LCO No. 6948 1 of 15
General Assembly Raised Bill No. 7269
January Session, 2025
LCO No. 6948
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
FOR A PORTION OF THE RENT PAID BY CERTAIN TAXPAYERS FOR
A PRIMARY RESIDENCE IN THE STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective January 1, 2026, and applicable to taxable 1
years commencing on or after January 1, 2026) (a) As used in this section, 2
(1) "condominium" has the same meaning as provided in section 47-68a 3
of the general statutes, (2) "common interest community" has the same 4
meaning as provided in section 47-202 of the general statutes, (3) "hotel", 5
"lodging" and "bed and breakfast establishment" have the same 6
meanings as provided in section 12-407 of the general statutes and 7
"short-term rental" has the same meaning as provided in section 12-408h 8
of the general statutes, (4) "mobile manufactured home" has the same 9
meaning as provided in section 12-63a of the general statutes, and (5) 10
"resident of this state" has the same meaning as provided in subdivision 11
(1) of subsection (a) of section 12-701 of the general statutes. 12
(b) (1) For the taxable years commencing on or after January 1, 2026, 13
and prior to January 1, 2032, any resident of this state who is subject to 14
Raised Bill No. 7269
LCO No. 6948 2 of 15
the tax imposed by chapter 229 of the general statutes, meets the income 15
thresholds set forth in subsection (d) of this section and rents property 16
in the state as such resident's primary residence pursuant to a rental or 17
lease agreement shall be allowed a subtraction under subparagraph 18
(B)(xxxvi) of subdivision (20) of subsection (a) of section 12-701 of the 19
general statutes, as amended by this act, of a percentage of the amount 20
of rent paid for such property for the taxable year by such resident to 21
the landlord. 22
(2) For the purposes of this subsection: 23
(A) "Rent" includes (i) the amount of heat, hot water, gas, electricity, 24
furniture or parking if the landlord makes no separate charge for such 25
items, and (ii) the rental of a mobile manufactured home or of the 26
leasehold site being occupied by the taxpayer's mobile manufactured 27
home, or both. 28
(B) "Rent" does not include (i) amounts paid as a security deposit or 29
amounts paid for the last month's rent upon entering into a rental or 30
lease agreement, unless such amounts are applied to unpaid rent, (ii) 31
payments by a tenant-stockholder of a cooperative housing corporation 32
to such corporation, (iii) payments by a tenant or an owner of a 33
condominium or a unit in a common interest community to the 34
respective unit owner association, (iv) consideration paid for the 35
occupancy of a hotel, lodging house, bed and breakfast establishment or 36
short-term rental, unless such premises are occupied under a rental or 37
lease agreement, or (v) payment in kind by the tenant to the landlord. 38
(c) The percentages and maximum amounts for the subtraction 39
allowed under subsection (b) of this section shall be as follows: 40
(1) For a taxpayer filing as an unmarried individual, a married 41
individual filing separately or a head of household, whose federal 42
adjusted gross income is less than seventy-five thousand dollars, or for 43
taxpayers filing as married individuals filing jointly whose federal 44
adjusted gross income is less than one hundred twenty-five thousand 45
Raised Bill No. 7269
LCO No. 6948 3 of 15
dollars, fifty per cent, not to exceed four thousand dollars; 46
(2) For a taxpayer filing as an unmarried individual, a married 47
individual filing separately or a head of household, whose federal 48
adjusted gross income is seventy-five thousand dollars or more but less 49
than one hundred thousand dollars, or for taxpayers filing as married 50
individuals filing jointly whose federal adjusted gross income is one 51
hundred twenty-five thousand dollars or more but less than one 52
hundred fifty thousand dollars, thirty-five per cent, not to exceed two 53
thousand eight hundred dollars; and 54
(3) For a taxpayer filing as an unmarried individual, a married 55
individual filing separately or a head of household, whose federal 56
adjusted gross income is one hundred thousand dollars or more but less 57
than one hundred twenty-five thousand dollars, or for taxpayers filing 58
as married individuals filing jointly whose federal adjusted gross 59
income is one hundred fifty thousand dollars or more but less than one 60
hundred seventy-five thousand dollars, twenty per cent, not to exceed 61
one thousand six hundred dollars. 62
