AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN TAXPAYERS FOR CERTAIN CAPITAL GAINS ON THE SALE OF A PRIMARY HOME.

SB 41 creates a state tax deduction for Connecticut taxpayers aged 65 or older who sell their primary home. It allows these seniors to deduct capital gains (the profit from the sale) that are already counted as taxable income for federal tax purposes. The deduction applies only to gains from selling a primary residence, not rental properties or second homes. This policy directly affects older homeowners by reducing their state income tax bill on the profit from their main residence sale.