LCO 5062 1 of 13
General Assembly Raised Bill No. 7055
January Session, 2025
LCO No. 5062
Referred to Committee on PUBLIC SAFETY AND SECURITY
Introduced by:
(PS)
AN ACT CONCERNING A MUNICIPAL TAX ABATEMENT FOR
SURVIVING DOMESTIC PARTNERS OF POLICE OFFICERS,
FIREFIGHTERS AND EMERGENCY MEDICAL TECHNICIANS AND
ALLOWING A PERSONAL INCOME TAX DEDUCTION FOR STIPENDS
PAID TO VOLUNTEER FIREFIGHTERS, VOLUNTEER FIRE POLICE
OFFICERS AND VOLUNTEER AMBULANCE ME MBERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-81x of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2025): 2
The legislative body of any municipality may establish, by ordinance, 3
a program to abate all or a portion of the property taxes due with respect 4
to real property owned and occupied as the principal residence of the 5
surviving spouse or domestic partner, as defined by such ordinance, of 6
a police officer, firefighter or emergency medical technician who dies 7
while in the performance of such officer's, firefighter's or technician's 8
duties. 9
Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 10
section 12-701 of the general statutes is repealed and the following is 11 Raised Bill No. 7055
LCO 5062 2 of 13
substituted in lieu thereof (Effective January 1, 2026, and applicable to 12
taxable years commencing on or after January 1, 2026): 13
(B) There shall be subtracted therefrom: 14
(i) To the extent properly includable in gross income for federal 15
income tax purposes, any income with respect to which taxation by any 16
state is prohibited by federal law; 17
(ii) To the extent allowable under section 12-718, exempt dividends 18
paid by a regulated investment company; 19
(iii) To the extent properly includable in gross income for federal 20
income tax purposes, the amount of any refund or credit for 21
overpayment of income taxes imposed by this state, or any other state 22
of the United States or a political subdivision thereof, or the District of 23
Columbia; 24
(iv) To the extent properly includable in gross income for federal 25
income tax purposes and not otherwise subtracted from federal 26
adjusted gross income pursuant to clause (x) of this subparagraph in 27
computing Connecticut adjusted gross income, any tier 1 railroad 28
retirement benefits; 29
(v) To the extent any additional allowance for depreciation under 30
Section 168(k) of the Internal Revenue Code for property placed in 31
service after September 27, 2017, was added to federal adjusted gross 32
income pursuant to subparagraph (A)(ix) of this subdivision in 33
computing Connecticut adjusted gross income, twenty-five per cent of 34
such additional allowance for depreciation in each of the four 35
succeeding taxable years; 36
(vi) To the extent properly includable in gross income for federal 37
income tax purposes, any interest income from obligations issued by or 38
on behalf of the state of Connecticut, any political subdivision thereof, 39
or public instrumentality, state or local authority, district or similar 40
public entity created under the laws of the state of Connecticut; 41 Raised Bill No. 7055
LCO 5062 3 of 13
(vii) To the extent properly includable in determining the net gain or 42
loss from the sale or other disposition of capital assets for federal income 43
tax purposes, any gain from the sale or exchange of obligations issued 44
by or on behalf of the state of Connecticut, any political subdivision 45
thereof, or public instrumentality, state or local authority, district or 46
similar public entity created under the laws of the state of Connecticut, 47
in the income year such gain was recognized; 48
(viii) Any interest on indebtedness incurred or continued to purchase 49
or carry obligations or securities the interest on which is subject to tax 50
under this chapter but exempt from federal income tax, to the extent that 51
such interest on indebtedness is not deductible in determining federal 52
adjusted gross income and is attributable to a trade or business carried 53
on by such individual; 54
(ix) Ordinary and necessary expenses paid or incurred during the 55
taxable year for the production or collection of income which is subject 56
to taxation under this chapter but exempt from federal income tax, or 57
the management, conservation or maintenance of property held for the 58
production of such income, and the amortizable bond premium for the 59
taxable year on any bond the interest on which is subject to tax under 60
this chapter but exempt from federal income tax, to the extent that such 61
expenses and premiums are not deductible in determining federal 62
adjusted gross income and are attributable to a trade or business carried 63
on by such individual; 64
(x) (I) For taxable years commencing prior to January 1, 2019, for a 65
person who files a return under the federal income tax as an unmarried 66
individual whose federal adjusted gross income for such taxable year is 67