(d) Any taxpayer claiming the subtraction under this section shall 63
provide to the Commissioner of Revenue Services any information or 64
documentation the commissioner may require to substantiate such 65
taxpayer's eligibility for or the amount of such subtraction. 66
Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 67
section 12-701 of the general statutes is repealed and the following is 68
substituted in lieu thereof (Effective January 1, 2026, and applicable to 69
taxable years commencing on and after January 1, 2026): 70
(B) There shall be subtracted therefrom: 71
(i) To the extent properly includable in gross income for federal 72
income tax purposes, any income with respect to which taxation by any 73
state is prohibited by federal law; 74
Raised Bill No. 7269
LCO No. 6948 4 of 15
(ii) To the extent allowable under section 12-718, exempt dividends 75
paid by a regulated investment company; 76
(iii) To the extent properly includable in gross income for federal 77
income tax purposes, the amount of any refund or credit for 78
overpayment of income taxes imposed by this state, or any other state 79
of the United States or a political subdivision thereof, or the District of 80
Columbia; 81
(iv) To the extent properly includable in gross income for federal 82
income tax purposes and not otherwise subtracted from federal 83
adjusted gross income pursuant to clause (x) of this subparagraph in 84
computing Connecticut adjusted gross income, any tier 1 railroad 85
retirement benefits; 86
(v) To the extent any additional allowance for depreciation under 87
Section 168(k) of the Internal Revenue Code for property placed in 88
service after September 27, 2017, was added to federal adjusted gross 89
income pursuant to subparagraph (A)(ix) of this subdivision in 90
computing Connecticut adjusted gross income, twenty-five per cent of 91
such additional allowance for depreciation in each of the four 92
succeeding taxable years; 93
(vi) To the extent properly includable in gross income for federal 94
income tax purposes, any interest income from obligations issued by or 95
on behalf of the state of Connecticut, any political subdivision thereof, 96
or public instrumentality, state or local authority, district or similar 97
public entity created under the laws of the state of Connecticut; 98
(vii) To the extent properly includable in determining the net gain or 99
loss from the sale or other disposition of capital assets for federal income 100
tax purposes, any gain from the sale or exchange of obligations issued 101
by or on behalf of the state of Connecticut, any political subdivision 102
thereof, or public instrumentality, state or local authority, district or 103
similar public entity created under the laws of the state of Connecticut, 104
in the income year such gain was recognized; 105
Raised Bill No. 7269
LCO No. 6948 5 of 15
(viii) Any interest on indebtedness incurred or continued to purchase 106
or carry obligations or securities the interest on which is subject to tax 107
under this chapter but exempt from federal income tax, to the extent that 108
such interest on indebtedness is not deductible in determining federal 109
adjusted gross income and is attributable to a trade or business carried 110
on by such individual; 111
(ix) Ordinary and necessary expenses paid or incurred during the 112
taxable year for the production or collection of income which is subject 113
to taxation under this chapter but exempt from federal income tax, or 114
the management, conservation or maintenance of property held for the 115
production of such income, and the amortizable bond premium for the 116
taxable year on any bond the interest on which is subject to tax under 117
this chapter but exempt from federal income tax, to the extent that such 118
expenses and premiums are not deductible in determining federal 119
adjusted gross income and are attributable to a trade or business carried 120
on by such individual; 121
(x) (I) For taxable years commencing prior to January 1, 2019, for a 122
person who files a return under the federal income tax as an unmarried 123
individual whose federal adjusted gross income for such taxable year is 124
less than fifty thousand dollars, or as a married individual filing 125
separately whose federal adjusted gross income for such taxable year is 126
less than fifty thousand dollars, or for a husband and wife who file a 127
return under the federal income tax as married individuals filing jointly 128
whose federal adjusted gross income for such taxable year is less than 129
sixty thousand dollars or a person who files a return under the federal 130
