Connecticut 2025 Regular Session

Connecticut House Bill HB07269 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 6948 1 of 15
4	4
5	5	General Assembly Raised Bill No. 7269
6	6	January Session, 2025
7	7	LCO No. 6948
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
16	16
17	17
18	18
19	19
20	20	AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
21	21	FOR A PORTION OF THE RENT PAID BY CERTAIN TAXPAYERS FOR
22	22	A PRIMARY RESIDENCE IN THE STATE.
23	23	Be it enacted by the Senate and House of Representatives in General
24	24	Assembly convened:
25	25
26	26	Section 1. (NEW) (Effective January 1, 2026, and applicable to taxable 1
27	27	years commencing on or after January 1, 2026) (a) As used in this section, 2
28	28	(1) "condominium" has the same meaning as provided in section 47-68a 3
29	29	of the general statutes, (2) "common interest community" has the same 4
30	30	meaning as provided in section 47-202 of the general statutes, (3) "hotel", 5
31	31	"lodging" and "bed and breakfast establishment" have the same 6
32	32	meanings as provided in section 12-407 of the general statutes and 7
33	33	"short-term rental" has the same meaning as provided in section 12-408h 8
34	34	of the general statutes, (4) "mobile manufactured home" has the same 9
35	35	meaning as provided in section 12-63a of the general statutes, and (5) 10
36	36	"resident of this state" has the same meaning as provided in subdivision 11
37	37	(1) of subsection (a) of section 12-701 of the general statutes. 12
38	38	(b) (1) For the taxable years commencing on or after January 1, 2026, 13
39	39	and prior to January 1, 2032, any resident of this state who is subject to 14
40	40	Raised Bill No. 7269
41	41
42	42
43	43
44	44	LCO No. 6948 2 of 15
45	45
46	46	the tax imposed by chapter 229 of the general statutes, meets the income 15
47	47	thresholds set forth in subsection (d) of this section and rents property 16
48	48	in the state as such resident's primary residence pursuant to a rental or 17
49	49	lease agreement shall be allowed a subtraction under subparagraph 18
50	50	(B)(xxxvi) of subdivision (20) of subsection (a) of section 12-701 of the 19
51	51	general statutes, as amended by this act, of a percentage of the amount 20
52	52	of rent paid for such property for the taxable year by such resident to 21
53	53	the landlord. 22
54	54	(2) For the purposes of this subsection: 23
55	55	(A) "Rent" includes (i) the amount of heat, hot water, gas, electricity, 24
56	56	furniture or parking if the landlord makes no separate charge for such 25
57	57	items, and (ii) the rental of a mobile manufactured home or of the 26
58	58	leasehold site being occupied by the taxpayer's mobile manufactured 27
59	59	home, or both. 28
60	60	(B) "Rent" does not include (i) amounts paid as a security deposit or 29
61	61	amounts paid for the last month's rent upon entering into a rental or 30
62	62	lease agreement, unless such amounts are applied to unpaid rent, (ii) 31
63	63	payments by a tenant-stockholder of a cooperative housing corporation 32
64	64	to such corporation, (iii) payments by a tenant or an owner of a 33
65	65	condominium or a unit in a common interest community to the 34
66	66	respective unit owner association, (iv) consideration paid for the 35
67	67	occupancy of a hotel, lodging house, bed and breakfast establishment or 36
68	68	short-term rental, unless such premises are occupied under a rental or 37
69	69	lease agreement, or (v) payment in kind by the tenant to the landlord. 38
70	70	(c) The percentages and maximum amounts for the subtraction 39
71	71	allowed under subsection (b) of this section shall be as follows: 40
72	72	(1) For a taxpayer filing as an unmarried individual, a married 41
73	73	individual filing separately or a head of household, whose federal 42
74	74	adjusted gross income is less than seventy-five thousand dollars, or for 43
75	75	taxpayers filing as married individuals filing jointly whose federal 44
76	76	adjusted gross income is less than one hundred twenty-five thousand 45
77	77	Raised Bill No. 7269
78	78
79	79
80	80
81	81	LCO No. 6948 3 of 15
82	82
83	83	dollars, fifty per cent, not to exceed four thousand dollars; 46
84	84	(2) For a taxpayer filing as an unmarried individual, a married 47
