; 401
	552	+	(xxviii) To the extent properly includable in gross income for federal 402
	553	+	income tax purposes, for a person who files a return under the federal 403
	554	+	income tax as an unmarried individual whose federal adjusted gross 404
	555	+	income for such taxable year is less than one hundred thousand dollars, 405
	556	+	or as a married individual filing separately whose federal adjusted gross 406
518	557		income for such taxable year is less than one hundred thousand dollars, 407
519		-	or as a married individual filing separately whose federal adjusted gross 408
520		-	income for such taxable year is less than one hundred thousand dollars, 409 Substitute Bill No. 6876
521		-
522		-
523		-	LCO 15 of 20
524		-
525		-	or as a head of household whose federal adjusted gross income for such 410
526		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 411
527		-	year commencing January 1, 2024, fifty per cent of any distribution from 412
528		-	an individual retirement account other than a Roth individual 413
529		-	retirement account, (II) for the taxable year commencing January 1, 2025, 414
530		-	seventy-five per cent of any distribution from an individual retirement 415
531		-	account other than a Roth individual retirement account, and (III) for 416
532		-	the taxable year commencing January 1, 2026, and each taxable year 417
533		-	thereafter, any distribution from an individual retirement account other 418
534		-	than a Roth individual retirement account. The subtraction under this 419
535		-	clause shall be made in accordance with the following schedule: 420
	558	+	or as a head of household whose federal adjusted gross income for such 408
	559	+	taxable year is less than one hundred thousand dollars, (I) for the taxable 409
	560	+	year commencing January 1, 2024, fifty per cent of any distribution from 410
	561	+	an individual retirement account other than a Roth individual 411
	562	+	retirement account, (II) for the taxable year commencing January 1, 2025, 412
	563	+	seventy-five per cent of any distribution from an individual retirement 413
	564	+	account other than a Roth individual retirement account, and (III) for 414
	565	+	the taxable year commencing January 1, 2026, and each taxable year 415
	566	+	thereafter, any distribution from an individual retirement account other 416
	567	+	than a Roth individual retirement account. The subtraction under this 417
	568	+	clause shall be made in accordance with the following schedule: 418
536	569		T23
537	570		Federal Adjusted Gross Income Deduction
538	571		T24
539	572		Less than $75,000 100.0%
540	573		T25
541	574		$75,000 but not over $77,499 85.0%
542	575		T26
543	576		$77,500 but not over $79,999 70.0%
544	577		T27
545	578		$80,000 but not over $82,499 55.0%
546		-	T28
547		-	$82,500 but not over $84,999 40.0%
548		-	T29 $85,000 but not over $87,499 25.0%
	579	+	Raised Bill No. 6876
	580	+
	581	+
	582	+
	583	+	LCO No. 3807 16 of 21
	584	+
	585	+	T28 $82,500 but not over $84,999 40.0%
	586	+	T29
	587	+	$85,000 but not over $87,499 25.0%
549	588		T30
550	589		$87,500 but not over $89,999 10.0%
551	590		T31
552	591		$90,000 but not over $94,999 5.0%
553	592		T32
554	593		$95,000 but not over $99,999 2.5%
555	594		T33
556	595		$100,000 and over 0.0%
557	596
558		-	(xxix) To the extent properly includable in gross income for federal 421
559		-	income tax purposes, for married individuals who file a return under 422
560		-	the federal income tax as married individuals filing jointly whose 423
561		-	federal adjusted gross income for such taxable year is less than one 424
562		-	hundred fifty thousand dollars, (I) for the taxable year commencing 425
563		-	January 1, 2024, fifty per cent of any distribution from an individual 426
564		-	retirement account other than a Roth individual retirement account, (II) 427
565		-	for the taxable year commencing January 1, 2025, seventy-five per cent 428
566		-	of any distribution from an individual retirement account other than a 429
567		-	Roth individual retirement account, and (III) for the taxable year 430
568		-	commencing January 1, 2026, and each taxable year thereafter, any 431 Substitute Bill No. 6876
569		-
570		-
571		-	LCO 16 of 20
572		-
573		-	distribution from an individual retirement account other than a Roth 432
574		-	individual retirement account. The subtraction under this clause shall 433