income tax as a head of household whose federal adjusted gross income 131
for such taxable year is less than sixty thousand dollars, an amount 132
equal to the Social Security benefits includable for federal income tax 133
purposes; 134
(II) For taxable years commencing prior to January 1, 2019, for a 135
person who files a return under the federal income tax as an unmarried 136
individual whose federal adjusted gross income for such taxable year is 137
Raised Bill No. 7269
LCO No. 6948 6 of 15
fifty thousand dollars or more, or as a married individual filing 138
separately whose federal adjusted gross income for such taxable year is 139
fifty thousand dollars or more, or for a husband and wife who file a 140
return under the federal income tax as married individuals filing jointly 141
whose federal adjusted gross income from such taxable year is sixty 142
thousand dollars or more or for a person who files a return under the 143
federal income tax as a head of household whose federal adjusted gross 144
income for such taxable year is sixty thousand dollars or more, an 145
amount equal to the difference between the amount of Social Security 146
benefits includable for federal income tax purposes and the lesser of 147
twenty-five per cent of the Social Security benefits received during the 148
taxable year, or twenty-five per cent of the excess described in Section 149
86(b)(1) of the Internal Revenue Code; 150
(III) For the taxable year commencing January 1, 2019, and each 151
taxable year thereafter, for a person who files a return under the federal 152
income tax as an unmarried individual whose federal adjusted gross 153
income for such taxable year is less than seventy-five thousand dollars, 154
or as a married individual filing separately whose federal adjusted gross 155
income for such taxable year is less than seventy-five thousand dollars, 156
or for a husband and wife who file a return under the federal income tax 157
as married individuals filing jointly whose federal adjusted gross 158
income for such taxable year is less than one hundred thousand dollars 159
or a person who files a return under the federal income tax as a head of 160
household whose federal adjusted gross income for such taxable year is 161
less than one hundred thousand dollars, an amount equal to the Social 162
Security benefits includable for federal income tax purposes; and 163
(IV) For the taxable year commencing January 1, 2019, and each 164
taxable year thereafter, for a person who files a return under the federal 165
income tax as an unmarried individual whose federal adjusted gross 166
income for such taxable year is seventy-five thousand dollars or more, 167
or as a married individual filing separately whose federal adjusted gross 168
income for such taxable year is seventy-five thousand dollars or more, 169
or for a husband and wife who file a return under the federal income tax 170
Raised Bill No. 7269
LCO No. 6948 7 of 15
as married individuals filing jointly whose federal adjusted gross 171
income from such taxable year is one hundred thousand dollars or more 172
or for a person who files a return under the federal income tax as a head 173
of household whose federal adjusted gross income for such taxable year 174
is one hundred thousand dollars or more, an amount equal to the 175
difference between the amount of Social Security benefits includable for 176
federal income tax purposes and the lesser of twenty-five per cent of the 177
Social Security benefits received during the taxable year, or twenty-five 178
per cent of the excess described in Section 86(b)(1) of the Internal 179
Revenue Code; 180
(xi) To the extent properly includable in gross income for federal 181
income tax purposes, any amount rebated to a taxpayer pursuant to 182
section 12-746; 183
(xii) To the extent properly includable in the gross income for federal 184
income tax purposes of a designated beneficiary, any distribution to 185
such beneficiary from any qualified state tuition program, as defined in 186
Section 529(b) of the Internal Revenue Code, established and 187
maintained by this state or any official, agency or instrumentality of the 188
state; 189
(xiii) To the extent allowable under section 12-701a, contributions to 190
accounts established pursuant to any qualified state tuition program, as 191
defined in Section 529(b) of the Internal Revenue Code, established and 192
maintained by this state or any official, agency or instrumentality of the 193
state; 194
(xiv) To the extent properly includable in gross income for federal 195
income tax purposes, the amount of any Holocaust victims' settlement 196