85	85	individual filing separately or a head of household, whose federal 48
86	86	adjusted gross income is seventy-five thousand dollars or more but less 49
87	87	than one hundred thousand dollars, or for taxpayers filing as married 50
88	88	individuals filing jointly whose federal adjusted gross income is one 51
89	89	hundred twenty-five thousand dollars or more but less than one 52
90	90	hundred fifty thousand dollars, thirty-five per cent, not to exceed two 53
91	91	thousand eight hundred dollars; and 54
92	92	(3) For a taxpayer filing as an unmarried individual, a married 55
93	93	individual filing separately or a head of household, whose federal 56
94	94	adjusted gross income is one hundred thousand dollars or more but less 57
95	95	than one hundred twenty-five thousand dollars, or for taxpayers filing 58
96	96	as married individuals filing jointly whose federal adjusted gross 59
97	97	income is one hundred fifty thousand dollars or more but less than one 60
98	98	hundred seventy-five thousand dollars, twenty per cent, not to exceed 61
99	99	one thousand six hundred dollars. 62
100	100	(d) Any taxpayer claiming the subtraction under this section shall 63
101	101	provide to the Commissioner of Revenue Services any information or 64
102	102	documentation the commissioner may require to substantiate such 65
103	103	taxpayer's eligibility for or the amount of such subtraction. 66
104	104	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 67
105	105	section 12-701 of the general statutes is repealed and the following is 68
106	106	substituted in lieu thereof (Effective January 1, 2026, and applicable to 69
107	107	taxable years commencing on and after January 1, 2026): 70
108	108	(B) There shall be subtracted therefrom: 71
109	109	(i) To the extent properly includable in gross income for federal 72
110	110	income tax purposes, any income with respect to which taxation by any 73
111	111	state is prohibited by federal law; 74
112	112	Raised Bill No. 7269
113	113
114	114
115	115
116	116	LCO No. 6948 4 of 15
117	117
118	118	(ii) To the extent allowable under section 12-718, exempt dividends 75
119	119	paid by a regulated investment company; 76
120	120	(iii) To the extent properly includable in gross income for federal 77
121	121	income tax purposes, the amount of any refund or credit for 78
122	122	overpayment of income taxes imposed by this state, or any other state 79
123	123	of the United States or a political subdivision thereof, or the District of 80
124	124	Columbia; 81
125	125	(iv) To the extent properly includable in gross income for federal 82
126	126	income tax purposes and not otherwise subtracted from federal 83
127	127	adjusted gross income pursuant to clause (x) of this subparagraph in 84
128	128	computing Connecticut adjusted gross income, any tier 1 railroad 85
129	129	retirement benefits; 86
130	130	(v) To the extent any additional allowance for depreciation under 87
131	131	Section 168(k) of the Internal Revenue Code for property placed in 88
132	132	service after September 27, 2017, was added to federal adjusted gross 89
133	133	income pursuant to subparagraph (A)(ix) of this subdivision in 90
134	134	computing Connecticut adjusted gross income, twenty-five per cent of 91
135	135	such additional allowance for depreciation in each of the four 92
136	136	succeeding taxable years; 93
137	137	(vi) To the extent properly includable in gross income for federal 94
138	138	income tax purposes, any interest income from obligations issued by or 95
139	139	on behalf of the state of Connecticut, any political subdivision thereof, 96
140	140	or public instrumentality, state or local authority, district or similar 97
141	141	public entity created under the laws of the state of Connecticut; 98
142	142	(vii) To the extent properly includable in determining the net gain or 99
143	143	loss from the sale or other disposition of capital assets for federal income 100
144	144	tax purposes, any gain from the sale or exchange of obligations issued 101
145	145	by or on behalf of the state of Connecticut, any political subdivision 102
146	146	thereof, or public instrumentality, state or local authority, district or 103
147	147	similar public entity created under the laws of the state of Connecticut, 104