575		-	be made in accordance with the following schedule: 434
	597	+	(xxix) To the extent properly includable in gross income for federal 419
	598	+	income tax purposes, for married individuals who file a return under 420
	599	+	the federal income tax as married individuals filing jointly whose 421
	600	+	federal adjusted gross income for such taxable year is less than one 422
	601	+	hundred fifty thousand dollars, (I) for the taxable year commencing 423
	602	+	January 1, 2024, fifty per cent of any distribution from an individual 424
	603	+	retirement account other than a Roth individual retirement account, (II) 425
	604	+	for the taxable year commencing January 1, 2025, seventy-five per cent 426
	605	+	of any distribution from an individual retirement account other than a 427
	606	+	Roth individual retirement account, and (III) for the taxable year 428
	607	+	commencing January 1, 2026, and each taxable year thereafter, any 429
	608	+	distribution from an individual retirement account other than a Roth 430
	609	+	individual retirement account. The subtraction under this clause shall 431
	610	+	be made in accordance with the following schedule: 432
576	611		T34
577	612		Federal Adjusted Gross Income Deduction
578	613		T35
579	614		Less than $100,000 100.0%
580	615		T36
581	616		$100,000 but not over $104,999 85.0%
582	617		T37
583	618		$105,000 but not over $109,999 70.0%
584	619		T38
585	620		$110,000 but not over $114,999 55.0%
586	621		T39 $115,000 but not over $119,999 40.0%
587		-	T40 $120,000 but not over $124,999 25.0%
	622	+	T40
	623	+	$120,000 but not over $124,999 25.0%
588	624		T41
589	625		$125,000 but not over $129,999 10.0%
590	626		T42
591	627		$130,000 but not over $139,999 5.0%
592	628		T43
593	629		$140,000 but not over $149,999 2.5%
594	630		T44
595	631		$150,000 and over 0.0%
596		-
597		-	(xxx) To the extent properly includable in gross income for federal 435
598		-	income tax purposes, for the taxable year commencing January 1, 2022, 436
599		-	the amount or amounts paid or otherwise credited to any eligible 437
600		-	resident of this state under (I) the 2020 Earned Income Tax Credit 438
601		-	enhancement program from funding allocated to the state through the 439
602		-	Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 440
603		-	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 441
604		-	Income Tax Credit enhancement program from funding allocated to the 442
605		-	state pursuant to Section 9901 of Subtitle M of Title IX of the American 443
606		-	Rescue Plan Act of 2021, P.L. 117-2; 444
607		-	(xxxi) For the taxable year commencing January 1, 2023, and each 445
608		-	taxable year thereafter, for a taxpayer licensed under the provisions of 446
609		-	chapter 420f or 420h, the amount of ordinary and necessary expenses 447
610		-	that would be eligible to be claimed as a deduction for federal income 448
611		-	tax purposes under Section 162(a) of the Internal Revenue Code but that 449
612		-	are disallowed under Section 280E of the Internal Revenue Code 450
613		-	because marijuana is a controlled substance under the federal 451
614		-	Controlled Substance Act; 452 Substitute Bill No. 6876
	632	+	Raised Bill No. 6876
615	633
616	634
617		-	LCO 17 of 20
618	635
619		-	(xxxii) To the extent properly includable in gross income for federal 453
620		-	income tax purposes, for the taxable year commencing on or after 454
621		-	January 1, 2025, and each taxable year thereafter, any common stock 455
622		-	received by the taxpayer during the taxable year under a share plan, as 456
623		-	defined in section 12-217ss; 457
624		-	(xxxiii) To the extent properly includable in gross income for federal 458
625		-	income tax purposes, the amount of any student loan reimbursement 459
626		-	payment received by a taxpayer pursuant to section 10a-19m; 460
627		-	(xxxiv) Contributions to an ABLE account established pursuant to 461
628		-	sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 462
629		-	each individual taxpayer or ten thousand dollars for taxpayers filing a 463
630		-	joint return; [and] 464
631		-	(xxxv) To the extent properly includable in gross income for federal 465
632		-	income tax purposes, the amount of any payment received pursuant to 466
633		-	subsection (c) of section 3-122a; 467
634		-	(xxxvi) For an account holder, as defined in section 1 of this act, who 468
