Budget & Taxes (Tax Credits)

in committee · Connecticut · House Mar 12, 2026

HB 5319: AN ACT CONCERNING A RESEARCH AND DEVELOPMENT TAX CREDIT FOR SMALL BUSINESSES.

HB 5319 creates a 6% state tax credit for qualified small businesses based on their eligible research and development (R&D) expenses, directly affecting S corporations, partnerships, and single-member LLCs with gross income under $70 million. Businesses must apply for a pre-approved "tax credit voucher" to reserve credit capacity (capped at $1.5 million per business and $25 million total annually) before incurring expenses. The credit reduces state tax liability, and any excess can be partially refunded (90% for biotech businesses, 65% for others). This policy aims to incentivize R&D investment by making tax credits accessible without upfront cash costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 6% R&D tax credit reducing state tax liability for small businesses, providing direct tax relief under specified caps.95% confidence ✓ TechnologySupports TechnologyProvides 6% R&D tax credit for small businesses, directly funding technology innovation and development through financial incentives.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

Track

in committee · Connecticut · Senate Feb 9, 2026

SB 99: AN ACT ESTABLISHING A REFUNDABLE CREDIT AGAINST THE PERSONAL INCOME TAX FOR THE AMOUNT OF MOTOR VEHICLE PROPERTY TAX PAID.

SB 99 creates a refundable tax credit against personal income tax equal to the motor vehicle property tax paid by qualifying taxpayers. It directly affects low-to-moderate-income individuals: single filers with adjusted gross income under $100,000 and married couples filing jointly with income under $200,000. The credit is refundable, meaning eligible taxpayers receive cash back even if the credit exceeds their income tax liability. The bill specifically applies to motor vehicle property tax, not home property tax (though the text references a separate residence tax limitation, which is unrelated to this vehicle credit). This is a concrete policy change that reduces the tax burden for vehicle owners meeting the income thresholds.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for low-to-moderate-income taxpayers on motor vehicle property tax, directly reducing tax burden for qualifying filers.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

Track

in committee · Connecticut · House Feb 10, 2026

HB 5134: AN ACT ESTABLISHING A REFUNDABLE CHILD TAX CREDIT.

HB 5134 establishes a refundable child tax credit of $600 per child for families with up to three children. It directly affects low-to-moderate income households, specifically those with federal adjusted gross income under $100,000 for single filers or $200,000 for married couples filing jointly. The credit is refundable, meaning eligible families may receive the full credit amount even if it exceeds their income tax liability. This policy change reduces tax burden for qualifying families with children, using the state’s personal income tax system to provide direct financial support.

Topics ✓ Budget & TaxesSupports Budget & TaxesRefundable child tax credit reduces tax burden for low-to-moderate income families, providing direct tax relief per bill's explicit language.95% confidence

Sub-Topics Income Tax State Budget Tax Credits

Track

in committee · Connecticut · Senate Feb 20, 2026

SB 103: AN ACT ESTABLISHING A REFUNDABLE CHILD TAX CREDIT.

This bill establishes a refundable child tax credit for families with up to three children, starting at $150 per child in 2026 and increasing to $600 per child by 2028. It phases out for higher-income households: single filers over $100,000, heads of household over $160,000, and married couples filing jointly over $200,000 (reducing by 5% for every $1,000 over these thresholds). The credit is refundable, meaning eligible families receive it even if they owe no income tax. It directly affects low-to-moderate income families with children under age 18.

Topics ✓ Budget & TaxesSupports Budget & TaxesRefundable child tax credit provides direct tax relief to low/middle-income families with children, increasing disposable income without raising taxes on targeted groups.95% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · Connecticut · House Feb 11, 2026

HB 5177: AN ACT ESTABLISHING A TAX CREDIT FOR MANUFACTURERS THAT DONATE EQUIPMENT OR SUPPLIES TO MANUFACTURING TRAINING PROGRAMS AT PUBLIC SCHOOLS.

HB 5177 creates a tax credit for manufacturers in the state who donate equipment or supplies to manufacturing training programs at public middle or high schools. This directly affects manufacturers by offering them a financial incentive to contribute to school programs, and public schools with manufacturing training initiatives by providing them with needed resources. The key provision allows manufacturers to claim a tax credit equal to the value of qualifying donated equipment or supplies, reducing their state tax liability. The bill aims to strengthen school-industry partnerships by making it more financially appealing for manufacturers to support vocational education.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for manufacturers, providing direct tax relief to incentivize donations to public school programs, aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationProvides tax credit for manufacturers donating equipment to school manufacturing programs, directly enhancing resource access for K-12 training initiatives.95% confidence

Sub-Topics Tax Credits Tax Incentives Career & Technical Education

Track

in committee · Connecticut · House Feb 4, 2026

HB 5021: AN ACT EXEMPTING CERTAIN ARTICLES OF CHILDREN'S CLOTHING FROM THE SALES AND USE TAXES.