148	148	in the income year such gain was recognized; 105
149	149	Raised Bill No. 7269
150	150
151	151
152	152
153	153	LCO No. 6948 5 of 15
154	154
155	155	(viii) Any interest on indebtedness incurred or continued to purchase 106
156	156	or carry obligations or securities the interest on which is subject to tax 107
157	157	under this chapter but exempt from federal income tax, to the extent that 108
158	158	such interest on indebtedness is not deductible in determining federal 109
159	159	adjusted gross income and is attributable to a trade or business carried 110
160	160	on by such individual; 111
161	161	(ix) Ordinary and necessary expenses paid or incurred during the 112
162	162	taxable year for the production or collection of income which is subject 113
163	163	to taxation under this chapter but exempt from federal income tax, or 114
164	164	the management, conservation or maintenance of property held for the 115
165	165	production of such income, and the amortizable bond premium for the 116
166	166	taxable year on any bond the interest on which is subject to tax under 117
167	167	this chapter but exempt from federal income tax, to the extent that such 118
168	168	expenses and premiums are not deductible in determining federal 119
169	169	adjusted gross income and are attributable to a trade or business carried 120
170	170	on by such individual; 121
171	171	(x) (I) For taxable years commencing prior to January 1, 2019, for a 122
172	172	person who files a return under the federal income tax as an unmarried 123
173	173	individual whose federal adjusted gross income for such taxable year is 124
174	174	less than fifty thousand dollars, or as a married individual filing 125
175	175	separately whose federal adjusted gross income for such taxable year is 126
176	176	less than fifty thousand dollars, or for a husband and wife who file a 127
177	177	return under the federal income tax as married individuals filing jointly 128
178	178	whose federal adjusted gross income for such taxable year is less than 129
179	179	sixty thousand dollars or a person who files a return under the federal 130
180	180	income tax as a head of household whose federal adjusted gross income 131
181	181	for such taxable year is less than sixty thousand dollars, an amount 132
182	182	equal to the Social Security benefits includable for federal income tax 133
183	183	purposes; 134
184	184	(II) For taxable years commencing prior to January 1, 2019, for a 135
185	185	person who files a return under the federal income tax as an unmarried 136
186	186	individual whose federal adjusted gross income for such taxable year is 137
187	187	Raised Bill No. 7269
188	188
189	189
190	190
191	191	LCO No. 6948 6 of 15
192	192
193	193	fifty thousand dollars or more, or as a married individual filing 138
194	194	separately whose federal adjusted gross income for such taxable year is 139
195	195	fifty thousand dollars or more, or for a husband and wife who file a 140
196	196	return under the federal income tax as married individuals filing jointly 141
197	197	whose federal adjusted gross income from such taxable year is sixty 142
198	198	thousand dollars or more or for a person who files a return under the 143
199	199	federal income tax as a head of household whose federal adjusted gross 144
200	200	income for such taxable year is sixty thousand dollars or more, an 145
201	201	amount equal to the difference between the amount of Social Security 146
202	202	benefits includable for federal income tax purposes and the lesser of 147
203	203	twenty-five per cent of the Social Security benefits received during the 148
204	204	taxable year, or twenty-five per cent of the excess described in Section 149
205	205	86(b)(1) of the Internal Revenue Code; 150
206	206	(III) For the taxable year commencing January 1, 2019, and each 151
207	207	taxable year thereafter, for a person who files a return under the federal 152
208	208	income tax as an unmarried individual whose federal adjusted gross 153
209	209	income for such taxable year is less than seventy-five thousand dollars, 154
210	210	or as a married individual filing separately whose federal adjusted gross 155
211	211	income for such taxable year is less than seventy-five thousand dollars, 156
