Connecticut 2025 Regular Session

Connecticut Senate Bill SB01401 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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2	2
3		-	LCO 1 of 19
	3	+	LCO No. 5519 1 of 20
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 1401
	5	+	General Assembly Raised Bill No. 1401
6	6		January Session, 2025
	7	+	LCO No. 5519
	8	+
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
	15	+
7	16
8	17
9	18
10	19		AN ACT ESTABLISHING DISASTER SAVINGS ACCOUNTS AND A
11	20		RELATED TAX DEDUCTION AND CREDIT.
12	21		Be it enacted by the Senate and House of Representatives in General
13	22		Assembly convened:
14	23
15	24		Section 1. (NEW) (Effective from passage) (a) For the purposes of this 1
16	25		section: 2
17	26		(1) "Account holder" means an individual who, either individually or 3
18	27		jointly with another individual, establishes a disaster savings account; 4
19	28		(2) "Commissioner" means the Commissioner of Revenue Services; 5
20	29		(3) "Disaster savings account" means an account established by one 6
21	30		or more account holders with a financial institution that the account 7
22	31		holders designate as an account exclusively containing funds to pay or 8
23	32		reimburse eligible costs incurred by the qualified beneficiary of the 9
24	33		account; 10
25		-	(4) "Eligible costs" means costs incurred by a qualified beneficiary for 11
26		-	payment (A) of an insurance deductible under a homeowners insurance 12
27		-	policy that insures against loss or damage by wildfire, flood, rain, 13
28		-	hurricane, tornado or other severe storm, which was incurred because 14
29		-	of a claim made for such loss or damage, and (B) for loss or damage to 15
30		-	such qualified beneficiary's single-family residence caused by wildfire, 16
31		-	flood, rain, hurricane, tornado or other severe storm; 17
32		-	(5) "Financial institution" means a bank, out-of-state bank, 18 Substitute Bill No. 1401
	34	+	(4) "Eligible costs" means payment by a qualified beneficiary (A) of 11
	35	+	an insurance deductible under a homeowners insurance policy that 12
	36	+	insures against loss or damage by wildfire, flood, rain, hurricane, 13
	37	+	Raised Bill No. 1401
33	38
34	39
35		-	LCO 2 of 19
36	40
	41	+	LCO No. 5519 2 of 20
	42	+
	43	+	tornado or other severe storm, which was incurred because of a claim 14
	44	+	made for such loss or damage, and (B) for loss or damage to such 15
	45	+	qualified beneficiary's single-family residence caused by wildfire, flood, 16
	46	+	rain, hurricane, tornado or other severe storm; 17
	47	+	(5) "Financial institution" means a bank, out-of-state bank, 18
37	48		Connecticut credit union, federal credit union or out-of-state credit 19
38	49		union, as those terms are defined in section 36a-2 of the general statutes, 20
39	50		and any affiliate or third-party provider of such entities; 21
40	51		(6) "Qualified beneficiary" means a homeowner who (A) is 22
41	52		designated as the qualified beneficiary of a disaster savings account, and 23
42	53		(B) resides in a single-family residence in this state that is owned by the 24
43	54		homeowner; and 25
44	55		(7) "Single-family residence" means a single-family residential 26
45		-	dwelling, including, but not limited to, a mobile manufactured home, as 27
46		-	defined in section 21-64 of the general statutes, or a residential unit in a 28
47		-	cooperative, common interest community or condominium, as such 29
48		-	terms are defined in section 47-202 of the general statutes. 30
49		-	(b) For purposes of implementing the deductions allowed under 31
50		-	subparagraphs (B)(xxxvi) and (B)(xxxvii) of subdivision (20) of 32
51		-	subsection (a) of section 12-701 of the general statutes, as amended by 33
52		-	this act, and the credit allowed under section 3 of this act, the 34
53		-	commissioner shall prepare forms for (1) the designation of accounts as 35
54		-	disaster savings accounts, (2) the designation of qualified beneficiaries, 36
55		-	and (3) account holders to submit to the commissioner the information 37
56		-	described in subparagraph (B) of subdivision (1) of subsection (d) of this 38
57		-	section and any additional information that the commissioner 39
58		-	reasonably requires pursuant to the provisions of this section. 40
59		-	(c) An individual may establish not more than one disaster savings 41
60		-	account with a financial institution. Two individuals may jointly 42
61		-	establish and serve as the account holders of a disaster savings account, 43
62		-	provided such account holders shall file a joint return for the tax 44
63		-	imposed under chapter 229 of the general statutes for each taxable year 45
64		-	during which such account exists. The account holder or account 46
65		-	holders shall, not later than April fifteenth of the taxable year 47
66		-	immediately following the taxable year during which such account 48
67		-	holder or account holders established a disaster savings account, 49
68		-	designate the qualified beneficiary of such account. The account holder 50 Substitute Bill No. 1401
	56	+	dwelling, including, but not limited to, a mobile manufactured home or 27
	57	+	a residential unit in a cooperative, common interest community or 28
	58	+	condominium. 29
	59	+	(b) For purposes of implementing the deduction allowed under 30
	60	+	subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 31
	61	+	of the general statutes, as amended by this act, and the credit allowed 32
	62	+	under section 3 of this act, the commissioner shall prepare forms for (1) 33
	63	+	the designation of accounts as disaster savings accounts, (2) the 34
	64	+	designation of qualified beneficiaries, and (3) account holders to submit 35
	65	+	to the commissioner the information described in subparagraph (B) of 36
	66	+	subdivision (1) of subsection (d) of this section and any additional 37
	67	+	information that the commissioner reasonably requires pursuant to the 38
	68	+	provisions of this section. 39
	69	+	(c) An individual may establish one or more disaster savings 40
	70	+	accounts with a financial institution. Two individuals may jointly 41
	71	+	establish and serve as the account holders of a disaster savings account, 42
	72	+	provided such account holders shall file a joint return for the tax 43
	73	+	imposed under chapter 229 of the general statutes for each taxable year 44
	74	+	Raised Bill No. 1401
69	75
70	76
71		-	LCO 3 of 19
72	77
73		-	or account holders of a disaster savings account may designate a new 51
74		-	qualified beneficiary of the account at any time, provided there shall not 52
75		-	be more than one qualified beneficiary of such account at any time. No 53
76		-	individual may establish or serve as an account holder of multiple 54
77		-	disaster savings accounts that have the same qualified beneficiary. 55
78		-	Disaster savings accounts shall exclusively contain cash and there shall 56
79		-	be no limit on the amount of contributions made to, or contained in, such 57
80		-	accounts. Any person may contribute to a disaster savings account, 58
81		-	including, but not limited to, the employers of the qualified beneficiary, 59
82		-	account holder or account holders of such account. If a qualified 60
83		-	beneficiary or account holder of a disaster savings account leaves 61
84		-	employment with an employer that contributed to such account while 62
85		-	such qualified beneficiary or account holder was employed by such 63
86		-	employer, such employer shall not seek reimbursement of any 64
87		-	contribution to such account. The account holder or account holders 65
88		-	may invest funds deposited in a disaster savings account in money 66
89		-	market funds. 67
90		-	(d) (1) Each account holder shall: 68
91		-	(A) Not use any portion of the funds deposited in a disaster savings 69
92		-	account to pay any administrative fees or expenses, other than service 70
93		-	fees imposed by the depository financial institution, for such account; 71
94		-	and 72
95		-	(B) Submit to the commissioner such account holder's tax return for 73
96		-	each taxable year beginning on or after January 1, 2025, during which a 74
97		-	disaster savings account established by such account holder exists, 75
98		-	along with: 76
99		-	(i) Any information required by the commissioner concerning such 77
100		-	disaster savings account for purposes of implementing the deductions 78
101		-	allowed under subparagraphs (B)(xxxvi) and (B)(xxxvii) of subdivision 79
102		-	(20) of subsection (a) of section 12-701 of the general statutes, as 80
103		-	amended by this act, and the credit allowed under section 3 of this act; 81
104		-	(ii) The Internal Revenue Service Form 1099 issued by the depository 82 Substitute Bill No. 1401
	78	+	LCO No. 5519 3 of 20
	79	+
	80	+	during which such account exists. The account holder or account 45
	81	+	holders shall, not later than April fifteenth of the taxable year 46
	82	+	immediately following the taxable year during which such account 47
	83	+	holder or account holders established a disaster savings account, 48
	84	+	designate the qualified beneficiary of such account. The account holder 49
	85	+	or account holders of a disaster savings account may designate a new 50
	86	+	qualified beneficiary of the account at any time, provided there shall not 51
	87	+	be more than one qualified beneficiary of such account at any time. No 52
	88	+	individual may establish or serve as an account holder of multiple 53
	89	+	disaster savings accounts that have the same qualified beneficiary. 54
	90	+	Disaster savings accounts shall exclusively contain cash and there shall 55
	91	+	be no limit on the amount of contributions made to, or contained in, such 56
	92	+	accounts. Any person may contribute to a disaster savings account, 57
	93	+	including, but not limited to, employers of the qualified beneficiary, 58
	94	+	account holder or account holders of such account. If a qualified 59
	95	+	beneficiary or account holder of a disaster savings account leaves 60
	96	+	employment with an employer that contributed to such account while 61
	97	+	such qualified beneficiary or account holder was employed by such 62
	98	+	employer, such employer shall not seek reimbursement of any 63
	99	+	contribution to such account. The account holder or account holders 64
	100	+	may invest funds deposited in a disaster savings account in money 65
	101	+	market funds. 66
	102	+	(d) (1) Each account holder shall: 67
	103	+	(A) Not use any portion of the funds deposited in a disaster savings 68