635		-	files a return under the federal income tax as an unmarried individual, 469
636		-	a married individual filing separately or a head of household, whose 470
637		-	federal adjusted gross income for the taxable year is less than one 471
638		-	hundred thousand dollars or who files a return under the federal 472
639		-	income tax as married individuals filing jointly whose federal adjusted 473
640		-	gross income for the taxable year is less than two hundred thousand 474
641		-	dollars: 475
642		-	(I) To the extent not deductible in determining federal adjusted gross 476
643		-	income, for the taxable year commencing January 1, 2027, an amount 477
644		-	equal to the contributions deposited during the taxable years 478
645		-	commencing January 1, 2026, and January 1, 2027, in a first-time 479
646		-	homebuyer savings account established pursuant to subsection (c) of 480
647		-	section 1 of this act, less any amounts withdrawn during said taxable 481
648		-	years by the account holder from such account under subparagraph (D) 482
649		-	of subdivision (2) of subsection (f) of section 1 of this act. The amount 483
650		-	claimed under this subclause shall not exceed two thousand five 484 Substitute Bill No. 6876
	636	+	LCO No. 3807 17 of 21
651	637
652	638
653		-	LCO 18 of 20
654		-
655		-	hundred dollars for each such taxable year for an unmarried individual, 485
656		-	a married individual filing separately or a head of household and five 486
657		-	thousand dollars for each such taxable year for married individuals 487
658		-	filing jointly; 488
659		-	(II) To the extent not deductible in determining federal adjusted gross 489
660		-	income, for the taxable year commencing January 1, 2028, and each 490
661		-	taxable year thereafter, an amount equal to the contributions deposited 491
662		-	during the taxable year in a first-time homebuyer savings account 492
663		-	established pursuant to subsection (c) of section 1 of this act, less any 493
664		-	amounts withdrawn during the taxable year by the account holder from 494
665		-	such account pursuant to subparagraph (D) of subdivision (2) of 495
666		-	subsection (f) of section 1 of this act. The amount allowed to be claimed 496
667		-	under this subclause for the taxable year shall not exceed two thousand 497
668		-	five hundred dollars for an unmarried individual, a married individual 498
669		-	filing separately or a head of household and five thousand dollars for 499
670		-	married individuals filing jointly; and 500
671		-	(III) To the extent properly includable in gross income for federal 501
672		-	income tax purposes, for the taxable year commencing January 1, 2027, 502
673		-	and each taxable year thereafter, an amount equal to the sum of all 503
674		-	interest accrued on a first-time homebuyer savings account, established 504
675		-	pursuant to subsection (c) of section 1 of this act, during the taxable year; 505
676		-	and 506
677		-	(xxxvii) To the extent properly includable in gross income for federal 507
678		-	income tax purposes, for an account holder who is a qualified 508
679		-	beneficiary of a first-time homebuyer savings account, as those terms 509
680		-	are defined in section 1 of this act, and who files a return under the 510
681		-	federal income tax as an unmarried individual, a married individual 511
682		-	filing separately or a head of household, whose federal adjusted gross 512
683		-	income for the taxable year is less than one hundred thousand dollars 513
684		-	or who files a return under the federal income tax as married individuals 514
685		-	filing jointly whose federal adjusted gross income for the taxable year is 515
686		-	less than two hundred thousand dollars, for taxable years commencing 516
687		-	on or after January 1, 2027, an amount equal to any withdrawal from 517 Substitute Bill No. 6876
	639	+	(xxx) To the extent properly includable in gross income for federal 433
	640	+	income tax purposes, for the taxable year commencing January 1, 2022, 434
	641	+	the amount or amounts paid or otherwise credited to any eligible 435
	642	+	resident of this state under (I) the 2020 Earned Income Tax Credit 436
	643	+	enhancement program from funding allocated to the state through the 437
	644	+	Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 438
	645	+	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 439
	646	+	Income Tax Credit enhancement program from funding allocated to the 440