212	212	or for a husband and wife who file a return under the federal income tax 157
213	213	as married individuals filing jointly whose federal adjusted gross 158
214	214	income for such taxable year is less than one hundred thousand dollars 159
215	215	or a person who files a return under the federal income tax as a head of 160
216	216	household whose federal adjusted gross income for such taxable year is 161
217	217	less than one hundred thousand dollars, an amount equal to the Social 162
218	218	Security benefits includable for federal income tax purposes; and 163
219	219	(IV) For the taxable year commencing January 1, 2019, and each 164
220	220	taxable year thereafter, for a person who files a return under the federal 165
221	221	income tax as an unmarried individual whose federal adjusted gross 166
222	222	income for such taxable year is seventy-five thousand dollars or more, 167
223	223	or as a married individual filing separately whose federal adjusted gross 168
224	224	income for such taxable year is seventy-five thousand dollars or more, 169
225	225	or for a husband and wife who file a return under the federal income tax 170
226	226	Raised Bill No. 7269
227	227
228	228
229	229
230	230	LCO No. 6948 7 of 15
231	231
232	232	as married individuals filing jointly whose federal adjusted gross 171
233	233	income from such taxable year is one hundred thousand dollars or more 172
234	234	or for a person who files a return under the federal income tax as a head 173
235	235	of household whose federal adjusted gross income for such taxable year 174
236	236	is one hundred thousand dollars or more, an amount equal to the 175
237	237	difference between the amount of Social Security benefits includable for 176
238	238	federal income tax purposes and the lesser of twenty-five per cent of the 177
239	239	Social Security benefits received during the taxable year, or twenty-five 178
240	240	per cent of the excess described in Section 86(b)(1) of the Internal 179
241	241	Revenue Code; 180
242	242	(xi) To the extent properly includable in gross income for federal 181
243	243	income tax purposes, any amount rebated to a taxpayer pursuant to 182
244	244	section 12-746; 183
245	245	(xii) To the extent properly includable in the gross income for federal 184
246	246	income tax purposes of a designated beneficiary, any distribution to 185
247	247	such beneficiary from any qualified state tuition program, as defined in 186
248	248	Section 529(b) of the Internal Revenue Code, established and 187
249	249	maintained by this state or any official, agency or instrumentality of the 188
250	250	state; 189
251	251	(xiii) To the extent allowable under section 12-701a, contributions to 190
252	252	accounts established pursuant to any qualified state tuition program, as 191
253	253	defined in Section 529(b) of the Internal Revenue Code, established and 192
254	254	maintained by this state or any official, agency or instrumentality of the 193
255	255	state; 194
256	256	(xiv) To the extent properly includable in gross income for federal 195
257	257	income tax purposes, the amount of any Holocaust victims' settlement 196
258	258	payment received in the taxable year by a Holocaust victim; 197
259	259	(xv) To the extent properly includable in the gross income for federal 198
260	260	income tax purposes of a designated beneficiary, as defined in section 199
261	261	3-123aa, interest, dividends or capital gains earned on contributions to 200
262	262	accounts established for the designated beneficiary pursuant to the 201
263	263	Raised Bill No. 7269
264	264
265	265
266	266
267	267	LCO No. 6948 8 of 15
268	268
269	269	Connecticut Homecare Option Program for the Elderly established by 202
270	270	sections 3-123aa to 3-123ff, inclusive; 203
271	271	(xvi) To the extent properly includable in gross income for federal 204
272	272	income tax purposes, any income received from the United States 205
273	273	government as retirement pay for a retired member of (I) the Armed 206
274	274	Forces of the United States, as defined in Section 101 of Title 10 of the 207
275	275	United States Code, or (II) the National Guard, as defined in Section 101 208
276	276	of Title 10 of the United States Code; 209
