AN ACT CONCERNING THE BONUS DEPRECIATION TAX DEDUCTION SCHEDULE FOR PASS-THROUGH ENTITIES.

HB 5552 would change Connecticut's tax rules to allow pass-through businesses (like partnerships and S-corporations) to deduct the full amount of bonus depreciation for eligible assets in the year they are first placed in service, rather than spreading the deduction over multiple years. This directly affects small and medium-sized businesses that own qualifying property, such as equipment or machinery. The key provision eliminates the current phased deduction schedule, providing an immediate tax benefit when businesses acquire new assets. This policy change simplifies the deduction process without altering the tax rate or eligibility criteria for the deduction itself.