payment received in the taxable year by a Holocaust victim; 197
(xv) To the extent properly includable in the gross income for federal 198
income tax purposes of a designated beneficiary, as defined in section 199
3-123aa, interest, dividends or capital gains earned on contributions to 200
accounts established for the designated beneficiary pursuant to the 201
Raised Bill No. 7269
LCO No. 6948 8 of 15
Connecticut Homecare Option Program for the Elderly established by 202
sections 3-123aa to 3-123ff, inclusive; 203
(xvi) To the extent properly includable in gross income for federal 204
income tax purposes, any income received from the United States 205
government as retirement pay for a retired member of (I) the Armed 206
Forces of the United States, as defined in Section 101 of Title 10 of the 207
United States Code, or (II) the National Guard, as defined in Section 101 208
of Title 10 of the United States Code; 209
(xvii) To the extent properly includable in gross income for federal 210
income tax purposes for the taxable year, any income from the discharge 211
of indebtedness in connection with any reacquisition, after December 212
31, 2008, and before January 1, 2011, of an applicable debt instrument or 213
instruments, as those terms are defined in Section 108 of the Internal 214
Revenue Code, as amended by Section 1231 of the American Recovery 215
and Reinvestment Act of 2009, to the extent any such income was added 216
to federal adjusted gross income pursuant to subparagraph (A)(xi) of 217
this subdivision in computing Connecticut adjusted gross income for a 218
preceding taxable year; 219
(xviii) To the extent not deductible in determining federal adjusted 220
gross income, the amount of any contribution to a manufacturing 221
reinvestment account established pursuant to section 32-9zz in the 222
taxable year that such contribution is made; 223
(xix) To the extent properly includable in gross income for federal 224
income tax purposes, (I) for the taxable year commencing January 1, 225
2015, ten per cent of the income received from the state teachers' 226
retirement system, (II) for the taxable years commencing January 1, 227
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 228
received from the state teachers' retirement system, and (III) for the 229
taxable year commencing January 1, 2021, and each taxable year 230
thereafter, fifty per cent of the income received from the state teachers' 231
retirement system or, for a taxpayer whose federal adjusted gross 232
Raised Bill No. 7269
LCO No. 6948 9 of 15
income does not exceed the applicable threshold under clause (xx) of 233
this subparagraph, the percentage pursuant to said clause of the income 234
received from the state teachers' retirement system, whichever 235
deduction is greater; 236
(xx) To the extent properly includable in gross income for federal 237
income tax purposes, except for retirement benefits under clause (iv) of 238
this subparagraph and retirement pay under clause (xvi) of this 239
subparagraph, for a person who files a return under the federal income 240
tax as an unmarried individual whose federal adjusted gross income for 241
such taxable year is less than seventy-five thousand dollars, or as a 242
married individual filing separately whose federal adjusted gross 243
income for such taxable year is less than seventy-five thousand dollars, 244
or as a head of household whose federal adjusted gross income for such 245
taxable year is less than seventy-five thousand dollars, or for a husband 246
and wife who file a return under the federal income tax as married 247
individuals filing jointly whose federal adjusted gross income for such 248
taxable year is less than one hundred thousand dollars, (I) for the taxable 249
year commencing January 1, 2019, fourteen per cent of any pension or 250
annuity income, (II) for the taxable year commencing January 1, 2020, 251
twenty-eight per cent of any pension or annuity income, (III) for the 252
taxable year commencing January 1, 2021, forty-two per cent of any 253
pension or annuity income, and (IV) for the taxable years commencing 254
January 1, 2022, and January 1, 2023, one hundred per cent of any 255
pension or annuity income; 256
(xxi) To the extent properly includable in gross income for federal 257
income tax purposes, except for retirement benefits under clause (iv) of 258
this subparagraph and retirement pay under clause (xvi) of this 259
subparagraph, any pension or annuity income for the taxable year 260
commencing on or after January 1, 2024, and each taxable year 261
