Connecticut 2026 Session Status: In Committee Bipartisan · 4 D · 2 R cosponsors

HB 5296 — AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR NATIONAL GUARD STATE ACTIVE DUTY PAY.

Last action — FILE NO. 139

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced February 19, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 42% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 6 sponsors

    6 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 D · 2 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

121 added · 78 removed

Plain-language change summary

The revised version of Bill HB 5296 changes the focus from "National Guard active duty pay" to specifically "National Guard state active duty pay." This distinction is important because it clarifies which type of pay is being addressed, potentially affecting how benefits are allocated and ensuring that state-level duties are recognized appropriately. By specifying "state active duty," the bill targets support for National Guard members who are called to serve under state authority, which is crucial for their financial and operational needs.

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General Assembly Raised Bill No.
House of Representatives General Assembly File No.
5296 February Session, 2026 LCO No.
139 February Session, 2026 Substitute House Bill No.
1546 Referred to Committee on VETERANS' AND MILITARY AFFAIRS Introduced by:
5296 House of Representatives, March 24, 2026 The Committee on Veterans' and Military Affairs reported through REP.
(VA) AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR NATIONAL GUARD ACTIVE DUTY PAY.
FOSTER of the 57th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.
AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR NATIONAL GUARD STATE ACTIVE DUTY PAY.
(iii) To the extent properly includable in gross income for federal income tax purposes, the amount of any refund or credit for LCO No.
(iii) To the extent properly includable in gross income for federal sHB5296 / File No.
1546 1 of 15 Raised Bill No.5296 overpayment of income taxes imposed by this state, or any other state of the United States or a political subdivision thereof, or the District of Columbia;
139 1 sHB5296 File No.
139 income tax purposes, the amount of any refund or credit for overpayment of income taxes imposed by this state, or any other state of the United States or a political subdivision thereof, or the District of Columbia;
(viii) Any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is subject to tax under thischapter butexempt fromfederalincome tax,totheextentthat such interest on indebtedness is not deductible in determining federal LCO No.
(viii) Any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is subject to tax under thischapter butexempt fromfederalincome tax,totheextentthat such interest on indebtedness is not deductible in determining federal sHB5296 / File No.
1546 2 of 15 Raised Bill No.
139 2 sHB5296 File No.
5296 adjusted gross income and is attributable to a trade or business carried on by such individual;
139 adjusted gross income and is attributable to a trade or business carried on by such individual;
(II) For taxable years commencing prior to January 1, 2019, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly LCO No.
(II) For taxable years commencing prior to January 1, 2019, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is sixty sHB5296 / File No.
1546 3 of 15 Raised Bill No.5296 whose federal adjusted gross income from such taxable year is sixty thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;
139 3 sHB5296 File No.
139 thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;
and (IV) For the taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is seventy-five thousand dollars or more, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is seventy-five thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is one hundred thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year LCO No.
and (IV) For the taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is seventy-five thousand dollars or more, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is seventy-five thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is one hundred thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is one hundred thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for sHB5296 / File No.
1546 4 of 15 Raised Bill No.5296 is one hundred thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;
139 4 sHB5296 File No.
139 federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;
(xvi) To the extent properly includable in gross income for federal LCO No.
(xvi) To the extent properly includable in gross income for federal income tax purposes, any income received from the United States government as retirement pay for a retired member of (I) the Armed Forces of the United States, as defined in Section 101 of Title 10 of the sHB5296 / File No.
1546 5 of 15 Raised Bill No.5296 income tax purposes, any income received from the United States government as retirement pay for a retired member of (I) the Armed Forces of the United States, as defined in Section 101 of Title 10 of the United States Code, or (II) the National Guard, as defined in Section 101 of Title 10 of the United States Code;