less than fifty thousand dollars, or as a married individual filing 68
separately whose federal adjusted gross income for such taxable year is 69
less than fifty thousand dollars, or for a husband and wife who file a 70
return under the federal income tax as married individuals filing jointly 71
whose federal adjusted gross income for such taxable year is less than 72
sixty thousand dollars or a person who files a return under the federal 73
income tax as a head of household whose federal adjusted gross income 74 Raised Bill No. 7055
LCO 5062 4 of 13
for such taxable year is less than sixty thousand dollars, an amount 75
equal to the Social Security benefits includable for federal income tax 76
purposes; 77
(II) For taxable years commencing prior to January 1, 2019, for a 78
person who files a return under the federal income tax as an unmarried 79
individual whose federal adjusted gross income for such taxable year is 80
fifty thousand dollars or more, or as a married individual filing 81
separately whose federal adjusted gross income for such taxable year is 82
fifty thousand dollars or more, or for a husband and wife who file a 83
return under the federal income tax as married individuals filing jointly 84
whose federal adjusted gross income from such taxable year is sixty 85
thousand dollars or more or for a person who files a return under the 86
federal income tax as a head of household whose federal adjusted gross 87
income for such taxable year is sixty thousand dollars or more, an 88
amount equal to the difference between the amount of Social Security 89
benefits includable for federal income tax purposes and the lesser of 90
twenty-five per cent of the Social Security benefits received during the 91
taxable year, or twenty-five per cent of the excess described in Section 92
86(b)(1) of the Internal Revenue Code; 93
(III) For the taxable year commencing January 1, 2019, and each 94
taxable year thereafter, for a person who files a return under the federal 95
income tax as an unmarried individual whose federal adjusted gross 96
income for such taxable year is less than seventy-five thousand dollars, 97
or as a married individual filing separately whose federal adjusted gross 98
income for such taxable year is less than seventy-five thousand dollars, 99
or for a husband and wife who file a return under the federal income tax 100
as married individuals filing jointly whose federal adjusted gross 101
income for such taxable year is less than one hundred thousand dollars 102
or a person who files a return under the federal income tax as a head of 103
household whose federal adjusted gross income for such taxable year is 104
less than one hundred thousand dollars, an amount equal to the Social 105
Security benefits includable for federal income tax purposes; and 106
(IV) For the taxable year commencing January 1, 2019, and each 107 Raised Bill No. 7055
LCO 5062 5 of 13
taxable year thereafter, for a person who files a return under the federal 108
income tax as an unmarried individual whose federal adjusted gross 109
income for such taxable year is seventy-five thousand dollars or more, 110
or as a married individual filing separately whose federal adjusted gross 111
income for such taxable year is seventy-five thousand dollars or more, 112
or for a husband and wife who file a return under the federal income tax 113
as married individuals filing jointly whose federal adjusted gross 114
income from such taxable year is one hundred thousand dollars or more 115
or for a person who files a return under the federal income tax as a head 116
of household whose federal adjusted gross income for such taxable year 117
is one hundred thousand dollars or more, an amount equal to the 118
difference between the amount of Social Security benefits includable for 119
federal income tax purposes and the lesser of twenty-five per cent of the 120
Social Security benefits received during the taxable year, or twenty-five 121
per cent of the excess described in Section 86(b)(1) of the Internal 122
Revenue Code; 123
(xi) To the extent properly includable in gross income for federal 124
income tax purposes, any amount rebated to a taxpayer pursuant to 125
section 12-746; 126
(xii) To the extent properly includable in the gross income for federal 127
income tax purposes of a designated beneficiary, any distribution to 128
such beneficiary from any qualified state tuition program, as defined in 129
Section 529(b) of the Internal Revenue Code, established and 130
maintained by this state or any official, agency or instrumentality of the 131
state; 132
(xiii) To the extent allowable under section 12-701a, contributions to 133
accounts established pursuant to any qualified state tuition program, as 134
defined in Section 529(b) of the Internal Revenue Code, established and 135
maintained by this state or any official, agency or instrumentality of the 136
state; 137
(xiv) To the extent properly includable in gross income for federal 138