277	277	(xvii) To the extent properly includable in gross income for federal 210
278	278	income tax purposes for the taxable year, any income from the discharge 211
279	279	of indebtedness in connection with any reacquisition, after December 212
280	280	31, 2008, and before January 1, 2011, of an applicable debt instrument or 213
281	281	instruments, as those terms are defined in Section 108 of the Internal 214
282	282	Revenue Code, as amended by Section 1231 of the American Recovery 215
283	283	and Reinvestment Act of 2009, to the extent any such income was added 216
284	284	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 217
285	285	this subdivision in computing Connecticut adjusted gross income for a 218
286	286	preceding taxable year; 219
287	287	(xviii) To the extent not deductible in determining federal adjusted 220
288	288	gross income, the amount of any contribution to a manufacturing 221
289	289	reinvestment account established pursuant to section 32-9zz in the 222
290	290	taxable year that such contribution is made; 223
291	291	(xix) To the extent properly includable in gross income for federal 224
292	292	income tax purposes, (I) for the taxable year commencing January 1, 225
293	293	2015, ten per cent of the income received from the state teachers' 226
294	294	retirement system, (II) for the taxable years commencing January 1, 227
295	295	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 228
296	296	received from the state teachers' retirement system, and (III) for the 229
297	297	taxable year commencing January 1, 2021, and each taxable year 230
298	298	thereafter, fifty per cent of the income received from the state teachers' 231
299	299	retirement system or, for a taxpayer whose federal adjusted gross 232
300	300	Raised Bill No. 7269
301	301
302	302
303	303
304	304	LCO No. 6948 9 of 15
305	305
306	306	income does not exceed the applicable threshold under clause (xx) of 233
307	307	this subparagraph, the percentage pursuant to said clause of the income 234
308	308	received from the state teachers' retirement system, whichever 235
309	309	deduction is greater; 236
310	310	(xx) To the extent properly includable in gross income for federal 237
311	311	income tax purposes, except for retirement benefits under clause (iv) of 238
312	312	this subparagraph and retirement pay under clause (xvi) of this 239
313	313	subparagraph, for a person who files a return under the federal income 240
314	314	tax as an unmarried individual whose federal adjusted gross income for 241
315	315	such taxable year is less than seventy-five thousand dollars, or as a 242
316	316	married individual filing separately whose federal adjusted gross 243
317	317	income for such taxable year is less than seventy-five thousand dollars, 244
318	318	or as a head of household whose federal adjusted gross income for such 245
319	319	taxable year is less than seventy-five thousand dollars, or for a husband 246
320	320	and wife who file a return under the federal income tax as married 247
321	321	individuals filing jointly whose federal adjusted gross income for such 248
322	322	taxable year is less than one hundred thousand dollars, (I) for the taxable 249
323	323	year commencing January 1, 2019, fourteen per cent of any pension or 250
324	324	annuity income, (II) for the taxable year commencing January 1, 2020, 251
325	325	twenty-eight per cent of any pension or annuity income, (III) for the 252
326	326	taxable year commencing January 1, 2021, forty-two per cent of any 253
327	327	pension or annuity income, and (IV) for the taxable years commencing 254
328	328	January 1, 2022, and January 1, 2023, one hundred per cent of any 255
329	329	pension or annuity income; 256
330	330	(xxi) To the extent properly includable in gross income for federal 257
331	331	income tax purposes, except for retirement benefits under clause (iv) of 258
332	332	this subparagraph and retirement pay under clause (xvi) of this 259
333	333	subparagraph, any pension or annuity income for the taxable year 260
334	334	commencing on or after January 1, 2024, and each taxable year 261
335	335	thereafter, in accordance with the following schedule, for a person who 262
336	336	files a return under the federal income tax as an unmarried individual 263
