AN ACT PROVIDING AN INCOME TAX DEDUCTION FOR INDIVIDUALS CARING FOR ELDERLY PERSONS, CHILDREN OR DISABLED PERSONS.

This bill amends Connecticut's tax code to add a new deduction for interest on debt used to purchase tax-exempt securities (item (viii) in the revised section). It allows individuals to subtract interest expenses that aren't deductible under federal tax law, but only if the debt relates to business activities involving tax-exempt securities. The provision applies to taxable years beginning January 1, 2025, and directly affects Connecticut taxpayers with business-related investments in state/local tax-exempt bonds. The bill does not include the caregiver deduction referenced in its title, as the text focuses solely on modifying existing interest deduction rules.