	647	+	state pursuant to Section 9901 of Subtitle M of Title IX of the American 441
	648	+	Rescue Plan Act of 2021, P.L. 117-2; 442
	649	+	(xxxi) For the taxable year commencing January 1, 2023, and each 443
	650	+	taxable year thereafter, for a taxpayer licensed under the provisions of 444
	651	+	chapter 420f or 420h, the amount of ordinary and necessary expenses 445
	652	+	that would be eligible to be claimed as a deduction for federal income 446
	653	+	tax purposes under Section 162(a) of the Internal Revenue Code but that 447
	654	+	are disallowed under Section 280E of the Internal Revenue Code 448
	655	+	because marijuana is a controlled substance under the federal 449
	656	+	Controlled Substance Act; 450
	657	+	(xxxii) To the extent properly includable in gross income for federal 451
	658	+	income tax purposes, for the taxable year commencing on or after 452
	659	+	January 1, 2025, and each taxable year thereafter, any common stock 453
	660	+	received by the taxpayer during the taxable year under a share plan, as 454
	661	+	defined in section 12-217ss; 455
	662	+	(xxxiii) To the extent properly includable in gross income for federal 456
	663	+	income tax purposes, the amount of any student loan reimbursement 457
	664	+	payment received by a taxpayer pursuant to section 10a-19m; 458
	665	+	(xxxiv) Contributions to an ABLE account established pursuant to 459
	666	+	sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 460
	667	+	each individual taxpayer or ten thousand dollars for taxpayers filing a 461
	668	+	joint return; [and] 462
	669	+	Raised Bill No. 6876
688	670
689	671
690		-	LCO 19 of 20
691	672
692		-	such account that is used to pay or reimburse such qualified beneficiary 518
693		-	for eligible costs, as defined in section 1 of this act, incurred by the 519
694		-	qualified beneficiary. 520
695		-	Sec. 3. (NEW) (Effective January 1, 2026) (a) (1) For the taxable or 521
696		-	income year commencing on or after January 1, 2027, but prior to 522
697		-	January 1, 2028, there shall be allowed a credit against the tax imposed 523
698		-	under chapter 208 or 229 of the general statutes, other than the liability 524
699		-	imposed by section 12-707 of the general statutes, for contributions 525
700		-	deposited by the employer of an account holder in a first-time 526
701		-	homebuyer savings account established pursuant to subsection (c) of 527
702		-	section 1 of this act during the taxable or income years commencing on 528
703		-	or after January 1, 2026, but prior to January 1, 2028, provided such 529
704		-	account holder was employed by such employer at the time such 530
705		-	contributions were made. 531
706		-	(2) For the taxable or income years commencing on or after January 532
707		-	1, 2028, there shall be allowed a credit against the tax imposed under 533
708		-	chapter 208 or 229 of the general statutes, other than the liability 534
709		-	imposed by section 12-707 of the general statutes, for contributions 535
710		-	deposited by the employer of an account holder in a first-time 536
711		-	homebuyer savings account established pursuant to subsection (c) of 537
712		-	section 1 of this act during the taxable or income year, provided such 538
713		-	account holder was employed by such employer at the time such 539
714		-	contributions were made. 540
715		-	(3) The amount of the credit allowed under subdivisions (1) and (2) 541
716		-	of this subsection shall be equal to ten per cent of the amount of the 542
717		-	contributions made by the taxpayer into the first-time homebuyer 543
718		-	savings accounts of account holders of such accounts during the income 544
719		-	or taxable year, provided the amount of the credit allowed for any 545
720		-	income or taxable year with respect to a specific account holder shall not 546
721		-	exceed two thousand five hundred dollars. 547
722		-	(b) If the taxpayer is an S corporation or an entity treated as a 548
723		-	partnership for federal income tax purposes, the credit may be claimed 549 Substitute Bill No. 6876
	673	+	LCO No. 3807 18 of 21
	674	+
	675	+	(xxxv) To the extent properly includable in gross income for federal 463
	676	+	income tax purposes, the amount of any payment received pursuant to 464
	677	+	subsection (c) of section 3-122a; 465
	678	+	(xxxvi) For an account holder, as defined in section 1 of this act, who 466