	104	+	account to pay any administrative fees or expenses, other than service 69
	105	+	fees imposed by the depository financial institution, for such account; 70
	106	+	and 71
	107	+	(B) Submit to the commissioner such account holder's tax return for 72
	108	+	each taxable year beginning on or after January 1, 2025, during which a 73
	109	+	disaster savings account established by such account holder exists, 74
	110	+	along with: 75
	111	+	Raised Bill No. 1401
105	112
106	113
107		-	LCO 4 of 19
108	114
109		-	financial institution for such disaster savings account; and 83
110		-	(iii) If such account holder withdrew funds from such disaster 84
111		-	savings account during the taxable year that is the subject of such return, 85
112		-	a detailed accounting of all eligible costs and ineligible costs paid or 86
113		-	reimbursed using such funds during such taxable year and the balance 87
114		-	of funds remaining in such account. 88
115		-	(2) Each account holder may withdraw all, or any portion of, the 89
116		-	funds contributed to and deposited in a disaster savings account and 90
117		-	deposit such funds in another disaster savings account established by 91
118		-	such account holder at any financial institution. 92
119		-	(e) (1) The commissioner may require that financial institutions 93
120		-	furnish certain information about each disaster savings account. 94
121		-	(2) A financial institution shall designate an account as a disaster 95
122		-	savings account when the account is opened by an account holder. 96
123		-	(3) No financial institution shall be required to (A) track the use of 97
124		-	any funds withdrawn from a disaster savings account, or (B) allocate 98
125		-	funds in a disaster savings account among account holders. 99
126		-	(4) No financial institution shall be liable or responsible for (A) 100
127		-	determining whether, or ensuring that, an account satisfies the 101
128		-	requirements established in this section concerning disaster savings 102
129		-	accounts or the funds in disaster savings accounts are used to pay or 103
130		-	reimburse eligible costs, or (B) disclosing or remitting taxes or penalties 104
131		-	concerning disaster savings accounts unless such disclosure or 105
132		-	remittance is required by applicable law. 106
133		-	(5) Upon receiving proof of the death of an account holder and all 107
134		-	other information required by any contract governing a disaster savings 108
135		-	account established by the account holder, the depository financial 109
136		-	institution shall distribute the funds in the disaster savings account in 110
137		-	accordance with the terms of such contract. 111
138		-	(f) (1) Except as provided in subdivision (2) of this subsection, each 112 Substitute Bill No. 1401
	115	+	LCO No. 5519 4 of 20
	116	+
	117	+	(i) Any information required by the commissioner concerning such 76
	118	+	disaster savings account for purposes of implementing the deduction 77
	119	+	allowed under subparagraph (B) of subdivision (20) of subsection (a) of 78
	120	+	section 12-701 of the general statutes, as amended by this act, and the 79
	121	+	credit allowed under section 3 of this act; 80
	122	+	(ii) The Internal Revenue Service Form 1099 issued by the depository 81
	123	+	financial institution for such disaster savings account; and 82
	124	+	(iii) If such account holder withdrew funds from such disaster 83
	125	+	savings account during the taxable year that is the subject of such return, 84
	126	+	a detailed accounting of all eligible costs and ineligible costs paid or 85
	127	+	reimbursed using such funds during such taxable year and the balance 86
	128	+	of funds remaining in such account. 87
	129	+	(2) Each account holder may withdraw all, or any portion of, the 88
	130	+	funds contributed to and deposited in a disaster savings account and 89
	131	+	deposit such funds in another disaster savings account established by 90
	132	+	such account holder at any financial institution. 91
	133	+	(e) (1) The commissioner may require that financial institutions 92
	134	+	furnish certain information about each disaster savings account. 93
	135	+	(2) No financial institution shall be required to (A) designate an 94
	136	+	account as a disaster savings account, (B) track the use of any funds 95
	137	+	withdrawn from a disaster savings account, or (C) allocate funds in a 96
	138	+	disaster savings account among account holders. 97
	139	+	(3) No financial institution shall be liable or responsible for (A) 98
	140	+	determining whether, or ensuring that, an account satisfies the 99
	141	+	requirements established in this section concerning disaster savings 100
	142	+	accounts or the funds in disaster savings accounts are used to pay or 101
	143	+	reimburse eligible costs, or (B) disclosing or remitting taxes or penalties 102
	144	+	concerning disaster savings accounts unless such disclosure or 103
	145	+	remittance is required by applicable law. 104
	146	+	Raised Bill No. 1401
139	147
140	148
141		-	LCO 5 of 19
142	149
143		-	account holder who withdraws funds from a disaster savings account 113
144		-	for any reason other than paying or reimbursing the qualified 114
145		-	beneficiary of such account for eligible costs incurred by such qualified 115
146		-	beneficiary shall be liable to this state for a civil penalty in an amount 116
147		-	equal to ten per cent of the withdrawn amount. Such civil penalty shall 117
148		-	be collectible by the commissioner. If such funds were deducted by an 118
149		-	account holder in accordance with subparagraph (B)(xxxvi) or 119
150		-	(B)(xxxvii) of subdivision (20) of subsection (a) of section 12-701 of the 120
151		-	general statutes, as amended by this act, then such withdrawn funds 121
152		-	shall be considered income. 122
153		-	(2) No account holder shall be liable for a penalty under subdivision 123
154		-	(1) of this subsection, nor shall funds withdrawn from a disaster savings 124
155		-	account be considered income, if the funds withdrawn from the disaster 125
156		-	savings account: 126
157		-	(A) Are deposited in another disaster savings account pursuant to 127
158		-	subdivision (2) of subsection (d) of this section; 128
159		-	(B) Are withdrawn due to the death or disability of an account holder 129
160		-	who established such account; 130
161		-	(C) Constitute a disbursement of the assets of such account pursuant 131
162		-	to a filing for protection under the United States Bankruptcy Code, as 132
163		-	amended from time to time; or 133
164		-	(D) Are not claimed as a deduction pursuant to subparagraph 134
165		-	(B)(xxxvi) or (B)(xxxvii) of subdivision (20) of subsection (a) of section 135
166		-	12-701 of the general statutes, as amended by this act, by the account 136
167		-	holder on a return for the tax imposed under chapter 229 of the general 137
168		-	statutes. 138
169		-	(g) The commissioner may adopt regulations, in accordance with the 139
170		-	provisions of chapter 54 of the general statutes, to implement the 140
171		-	provisions of this section. 141
172		-	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 142 Substitute Bill No. 1401
	150	+	LCO No. 5519 5 of 20
	151	+
	152	+	(4) Upon receiving proof of the death of an account holder and all 105
	153	+	other information required by any contract governing a disaster savings 106
	154	+	account established by the account holder, the depository financial 107
	155	+	institution shall distribute the funds in the disaster savings account in 108
	156	+	accordance with the terms of such contract. 109
	157	+	(f) (1) Except as provided in subdivision (2) of this subsection, each 110
	158	+	account holder who withdraws funds from a disaster savings account 111
	159	+	for any reason other than paying or reimbursing the qualified 112
	160	+	beneficiary of such account for eligible costs incurred by such qualified 113
	161	+	beneficiary shall be liable to this state for a civil penalty in an amount 114
	162	+	equal to ten per cent of the withdrawn amount. Such civil penalty shall 115
	163	+	be collectible by the commissioner. If such funds were deducted by an 116
	164	+	account holder in accordance with subparagraph (B) of subdivision (20) 117
	165	+	of subsection (a) of section 12-701 of the general statutes, as amended by 118
	166	+	this act, then such withdrawn funds shall be considered income. 119
	167	+	(2) No account holder shall be liable for a penalty under subdivision 120
	168	+	(1) of this subsection, nor shall funds withdrawn from a disaster savings 121
	169	+	account be considered income, if the funds withdrawn from the disaster 122
	170	+	savings account: 123
	171	+	(A) Are deposited in another disaster savings account pursuant to 124
	172	+	subdivision (2) of subsection (d) of this section; 125
	173	+	(B) Are withdrawn due to the death or disability of an account holder 126
	174	+	who established such account; 127
	175	+	(C) Constitute a disbursement of the assets of such account pursuant 128
	176	+	to a filing for protection under the United States Bankruptcy Code, as 129
	177	+	amended from time to time; or 130
	178	+	(D) Are not claimed as a deduction pursuant to subparagraph (B) of 131
	179	+	subdivision (20) of subsection (a) of section 12-701 of the general 132
	180	+	statutes, as amended by this act, by the account holder on a return for 133
	181	+	the tax imposed under chapter 229 of the general statutes. 134
	182	+	Raised Bill No. 1401
173	183
174	184
175		-	LCO 6 of 19
176	185
177		-	section 12-701 of the general statutes is repealed and the following is 143
178		-	substituted in lieu thereof (Effective from passage and applicable to taxable 144
179		-	years commencing on or after January 1, 2025): 145
180		-	(B) There shall be subtracted therefrom: 146
181		-	(i) To the extent properly includable in gross income for federal 147
182		-	income tax purposes, any income with respect to which taxation by any 148
183		-	state is prohibited by federal law; 149
184		-	(ii) To the extent allowable under section 12-718, exempt dividends 150
185		-	paid by a regulated investment company; 151
186		-	(iii) To the extent properly includable in gross income for federal 152
187		-	income tax purposes, the amount of any refund or credit for 153
188		-	overpayment of income taxes imposed by this state, or any other state 154
189		-	of the United States or a political subdivision thereof, or the District of 155
190		-	Columbia; 156
191		-	(iv) To the extent properly includable in gross income for federal 157
192		-	income tax purposes and not otherwise subtracted from federal 158