income tax purposes, the amount of any Holocaust victims' settlement 139 Raised Bill No. 7055
LCO 5062 6 of 13
payment received in the taxable year by a Holocaust victim; 140
(xv) To the extent properly includable in the gross income for federal 141
income tax purposes of a designated beneficiary, as defined in section 142
3-123aa, interest, dividends or capital gains earned on contributions to 143
accounts established for the designated beneficiary pursuant to the 144
Connecticut Homecare Option Program for the Elderly established by 145
sections 3-123aa to 3-123ff, inclusive; 146
(xvi) To the extent properly includable in gross income for federal 147
income tax purposes, any income received from the United States 148
government as retirement pay for a retired member of (I) the Armed 149
Forces of the United States, as defined in Section 101 of Title 10 of the 150
United States Code, or (II) the National Guard, as defined in Section 101 151
of Title 10 of the United States Code; 152
(xvii) To the extent properly includable in gross income for federal 153
income tax purposes for the taxable year, any income from the discharge 154
of indebtedness in connection with any reacquisition, after December 155
31, 2008, and before January 1, 2011, of an applicable debt instrument or 156
instruments, as those terms are defined in Section 108 of the Internal 157
Revenue Code, as amended by Section 1231 of the American Recovery 158
and Reinvestment Act of 2009, to the extent any such income was added 159
to federal adjusted gross income pursuant to subparagraph (A)(xi) of 160
this subdivision in computing Connecticut adjusted gross income for a 161
preceding taxable year; 162
(xviii) To the extent not deductible in determining federal adjusted 163
gross income, the amount of any contribution to a manufacturing 164
reinvestment account established pursuant to section 32-9zz in the 165
taxable year that such contribution is made; 166
(xix) To the extent properly includable in gross income for federal 167
income tax purposes, (I) for the taxable year commencing January 1, 168
2015, ten per cent of the income received from the state teachers' 169
retirement system, (II) for the taxable years commencing January 1, 170
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 171 Raised Bill No. 7055
LCO 5062 7 of 13
received from the state teachers' retirement system, and (III) for the 172
taxable year commencing January 1, 2021, and each taxable year 173
thereafter, fifty per cent of the income received from the state teachers' 174
retirement system or, for a taxpayer whose federal adjusted gross 175
income does not exceed the applicable threshold under clause (xx) of 176
this subparagraph, the percentage pursuant to said clause of the income 177
received from the state teachers' retirement system, whichever 178
deduction is greater; 179
(xx) To the extent properly includable in gross income for federal 180
income tax purposes, except for retirement benefits under clause (iv) of 181
this subparagraph and retirement pay under clause (xvi) of this 182
subparagraph, for a person who files a return under the federal income 183
tax as an unmarried individual whose federal adjusted gross income for 184
such taxable year is less than seventy-five thousand dollars, or as a 185
married individual filing separately whose federal adjusted gross 186
income for such taxable year is less than seventy-five thousand dollars, 187
or as a head of household whose federal adjusted gross income for such 188
taxable year is less than seventy-five thousand dollars, or for a husband 189
and wife who file a return under the federal income tax as married 190
individuals filing jointly whose federal adjusted gross income for such 191
taxable year is less than one hundred thousand dollars, (I) for the taxable 192
year commencing January 1, 2019, fourteen per cent of any pension or 193
annuity income, (II) for the taxable year commencing January 1, 2020, 194
twenty-eight per cent of any pension or annuity income, (III) for the 195
taxable year commencing January 1, 2021, forty-two per cent of any 196
pension or annuity income, and (IV) for the taxable years commencing 197
January 1, 2022, and January 1, 2023, one hundred per cent of any 198
pension or annuity income; 199
(xxi) To the extent properly includable in gross income for federal 200
income tax purposes, except for retirement benefits under clause (iv) of 201
this subparagraph and retirement pay under clause (xvi) of this 202
subparagraph, any pension or annuity income for the taxable year 203
commencing on or after January 1, 2024, and each taxable year 204
thereafter, in accordance with the following schedule, for a person who 205 Raised Bill No. 7055
LCO 5062 8 of 13
files a return under the federal income tax as an unmarried individual 206
whose federal adjusted gross income for such taxable year is less than 207
one hundred thousand dollars, or as a married individual filing 208