337	337	whose federal adjusted gross income for such taxable year is less than 264
338	338	one hundred thousand dollars, or as a married individual filing 265
339	339	Raised Bill No. 7269
340	340
341	341
342	342
343	343	LCO No. 6948 10 of 15
344	344
345	345	separately whose federal adjusted gross income for such taxable year is 266
346	346	less than one hundred thousand dollars, or as a head of household 267
347	347	whose federal adjusted gross income for such taxable year is less than 268
348	348	one hundred thousand dollars: 269
349	349	T1
350	350	Federal Adjusted Gross Income Deduction
351	351	T2
352	352	Less than $75,000 100.0%
353	353	T3
354	354	$75,000 but not over $77,499 85.0%
355	355	T4
356	356	$77,500 but not over $79,999 70.0%
357	357	T5
358	358	$80,000 but not over $82,499 55.0%
359	359	T6 $82,500 but not over $84,999 40.0%
360	360	T7
361	361	$85,000 but not over $87,499 25.0%
362	362	T8
363	363	$87,500 but not over $89,999 10.0%
364	364	T9
365	365	$90,000 but not over $94,999 5.0%
366	366	T10
367	367	$95,000 but not over $99,999 2.5%
368	368	T11
369	369	$100,000 and over 0.0%
370	370
371	371	(xxii) To the extent properly includable in gross income for federal 270
372	372	income tax purposes, except for retirement benefits under clause (iv) of 271
373	373	this subparagraph and retirement pay under clause (xvi) of this 272
374	374	subparagraph, any pension or annuity income for the taxable year 273
375	375	commencing on or after January 1, 2024, and each taxable year 274
376	376	thereafter, in accordance with the following schedule for married 275
377	377	individuals who file a return under the federal income tax as married 276
378	378	individuals filing jointly whose federal adjusted gross income for such 277
379	379	taxable year is less than one hundred fifty thousand dollars: 278
380	380	T12
381	381	Federal Adjusted Gross Income Deduction
382	382	T13 Less than $100,000 100.0%
383	383	T14
384	384	$100,000 but not over $104,999 85.0%
385	385	T15
386	386	$105,000 but not over $109,999 70.0%
387	387	T16 $110,000 but not over $114,999 55.0%
388	388	T17
389	389	$115,000 but not over $119,999 40.0%
390	390	T18
391	391	$120,000 but not over $124,999 25.0%
392	392	Raised Bill No. 7269
393	393
394	394
395	395
396	396	LCO No. 6948 11 of 15
397	397
398	398	T19 $125,000 but not over $129,999 10.0%
399	399	T20
400	400	$130,000 but not over $139,999 5.0%
401	401	T21
402	402	$140,000 but not over $149,999 2.5%
403	403	T22
404	404	$150,000 and over 0.0%
405	405
406	406	(xxiii) The amount of lost wages and medical, travel and housing 279
407	407	expenses, not to exceed ten thousand dollars in the aggregate, incurred 280
408	408	by a taxpayer during the taxable year in connection with the donation 281
409	409	to another person of an organ for organ transplantation occurring on or 282
410	410	after January 1, 2017; 283
411	411	(xxiv) To the extent properly includable in gross income for federal 284
412	412	income tax purposes, the amount of any financial assistance received 285
413	413	from the Crumbling Foundations Assistance Fund or paid to or on 286
414	414	behalf of the owner of a residential building pursuant to sections 8-442 287
415	415	and 8-443; 288
416	416	(xxv) To the extent properly includable in gross income for federal 289
417	417	income tax purposes, the amount calculated pursuant to subsection (b) 290
418	418	of section 12-704g for income received by a general partner of a venture 291
419	419	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 292
420	420	time; 293
421	421	(xxvi) To the extent any portion of a deduction under Section 179 of 294
422	422	the Internal Revenue Code was added to federal adjusted gross income 295
423	423	pursuant to subparagraph (A)(xiv) of this subdivision in computing 296
424	424	Connecticut adjusted gross income, twenty-five per cent of such 297
425	425	disallowed portion of the deduction in each of the four succeeding 298
426	426	taxable years; 299
427	427	(xxvii) To the extent properly includable in gross income for federal 300
428	428	income tax purposes, for a person who files a return under the federal 301
429	429	income tax as an unmarried individual whose federal adjusted gross 302
430	430	income for such taxable year is less than seventy-five thousand dollars, 303