193		-	adjusted gross income pursuant to clause (x) of this subparagraph in 159
194		-	computing Connecticut adjusted gross income, any tier 1 railroad 160
195		-	retirement benefits; 161
196		-	(v) To the extent any additional allowance for depreciation under 162
197		-	Section 168(k) of the Internal Revenue Code for property placed in 163
198		-	service after September 27, 2017, was added to federal adjusted gross 164
199		-	income pursuant to subparagraph (A)(ix) of this subdivision in 165
200		-	computing Connecticut adjusted gross income, twenty-five per cent of 166
201		-	such additional allowance for depreciation in each of the four 167
202		-	succeeding taxable years; 168
203		-	(vi) To the extent properly includable in gross income for federal 169
204		-	income tax purposes, any interest income from obligations issued by or 170
205		-	on behalf of the state of Connecticut, any political subdivision thereof, 171
206		-	or public instrumentality, state or local authority, district or similar 172 Substitute Bill No. 1401
	186	+	LCO No. 5519 6 of 20
	187	+
	188	+	(g) The commissioner may adopt regulations, in accordance with the 135
	189	+	provisions of chapter 54 of the general statutes, to implement the 136
	190	+	provisions of this section. 137
	191	+	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 138
	192	+	section 12-701 of the general statutes is repealed and the following is 139
	193	+	substituted in lieu thereof (Effective from passage and applicable to taxable 140
	194	+	years commencing on or after January 1, 2025): 141
	195	+	(B) There shall be subtracted therefrom: 142
	196	+	(i) To the extent properly includable in gross income for federal 143
	197	+	income tax purposes, any income with respect to which taxation by any 144
	198	+	state is prohibited by federal law; 145
	199	+	(ii) To the extent allowable under section 12-718, exempt dividends 146
	200	+	paid by a regulated investment company; 147
	201	+	(iii) To the extent properly includable in gross income for federal 148
	202	+	income tax purposes, the amount of any refund or credit for 149
	203	+	overpayment of income taxes imposed by this state, or any other state 150
	204	+	of the United States or a political subdivision thereof, or the District of 151
	205	+	Columbia; 152
	206	+	(iv) To the extent properly includable in gross income for federal 153
	207	+	income tax purposes and not otherwise subtracted from federal 154
	208	+	adjusted gross income pursuant to clause (x) of this subparagraph in 155
	209	+	computing Connecticut adjusted gross income, any tier 1 railroad 156
	210	+	retirement benefits; 157
	211	+	(v) To the extent any additional allowance for depreciation under 158
	212	+	Section 168(k) of the Internal Revenue Code for property placed in 159
	213	+	service after September 27, 2017, was added to federal adjusted gross 160
	214	+	income pursuant to subparagraph (A)(ix) of this subdivision in 161
	215	+	computing Connecticut adjusted gross income, twenty-five per cent of 162
	216	+	such additional allowance for depreciation in each of the four 163
	217	+	Raised Bill No. 1401
207	218
208	219
209		-	LCO 7 of 19
210	220
211		-	public entity created under the laws of the state of Connecticut; 173
212		-	(vii) To the extent properly includable in determining the net gain or 174
213		-	loss from the sale or other disposition of capital assets for federal income 175
214		-	tax purposes, any gain from the sale or exchange of obligations issued 176
215		-	by or on behalf of the state of Connecticut, any political subdivision 177
216		-	thereof, or public instrumentality, state or local authority, district or 178
217		-	similar public entity created under the laws of the state of Connecticut, 179
218		-	in the income year such gain was recognized; 180
219		-	(viii) Any interest on indebtedness incurred or continued to purchase 181
220		-	or carry obligations or securities the interest on which is subject to tax 182
221		-	under this chapter but exempt from federal income tax, to the extent that 183
222		-	such interest on indebtedness is not deductible in determining federal 184
223		-	adjusted gross income and is attributable to a trade or business carried 185
224		-	on by such individual; 186
225		-	(ix) Ordinary and necessary expenses paid or incurred during the 187
226		-	taxable year for the production or collection of income which is subject 188
227		-	to taxation under this chapter but exempt from federal income tax, or 189
228		-	the management, conservation or maintenance of property held for the 190
229		-	production of such income, and the amortizable bond premium for the 191
230		-	taxable year on any bond the interest on which is subject to tax under 192
231		-	this chapter but exempt from federal income tax, to the extent that such 193
232		-	expenses and premiums are not deductible in determining federal 194
233		-	adjusted gross income and are attributable to a trade or business carried 195
234		-	on by such individual; 196
235		-	(x) (I) For taxable years commencing prior to January 1, 2019, for a 197
236		-	person who files a return under the federal income tax as an unmarried 198
237		-	individual whose federal adjusted gross income for such taxable year is 199
238		-	less than fifty thousand dollars, or as a married individual filing 200
239		-	separately whose federal adjusted gross income for such taxable year is 201
240		-	less than fifty thousand dollars, or for a husband and wife who file a 202
241		-	return under the federal income tax as married individuals filing jointly 203
242		-	whose federal adjusted gross income for such taxable year is less than 204 Substitute Bill No. 1401
	221	+	LCO No. 5519 7 of 20
	222	+
	223	+	succeeding taxable years; 164
	224	+	(vi) To the extent properly includable in gross income for federal 165
	225	+	income tax purposes, any interest income from obligations issued by or 166
	226	+	on behalf of the state of Connecticut, any political subdivision thereof, 167
	227	+	or public instrumentality, state or local authority, district or similar 168
	228	+	public entity created under the laws of the state of Connecticut; 169
	229	+	(vii) To the extent properly includable in determining the net gain or 170
	230	+	loss from the sale or other disposition of capital assets for federal income 171
	231	+	tax purposes, any gain from the sale or exchange of obligations issued 172
	232	+	by or on behalf of the state of Connecticut, any political subdivision 173
	233	+	thereof, or public instrumentality, state or local authority, district or 174
	234	+	similar public entity created under the laws of the state of Connecticut, 175
	235	+	in the income year such gain was recognized; 176
	236	+	(viii) Any interest on indebtedness incurred or continued to purchase 177
	237	+	or carry obligations or securities the interest on which is subject to tax 178
	238	+	under this chapter but exempt from federal income tax, to the extent that 179
	239	+	such interest on indebtedness is not deductible in determining federal 180
	240	+	adjusted gross income and is attributable to a trade or business carried 181
	241	+	on by such individual; 182
	242	+	(ix) Ordinary and necessary expenses paid or incurred during the 183
	243	+	taxable year for the production or collection of income which is subject 184
	244	+	to taxation under this chapter but exempt from federal income tax, or 185
	245	+	the management, conservation or maintenance of property held for the 186
	246	+	production of such income, and the amortizable bond premium for the 187
	247	+	taxable year on any bond the interest on which is subject to tax under 188
	248	+	this chapter but exempt from federal income tax, to the extent that such 189
	249	+	expenses and premiums are not deductible in determining federal 190
	250	+	adjusted gross income and are attributable to a trade or business carried 191
	251	+	on by such individual; 192
	252	+	(x) (I) For taxable years commencing prior to January 1, 2019, for a 193
	253	+	person who files a return under the federal income tax as an unmarried 194
	254	+	Raised Bill No. 1401
243	255
244	256
245		-	LCO 8 of 19
246	257
247		-	sixty thousand dollars or a person who files a return under the federal 205
248		-	income tax as a head of household whose federal adjusted gross income 206
249		-	for such taxable year is less than sixty thousand dollars, an amount 207
250		-	equal to the Social Security benefits includable for federal income tax 208
251		-	purposes; 209
252		-	(II) For taxable years commencing prior to January 1, 2019, for a 210
253		-	person who files a return under the federal income tax as an unmarried 211
254		-	individual whose federal adjusted gross income for such taxable year is 212
255		-	fifty thousand dollars or more, or as a married individual filing 213
256		-	separately whose federal adjusted gross income for such taxable year is 214
257		-	fifty thousand dollars or more, or for a husband and wife who file a 215
258		-	return under the federal income tax as married individuals filing jointly 216
259		-	whose federal adjusted gross income from such taxable year is sixty 217
260		-	thousand dollars or more or for a person who files a return under the 218
261		-	federal income tax as a head of household whose federal adjusted gross 219
262		-	income for such taxable year is sixty thousand dollars or more, an 220
263		-	amount equal to the difference between the amount of Social Security 221
264		-	benefits includable for federal income tax purposes and the lesser of 222
265		-	twenty-five per cent of the Social Security benefits received during the 223
266		-	taxable year, or twenty-five per cent of the excess described in Section 224
267		-	86(b)(1) of the Internal Revenue Code; 225
268		-	(III) For the taxable year commencing January 1, 2019, and each 226
269		-	taxable year thereafter, for a person who files a return under the federal 227
270		-	income tax as an unmarried individual whose federal adjusted gross 228
271		-	income for such taxable year is less than seventy-five thousand dollars, 229
272		-	or as a married individual filing separately whose federal adjusted gross 230
273		-	income for such taxable year is less than seventy-five thousand dollars, 231
274		-	or for a husband and wife who file a return under the federal income tax 232
275		-	as married individuals filing jointly whose federal adjusted gross 233
276		-	income for such taxable year is less than one hundred thousand dollars 234
277		-	or a person who files a return under the federal income tax as a head of 235