separately whose federal adjusted gross income for such taxable year is 209
less than one hundred thousand dollars, or as a head of household 210
whose federal adjusted gross income for such taxable year is less than 211
one hundred thousand dollars: 212
T1
Federal Adjusted Gross Income Deduction
T2 Less than $75,000 100.0%
T3 $75,000 but not over $77,499 85.0%
T4
$77,500 but not over $79,999 70.0%
T5
$80,000 but not over $82,499 55.0%
T6
$82,500 but not over $84,999 40.0%
T7
$85,000 but not over $87,499 25.0%
T8
$87,500 but not over $89,999 10.0%
T9
$90,000 but not over $94,999 5.0%
T10
$95,000 but not over $99,999 2.5%
T11 $100,000 and over 0.0%
(xxii) To the extent properly includable in gross income for federal 213
income tax purposes, except for retirement benefits under clause (iv) of 214
this subparagraph and retirement pay under clause (xvi) of this 215
subparagraph, any pension or annuity income for the taxable year 216
commencing on or after January 1, 2024, and each taxable year 217
thereafter, in accordance with the following schedule for married 218
individuals who file a return under the federal income tax as married 219
individuals filing jointly whose federal adjusted gross income for such 220
taxable year is less than one hundred fifty thousand dollars: 221
T12
Federal Adjusted Gross Income Deduction
T13
Less than $100,000 100.0%
T14
$100,000 but not over $104,999 85.0%
T15
$105,000 but not over $109,999 70.0% Raised Bill No. 7055
LCO 5062 9 of 13
T16
$110,000 but not over $114,999 55.0%
T17
$115,000 but not over $119,999 40.0%
T18
$120,000 but not over $124,999 25.0%
T19
$125,000 but not over $129,999 10.0%
T20
$130,000 but not over $139,999 5.0%
T21
$140,000 but not over $149,999 2.5%
T22
$150,000 and over 0.0%
(xxiii) The amount of lost wages and medical, travel and housing 222
expenses, not to exceed ten thousand dollars in the aggregate, incurred 223
by a taxpayer during the taxable year in connection with the donation 224
to another person of an organ for organ transplantation occurring on or 225
after January 1, 2017; 226
(xxiv) To the extent properly includable in gross income for federal 227
income tax purposes, the amount of any financial assistance received 228
from the Crumbling Foundations Assistance Fund or paid to or on 229
behalf of the owner of a residential building pursuant to sections 8-442 230
and 8-443; 231
(xxv) To the extent properly includable in gross income for federal 232
income tax purposes, the amount calculated pursuant to subsection (b) 233
of section 12-704g for income received by a general partner of a venture 234
capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 235
time; 236
(xxvi) To the extent any portion of a deduction under Section 179 of 237
the Internal Revenue Code was added to federal adjusted gross income 238
pursuant to subparagraph (A)(xiv) of this subdivision in computing 239
Connecticut adjusted gross income, twenty-five per cent of such 240
disallowed portion of the deduction in each of the four succeeding 241
taxable years; 242
(xxvii) To the extent properly includable in gross income for federal 243
income tax purposes, for a person who files a return under the federal 244
income tax as an unmarried individual whose federal adjusted gross 245 Raised Bill No. 7055
LCO 5062 10 of 13
income for such taxable year is less than seventy-five thousand dollars, 246
or as a married individual filing separately whose federal adjusted gross 247
income for such taxable year is less than seventy-five thousand dollars, 248
or as a head of household whose federal adjusted gross income for such 249
taxable year is less than seventy-five thousand dollars, or for a husband 250
and wife who file a return under the federal income tax as married 251
individuals filing jointly whose federal adjusted gross income for such 252
taxable year is less than one hundred thousand dollars, for the taxable 253
year commencing January 1, 2023, twenty-five per cent of any 254
distribution from an individual retirement account other than a Roth 255
individual retirement account; 256
(xxviii) To the extent properly includable in gross income for federal 257
income tax purposes, for a person who files a return under the federal 258
income tax as an unmarried individual whose federal adjusted gross 259
income for such taxable year is less than one hundred thousand dollars, 260
or as a married individual filing separately whose federal adjusted gross 261
income for such taxable year is less than one hundred thousand dollars, 262
or as a head of household whose federal adjusted gross income for such 263
taxable year is less than one hundred thousand dollars, (I) for the taxable 264
year commencing January 1, 2024, fifty per cent of any distribution from 265
an individual retirement account other than a Roth individual 266
retirement account, (II) for the taxable year commencing January 1, 2025, 267