HB 5021 exempts from state sales and use taxes any children's clothing costing less than $100. This directly affects parents, caregivers, and retailers who sell such clothing within the state. The bill modifies existing tax law to remove the tax burden on qualifying items, including standard children's apparel like shirts, pants, and dresses. It does not apply to clothing over $100 or non-clothing items, and the change takes effect upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts children's clothing under $100 from sales tax, providing direct tax relief to lower-income families purchasing essential items.95% confidence

Sub-Topics Sales Tax Tax Credits

Track

in committee · Connecticut · Senate Feb 4, 2026

SB 43: AN ACT CONCERNING THE TAX CREDIT FOR MACHINERY AND EQUIPMENT.

SB 43 replaces Connecticut's existing machinery and equipment tax credit with a new 50% credit for corporations spending on such equipment installed in state facilities. It directly affects corporations that purchase and install machinery/equipment in Connecticut, removing previous employee-based restrictions. The bill requires equipment to be used in the facility for at least five years, and corporations must repay the full credit amount if this minimum use period is not met. This creates a simpler credit structure with a mandatory five-year usage requirement and repayment obligation for non-compliance.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates 50% tax credit for corporate equipment purchases, directly providing tax relief under state tax policy while modifying existing credit structure.95% confidence

Sub-Topics Business Taxes Tax Credits

Track

in committee · Connecticut · House Mar 18, 2026

HB 5206: AN ACT ESTABLISHING A TAX CREDIT AGAINST THE PERSONAL INCOME TAX FOR VOLUNTEER FIREFIGHTERS WHO MEET CERTAIN SERVICE REQUIREMENTS.

HB 5206 establishes a tax credit of up to $2,500 against personal income tax for volunteer firefighters who meet specific service requirements. The credit directly affects volunteer firefighters certified by their fire chief as having completed the required service hours. Key provisions require fire chiefs to verify qualifying service, with the credit applying against the individual's state income tax liability. This policy change provides direct financial relief to eligible volunteer firefighters without altering tax rates or creating new obligations for the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax credit ($2,500) against personal income tax for volunteer firefighters, reducing their tax burden and supporting public service workers.95% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · Connecticut · House Feb 10, 2026

HB 5137: AN ACT ESTABLISHING A REFUNDABLE TAX CREDIT FOR NEWS ORGANIZATIONS THAT COVER LOCAL COMMUNITIES IN THE STATE.

HB 5137 establishes a refundable tax credit for news organizations covering local communities in the state. It provides $15,000 per existing journalist employed in the state and $25,000 per new journalist hired, with a maximum credit of $150,000 per organization annually. The credit directly affects local news organizations that maintain in-state reporting staff focused on community coverage. This policy change aims to financially support local journalism through tax incentives without requiring organizations to pay additional taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes refundable tax credit ($15k/$25k per journalist) to fund local journalism, directly using tax incentives to support news organizations as a fiscal policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentDirectly funds journalist employment via tax credits ($15k/existing, $25k/new), advancing labor sector jobs without ambiguity.95% confidence

Sub-Topics Tax Credits Tax Incentives

Track

in committee · Connecticut · House Feb 6, 2026

HB 5061: AN ACT CONCERNING THE PROPERTY TAX CREDIT AGAINST THE PERSONAL INCOME TAX FOR A PRIMARY RESIDENCE OR MOTOR VEHICLE.

HB 5061 would increase Connecticut's property tax credit against personal income tax for primary residences or motor vehicles. It raises the maximum credit from $300 to $1,000 per year, increases the minimum credit threshold, and expands eligibility by raising the income limits for qualifying residents. The bill directly affects Connecticut homeowners and vehicle owners who pay property tax and meet the updated income thresholds. This change would reduce eligible taxpayers' annual income tax bills by up to $1,000.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax credit against income tax, reducing tax burden for homeowners/vehicle owners with expanded eligibility, aligning with tax relief for middle/lower income.95% confidence

Sub-Topics Income Tax Property Tax Tax Credits

Track