278		-	household whose federal adjusted gross income for such taxable year is 236
279		-	less than one hundred thousand dollars, an amount equal to the Social 237
280		-	Security benefits includable for federal income tax purposes; and 238 Substitute Bill No. 1401
	258	+	LCO No. 5519 8 of 20
	259	+
	260	+	individual whose federal adjusted gross income for such taxable year is 195
	261	+	less than fifty thousand dollars, or as a married individual filing 196
	262	+	separately whose federal adjusted gross income for such taxable year is 197
	263	+	less than fifty thousand dollars, or for a husband and wife who file a 198
	264	+	return under the federal income tax as married individuals filing jointly 199
	265	+	whose federal adjusted gross income for such taxable year is less than 200
	266	+	sixty thousand dollars or a person who files a return under the federal 201
	267	+	income tax as a head of household whose federal adjusted gross income 202
	268	+	for such taxable year is less than sixty thousand dollars, an amount 203
	269	+	equal to the Social Security benefits includable for federal income tax 204
	270	+	purposes; 205
	271	+	(II) For taxable years commencing prior to January 1, 2019, for a 206
	272	+	person who files a return under the federal income tax as an unmarried 207
	273	+	individual whose federal adjusted gross income for such taxable year is 208
	274	+	fifty thousand dollars or more, or as a married individual filing 209
	275	+	separately whose federal adjusted gross income for such taxable year is 210
	276	+	fifty thousand dollars or more, or for a husband and wife who file a 211
	277	+	return under the federal income tax as married individuals filing jointly 212
	278	+	whose federal adjusted gross income from such taxable year is sixty 213
	279	+	thousand dollars or more or for a person who files a return under the 214
	280	+	federal income tax as a head of household whose federal adjusted gross 215
	281	+	income for such taxable year is sixty thousand dollars or more, an 216
	282	+	amount equal to the difference between the amount of Social Security 217
	283	+	benefits includable for federal income tax purposes and the lesser of 218
	284	+	twenty-five per cent of the Social Security benefits received during the 219
	285	+	taxable year, or twenty-five per cent of the excess described in Section 220
	286	+	86(b)(1) of the Internal Revenue Code; 221
	287	+	(III) For the taxable year commencing January 1, 2019, and each 222
	288	+	taxable year thereafter, for a person who files a return under the federal 223
	289	+	income tax as an unmarried individual whose federal adjusted gross 224
	290	+	income for such taxable year is less than seventy-five thousand dollars, 225
	291	+	or as a married individual filing separately whose federal adjusted gross 226
	292	+	income for such taxable year is less than seventy-five thousand dollars, 227
	293	+	Raised Bill No. 1401
281	294
282	295
283		-	LCO 9 of 19
284	296
285		-	(IV) For the taxable year commencing January 1, 2019, and each 239
286		-	taxable year thereafter, for a person who files a return under the federal 240
287		-	income tax as an unmarried individual whose federal adjusted gross 241
288		-	income for such taxable year is seventy-five thousand dollars or more, 242
289		-	or as a married individual filing separately whose federal adjusted gross 243
290		-	income for such taxable year is seventy-five thousand dollars or more, 244
291		-	or for a husband and wife who file a return under the federal income tax 245
292		-	as married individuals filing jointly whose federal adjusted gross 246
293		-	income from such taxable year is one hundred thousand dollars or more 247
294		-	or for a person who files a return under the federal income tax as a head 248
295		-	of household whose federal adjusted gross income for such taxable year 249
296		-	is one hundred thousand dollars or more, an amount equal to the 250
297		-	difference between the amount of Social Security benefits includable for 251
298		-	federal income tax purposes and the lesser of twenty-five per cent of the 252
299		-	Social Security benefits received during the taxable year, or twenty-five 253
300		-	per cent of the excess described in Section 86(b)(1) of the Internal 254
301		-	Revenue Code; 255
302		-	(xi) To the extent properly includable in gross income for federal 256
303		-	income tax purposes, any amount rebated to a taxpayer pursuant to 257
304		-	section 12-746; 258
305		-	(xii) To the extent properly includable in the gross income for federal 259
306		-	income tax purposes of a designated beneficiary, any distribution to 260
307		-	such beneficiary from any qualified state tuition program, as defined in 261
308		-	Section 529(b) of the Internal Revenue Code, established and 262
309		-	maintained by this state or any official, agency or instrumentality of the 263
310		-	state; 264
311		-	(xiii) To the extent allowable under section 12-701a, contributions to 265
312		-	accounts established pursuant to any qualified state tuition program, as 266
313		-	defined in Section 529(b) of the Internal Revenue Code, established and 267
314		-	maintained by this state or any official, agency or instrumentality of the 268
315		-	state; 269
316		-	(xiv) To the extent properly includable in gross income for federal 270 Substitute Bill No. 1401
	297	+	LCO No. 5519 9 of 20
	298	+
	299	+	or for a husband and wife who file a return under the federal income tax 228
	300	+	as married individuals filing jointly whose federal adjusted gross 229
	301	+	income for such taxable year is less than one hundred thousand dollars 230
	302	+	or a person who files a return under the federal income tax as a head of 231
	303	+	household whose federal adjusted gross income for such taxable year is 232
	304	+	less than one hundred thousand dollars, an amount equal to the Social 233
	305	+	Security benefits includable for federal income tax purposes; and 234
	306	+	(IV) For the taxable year commencing January 1, 2019, and each 235
	307	+	taxable year thereafter, for a person who files a return under the federal 236
	308	+	income tax as an unmarried individual whose federal adjusted gross 237
	309	+	income for such taxable year is seventy-five thousand dollars or more, 238
	310	+	or as a married individual filing separately whose federal adjusted gross 239
	311	+	income for such taxable year is seventy-five thousand dollars or more, 240
	312	+	or for a husband and wife who file a return under the federal income tax 241
	313	+	as married individuals filing jointly whose federal adjusted gross 242
	314	+	income from such taxable year is one hundred thousand dollars or more 243
	315	+	or for a person who files a return under the federal income tax as a head 244
	316	+	of household whose federal adjusted gross income for such taxable year 245
	317	+	is one hundred thousand dollars or more, an amount equal to the 246
	318	+	difference between the amount of Social Security benefits includable for 247
	319	+	federal income tax purposes and the lesser of twenty-five per cent of the 248
	320	+	Social Security benefits received during the taxable year, or twenty-five 249
	321	+	per cent of the excess described in Section 86(b)(1) of the Internal 250
	322	+	Revenue Code; 251
	323	+	(xi) To the extent properly includable in gross income for federal 252
	324	+	income tax purposes, any amount rebated to a taxpayer pursuant to 253
	325	+	section 12-746; 254
	326	+	(xii) To the extent properly includable in the gross income for federal 255
	327	+	income tax purposes of a designated beneficiary, any distribution to 256
	328	+	such beneficiary from any qualified state tuition program, as defined in 257
	329	+	Section 529(b) of the Internal Revenue Code, established and 258
	330	+	maintained by this state or any official, agency or instrumentality of the 259
	331	+	Raised Bill No. 1401
317	332
318	333
319		-	LCO 10 of 19
320	334
321		-	income tax purposes, the amount of any Holocaust victims' settlement 271
322		-	payment received in the taxable year by a Holocaust victim; 272
323		-	(xv) To the extent properly includable in the gross income for federal 273
324		-	income tax purposes of a designated beneficiary, as defined in section 274
325		-	3-123aa, interest, dividends or capital gains earned on contributions to 275
326		-	accounts established for the designated beneficiary pursuant to the 276
327		-	Connecticut Homecare Option Program for the Elderly established by 277
328		-	sections 3-123aa to 3-123ff, inclusive; 278
329		-	(xvi) To the extent properly includable in gross income for federal 279
330		-	income tax purposes, any income received from the United States 280
331		-	government as retirement pay for a retired member of (I) the Armed 281
332		-	Forces of the United States, as defined in Section 101 of Title 10 of the 282
333		-	United States Code, or (II) the National Guard, as defined in Section 101 283
334		-	of Title 10 of the United States Code; 284
335		-	(xvii) To the extent properly includable in gross income for federal 285
336		-	income tax purposes for the taxable year, any income from the discharge 286
337		-	of indebtedness in connection with any reacquisition, after December 287
338		-	31, 2008, and before January 1, 2011, of an applicable debt instrument or 288
339		-	instruments, as those terms are defined in Section 108 of the Internal 289
340		-	Revenue Code, as amended by Section 1231 of the American Recovery 290
341		-	and Reinvestment Act of 2009, to the extent any such income was added 291
342		-	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 292
343		-	this subdivision in computing Connecticut adjusted gross income for a 293
344		-	preceding taxable year; 294
345		-	(xviii) To the extent not deductible in determining federal adjusted 295
346		-	gross income, the amount of any contribution to a manufacturing 296
347		-	reinvestment account established pursuant to section 32-9zz in the 297
348		-	taxable year that such contribution is made; 298
349		-	(xix) To the extent properly includable in gross income for federal 299
350		-	income tax purposes, (I) for the taxable year commencing January 1, 300
351		-	2015, ten per cent of the income received from the state teachers' 301
352		-	retirement system, (II) for the taxable years commencing January 1, 302 Substitute Bill No. 1401
	335	+	LCO No. 5519 10 of 20
	336	+
	337	+	state; 260
	338	+	(xiii) To the extent allowable under section 12-701a, contributions to 261
	339	+	accounts established pursuant to any qualified state tuition program, as 262