seventy-five per cent of any distribution from an individual retirement 268
account other than a Roth individual retirement account, and (III) for 269
the taxable year commencing January 1, 2026, and each taxable year 270
thereafter, any distribution from an individual retirement account other 271
than a Roth individual retirement account. The subtraction under this 272
clause shall be made in accordance with the following schedule: 273
T23
Federal Adjusted Gross Income Deduction
T24
Less than $75,000 100.0%
T25
$75,000 but not over $77,499 85.0%
T26
$77,500 but not over $79,999 70.0%
T27 $80,000 but not over $82,499 55.0% Raised Bill No. 7055
LCO 5062 11 of 13
T28
$82,500 but not over $84,999 40.0%
T29
$85,000 but not over $87,499 25.0%
T30
$87,500 but not over $89,999 10.0%
T31
$90,000 but not over $94,999 5.0%
T32
$95,000 but not over $99,999 2.5%
T33
$100,000 and over 0.0%
(xxix) To the extent properly includable in gross income for federal 274
income tax purposes, for married individuals who file a return under 275
the federal income tax as married individuals filing jointly whose 276
federal adjusted gross income for such taxable year is less than one 277
hundred fifty thousand dollars, (I) for the taxable year commencing 278
January 1, 2024, fifty per cent of any distribution from an individual 279
retirement account other than a Roth individual retirement account, (II) 280
for the taxable year commencing January 1, 2025, seventy-five per cent 281
of any distribution from an individual retirement account other than a 282
Roth individual retirement account, and (III) for the taxable year 283
commencing January 1, 2026, and each taxable year thereafter, any 284
distribution from an individual retirement account other than a Roth 285
individual retirement account. The subtraction under this clause shall 286
be made in accordance with the following schedule: 287
T34
Federal Adjusted Gross Income Deduction
T35
Less than $100,000 100.0%
T36
$100,000 but not over $104,999 85.0%
T37
$105,000 but not over $109,999 70.0%
T38 $110,000 but not over $114,999 55.0%
T39
$115,000 but not over $119,999 40.0%
T40
$120,000 but not over $124,999 25.0%
T41
$125,000 but not over $129,999 10.0%
T42
$130,000 but not over $139,999 5.0%
T43
$140,000 but not over $149,999 2.5%
T44
$150,000 and over 0.0%
Raised Bill No. 7055
LCO 5062 12 of 13
(xxx) To the extent properly includable in gross income for federal 288
income tax purposes, for the taxable year commencing January 1, 2022, 289
the amount or amounts paid or otherwise credited to any eligible 290
resident of this state under (I) the 2020 Earned Income Tax Credit 291
enhancement program from funding allocated to the state through the 292
Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 293
and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 294
Income Tax Credit enhancement program from funding allocated to the 295
state pursuant to Section 9901 of Subtitle M of Title IX of the American 296
Rescue Plan Act of 2021, P.L. 117-2; 297
(xxxi) For the taxable year commencing January 1, 2023, and each 298
taxable year thereafter, for a taxpayer licensed under the provisions of 299
chapter 420f or 420h, the amount of ordinary and necessary expenses 300
that would be eligible to be claimed as a deduction for federal income 301
tax purposes under Section 162(a) of the Internal Revenue Code but that 302
are disallowed under Section 280E of the Internal Revenue Code 303
because marijuana is a controlled substance under the federal 304
Controlled Substance Act; 305
(xxxii) To the extent properly includable in gross income for federal 306
income tax purposes, for the taxable year commencing on or after 307
January 1, 2025, and each taxable year thereafter, any common stock 308
received by the taxpayer during the taxable year under a share plan, as 309
defined in section 12-217ss; 310
(xxxiii) To the extent properly includable in gross income for federal 311
income tax purposes, the amount of any student loan reimbursement 312
payment received by a taxpayer pursuant to section 10a-19m; 313
(xxxiv) Contributions to an ABLE account established pursuant to 314
sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 315
each individual taxpayer or ten thousand dollars for taxpayers filing a 316
joint return; [and] 317
(xxxv) To the extent properly includable in gross income for federal 318
income tax purposes, the amount of any payment received pursuant to 319 Raised Bill No. 7055
LCO 5062 13 of 13
subsection (c) of section 3-122a; and 320
(xxxvi) To the extent properly includable in gross income for federal 321
income tax purposes, any qualified payment, as defined in Section 139B 322
of the Internal Revenue Code, not to exceed two thousand dollars in the 323
aggregate. 324
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 12-81x
Sec. 2 January 1, 2026, and
applicable to taxable years
commencing on or after
January 1, 2026
12-701(a)(20)(B)
PS Joint Favorable C/R FIN