An Act Establishing A Child And Dependent Tax Credit Against The Personal Income Tax.
If enacted, this bill would amend Chapter 229 of the general statutes, directly impacting state tax laws by introducing new provisions for tax credits. Specifically, it establishes income thresholds for phase-outs of the credit, which aims to ensure that the benefits are directed towards households that genuinely need financial assistance. The income threshold for unmarried individuals is set at two hundred thousand dollars, with a higher threshold of four hundred thousand dollars for married couples filing jointly. This structure is designed to maintain a balance between providing support and ensuring that the tax credits are utilized effectively.
SB00112 proposes the establishment of a child and dependent tax credit against the personal income tax. The proposed credit amounts to five hundred dollars per eligible child or dependent, targeting those under 17 years of age, disabled individuals, and seniors aged 65 and older. This financial measure aims to provide essential tax relief to families, particularly benefiting low to moderate-income households that may be struggling with the financial strains of raising children or supporting dependents.
While the bill's intent is broadly viewed as beneficial, it has drawn some points of contention among lawmakers and stakeholders. Critics may argue about the financial implications for the state budget, as the introduction of new tax credits could impact state revenue. Furthermore, there may be debates on whether the set income thresholds adequately target the intended demographic or if they inadvertently exclude certain families that might fall just outside the limits. Thus, ongoing discussions are likely to address these potential issues as the bill moves through the legislative process.