139 5 sHB5296 File No.
139 United States Code, or (II) the National Guard, as defined in Section 101 of Title 10 of the United States Code;
LCO No.
(xx) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvi) of this subparagraph, for a person who files a return under the federal income sHB5296 / File No.
1546 6 of 15 Raised Bill No.5296 (xx) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvi) of this subparagraph, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxableyearislessthanonehundredthousanddollars,(I)forthetaxable year commencing January 1, 2019, fourteen per cent of any pension or annuity income, (II) for the taxable year commencing January 1, 2020, twenty-eight per cent of any pension or annuity income, (III) for the taxable year commencing January 1, 2021, forty-two per cent of any pension or annuity income, and (IV) for the taxable years commencing January 1, 2022, and January 1, 2023, one hundred per cent of any pension or annuity income;
139 6 sHB5296 File No.
139 tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxableyearislessthanonehundredthousanddollars,(I)forthetaxable year commencing January 1, 2019, fourteen per cent of any pension or annuity income, (II) for the taxable year commencing January 1, 2020, twenty-eight per cent of any pension or annuity income, (III) for the taxable year commencing January 1, 2021, forty-two per cent of any pension or annuity income, and (IV) for the taxable years commencing January 1, 2022, and January 1, 2023, one hundred per cent of any pension or annuity income;
LCO No.
T1 Federal Adjusted Gross Income Deduction T2 Less than $75,000 100.0% T3 $75,000 but not over $77,499 85.0% T4 $77,500 but not over $79,999 70.0% sHB5296 / File No.
1546 7 of 15 Raised Bill No.5296 T1 Federal Adjusted Gross Income Deduction Less than $75,000 100.0% T2 T3 $75,000 but not over $77,499 85.0% $77,500 but not over $79,999 70.0% T4 T5 $80,000 but not over $82,499 55.0% $82,500 but not over $84,999 40.0% T6 T7 $85,000 but not over $87,499 25.0% $87,500 but not over $89,999 10.0% T8 T9 $90,000 but not over $94,999 5.0% $95,000 but not over $99,999 2.5% T10 T11 $100,000 and over 0.0% (xxii) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvi) of this subparagraph, any pension or annuity income for the taxable year commencing on or after January 1, 2024, and each taxable year thereafter, in accordance with the following schedule for married individuals who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred fifty thousand dollars:
139 7 sHB5296 File No.
T12 Federal Adjusted Gross Income Deduction T13 Less than $100,000 100.0% $100,000 but not over $104,999 85.0% T14 T15 $105,000 but not over $109,999 70.0% $110,000 but not over $114,999 55.0% T16 T17 $115,000 but not over $119,999 40.0% $120,000 but not over $124,999 25.0% T18 T19 $125,000 but not over $129,999 10.0% $130,000 but not over $139,999 5.0% T20 T21 $140,000 but not over $149,999 2.5% $150,000 and over 0.0% T22 LCO No.
139 $80,000 but not over $82,499 55.0% T5 T6 $82,500 but not over $84,999 40.0% $85,000 but not over $87,499 25.0% T7 T8 $87,500 but not over $89,999 10.0% $90,000 but not over $94,999 5.0% T9 T10 $95,000 but not over $99,999 2.5% T11 $100,000 and over 0.0% (xxii) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvi) of this subparagraph, any pension or annuity income for the taxable year commencing on or after January 1, 2024, and each taxable year thereafter, in accordance with the following schedule for married individuals who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred fifty thousand dollars:
1546 8 of 15 Raised Bill No.5296 (xxiii) The amount of lost wages and medical, travel and housing expenses, not to exceed ten thousand dollars in the aggregate, incurred by a taxpayer during the taxable year in connection with the donation to another person of an organ for organ transplantation occurring on or after January 1, 2017;
T12 Federal Adjusted Gross Income Deduction Less than $100,000 100.0% T13 T14 $100,000 but not over $104,999 85.0% $105,000 but not over $109,999 70.0% T15 T16 $110,000 but not over $114,999 55.0% $115,000 but not over $119,999 40.0% T17 T18 $120,000 but not over $124,999 25.0% $125,000 but not over $129,999 10.0% T19 T20 $130,000 but not over $139,999 5.0% $140,000 but not over $149,999 2.5% T21 T22 $150,000 and over 0.0% (xxiii) The amount of lost wages and medical, travel and housing expenses, not to exceed ten thousand dollars in the aggregate, incurred by a taxpayer during the taxable year in connection with the donation to another person of an organ for organ transplantation occurring on or sHB5296 / File No.
139 8 sHB5296 File No.
139 after January 1, 2017;
(xxvii) To the extent properly includable in gross income for federal income tax purposes, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married LCO No.
(xxvii) To the extent properly includable in gross income for federal income tax purposes, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, for the taxable year commencing January 1, 2023, twenty-five per cent of any distribution from an individual retirement account other than a Roth individual retirement account;