431	431	or as a married individual filing separately whose federal adjusted gross 304
432	432	Raised Bill No. 7269
433	433
434	434
435	435
436	436	LCO No. 6948 12 of 15
437	437
438	438	income for such taxable year is less than seventy-five thousand dollars, 305
439	439	or as a head of household whose federal adjusted gross income for such 306
440	440	taxable year is less than seventy-five thousand dollars, or for a husband 307
441	441	and wife who file a return under the federal income tax as married 308
442	442	individuals filing jointly whose federal adjusted gross income for such 309
443	443	taxable year is less than one hundred thousand dollars, for the taxable 310
444	444	year commencing January 1, 2023, twenty-five per cent of any 311
445	445	distribution from an individual retirement account other than a Roth 312
446	446	individual retirement account; 313
447	447	(xxviii) To the extent properly includable in gross income for federal 314
448	448	income tax purposes, for a person who files a return under the federal 315
449	449	income tax as an unmarried individual whose federal adjusted gross 316
450	450	income for such taxable year is less than one hundred thousand dollars, 317
451	451	or as a married individual filing separately whose federal adjusted gross 318
452	452	income for such taxable year is less than one hundred thousand dollars, 319
453	453	or as a head of household whose federal adjusted gross income for such 320
454	454	taxable year is less than one hundred thousand dollars, (I) for the taxable 321
455	455	year commencing January 1, 2024, fifty per cent of any distribution from 322
456	456	an individual retirement account other than a Roth individual 323
457	457	retirement account, (II) for the taxable year commencing January 1, 2025, 324
458	458	seventy-five per cent of any distribution from an individual retirement 325
459	459	account other than a Roth individual retirement account, and (III) for 326
460	460	the taxable year commencing January 1, 2026, and each taxable year 327
461	461	thereafter, any distribution from an individual retirement account other 328
462	462	than a Roth individual retirement account. The subtraction under this 329
463	463	clause shall be made in accordance with the following schedule: 330
464	464	T23
465	465	Federal Adjusted Gross Income Deduction
466	466	T24
467	467	Less than $75,000 100.0%
468	468	T25
469	469	$75,000 but not over $77,499 85.0%
470	470	T26
471	471	$77,500 but not over $79,999 70.0%
472	472	T27
473	473	$80,000 but not over $82,499 55.0%
474	474	T28
475	475	$82,500 but not over $84,999 40.0%
476	476	Raised Bill No. 7269
477	477
478	478
479	479
480	480	LCO No. 6948 13 of 15
481	481
482	482	T29 $85,000 but not over $87,499 25.0%
483	483	T30
484	484	$87,500 but not over $89,999 10.0%
485	485	T31
486	486	$90,000 but not over $94,999 5.0%
487	487	T32
488	488	$95,000 but not over $99,999 2.5%
489	489	T33
490	490	$100,000 and over 0.0%
491	491
492	492	(xxix) To the extent properly includable in gross income for federal 331
493	493	income tax purposes, for married individuals who file a return under 332
494	494	the federal income tax as married individuals filing jointly whose 333
495	495	federal adjusted gross income for such taxable year is less than one 334
496	496	hundred fifty thousand dollars, (I) for the taxable year commencing 335
497	497	January 1, 2024, fifty per cent of any distribution from an individual 336
498	498	retirement account other than a Roth individual retirement account, (II) 337
499	499	for the taxable year commencing January 1, 2025, seventy-five per cent 338
500	500	of any distribution from an individual retirement account other than a 339
501	501	Roth individual retirement account, and (III) for the taxable year 340
502	502	commencing January 1, 2026, and each taxable year thereafter, any 341
503	503	distribution from an individual retirement account other than a Roth 342
504	504	individual retirement account. The subtraction under this clause shall 343
505	505	be made in accordance with the following schedule: 344
506	506	T34
507	507	Federal Adjusted Gross Income Deduction
508	508	T35
509	509	Less than $100,000 100.0%
510	510	T36
511	511	$100,000 but not over $104,999 85.0%
512	512	T37