	340	+	defined in Section 529(b) of the Internal Revenue Code, established and 263
	341	+	maintained by this state or any official, agency or instrumentality of the 264
	342	+	state; 265
	343	+	(xiv) To the extent properly includable in gross income for federal 266
	344	+	income tax purposes, the amount of any Holocaust victims' settlement 267
	345	+	payment received in the taxable year by a Holocaust victim; 268
	346	+	(xv) To the extent properly includable in the gross income for federal 269
	347	+	income tax purposes of a designated beneficiary, as defined in section 270
	348	+	3-123aa, interest, dividends or capital gains earned on contributions to 271
	349	+	accounts established for the designated beneficiary pursuant to the 272
	350	+	Connecticut Homecare Option Program for the Elderly established by 273
	351	+	sections 3-123aa to 3-123ff, inclusive; 274
	352	+	(xvi) To the extent properly includable in gross income for federal 275
	353	+	income tax purposes, any income received from the United States 276
	354	+	government as retirement pay for a retired member of (I) the Armed 277
	355	+	Forces of the United States, as defined in Section 101 of Title 10 of the 278
	356	+	United States Code, or (II) the National Guard, as defined in Section 101 279
	357	+	of Title 10 of the United States Code; 280
	358	+	(xvii) To the extent properly includable in gross income for federal 281
	359	+	income tax purposes for the taxable year, any income from the discharge 282
	360	+	of indebtedness in connection with any reacquisition, after December 283
	361	+	31, 2008, and before January 1, 2011, of an applicable debt instrument or 284
	362	+	instruments, as those terms are defined in Section 108 of the Internal 285
	363	+	Revenue Code, as amended by Section 1231 of the American Recovery 286
	364	+	and Reinvestment Act of 2009, to the extent any such income was added 287
	365	+	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 288
	366	+	this subdivision in computing Connecticut adjusted gross income for a 289
	367	+	preceding taxable year; 290
	368	+	Raised Bill No. 1401
353	369
354	370
355		-	LCO 11 of 19
356	371
357		-	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 303
358		-	received from the state teachers' retirement system, and (III) for the 304
359		-	taxable year commencing January 1, 2021, and each taxable year 305
360		-	thereafter, fifty per cent of the income received from the state teachers' 306
361		-	retirement system or, for a taxpayer whose federal adjusted gross 307
362		-	income does not exceed the applicable threshold under clause (xx) of 308
363		-	this subparagraph, the percentage pursuant to said clause of the income 309
364		-	received from the state teachers' retirement system, whichever 310
365		-	deduction is greater; 311
366		-	(xx) To the extent properly includable in gross income for federal 312
367		-	income tax purposes, except for retirement benefits under clause (iv) of 313
368		-	this subparagraph and retirement pay under clause (xvi) of this 314
369		-	subparagraph, for a person who files a return under the federal income 315
370		-	tax as an unmarried individual whose federal adjusted gross income for 316
371		-	such taxable year is less than seventy-five thousand dollars, or as a 317
372		-	married individual filing separately whose federal adjusted gross 318
373		-	income for such taxable year is less than seventy-five thousand dollars, 319
374		-	or as a head of household whose federal adjusted gross income for such 320
375		-	taxable year is less than seventy-five thousand dollars, or for a husband 321
376		-	and wife who file a return under the federal income tax as married 322
377		-	individuals filing jointly whose federal adjusted gross income for such 323
378		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 324
379		-	year commencing January 1, 2019, fourteen per cent of any pension or 325
380		-	annuity income, (II) for the taxable year commencing January 1, 2020, 326
381		-	twenty-eight per cent of any pension or annuity income, (III) for the 327
382		-	taxable year commencing January 1, 2021, forty-two per cent of any 328
383		-	pension or annuity income, and (IV) for the taxable years commencing 329
384		-	January 1, 2022, and January 1, 2023, one hundred per cent of any 330
385		-	pension or annuity income; 331
386		-	(xxi) To the extent properly includable in gross income for federal 332
387		-	income tax purposes, except for retirement benefits under clause (iv) of 333
388		-	this subparagraph and retirement pay under clause (xvi) of this 334
389		-	subparagraph, any pension or annuity income for the taxable year 335
390		-	commencing on or after January 1, 2024, and each taxable year 336 Substitute Bill No. 1401
	372	+	LCO No. 5519 11 of 20
	373	+
	374	+	(xviii) To the extent not deductible in determining federal adjusted 291
	375	+	gross income, the amount of any contribution to a manufacturing 292
	376	+	reinvestment account established pursuant to section 32-9zz in the 293
	377	+	taxable year that such contribution is made; 294
	378	+	(xix) To the extent properly includable in gross income for federal 295
	379	+	income tax purposes, (I) for the taxable year commencing January 1, 296
	380	+	2015, ten per cent of the income received from the state teachers' 297
	381	+	retirement system, (II) for the taxable years commencing January 1, 298
	382	+	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 299
	383	+	received from the state teachers' retirement system, and (III) for the 300
	384	+	taxable year commencing January 1, 2021, and each taxable year 301
	385	+	thereafter, fifty per cent of the income received from the state teachers' 302
	386	+	retirement system or, for a taxpayer whose federal adjusted gross 303
	387	+	income does not exceed the applicable threshold under clause (xx) of 304
	388	+	this subparagraph, the percentage pursuant to said clause of the income 305
	389	+	received from the state teachers' retirement system, whichever 306
	390	+	deduction is greater; 307
	391	+	(xx) To the extent properly includable in gross income for federal 308
	392	+	income tax purposes, except for retirement benefits under clause (iv) of 309
	393	+	this subparagraph and retirement pay under clause (xvi) of this 310
	394	+	subparagraph, for a person who files a return under the federal income 311
	395	+	tax as an unmarried individual whose federal adjusted gross income for 312
	396	+	such taxable year is less than seventy-five thousand dollars, or as a 313
	397	+	married individual filing separately whose federal adjusted gross 314
	398	+	income for such taxable year is less than seventy-five thousand dollars, 315
	399	+	or as a head of household whose federal adjusted gross income for such 316
	400	+	taxable year is less than seventy-five thousand dollars, or for a husband 317
	401	+	and wife who file a return under the federal income tax as married 318
	402	+	individuals filing jointly whose federal adjusted gross income for such 319
	403	+	taxable year is less than one hundred thousand dollars, (I) for the taxable 320
	404	+	year commencing January 1, 2019, fourteen per cent of any pension or 321
	405	+	annuity income, (II) for the taxable year commencing January 1, 2020, 322
	406	+	twenty-eight per cent of any pension or annuity income, (III) for the 323
	407	+	Raised Bill No. 1401
391	408
392	409
393		-	LCO 12 of 19
394	410
395		-	thereafter, in accordance with the following schedule, for a person who 337
396		-	files a return under the federal income tax as an unmarried individual 338
	411	+	LCO No. 5519 12 of 20
	412	+
	413	+	taxable year commencing January 1, 2021, forty-two per cent of any 324
	414	+	pension or annuity income, and (IV) for the taxable years commencing 325
	415	+	January 1, 2022, and January 1, 2023, one hundred per cent of any 326
	416	+	pension or annuity income; 327
	417	+	(xxi) To the extent properly includable in gross income for federal 328
	418	+	income tax purposes, except for retirement benefits under clause (iv) of 329
	419	+	this subparagraph and retirement pay under clause (xvi) of this 330
	420	+	subparagraph, any pension or annuity income for the taxable year 331
	421	+	commencing on or after January 1, 2024, and each taxable year 332
	422	+	thereafter, in accordance with the following schedule, for a person who 333
	423	+	files a return under the federal income tax as an unmarried individual 334
	424	+	whose federal adjusted gross income for such taxable year is less than 335
	425	+	one hundred thousand dollars, or as a married individual filing 336
	426	+	separately whose federal adjusted gross income for such taxable year is 337
	427	+	less than one hundred thousand dollars, or as a head of household 338
397	428		whose federal adjusted gross income for such taxable year is less than 339
398		-	one hundred thousand dollars, or as a married individual filing 340
399		-	separately whose federal adjusted gross income for such taxable year is 341
400		-	less than one hundred thousand dollars, or as a head of household 342
401		-	whose federal adjusted gross income for such taxable year is less than 343
402		-	one hundred thousand dollars: 344
	429	+	one hundred thousand dollars: 340
403	430		T1
404	431		Federal Adjusted Gross Income Deduction
405	432		T2 Less than $75,000 100.0%
406	433		T3
407	434		$75,000 but not over $77,499 85.0%
408	435		T4
409	436		$77,500 but not over $79,999 70.0%
410	437		T5
411	438		$80,000 but not over $82,499 55.0%
412	439		T6
413	440		$82,500 but not over $84,999 40.0%
414	441		T7
415	442		$85,000 but not over $87,499 25.0%
416	443		T8
417	444		$87,500 but not over $89,999 10.0%
418	445		T9
419	446		$90,000 but not over $94,999 5.0%
420	447		T10 $95,000 but not over $99,999 2.5%
421	448		T11
422	449		$100,000 and over 0.0%
423	450
424		-	(xxii) To the extent properly includable in gross income for federal 345
425		-	income tax purposes, except for retirement benefits under clause (iv) of 346
426		-	this subparagraph and retirement pay under clause (xvi) of this 347
427		-	subparagraph, any pension or annuity income for the taxable year 348
428		-	commencing on or after January 1, 2024, and each taxable year 349
429		-	thereafter, in accordance with the following schedule for married 350
430		-	individuals who file a return under the federal income tax as married 351
431		-	individuals filing jointly whose federal adjusted gross income for such 352
432		-	taxable year is less than one hundred fifty thousand dollars: 353