1546 9 of 15 Raised Bill No.5296 individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, for the taxable year commencing January 1, 2023, twenty-five per cent of any distribution from an individual retirement account other than a Roth individual retirement account;
(xxviii) To the extent properly includable in gross income for federal sHB5296 / File No.
(xxviii) To the extent properly includable in gross income for federal income tax purposes, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is less than one hundred thousand dollars, or as a head of household whose federal adjusted gross income for such taxableyearislessthan onehundredthousanddollars,(I)forthetaxable year commencing January 1, 2024, fifty per cent of any distribution from an individual retirement account other than a Roth individual retirementaccount,(II)forthetaxableyearcommencingJanuary1,2025, seventy-five per cent of any distribution from an individual retirement account other than a Roth individual retirement account, and (III) for the taxable year commencing January 1, 2026, and each taxable year thereafter, any distribution from an individual retirement account other than a Roth individual retirement account.
139 9 sHB5296 File No.
139 income tax purposes, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is less than one hundred thousand dollars, or as a head of household whose federal adjusted gross income for such taxableyearislessthan onehundredthousanddollars,(I)forthetaxable year commencing January 1, 2024, fifty per cent of any distribution from an individual retirement account other than a Roth individual retirementaccount,(II)forthetaxableyearcommencingJanuary1,2025, seventy-five per cent of any distribution from an individual retirement account other than a Roth individual retirement account, and (III) for the taxable year commencing January 1, 2026, and each taxable year thereafter, any distribution from an individual retirement account other than a Roth individual retirement account.
T23 Federal Adjusted Gross Income Deduction T24 Less than $75,000 100.0% T25 $75,000 but not over $77,499 85.0% T26 $77,500 but not over $79,999 70.0% T27 $80,000 but not over $82,499 55.0% T28 $82,500 but not over $84,999 40.0% $85,000 but not over $87,499 25.0% T29 T30 $87,500 but not over $89,999 10.0% $90,000 but not over $94,999 5.0% T31 T32 $95,000 but not over $99,999 2.5% LCO No.
T23 Federal Adjusted Gross Income Deduction T24 Less than $75,000 100.0% $75,000 but not over $77,499 85.0% T25 T26 $77,500 but not over $79,999 70.0% $80,000 but not over $82,499 55.0% T27 T28 $82,500 but not over $84,999 40.0% $85,000 but not over $87,499 25.0% T29 T30 $87,500 but not over $89,999 10.0% $90,000 but not over $94,999 5.0% T31 T32 $95,000 but not over $99,999 2.5% $100,000 and over 0.0% T33 (xxix) To the extent properly includable in gross income for federal income tax purposes, for married individuals who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred fifty thousand dollars, (I) for the taxable year commencing January 1, 2024, fifty per cent of any distribution from an individual sHB5296 / File No.
1546 10 of 15 Raised Bill No.5296 T33 $100,000 and over 0.0% (xxix) To the extent properly includable in gross income for federal income tax purposes, for married individuals who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred fifty thousand dollars, (I) for the taxable year commencing January 1, 2024, fifty per cent of any distribution from an individual retirement account other than a Roth individual retirement account, (II) for the taxable year commencing January 1, 2025, seventy-five per cent of any distribution from an individual retirement account other than a Roth individual retirement account, and (III) for the taxable year commencing January 1, 2026, and each taxable year thereafter, any distribution from an individual retirement account other than a Roth individual retirement account.
139 10 sHB5296 File No.
139 retirement account other than a Roth individual retirement account, (II) for the taxable year commencing January 1, 2025, seventy-five per cent of any distribution from an individual retirement account other than a Roth individual retirement account, and (III) for the taxable year commencing January 1, 2026, and each taxable year thereafter, any distribution from an individual retirement account other than a Roth individual retirement account.
T34 Federal Adjusted Gross Income Deduction T35 Less than $100,000 100.0% T36 $100,000 but not over $104,999 85.0% T37 $105,000 but not over $109,999 70.0% T38 $110,000 but not over $114,999 55.0% T39 $115,000 but not over $119,999 40.0% T40 $120,000 but not over $124,999 25.0% T41 $125,000 but not over $129,999 10.0% T42 $130,000 but not over $139,999 5.0% T43 $140,000 but not over $149,999 2.5% T44 $150,000 and over 0.0% (xxx) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2022, the amount or amounts paid or otherwise credited to any eligible resident of this state under (I) the 2020 Earned Income Tax Credit LCO No.