513	513	$105,000 but not over $109,999 70.0%
514	514	T38
515	515	$110,000 but not over $114,999 55.0%
516	516	T39 $115,000 but not over $119,999 40.0%
517	517	T40
518	518	$120,000 but not over $124,999 25.0%
519	519	T41
520	520	$125,000 but not over $129,999 10.0%
521	521	T42
522	522	$130,000 but not over $139,999 5.0%
523	523	T43
524	524	$140,000 but not over $149,999 2.5%
525	525	T44 $150,000 and over 0.0%
526	526
527	527	(xxx) To the extent properly includable in gross income for federal 345
528	528	Raised Bill No. 7269
529	529
530	530
531	531
532	532	LCO No. 6948 14 of 15
533	533
534	534	income tax purposes, for the taxable year commencing January 1, 2022, 346
535	535	the amount or amounts paid or otherwise credited to any eligible 347
536	536	resident of this state under (I) the 2020 Earned Income Tax Credit 348
537	537	enhancement program from funding allocated to the state through the 349
538	538	Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 350
539	539	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 351
540	540	Income Tax Credit enhancement program from funding allocated to the 352
541	541	state pursuant to Section 9901 of Subtitle M of Title IX of the American 353
542	542	Rescue Plan Act of 2021, P.L. 117-2; 354
543	543	(xxxi) For the taxable year commencing January 1, 2023, and each 355
544	544	taxable year thereafter, for a taxpayer licensed under the provisions of 356
545	545	chapter 420f or 420h, the amount of ordinary and necessary expenses 357
546	546	that would be eligible to be claimed as a deduction for federal income 358
547	547	tax purposes under Section 162(a) of the Internal Revenue Code but that 359
548	548	are disallowed under Section 280E of the Internal Revenue Code 360
549	549	because marijuana is a controlled substance under the federal 361
550	550	Controlled Substance Act; 362
551	551	(xxxii) To the extent properly includable in gross income for federal 363
552	552	income tax purposes, for the taxable year commencing on or after 364
553	553	January 1, 2025, and each taxable year thereafter, any common stock 365
554	554	received by the taxpayer during the taxable year under a share plan, as 366
555	555	defined in section 12-217ss; 367
556	556	(xxxiii) To the extent properly includable in gross income for federal 368
557	557	income tax purposes, the amount of any student loan reimbursement 369
558	558	payment received by a taxpayer pursuant to section 10a-19m; 370
559	559	(xxxiv) Contributions to an ABLE account established pursuant to 371
560	560	sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 372
561	561	each individual taxpayer or ten thousand dollars for taxpayers filing a 373
562	562	joint return; [and] 374
563	563	(xxxv) To the extent properly includable in gross income for federal 375
564	564	income tax purposes, the amount of any payment received pursuant to 376
565	565	Raised Bill No. 7269
566	566
567	567
568	568
569	569	LCO No. 6948 15 of 15
570	570
571	571	subsection (c) of section 3-122a; and 377
572	572	(xxxvi) For the taxable years commencing on or after January 1, 2026, 378
573	573	and prior to January 1, 2032, to the extent allowable under section 1 of 379
574	574	this act, the applicable percentage and amount as determined under said 380
575	575	section of the amount of rent paid by a resident of this state for the 381
576	576	taxable year for property rented as such resident's primary residence 382
577	577	pursuant to a rental or lease agreement. 383
578	578	This act shall take effect as follows and shall amend the following
579	579	sections:
580	580
581	581	Section 1 January 1, 2026, and
582	582	applicable to taxable years
583	583	commencing on or after
584	584	January 1, 2026
585	585	New section
586	586	Sec. 2 January 1, 2026, and
587	587	applicable to taxable years
588	588	commencing on and after
589	589	January 1, 2026
590	590	12-701(a)(20)(B)
591	591
592	592	Statement of Purpose:
593	593	To establish a personal income tax deduction for a portion of the rent
594	594	paid for a primary residence in the state by taxpayers who meet certain
595	595	income thresholds.
596	596
597	597	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
598	598	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
599	599	underlined.]
600	600