	451	+	(xxii) To the extent properly includable in gross income for federal 341
	452	+	income tax purposes, except for retirement benefits under clause (iv) of 342
	453	+	this subparagraph and retirement pay under clause (xvi) of this 343
	454	+	Raised Bill No. 1401
	455	+
	456	+
	457	+
	458	+	LCO No. 5519 13 of 20
	459	+
	460	+	subparagraph, any pension or annuity income for the taxable year 344
	461	+	commencing on or after January 1, 2024, and each taxable year 345
	462	+	thereafter, in accordance with the following schedule for married 346
	463	+	individuals who file a return under the federal income tax as married 347
	464	+	individuals filing jointly whose federal adjusted gross income for such 348
	465	+	taxable year is less than one hundred fifty thousand dollars: 349
433	466		T12
434	467		Federal Adjusted Gross Income Deduction
435	468		T13
436	469		Less than $100,000 100.0%
437	470		T14
438	471		$100,000 but not over $104,999 85.0%
439		-	T15
440		-	$105,000 but not over $109,999 70.0% Substitute Bill No. 1401
441		-
442		-
443		-	LCO 13 of 19
444		-
	472	+	T15 $105,000 but not over $109,999 70.0%
445	473		T16
446	474		$110,000 but not over $114,999 55.0%
447	475		T17
448	476		$115,000 but not over $119,999 40.0%
449	477		T18
450	478		$120,000 but not over $124,999 25.0%
451	479		T19
452	480		$125,000 but not over $129,999 10.0%
453	481		T20
454	482		$130,000 but not over $139,999 5.0%
455	483		T21
456	484		$140,000 but not over $149,999 2.5%
457	485		T22
458	486		$150,000 and over 0.0%
459	487
460		-	(xxiii) The amount of lost wages and medical, travel and housing 354
461		-	expenses, not to exceed ten thousand dollars in the aggregate, incurred 355
462		-	by a taxpayer during the taxable year in connection with the donation 356
463		-	to another person of an organ for organ transplantation occurring on or 357
464		-	after January 1, 2017; 358
465		-	(xxiv) To the extent properly includable in gross income for federal 359
466		-	income tax purposes, the amount of any financial assistance received 360
467		-	from the Crumbling Foundations Assistance Fund or paid to or on 361
468		-	behalf of the owner of a residential building pursuant to sections 8-442 362
469		-	and 8-443; 363
470		-	(xxv) To the extent properly includable in gross income for federal 364
471		-	income tax purposes, the amount calculated pursuant to subsection (b) 365
472		-	of section 12-704g for income received by a general partner of a venture 366
473		-	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 367
474		-	time; 368
475		-	(xxvi) To the extent any portion of a deduction under Section 179 of 369
476		-	the Internal Revenue Code was added to federal adjusted gross income 370
477		-	pursuant to subparagraph (A)(xiv) of this subdivision in computing 371
478		-	Connecticut adjusted gross income, twenty-five per cent of such 372
479		-	disallowed portion of the deduction in each of the four succeeding 373
480		-	taxable years; 374
481		-	(xxvii) To the extent properly includable in gross income for federal 375
482		-	income tax purposes, for a person who files a return under the federal 376
483		-	income tax as an unmarried individual whose federal adjusted gross 377 Substitute Bill No. 1401
	488	+	(xxiii) The amount of lost wages and medical, travel and housing 350
	489	+	expenses, not to exceed ten thousand dollars in the aggregate, incurred 351
	490	+	by a taxpayer during the taxable year in connection with the donation 352
	491	+	to another person of an organ for organ transplantation occurring on or 353
	492	+	after January 1, 2017; 354
	493	+	(xxiv) To the extent properly includable in gross income for federal 355
	494	+	income tax purposes, the amount of any financial assistance received 356
	495	+	from the Crumbling Foundations Assistance Fund or paid to or on 357
	496	+	behalf of the owner of a residential building pursuant to sections 8-442 358
	497	+	and 8-443; 359
	498	+	(xxv) To the extent properly includable in gross income for federal 360
	499	+	income tax purposes, the amount calculated pursuant to subsection (b) 361
	500	+	of section 12-704g for income received by a general partner of a venture 362
	501	+	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 363
	502	+	Raised Bill No. 1401
484	503
485	504
486		-	LCO 14 of 19
487	505
488		-	income for such taxable year is less than seventy-five thousand dollars, 378
489		-	or as a married individual filing separately whose federal adjusted gross 379
490		-	income for such taxable year is less than seventy-five thousand dollars, 380
491		-	or as a head of household whose federal adjusted gross income for such 381
492		-	taxable year is less than seventy-five thousand dollars, or for a husband 382
493		-	and wife who file a return under the federal income tax as married 383
494		-	individuals filing jointly whose federal adjusted gross income for such 384
495		-	taxable year is less than one hundred thousand dollars, for the taxable 385
496		-	year commencing January 1, 2023, twenty-five per cent of any 386
497		-	distribution from an individual retirement account other than a Roth 387
498		-	individual retirement account; 388
499		-	(xxviii) To the extent properly includable in gross income for federal 389
500		-	income tax purposes, for a person who files a return under the federal 390
501		-	income tax as an unmarried individual whose federal adjusted gross 391
502		-	income for such taxable year is less than one hundred thousand dollars, 392
503		-	or as a married individual filing separately whose federal adjusted gross 393
504		-	income for such taxable year is less than one hundred thousand dollars, 394
505		-	or as a head of household whose federal adjusted gross income for such 395
506		-	taxable year is less than one hundred thousand dollars, (I) for the taxable 396
507		-	year commencing January 1, 2024, fifty per cent of any distribution from 397
508		-	an individual retirement account other than a Roth individual 398
509		-	retirement account, (II) for the taxable year commencing January 1, 2025, 399
510		-	seventy-five per cent of any distribution from an individual retirement 400
511		-	account other than a Roth individual retirement account, and (III) for 401
512		-	the taxable year commencing January 1, 2026, and each taxable year 402
513		-	thereafter, any distribution from an individual retirement account other 403
514		-	than a Roth individual retirement account. The subtraction under this 404
515		-	clause shall be made in accordance with the following schedule: 405
	506	+	LCO No. 5519 14 of 20
	507	+
	508	+	time; 364
	509	+	(xxvi) To the extent any portion of a deduction under Section 179 of 365
	510	+	the Internal Revenue Code was added to federal adjusted gross income 366
	511	+	pursuant to subparagraph (A)(xiv) of this subdivision in computing 367
	512	+	Connecticut adjusted gross income, twenty-five per cent of such 368
	513	+	disallowed portion of the deduction in each of the four succeeding 369
	514	+	taxable years; 370
	515	+	(xxvii) To the extent properly includable in gross income for federal 371
	516	+	income tax purposes, for a person who files a return under the federal 372
	517	+	income tax as an unmarried individual whose federal adjusted gross 373
	518	+	income for such taxable year is less than seventy-five thousand dollars, 374
	519	+	or as a married individual filing separately whose federal adjusted gross 375
	520	+	income for such taxable year is less than seventy-five thousand dollars, 376
	521	+	or as a head of household whose federal adjusted gross income for such 377
	522	+	taxable year is less than seventy-five thousand dollars, or for a husband 378
	523	+	and wife who file a return under the federal income tax as married 379
	524	+	individuals filing jointly whose federal adjusted gross income for such 380
	525	+	taxable year is less than one hundred thousand dollars, for the taxable 381
	526	+	year commencing January 1, 2023, twenty-five per cent of any 382
	527	+	distribution from an individual retirement account other than a Roth 383
	528	+	individual retirement account; 384
	529	+	(xxviii) To the extent properly includable in gross income for federal 385
	530	+	income tax purposes, for a person who files a return under the federal 386
	531	+	income tax as an unmarried individual whose federal adjusted gross 387
	532	+	income for such taxable year is less than one hundred thousand dollars, 388
	533	+	or as a married individual filing separately whose federal adjusted gross 389
	534	+	income for such taxable year is less than one hundred thousand dollars, 390
	535	+	or as a head of household whose federal adjusted gross income for such 391
	536	+	taxable year is less than one hundred thousand dollars, (I) for the taxable 392
	537	+	year commencing January 1, 2024, fifty per cent of any distribution from 393
	538	+	an individual retirement account other than a Roth individual 394
	539	+	retirement account, (II) for the taxable year commencing January 1, 2025, 395
	540	+	Raised Bill No. 1401
	541	+
	542	+
	543	+
	544	+	LCO No. 5519 15 of 20
	545	+
	546	+	seventy-five per cent of any distribution from an individual retirement 396
	547	+	account other than a Roth individual retirement account, and (III) for 397
	548	+	the taxable year commencing January 1, 2026, and each taxable year 398
	549	+	thereafter, any distribution from an individual retirement account other 399
	550	+	than a Roth individual retirement account. The subtraction under this 400
	551	+	clause shall be made in accordance with the following schedule: 401
516	552		T23
517	553		Federal Adjusted Gross Income Deduction
518	554		T24
519	555		Less than $75,000 100.0%
520	556		T25
521	557		$75,000 but not over $77,499 85.0%
522		-	T26
523		-	$77,500 but not over $79,999 70.0%
524		-	T27 $80,000 but not over $82,499 55.0% Substitute Bill No. 1401
525		-
526		-
527		-	LCO 15 of 19
528		-
	558	+	T26 $77,500 but not over $79,999 70.0%
	559	+	T27
	560	+	$80,000 but not over $82,499 55.0%
529	561		T28
530	562		$82,500 but not over $84,999 40.0%
531	563		T29
532	564		$85,000 but not over $87,499 25.0%
533	565		T30
534	566		$87,500 but not over $89,999 10.0%
535	567		T31
536	568		$90,000 but not over $94,999 5.0%
537	569		T32
538	570		$95,000 but not over $99,999 2.5%
539	571		T33
540	572		$100,000 and over 0.0%
541	573
542		-	(xxix) To the extent properly includable in gross income for federal 406
543		-	income tax purposes, for married individuals who file a return under 407
544		-	the federal income tax as married individuals filing jointly whose 408