T34 Federal Adjusted Gross Income Deduction T35 Less than $100,000 100.0% T36 $100,000 but not over $104,999 85.0% T37 $105,000 but not over $109,999 70.0% T38 $110,000 but not over $114,999 55.0% T39 $115,000 but not over $119,999 40.0% $120,000 but not over $124,999 25.0% T40 T41 $125,000 but not over $129,999 10.0% $130,000 but not over $139,999 5.0% T42 T43 $140,000 but not over $149,999 2.5% $150,000 and over 0.0% T44 (xxx) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2022, the amount or amounts paid or otherwise credited to any eligible resident of this state under (I) the 2020 Earned Income Tax Credit enhancement program from funding allocated to the state through the Coronavirus Relief Fund established under the Coronavirus Aid, Relief, and Economic Security Act, P.L.
1546 11 of 15 Raised Bill No.5296 enhancement program from funding allocated to the state through the Coronavirus Relief Fund established under the Coronavirus Aid, Relief, and Economic Security Act, P.L.
(xxxi) For the taxable year commencing January 1, 2023, and each taxable year thereafter, for a taxpayer licensed under the provisions of chapter 420f or 420h, the amount of ordinary and necessary expenses that would be eligible to be claimed as a deduction for federal income tax purposes under Section 162(a) of the Internal Revenue Code but that are disallowed under Section 280E of the Internal Revenue Code because marijuana is a controlled substance under the federal Controlled Substance Act;
(xxxi) For the taxable year commencing January 1, 2023, and each taxable year thereafter, for a taxpayer licensed under the provisions of chapter 420f or 420h, the amount of ordinary and necessary expenses sHB5296 / File No.
139 11 sHB5296 File No.
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139 that would be eligible to be claimed as a deduction for federal income tax purposes under Section 162(a) of the Internal Revenue Code but that are disallowed under Section 280E of the Internal Revenue Code because marijuana is a controlled substance under the federal Controlled Substance Act;
(xxxvi) For an account holder, as defined in section 12-724b, who files LCO No.
(xxxvi) For an account holder, as defined in section 12-724b, who files a return under the federal income tax as an unmarried individual, a married individual filing separately or a head of household, whose federal adjusted gross income for the taxable year is less than one hundred twenty-five thousand dollars or who files a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for the taxable year is less than two hundred fifty thousand dollars:
1546 12 of 15 Raised Bill No.5296 a return under the federal income tax as an unmarried individual, a married individual filing separately or a head of household, whose federal adjusted gross income for the taxable year is less than one hundred twenty-five thousand dollars or who files a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for the taxable year is less than two hundred fifty thousand dollars:
(I) To the extent not deductible in determining federal adjusted gross income, for the taxable year commencing January 1, 2027, an amount equal to the contributions deposited during the taxable years sHB5296 / File No.
(I) To the extent not deductible in determining federal adjusted gross income, for the taxable year commencing January 1, 2027, an amount equal to the contributions deposited during the taxable years commencing January 1, 2026, and January 1, 2027, in a first-time homebuyer savings account established pursuant to subsection (c) of section 12-724b, less any amounts withdrawn during said taxable years by the account holder from such account under subparagraph (D) of subdivision (2) of subsection (f) of section 12-724b.
139 12 sHB5296 File No.
139 commencing January 1, 2026, and January 1, 2027, in a first-time homebuyer savings account established pursuant to subsection (c) of section 12-724b, less any amounts withdrawn during said taxable years by the account holder from such account under subparagraph (D) of subdivision (2) of subsection (f) of section 12-724b.
and LCO No.
and (III) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2027, and each taxable year thereafter, an amount equal to the sum of all interest accrued on a first-time homebuyer savings account, established pursuant to subsection (c) of section 12-724b, during the taxable year;
1546 13 of 15 Raised Bill No.
[and] (xxxvii) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2027, andeachtaxableyearthereafter,foranaccountholderwhoisaqualified beneficiary of a first-time homebuyer savings account, as those terms are defined in section 12-724b, and who files a return under the federal sHB5296 / File No.
5296 (III) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2027, and each taxable year thereafter, an amount equal to the sum of all interest accrued on a first-time homebuyer savings account, established pursuant to subsection (c) of section 12-724b, during the taxable year;
139 13 sHB5296 File No.