thereafter, in accordance with the following schedule, for a person who 262
files a return under the federal income tax as an unmarried individual 263
whose federal adjusted gross income for such taxable year is less than 264
one hundred thousand dollars, or as a married individual filing 265
Raised Bill No. 7269
LCO No. 6948 10 of 15
separately whose federal adjusted gross income for such taxable year is 266
less than one hundred thousand dollars, or as a head of household 267
whose federal adjusted gross income for such taxable year is less than 268
one hundred thousand dollars: 269
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 270
income tax purposes, except for retirement benefits under clause (iv) of 271
this subparagraph and retirement pay under clause (xvi) of this 272
subparagraph, any pension or annuity income for the taxable year 273
commencing on or after January 1, 2024, and each taxable year 274
thereafter, in accordance with the following schedule for married 275
individuals who file a return under the federal income tax as married 276
individuals filing jointly whose federal adjusted gross income for such 277
taxable year is less than one hundred fifty thousand dollars: 278
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%
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%
Raised Bill No. 7269
LCO No. 6948 11 of 15
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 279
expenses, not to exceed ten thousand dollars in the aggregate, incurred 280
by a taxpayer during the taxable year in connection with the donation 281
to another person of an organ for organ transplantation occurring on or 282
after January 1, 2017; 283
(xxiv) To the extent properly includable in gross income for federal 284
income tax purposes, the amount of any financial assistance received 285
from the Crumbling Foundations Assistance Fund or paid to or on 286
behalf of the owner of a residential building pursuant to sections 8-442 287
and 8-443; 288
(xxv) To the extent properly includable in gross income for federal 289
income tax purposes, the amount calculated pursuant to subsection (b) 290
of section 12-704g for income received by a general partner of a venture 291
capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 292
time; 293
(xxvi) To the extent any portion of a deduction under Section 179 of 294
the Internal Revenue Code was added to federal adjusted gross income 295
pursuant to subparagraph (A)(xiv) of this subdivision in computing 296
Connecticut adjusted gross income, twenty-five per cent of such 297
disallowed portion of the deduction in each of the four succeeding 298
taxable years; 299
(xxvii) To the extent properly includable in gross income for federal 300
income tax purposes, for a person who files a return under the federal 301
income tax as an unmarried individual whose federal adjusted gross 302
income for such taxable year is less than seventy-five thousand dollars, 303
or as a married individual filing separately whose federal adjusted gross 304
Raised Bill No. 7269
LCO No. 6948 12 of 15
income for such taxable year is less than seventy-five thousand dollars, 305
or as a head of household whose federal adjusted gross income for such 306
taxable year is less than seventy-five thousand dollars, or for a husband 307
and wife who file a return under the federal income tax as married 308
individuals filing jointly whose federal adjusted gross income for such 309
taxable year is less than one hundred thousand dollars, for the taxable 310
year commencing January 1, 2023, twenty-five per cent of any 311
distribution from an individual retirement account other than a Roth 312
individual retirement account; 313
(xxviii) To the extent properly includable in gross income for federal 314
income tax purposes, for a person who files a return under the federal 315
income tax as an unmarried individual whose federal adjusted gross 316
income for such taxable year is less than one hundred thousand dollars, 317
or as a married individual filing separately whose federal adjusted gross 318
income for such taxable year is less than one hundred thousand dollars, 319
or as a head of household whose federal adjusted gross income for such 320
taxable year is less than one hundred thousand dollars, (I) for the taxable 321
year commencing January 1, 2024, fifty per cent of any distribution from 322
an individual retirement account other than a Roth individual 323
retirement account, (II) for the taxable year commencing January 1, 2025, 324
seventy-five per cent of any distribution from an individual retirement 325
account other than a Roth individual retirement account, and (III) for 326