545		-	federal adjusted gross income for such taxable year is less than one 409
546		-	hundred fifty thousand dollars, (I) for the taxable year commencing 410
547		-	January 1, 2024, fifty per cent of any distribution from an individual 411
548		-	retirement account other than a Roth individual retirement account, (II) 412
549		-	for the taxable year commencing January 1, 2025, seventy-five per cent 413
550		-	of any distribution from an individual retirement account other than a 414
551		-	Roth individual retirement account, and (III) for the taxable year 415
552		-	commencing January 1, 2026, and each taxable year thereafter, any 416
553		-	distribution from an individual retirement account other than a Roth 417
554		-	individual retirement account. The subtraction under this clause shall 418
555		-	be made in accordance with the following schedule: 419
	574	+	(xxix) To the extent properly includable in gross income for federal 402
	575	+	income tax purposes, for married individuals who file a return under 403
	576	+	the federal income tax as married individuals filing jointly whose 404
	577	+	federal adjusted gross income for such taxable year is less than one 405
	578	+	hundred fifty thousand dollars, (I) for the taxable year commencing 406
	579	+	January 1, 2024, fifty per cent of any distribution from an individual 407
	580	+	retirement account other than a Roth individual retirement account, (II) 408
	581	+	for the taxable year commencing January 1, 2025, seventy-five per cent 409
	582	+	of any distribution from an individual retirement account other than a 410
	583	+	Roth individual retirement account, and (III) for the taxable year 411
	584	+	commencing January 1, 2026, and each taxable year thereafter, any 412
	585	+	distribution from an individual retirement account other than a Roth 413
	586	+	individual retirement account. The subtraction under this clause shall 414
	587	+	be made in accordance with the following schedule: 415
	588	+	Raised Bill No. 1401
	589	+
	590	+
	591	+
	592	+	LCO No. 5519 16 of 20
	593	+
556	594		T34
557	595		Federal Adjusted Gross Income Deduction
558		-	T35
559		-	Less than $100,000 100.0%
	596	+	T35 Less than $100,000 100.0%
560	597		T36
561	598		$100,000 but not over $104,999 85.0%
562		-	T37 $105,000 but not over $109,999 70.0%
	599	+	T37
	600	+	$105,000 but not over $109,999 70.0%
563	601		T38
564	602		$110,000 but not over $114,999 55.0%
565	603		T39
566	604		$115,000 but not over $119,999 40.0%
567	605		T40
568	606		$120,000 but not over $124,999 25.0%
569	607		T41
570	608		$125,000 but not over $129,999 10.0%
571	609		T42
572	610		$130,000 but not over $139,999 5.0%
573		-	T43
574		-	$140,000 but not over $149,999 2.5%
	611	+	T43 $140,000 but not over $149,999 2.5%
575	612		T44
576	613		$150,000 and over 0.0%
577	614
578		-	(xxx) To the extent properly includable in gross income for federal 420 Substitute Bill No. 1401
	615	+	(xxx) To the extent properly includable in gross income for federal 416
	616	+	income tax purposes, for the taxable year commencing January 1, 2022, 417
	617	+	the amount or amounts paid or otherwise credited to any eligible 418
	618	+	resident of this state under (I) the 2020 Earned Income Tax Credit 419
	619	+	enhancement program from funding allocated to the state through the 420
	620	+	Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 421
	621	+	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 422
	622	+	Income Tax Credit enhancement program from funding allocated to the 423
	623	+	state pursuant to Section 9901 of Subtitle M of Title IX of the American 424
	624	+	Rescue Plan Act of 2021, P.L. 117-2; 425
	625	+	(xxxi) For the taxable year commencing January 1, 2023, and each 426
	626	+	taxable year thereafter, for a taxpayer licensed under the provisions of 427
	627	+	chapter 420f or 420h, the amount of ordinary and necessary expenses 428
	628	+	that would be eligible to be claimed as a deduction for federal income 429
	629	+	tax purposes under Section 162(a) of the Internal Revenue Code but that 430
	630	+	are disallowed under Section 280E of the Internal Revenue Code 431
	631	+	because marijuana is a controlled substance under the federal 432
	632	+	Controlled Substance Act; 433
	633	+	(xxxii) To the extent properly includable in gross income for federal 434
	634	+	income tax purposes, for the taxable year commencing on or after 435
	635	+	Raised Bill No. 1401
579	636
580	637
581		-	LCO 16 of 19
582	638
583		-	income tax purposes, for the taxable year commencing January 1, 2022, 421
584		-	the amount or amounts paid or otherwise credited to any eligible 422
585		-	resident of this state under (I) the 2020 Earned Income Tax Credit 423
586		-	enhancement program from funding allocated to the state through the 424
587		-	Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 425
588		-	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 426
589		-	Income Tax Credit enhancement program from funding allocated to the 427
590		-	state pursuant to Section 9901 of Subtitle M of Title IX of the American 428
591		-	Rescue Plan Act of 2021, P.L. 117-2; 429
592		-	(xxxi) For the taxable year commencing January 1, 2023, and each 430
593		-	taxable year thereafter, for a taxpayer licensed under the provisions of 431
594		-	chapter 420f or 420h, the amount of ordinary and necessary expenses 432
595		-	that would be eligible to be claimed as a deduction for federal income 433
596		-	tax purposes under Section 162(a) of the Internal Revenue Code but that 434
597		-	are disallowed under Section 280E of the Internal Revenue Code 435
598		-	because marijuana is a controlled substance under the federal 436
599		-	Controlled Substance Act; 437
600		-	(xxxii) To the extent properly includable in gross income for federal 438
601		-	income tax purposes, for the taxable year commencing on or after 439
602		-	January 1, 2025, and each taxable year thereafter, any common stock 440
603		-	received by the taxpayer during the taxable year under a share plan, as 441
604		-	defined in section 12-217ss; 442
605		-	(xxxiii) To the extent properly includable in gross income for federal 443
606		-	income tax purposes, the amount of any student loan reimbursement 444
607		-	payment received by a taxpayer pursuant to section 10a-19m; 445
608		-	(xxxiv) Contributions to an ABLE account established pursuant to 446
609		-	sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 447
610		-	each individual taxpayer or ten thousand dollars for taxpayers filing a 448
611		-	joint return; [and] 449
612		-	(xxxv) To the extent properly includable in gross income for federal 450
613		-	income tax purposes, the amount of any payment received pursuant to 451
614		-	subsection (c) of section 3-122a; 452 Substitute Bill No. 1401
	639	+	LCO No. 5519 17 of 20
	640	+
	641	+	January 1, 2025, and each taxable year thereafter, any common stock 436
	642	+	received by the taxpayer during the taxable year under a share plan, as 437
	643	+	defined in section 12-217ss; 438
	644	+	(xxxiii) To the extent properly includable in gross income for federal 439
	645	+	income tax purposes, the amount of any student loan reimbursement 440
	646	+	payment received by a taxpayer pursuant to section 10a-19m; 441
	647	+	(xxxiv) Contributions to an ABLE account established pursuant to 442
	648	+	sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 443
	649	+	each individual taxpayer or ten thousand dollars for taxpayers filing a 444
	650	+	joint return; [and] 445
	651	+	(xxxv) To the extent properly includable in gross income for federal 446
	652	+	income tax purposes, the amount of any payment received pursuant to 447
	653	+	subsection (c) of section 3-122a; 448
	654	+	(xxxvi) For an account holder, as defined in section 1 of this act, who 449
	655	+	files a return under the federal income tax as an unmarried individual, 450
	656	+	a married individual filing separately or a head of household, whose 451
	657	+	federal adjusted gross income for the taxable year is less than one 452
	658	+	hundred thousand dollars or who files a return under the federal 453
	659	+	income tax as married individuals filing jointly whose federal adjusted 454
	660	+	gross income for the taxable year is less than two hundred thousand 455
	661	+	dollars: 456
	662	+	(I) To the extent not deductible in determining federal adjusted gross 457
	663	+	income, an amount equal to the contributions deposited during the 458
	664	+	taxable year in a disaster savings account established pursuant to 459
	665	+	subsection (c) of section 1 of this act, less any amounts withdrawn 460
	666	+	during the taxable year by the account holder from such account 461
	667	+	pursuant to subparagraph (D) of subdivision (2) of subsection (f) of 462
	668	+	section 1 of this act. The amount allowed to be claimed under this 463
	669	+	subclause for the taxable year shall not exceed two thousand five 464
	670	+	hundred dollars for an unmarried individual, a married individual 465
	671	+	filing separately or a head of household and five thousand dollars for 466
	672	+	Raised Bill No. 1401
615	673
616	674
617		-	LCO 17 of 19
618	675
619		-	(xxxvi) For an account holder, as defined in section 1 of this act, who 453
620		-	files a return under the federal income tax as an unmarried individual, 454
621		-	a married individual filing separately or a head of household and whose 455
622		-	federal adjusted gross income for the taxable year is less than one 456
623		-	hundred thousand dollars, or for an account holder, as defined in 457
624		-	section 1 of this act, who files a return under the federal income tax as a 458
625		-	married individual filing jointly and whose federal adjusted gross 459
626		-	income for the taxable year is less than two hundred thousand dollars: 460
627		-	(I) To the extent not deductible in determining federal adjusted gross 461
628		-	income, an amount equal to the contributions deposited during the 462
629		-	taxable year in a disaster savings account established pursuant to 463
630		-	subsection (c) of section 1 of this act, less any amounts withdrawn 464
631		-	during the taxable year by the account holder from such account 465
632		-	pursuant to subparagraph (D) of subdivision (2) of subsection (f) of 466
633		-	section 1 of this act. The amount allowed to be claimed under this 467
634		-	subclause for the taxable year shall not exceed two thousand five 468
635		-	hundred dollars for an unmarried individual, a married individual 469
636		-	filing separately or a head of household and five thousand dollars for 470