[and] (xxxvii) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2027, andeachtaxableyearthereafter,foranaccountholderwhoisaqualified beneficiary of a first-time homebuyer savings account, as those terms are defined in section 12-724b, and who files a return under the federal income tax as an unmarried individual, a married individual filing separately or a head of household, whose federal adjusted gross income for the taxable year is less than one hundred twenty-five thousand dollars or who files a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for the taxable year is less than two hundred fifty thousand dollars, an amount equal to any withdrawal from such account that is used to pay or reimburse such qualified beneficiary for eligible costs, as defined in section 12-724b, incurred by the qualified beneficiary;
139 income tax as an unmarried individual, a married individual filing separately or a head of household, whose federal adjusted gross income for the taxable year is less than one hundred twenty-five thousand dollars or who files a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for the taxable year is less than two hundred fifty thousand dollars, an amount equal to any withdrawal from such account that is used to pay or reimburse such qualified beneficiary for eligible costs, as defined in section 12-724b, incurred by the qualified beneficiary;
and (xxxviii) To the extent properly includable in gross income for federal income tax purposes, the amount of any pay received by a member of the National Guard as a result of such member being ordered to active duty.
and (xxxviii) To the extent properly includable in gross income for federal income tax purposes, the amount of any pay received by a member of the National Guard as a result of such member being ordered out for active service pursuant to section 27-16.
Section 1 July 1, 2026, and 12-701(a)(20)(B) applicable to taxable years commencing on or after January 1, 2026 LCO No.
Section 1 July 1, 2026, and 12-701(a)(20)(B) applicable to taxable years commencing on or after January 1, 2026 VA Joint Favorable Subst.
1546 14 of 15 Raised Bill No.
sHB5296 / File No.
5296 Statement of Purpose:
139 14 sHB5296 File No.
To establish a personal income tax deduction for pay received by National Guard members as a result of orders to active duty.
139 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
[Proposed deletions are enclosed in brackets.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
1546 15 of 15
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $ Revenue Serv., Dept.
GF - Revenue 40,000 40,000 Loss Note:
GF=General Fund Municipal Impact:
None Explanation The bill, which establishes a personal income tax deduction for state active duty National Guard pay, results in a General Fund revenue loss of approximately $40,000 annually beginning in FY 27.
1 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to fluctuation in National Guard state active duty compensation (in particular based on the volume, magnitude, and duration of emergencies that may happen in any given year).
1From FY 22 through FY 25, National Guard state active duty compensation averaged $790,700 annually.
sHB5296 / File No.
139 15 sHB5296 File No.
139 OLR Bill Analysis sHB 5296 AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR NATIONAL GUARD STATE ACTIVE DUTY PAY.
SUMMARY This bill establishes a state income tax deduction for any pay a National Guard member receives for being ordered out for active service, to the extent it is included as gross income for federal income tax purposes.
By law, the president or governor may order out the National Guard for active service when necessary or in time of war, invasion, rebellion, riot, disaster, or reasonable apprehension of these things (CGS § 27-16).
EFFECTIVE DATE:
July 1, 2026, and applicable to taxable years commencing on or after January 1, 2026.
COMMITTEE ACTION Veterans' and Military Affairs Committee Joint Favorable Substitute Yea 22 Nay 0 (03/10/2026) sHB5296 / File No.
139 16
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Action History

  1. FILE NO. 139

  2. HOUSE CALENDAR NUMBER 119

  3. FAV. RPT., TABLED FOR HOUSE CALENDAR

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/23/26

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0224

  9. REF. TO JOINT COMM. ON Veterans' and Military Affairs

Sponsors

Sponsorship breakdown

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6 sponsors · 0 co-sponsors · 181 not signed on

Sponsors (6)

Co-sponsors (0)

None.

Not signed on (181)

181 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation veterans
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 5296?
HB 5296 is sponsored by Devin R. Carney (Republican), Christopher Poulos (Democratic), Michael DiGiovancarlo (Democratic), Juan R. Candelaria (Democratic), Gary A. Turco (Democratic), and Kurt Vail (Republican).
What is the current status of HB 5296?
This bill is in committee in the House. Introduced February 19, 2026. It must pass committee before a floor vote.
Where can I track HB 5296?
Track HB 5296 free on One Click Politics — get push/email alerts when it moves.

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