AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE BIENNIAL BUDGET.

SB 1246 modifies Connecticut's tax rules for corporate operating losses, extending the carry-forward period from 20 to 30 years for losses incurred in tax years starting January 1, 2025. It limits deductions for losses from 2015-2024 to 50% of a company's net income in each subsequent year, while preserving the existing 20-year rule for older losses. The bill also creates a special provision allowing large corporate groups (with over $6 billion in unused pre-2013 losses) to elect to relinquish half their losses to use the remainder without the 50% cap until 2025. These changes primarily affect corporations with significant operating losses, directly altering how they can deduct past losses against future taxable income.