AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR A PORTION OF THE RENT PAID BY CERTAIN TAXPAYERS FOR A PRIMARY RESIDENCE IN THE STATE.

HB 7269 creates a personal income tax deduction for renters in Connecticut who live in the state as their primary residence. It allows eligible residents to deduct 20% to 50% of their rent paid annually, based on federal adjusted gross income: 50% (max $4,000) for singles earning under $75,000 or couples filing jointly under $125,000; 35% (max $2,800) for middle-income earners; and 20% (max $1,600) for higher earners. The deduction applies only to rent for primary residences under lease agreements, excluding security deposits, short-term rentals, or cooperative housing payments. It takes effect January 1, 2026, and requires taxpayers to provide documentation to verify eligibility.