	679	+	files a return under the federal income tax as an unmarried individual, 467
	680	+	a married individual filing separately or a head of household, whose 468
	681	+	federal adjusted gross income for the taxable year is less than one 469
	682	+	hundred thousand dollars or who files a return under the federal 470
	683	+	income tax as married individuals filing jointly whose federal adjusted 471
	684	+	gross income for the taxable year is less than two hundred thousand 472
	685	+	dollars: 473
	686	+	(I) To the extent not deductible in determining federal adjusted gross 474
	687	+	income, for the taxable year commencing January 1, 2027, an amount 475
	688	+	equal to the contributions deposited during the taxable years 476
	689	+	commencing January 1, 2026, and January 1, 2027, in a first-time 477
	690	+	homebuyer savings account established pursuant to subsection (c) of 478
	691	+	section 1 of this act, less any amounts withdrawn during said taxable 479
	692	+	years by the account holder from such account under subparagraph (D) 480
	693	+	of subdivision (2) of subsection (f) of section 1 of this act. The amount 481
	694	+	claimed under this subclause shall not exceed two thousand five 482
	695	+	hundred dollars for each such taxable year for an unmarried individual, 483
	696	+	a married individual filing separately or a head of household and five 484
	697	+	thousand dollars for each such taxable year for married individuals 485
	698	+	filing jointly; 486
	699	+	(II) To the extent not deductible in determining federal adjusted gross 487
	700	+	income, for the taxable year commencing January 1, 2028, and each 488
	701	+	taxable year thereafter, an amount equal to the contributions deposited 489
	702	+	during the taxable year in a first-time homebuyer savings account 490
	703	+	established pursuant to subsection (c) of section 1 of this act, less any 491
	704	+	amounts withdrawn during the taxable year by the account holder from 492
	705	+	such account pursuant to subparagraph (D) of subdivision (2) of 493
	706	+	subsection (f) of section 1 of this act. The amount allowed to be claimed 494
	707	+	Raised Bill No. 6876
724	708
725	709
726		-	LCO 20 of 20
727	710
728		-	by the shareholders or partners of the taxpayer. If the taxpayer is a single 550
729		-	member limited liability company that is disregarded as an entity 551
730		-	separate from its owner, the credit may be claimed by such limited 552
731		-	liability company's owner, provided such owner is a person subject to 553
732		-	the tax imposed under chapter 208 or 229 of the general statutes. Any 554
733		-	taxpayer claiming the credit shall provide to the Department of Revenue 555
734		-	Services documentation supporting such claim in the form and manner 556
735		-	prescribed by the Commissioner of Revenue Services. 557
	711	+	LCO No. 3807 19 of 21
	712	+
	713	+	under this subclause for the taxable year shall not exceed two thousand 495
	714	+	five hundred dollars for an unmarried individual, a married individual 496
	715	+	filing separately or a head of household and five thousand dollars for 497
	716	+	married individuals filing jointly; and 498
	717	+	(III) To the extent properly includable in gross income for federal 499
	718	+	income tax purposes, for the taxable year commencing January 1, 2027, 500
	719	+	and each taxable year thereafter, an amount equal to the sum of all 501
	720	+	interest accrued on a first-time homebuyer savings account, established 502
	721	+	pursuant to subsection (c) of section 1 of this act, during the taxable year; 503
	722	+	and 504
	723	+	(xxxvii) To the extent properly includable in gross income for federal 505
	724	+	income tax purposes, for an account holder who is a qualified 506
	725	+	beneficiary of a first-time homebuyer savings account, as those terms 507
	726	+	are defined in section 1 of this act, and who files a return under the 508
	727	+	federal income tax as an unmarried individual, a married individual 509
	728	+	filing separately or a head of household, whose federal adjusted gross 510
	729	+	income for the taxable year is less than one hundred thousand dollars 511
	730	+	or who files a return under the federal income tax as married individuals 512
	731	+	filing jointly whose federal adjusted gross income for the taxable year is 513
	732	+	less than two hundred thousand dollars, for taxable years commencing 514