637		-	married individuals filing jointly; and 471
638		-	(II) To the extent properly includable in gross income for federal 472
639		-	income tax purposes, an amount equal to the sum of all interest accrued 473
640		-	on a disaster savings account, established pursuant to subsection (c) of 474
641		-	section 1 of this act, during the taxable year; and 475
642		-	(xxxvii) To the extent properly includable in gross income for federal 476
643		-	income tax purposes, for an account holder who is a qualified 477
644		-	beneficiary of a disaster savings account, as those terms are defined in 478
645		-	section 1 of this act, who files a return under the federal income tax as 479
646		-	an unmarried individual, a married individual filing separately or a 480
647		-	head of household and whose federal adjusted gross income for the 481
648		-	taxable year is less than one hundred thousand dollars, or for an account 482
649		-	holder who is a qualified beneficiary of a disaster savings account, as 483
650		-	those terms are defined in section 1 of this act, who files a return under 484
651		-	the federal income tax as a married individual filing jointly and whose 485 Substitute Bill No. 1401
	676	+	LCO No. 5519 18 of 20
	677	+
	678	+	married individuals filing jointly; and 467
	679	+	(II) To the extent properly includable in gross income for federal 468
	680	+	income tax purposes, an amount equal to the sum of all interest accrued 469
	681	+	on a disaster savings account, established pursuant to subsection (c) of 470
	682	+	section 1 of this act, during the taxable year; and 471
	683	+	(xxxvii) To the extent properly includable in gross income for federal 472
	684	+	income tax purposes, for an account holder who is a qualified 473
	685	+	beneficiary of a disaster savings account, as those terms are defined in 474
	686	+	section 1 of this act, and who files a return under the federal income tax 475
	687	+	as an unmarried individual, a married individual filing separately or a 476
	688	+	head of household, whose federal adjusted gross income for the taxable 477
	689	+	year is less than one hundred thousand dollars or who files a return 478
	690	+	under the federal income tax as married individuals filing jointly whose 479
	691	+	federal adjusted gross income for the taxable year is less than two 480
	692	+	hundred thousand dollars, an amount equal to any withdrawal from 481
	693	+	such account that is used to pay or reimburse such qualified beneficiary 482
	694	+	for eligible costs, as defined in section 1 of this act, incurred by the 483
	695	+	qualified beneficiary. 484
	696	+	Sec. 3. (NEW) (Effective January 1, 2026) (a) (1) For the taxable or 485
	697	+	income year commencing on or after January 1, 2026, but prior to 486
	698	+	January 1, 2027, there shall be allowed a credit against the tax imposed 487
	699	+	under chapter 208 or 229 of the general statutes, other than the liability 488
	700	+	imposed by section 12-707 of the general statutes, for contributions 489
	701	+	deposited by the employer of an account holder in a disaster savings 490
	702	+	account established pursuant to subsection (c) of section 1 of this act 491
	703	+	during the taxable or income years commencing on or after January 1, 492
	704	+	2025, but prior to January 1, 2027, provided such account holder was 493
	705	+	employed by such employer at the time such contributions were made. 494
	706	+	(2) For the taxable or income years commencing on or after January 495
	707	+	1, 2027, there shall be allowed a credit against the tax imposed under 496
	708	+	chapter 208 or 229 of the general statutes, other than the liability 497
	709	+	Raised Bill No. 1401
652	710
653	711
654		-	LCO 18 of 19
655	712
656		-	federal adjusted gross income for the taxable year is less than two 486
657		-	hundred thousand dollars, an amount equal to any withdrawal from 487
658		-	such account that is used to pay or reimburse such qualified beneficiary 488
659		-	for eligible costs, as defined in section 1 of this act, incurred by the 489
660		-	qualified beneficiary. 490
661		-	Sec. 3. (NEW) (Effective January 1, 2026) (a) (1) For the taxable or 491
662		-	income year commencing on or after January 1, 2026, but prior to 492
663		-	January 1, 2027, there shall be allowed a credit against the tax imposed 493
664		-	under chapter 208 or 229 of the general statutes, other than the liability 494
665		-	imposed by section 12-707 of the general statutes, for contributions 495
666		-	deposited by the employer of an account holder in a disaster savings 496
667		-	account, established pursuant to subsection (c) of section 1 of this act, 497
668		-	during the taxable or income years commencing on or after January 1, 498
669		-	2025, but prior to January 1, 2027, provided such account holder was 499
670		-	employed by such employer at the time such contributions were made. 500
671		-	(2) For the taxable or income years commencing on or after January 501
672		-	1, 2027, there shall be allowed a credit against the tax imposed under 502
673		-	chapter 208 or 229 of the general statutes, other than the liability 503
674		-	imposed by section 12-707 of the general statutes, for contributions 504
675		-	deposited by the employer of an account holder in a disaster savings 505
676		-	account, established pursuant to subsection (c) of section 1 of this act, 506
677		-	during the taxable or income year, provided such account holder was 507
678		-	employed by such employer at the time such contributions were made. 508
679		-	(3) The amount of the credit allowed under subdivisions (1) and (2) 509
680		-	of this subsection shall be equal to ten per cent of the amount of the 510
681		-	contributions made by the employer into the disaster savings accounts 511
682		-	of account holders of such accounts during the income or taxable year, 512
683		-	provided the amount of the credit allowed for any income or taxable 513
684		-	year with respect to a specific account holder shall not exceed two 514
685		-	thousand five hundred dollars. 515
686		-	(b) If the employer is an S corporation or an entity treated as a 516
687		-	partnership for federal income tax purposes, the credit may be claimed 517 Substitute Bill No. 1401
	713	+	LCO No. 5519 19 of 20
	714	+
	715	+	imposed by section 12-707 of the general statutes, for contributions 498
	716	+	deposited by the employer of an account holder in a disaster savings 499
	717	+	account established pursuant to subsection (c) of section 1 of this act 500
	718	+	during the taxable or income year, provided such account holder was 501
	719	+	employed by such employer at the time such contributions were made. 502
	720	+	(3) The amount of the credit allowed under subdivisions (1) and (2) 503
	721	+	of this subsection shall be equal to ten per cent of the amount of the 504
	722	+	contributions made by the taxpayer into the disaster savings accounts 505
	723	+	of account holders of such accounts during the income or taxable year, 506
	724	+	provided the amount of the credit allowed for any income or taxable 507
	725	+	year with respect to a specific account holder shall not exceed two 508
	726	+	thousand five hundred dollars. 509
	727	+	(b) If the taxpayer is an S corporation or an entity treated as a 510
	728	+	partnership for federal income tax purposes, the credit may be claimed 511
	729	+	by the shareholders or partners of the taxpayer. If the taxpayer is a single 512
	730	+	member limited liability company that is disregarded as an entity 513
	731	+	separate from its owner, the credit may be claimed by such limited 514
	732	+	liability company's owner, provided such owner is a person subject to 515
	733	+	the tax imposed under chapter 208 or 229 of the general statutes. Any 516
	734	+	taxpayer claiming the credit shall provide to the Department of Revenue 517
	735	+	Services documentation supporting such claim in the form and manner 518
	736	+	prescribed by the Commissioner of Revenue Services. 519
	737	+	Sec. 4. (Effective from passage) Not later than July 1, 2026, the Treasurer 520
	738	+	shall make recommendations, in accordance with section 11-4a of the 521
	739	+	general statutes, to the joint standing committee of the General 522
	740	+	Assembly having cognizance of matters relating to banking regarding 523
	741	+	whether and how marketable securities may be held in a disaster 524
	742	+	savings account established pursuant to subsection (c) of section 1 of this 525
	743	+	act. 526
	744	+	This act shall take effect as follows and shall amend the following
	745	+	sections:
	746	+
	747	+	Raised Bill No. 1401
688	748
689	749
690		-	LCO 19 of 19
691	750
692		-	by the shareholders or partners of the employer. If the employer is a 518
693		-	single member limited liability company that is disregarded as an entity 519
694		-	separate from its owner, the credit may be claimed by such limited 520
695		-	liability company's owner, provided such owner is a person subject to 521
696		-	the tax imposed under chapter 208 or 229 of the general statutes. Any 522
697		-	employer claiming the credit shall provide to the Department of 523
698		-	Revenue Services documentation supporting such claim in the form and 524
699		-	manner prescribed by the Commissioner of Revenue Services. 525
700		-	This act shall take effect as follows and shall amend the following
701		-	sections:
	751	+	LCO No. 5519 20 of 20
702	752
703	753		Section 1 from passage New section
704	754		Sec. 2 from passage and
705	755		applicable to taxable years
706	756		commencing on or after
707	757		January 1, 2025
708	758		12-701(a)(20)(B)
709	759		Sec. 3 January 1, 2026 New section
	760	+	Sec. 4 from passage New section
710	761
711		-	Statement of Legislative Commissioners:
712		-	In Section 1(c), "employers of the qualified" was changed to "the
713		-	employers of the qualified" for clarity; in Section 1(d)(1)(B)(i), "the
714		-	deduction allowed under subparagraph (B) of subdivision (20)" was
715		-	changed to "the deductions allowed under subparagraphs (B)(xxxvi)
716		-	and (B)(xxxvii) of subdivision (20)" for accuracy; and in Sections 1(f)(1)
717		-	and 1(f)(2)(D), "subparagraph (B) of subdivision (20)" was changed to
718		-	"subparagraph (B)(xxxvi) or (B)(xxxvii) of subdivision (20)" for
719		-	accuracy.
	762	+	Statement of Purpose:
	763	+	To establish a disaster savings account and a related tax deduction and
	764	+	credit.
720	765
721		-	BA Joint Favorable Subst.
	766	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	767	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	768	+	underlined.]
722	769