LCO No. 1176 1 of 2
General Assembly Proposed Bill No. 602
January Session, 2025
LCO No. 1176
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
SEN. FAZIO, 36th Dist.
AN ACT CONCERNING THE PERSONAL INCOME TAX MARGINAL
RATES, THE ASSET EXPENSE DEDUCTION FOR CORPORATIONS
AND THE LIMIT OF BOND ISSUANCES THE STATE BOND
COMMISSION MAY AUTHORIZE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
That the general statutes be amended to: (1) For taxable and income 1
years commencing on and after January 1, 2028, (A) reduce the marginal 2
rates for the personal income tax by (i) two percentage points for 3
unmarried individuals and married individuals filing separately, with 4
federal adjusted gross income of less than one hundred thousand 5
dollars, (ii) one and one-half percentage points for such individuals with 6
federal adjusted gross income of one hundred thousand dollars or more 7
but less than two hundred fifty thousand dollars, (iii) one percentage 8
point for such individuals with federal adjusted gross income of two 9
hundred fifty thousand dollars or more, and (iv) proportional amounts 10
for individuals filing as heads of households and married individuals 11
filing jointly; and (B) allow a taxpayer eligible to claim an asset expense 12
deduction under Section 179 of the Internal Revenue Code to claim the 13 Proposed Bill No. 602
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entirety of such deduction at once in lieu of the current apportionment 14
method over five years; (2) establish a task force to develop a plan to 15
implement the specified personal income tax rate reductions in a 16
revenue-neutral way through the reduction of long-term spending and 17
the elimination of tax expenditures the task force determines are not 18
generating economic growth or are no longer serving their intended 19
purpose; and (3) limit the amount of bond issuances the State Bond 20
Commission may authorize to not more than the amount of estimated 21
revenue projected for the fiscal year divided by fifteen. 22
Statement of Purpose:
To (1) reduce the marginal rates for the personal income tax and allow
an eligible taxpayer to claim the entirety of an asset expense deduction
under Section 179 of the Internal Revenue Code at once rather than
incrementally, for taxable and income years commencing January 1,
2028, (2) establish a task force to develop a plan to implement the
specified personal income tax rate reductions in a revenue-neutral way,
and (3) limit the amount of bond issuances the State Bond Commission
may authorize to not more than the amount of estimated revenue
projected for the fiscal year divided by fifteen.