	733	+	on or after January 1, 2027, an amount equal to any withdrawal from 515
	734	+	such account that is used to pay or reimburse such qualified beneficiary 516
	735	+	for eligible costs, as defined in section 1 of this act, incurred by the 517
	736	+	qualified beneficiary. 518
	737	+	Sec. 3. (NEW) (Effective January 1, 2026) (a) (1) For the taxable or 519
	738	+	income year commencing on or after January 1, 2027, but prior to 520
	739	+	January 1, 2028, there shall be allowed a credit against the tax imposed 521
	740	+	under chapter 208 or 229 of the general statutes, other than the liability 522
	741	+	imposed by section 12-707 of the general statutes, for contributions 523
	742	+	deposited by the employer of an account holder in a first-time 524
	743	+	homebuyer savings account established pursuant to subsection (c) of 525
	744	+	section 1 of this act during the taxable or income years commencing on 526
	745	+	Raised Bill No. 6876
	746	+
	747	+
	748	+
	749	+	LCO No. 3807 20 of 21
	750	+
	751	+	or after January 1, 2026, but prior to January 1, 2028, provided such 527
	752	+	account holder was employed by such employer at the time such 528
	753	+	contributions were made. 529
	754	+	(2) For the taxable or income years commencing on or after January 530
	755	+	1, 2028, there shall be allowed a credit against the tax imposed under 531
	756	+	chapter 208 or 229 of the general statutes, other than the liability 532
	757	+	imposed by section 12-707 of the general statutes, for contributions 533
	758	+	deposited by the employer of an account holder in a first-time 534
	759	+	homebuyer savings account established pursuant to subsection (c) of 535
	760	+	section 1 of this act during the taxable or income year, provided such 536
	761	+	account holder was employed by such employer at the time such 537
	762	+	contributions were made. 538
	763	+	(3) The amount of the credit allowed under subdivisions (1) and (2) 539
	764	+	of this subsection shall be equal to ten per cent of the amount of the 540
	765	+	contributions made by the taxpayer into the first-time homebuyer 541
	766	+	savings accounts of account holders of such accounts during the income 542
	767	+	or taxable year, provided the amount of the credit allowed for any 543
	768	+	income or taxable year with respect to a specific account holder shall not 544
	769	+	exceed two thousand five hundred dollars. 545
	770	+	(b) If the taxpayer is an S corporation or an entity treated as a 546
	771	+	partnership for federal income tax purposes, the credit may be claimed 547
	772	+	by the shareholders or partners of the taxpayer. If the taxpayer is a single 548
	773	+	member limited liability company that is disregarded as an entity 549
	774	+	separate from its owner, the credit may be claimed by such limited 550
	775	+	liability company's owner, provided such owner is a person subject to 551
	776	+	the tax imposed under chapter 208 or 229 of the general statutes. Any 552
	777	+	taxpayer claiming the credit shall provide to the Department of Revenue 553
	778	+	Services documentation supporting such claim in the form and manner 554
	779	+	prescribed by the Commissioner of Revenue Services. 555
	780	+	Sec. 4. (Effective from passage) Not later than July 1, 2026, the Treasurer 556
	781	+	shall make recommendations, in accordance with section 11-4a of the 557
	782	+	Raised Bill No. 6876
	783	+
	784	+
	785	+
	786	+	LCO No. 3807 21 of 21
	787	+
	788	+	general statutes, to the joint standing committee of the General 558
	789	+	Assembly having cognizance of matters relating to banking regarding 559
	790	+	whether and how marketable securities may be held in a first-time 560
	791	+	homebuyer savings account established pursuant to subsection (c) of 561
	792	+	section 1 of this act. 562
736	793		This act shall take effect as follows and shall amend the following
737	794		sections:
738	795
739	796		Section 1 January 1, 2026 New section
740	797		Sec. 2 January 1, 2026 12-701(a)(20)(B)
741	798		Sec. 3 January 1, 2026 New section
	799	+	Sec. 4 from passage New section
742	800
743		-	BA Joint Favorable Subst.
	801	+	Statement of Purpose:
	802	+	To establish a first-time homebuyer savings account and a related tax
	803	+	deduction and credit.
	804	+
	805	+	.[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	806	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	807	+	not underlined.]
744	808