Budget & Taxes (Tax Incentives)

in committee · Connecticut · House Feb 4, 2026

HB 5008: AN ACT ESTABLISHING A SMALL BUSINESS TAX CREDIT.

HB 5008 establishes a $2,080 tax credit per full-time equivalent employee for small businesses meeting the U.S. Small Business Administration's definition (typically businesses with fewer than 500 employees). This credit would directly reduce the state tax liability for qualifying small businesses, providing a concrete financial incentive tied to employee count. The bill amends state tax law to implement this credit, which applies to businesses that meet federal SBA criteria. This policy change specifically targets small business employment costs without altering broader tax structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit reducing liability for small businesses, providing direct tax relief per SBA criteria.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Economic Development Small Business

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in committee · Connecticut · Senate Feb 6, 2026

SB 95: AN ACT ESTABLISHING A CREDIT AGAINST THE PERSONAL INCOME TAX FOR CERTAIN EMPLOYEES OF DEFENSE CONTRACTORS AND OF DIRECT SUPPLIERS AND SUBCONTRACTORS OF DEFENSE CONTRACTORS.

SB 95 creates a $500 credit against personal income tax for employees working at defense contractors or their direct suppliers/subcontractors. To qualify, individuals must earn under $125,000 annually as single filers or under $250,000 as married couples filing jointly. The credit directly benefits lower-to-moderate income workers in the defense supply chain by reducing their state tax burden. This is a specific tax incentive targeting employees in defense-related industries, not a general tax cut. The bill establishes this credit through an amendment to existing tax law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $500 tax credit for defense workers under income limits, reducing state tax burden for lower-to-moderate earners per bill summary.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $500 tax credit to defense workers earning under $125k/$250k, increasing disposable income for qualifying employees in labor-intensive industry.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Connecticut · House Feb 4, 2026

HB 5014: AN ACT ESTABLISHING AN INFORMATION TECHNOLOGY APPRENTICESHIP TAX CREDIT.

HB 5014 creates a tax credit for businesses that sponsor apprenticeships in information technology. It allows taxpayers to reduce their state income tax liability by a credit for qualified IT apprenticeship programs. The credit applies to apprenticeships started under approved training programs, directly benefiting employers who hire and train IT apprentices. This policy change provides a financial incentive for companies to develop workforce pipelines in technology fields without altering existing tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit for businesses, providing tax relief to incentivize IT apprenticeships, directly aligning with tax policy support indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for IT apprenticeships, incentivizing employer training programs to develop skilled workforce, advancing occupational training within labor policy.85% confidence ✓ TechnologySupports TechnologyBill creates tax credit for IT apprenticeships, directly funding workforce development in technology fields through financial incentives for employers.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Apprenticeships Workforce Development

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in committee · Connecticut · House Feb 6, 2026

HB 5064: AN ACT ESTABLISHING A TAX CREDIT FOR FOOD DONATED BY FARMERS TO CHARITABLE ORGANIZATIONS.

HB 5064 creates a $5,000 annual tax credit for farmers who donate food to charitable organizations, adjusted each year based on inflation using the consumer price index. This credit directly benefits farmers by reducing their state tax liability for food donations and supports charitable organizations receiving surplus food. The bill establishes a concrete financial incentive to encourage food donations, aiming to reduce waste while aiding food-insecure communities. It does not change existing food donation laws but provides a new tax benefit for qualifying donations.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $5,000 annual tax credit for farmers donating food, reducing tax liability and incentivizing charitable food distribution. Direct tax relief aligns with fiscal responsibility and public service support.95% confidence

Sub-Topics Debt & Bonds Tax Credits Tax Incentives

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in committee · Connecticut · House Feb 6, 2026

HB 5070: AN ACT REESTABLISHING THE JOB EXPANSION TAX CREDIT PROGRAM.

HB 5070 reestablishes the Job Expansion Tax Credit Program by amending section 12-217pp of the general statutes. The program provides tax credits to businesses that expand their workforce, reducing their state tax liability for qualifying job growth. This bill directly affects eligible businesses by restoring a tax credit opportunity previously established under the program. The legislation focuses on concrete policy restoration without specifying eligibility details or credit amounts.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores tax credits for business job growth, reducing state tax liability for qualifying employers per bill's purpose.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Connecticut · Senate Apr 20, 2026

SB 2: AN ACT SUPPORTING LOCAL COMMERCE.

SB 2 exempts small businesses (with less than $10 million in annual revenue) from sales and use taxes on electricity and natural gas purchases. It redirects revenue from an additional 1% sales tax on meals: 50% to the state Tourism Fund and 50% to the municipalities where the meals were purchased. The bill aims to lower operating costs for small commercial and industrial businesses, which could reduce prices passed on to consumers. These changes directly affect small businesses and local governments through tax adjustments and new revenue allocation.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts small businesses from energy taxes and redirects meal tax revenue, providing tax relief and fiscal reallocation for local commerce.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Connecticut · House Feb 6, 2026

HB 5067: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN UNREIMBURSED MEDICAL EXPENSES.

HB 5067 creates a personal income tax deduction for taxpayers with unreimbursed medical expenses exceeding 7.5% of their adjusted gross income. It directly affects individual taxpayers who pay out-of-pocket medical costs not covered by insurance, such as doctor visits, prescriptions, or hospital stays. The bill's key provision allows these taxpayers to subtract the amount of qualifying medical expenses above the 7.5% threshold from their taxable income. This change lowers the taxable income subject to state tax rates, potentially reducing the overall tax liability for eligible filers. The deduction applies only to expenses not reimbursed by insurance or other sources.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for medical expenses, lowering taxable income for qualifying individuals, directly providing tax relief aligned with middle/lower income support.95% confidence ✓ HealthcareSupports HealthcareCreates tax deduction for unreimbursed medical expenses, reducing financial burden on patients and improving access to healthcare services.85% confidence

Sub-Topics Income Tax Tax Incentives Hospitals

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in committee · Connecticut · Senate Feb 4, 2026

SB 66: AN ACT ESTABLISHING A TEMPORARY PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

SB 66 would create a temporary tax deduction for workers who declare tips or gratuities on their income tax returns. It allows a deduction of up to $25,000 per year for tips earned during 2026-2028, reducing taxable income for affected workers. The deduction phases out for single filers with incomes over $150,000 and married couples filing jointly over $300,000. This policy directly impacts service industry workers who report tip income, lowering their tax burden for the specified period.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary tax relief for service workers via deduction, reducing taxable income for middle/lower earners (phased out above $150k/$300k).95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for tips, lowering taxable income for service workers and increasing take-home pay.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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