the taxable year commencing January 1, 2026, and each taxable year 327
thereafter, any distribution from an individual retirement account other 328
than a Roth individual retirement account. The subtraction under this 329
clause shall be made in accordance with the following schedule: 330
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%
T28
$82,500 but not over $84,999 40.0%
Raised Bill No. 7269
LCO No. 6948 13 of 15
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 331
income tax purposes, for married individuals who file a return under 332
the federal income tax as married individuals filing jointly whose 333
federal adjusted gross income for such taxable year is less than one 334
hundred fifty thousand dollars, (I) for the taxable year commencing 335
January 1, 2024, fifty per cent of any distribution from an individual 336
retirement account other than a Roth individual retirement account, (II) 337
for the taxable year commencing January 1, 2025, seventy-five per cent 338
of any distribution from an individual retirement account other than a 339
Roth individual retirement account, and (III) for the taxable year 340
commencing January 1, 2026, and each taxable year thereafter, any 341
distribution from an individual retirement account other than a Roth 342
individual retirement account. The subtraction under this clause shall 343
be made in accordance with the following schedule: 344
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%
(xxx) To the extent properly includable in gross income for federal 345
Raised Bill No. 7269
LCO No. 6948 14 of 15
income tax purposes, for the taxable year commencing January 1, 2022, 346
the amount or amounts paid or otherwise credited to any eligible 347
resident of this state under (I) the 2020 Earned Income Tax Credit 348
enhancement program from funding allocated to the state through the 349
Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 350
and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 351
Income Tax Credit enhancement program from funding allocated to the 352
state pursuant to Section 9901 of Subtitle M of Title IX of the American 353
Rescue Plan Act of 2021, P.L. 117-2; 354
(xxxi) For the taxable year commencing January 1, 2023, and each 355
taxable year thereafter, for a taxpayer licensed under the provisions of 356
chapter 420f or 420h, the amount of ordinary and necessary expenses 357
that would be eligible to be claimed as a deduction for federal income 358
tax purposes under Section 162(a) of the Internal Revenue Code but that 359
are disallowed under Section 280E of the Internal Revenue Code 360
because marijuana is a controlled substance under the federal 361
Controlled Substance Act; 362
(xxxii) To the extent properly includable in gross income for federal 363
income tax purposes, for the taxable year commencing on or after 364
January 1, 2025, and each taxable year thereafter, any common stock 365
received by the taxpayer during the taxable year under a share plan, as 366
defined in section 12-217ss; 367
(xxxiii) To the extent properly includable in gross income for federal 368
income tax purposes, the amount of any student loan reimbursement 369
payment received by a taxpayer pursuant to section 10a-19m; 370
(xxxiv) Contributions to an ABLE account established pursuant to 371
sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 372
each individual taxpayer or ten thousand dollars for taxpayers filing a 373
joint return; [and] 374
(xxxv) To the extent properly includable in gross income for federal 375
income tax purposes, the amount of any payment received pursuant to 376
Raised Bill No. 7269
LCO No. 6948 15 of 15
subsection (c) of section 3-122a; and 377
(xxxvi) For the taxable years commencing on or after January 1, 2026, 378
and prior to January 1, 2032, to the extent allowable under section 1 of 379
this act, the applicable percentage and amount as determined under said 380
section of the amount of rent paid by a resident of this state for the 381
taxable year for property rented as such resident's primary residence 382
pursuant to a rental or lease agreement. 383
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2026, and
applicable to taxable years
commencing on or after
January 1, 2026
New section
Sec. 2 January 1, 2026, and
applicable to taxable years
commencing on and after
January 1, 2026
12-701(a)(20)(B)
Statement of Purpose:
To establish a personal income tax deduction for a portion of the rent
paid for a primary residence in the state by taxpayers who meet certain
income thresholds.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]