AN ACT CONCERNING THE AMORTIZABLE BOND PREMIUM SUBTRACTION FOR PURPOSES OF THE PERSONAL INCOME TAX.

This bill modifies Connecticut's personal income tax rules by updating the list of items that can be subtracted from gross income when calculating taxable income. It directly affects Connecticut residents filing state income tax returns by clarifying and adjusting various deductions related to federal tax treatment. Key provisions include maintaining existing deductions for certain federal tax-exempt income, interest on state bonds, and Social Security benefits, while also specifying how to handle amortizable bond premiums on bonds whose interest is taxable under state law but exempt from federal tax. The changes take effect for taxable years beginning on or after January 1, 2027, and primarily align state tax calculations with corresponding federal tax rules.