HB 5570 — AN ACT CONCERNING A TAX CREDIT FOR MILK PRODUCERS.

House of Representatives General Assembly RaisedFile Bill No.

5570672 February Session, 2026 LCOSubstitute House Bill No.

30285570 ReferredHouse toof Representatives, April 16, 2026 The Committee on FINANCE,Finance, REVENUERevenue ANDand BONDINGBonding Introducedreported by:through REP.

(FIN)HORN ANof ACTthe CONCERNING64th ADist., TAXChairperson CREDITof FORthe MILKCommittee PRODUCERS.on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING A TAX CREDIT FOR MILK PRODUCERS.

(b) Each milk producer shall be allowed a credit against the tax imposed under chapter 208 or 229 of the general statutes, other than the liability imposed by section 12-707 of the general statutes, in an amount equal to, for each month of the income or taxable year the federal pay price is below the minimum sustainable monthly cost of production, (1) the dollar amount the federal pay price was below the minimum sustainable monthly cost of production, and (2) multiplied by the amount of milk produced by such milk producer for such month.

Each milk producer shall file with the commissioner,Commissioner of Agriculture, in a form and mannersHB5570 prescribed/ byFile the commissioner, such information the commissioner LCO No.

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5570672 manner prescribed by the commissioner, such information the commissioner requires to substantiate the amount of milk produced by such milk producer.

(c) If(1) Any milk producer subject to the taxpayertax isimposed anunder Schapter corporation208 or an229 entityof treatedthe asgeneral statutes may apply to the Commissioner of Agriculture, in a partnershipform forand federalmanner incomeprescribed taxby purposes,the commissioner, to reserve anallocationfor acredit under thissection.The applicationshall contain such information as the creditcommissioner maydeems benecessary claimedto byadminister the taxpayer'sprovisions shareholdersof orthis partners.section.

The aggregate amount of credits reserved under this section shall not exceed eight million dollars in any calendar year.

(2) Upon verification by the commissioner that the conditions set forth in subsection (b) of this section have been satisfied and the amount of milk produced by a milk producer has been substantiated, the commissioner shall issue a voucher to the milk producer in the amount calculated pursuant to subsection (b) of this section.

The taxpayer shall file the voucher with the taxpayer's state tax return for the applicable income or taxable year.

(d) If the taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the credit may be claimed by the taxpayer's shareholders or partners.

(d)(e) If the amount of the credit allowed pursuant to this section exceeds the taxpayer's liability for the tax imposed under chapter 208 or 229 of the general statutes, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided in section 12-739 or 12-742,12-742 of the general statutes, shall refund the amount of such excess, without interest, to such taxpayer,taxpayer. provided the aggregate amount of credits allowed under this section shall not exceed eight million dollars in any calendar year.

IfsHB5570 the/ totalFile amountNo. of such refunds exceeds the aggregate amount for the applicable calendar year, the amount of the refund payable to each taxpayer under this subsection shall be reduced proportionately.

This672 act2 shallsHB5570 takeFile effectNo. as follows and shall amend the following sections:

Section672 1This Januaryact 1,shall 2027,take andeffect Newas sectionfollows applicable to income and taxableshall yearsamend commencingthe onfollowing orsections: after January 1, 2027 Statement of Purpose:

ToSection establish1 aJanuary refundable1, credit2027, forand milkNew producerssection againstapplicable theto taxincome imposedand undertaxable chapteryears 208commencing on or 229after ofJanuary the1, general2027 statutesFIN forJoint theFavorable monthsSubst. when the federal pay price for milk is below the minimum sustainable monthly cost of production.

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5570672 [ProposedThe deletionsfollowing Fiscal Impact Statement and Bill Analysis are enclosedprepared infor brackets.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.

ProposedIn additionsgeneral, arefiscal indicatedimpacts byare underline,based exceptupon that when the entire text of a billvariety or resolution or a section of ainformational billsources, orincluding resolutionthe isanalyst’s new,professional itknowledge. is not underlined.] LCO No.

3028Whenever 3applicable, agency data is consulted as part of 3the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Revenue Serv., Dept.

GF - Revenue None Up to 8 Loss million Revenue Serv., Dept.

GF - Cost None Up to 75,000 Department of Agriculture GF - Cost 115,808 115,808 State Comptroller - Fringe GF - Cost 44,249 44,249 Benefits Note:

GF=General Fund Municipal Impact:

None Explanation The bill, which establishes a refundable tax credit for milk producers, results in (1) a General Fund revenue loss of up to $8 million annually beginning in FY 28, (2) a one-time cost of up to $75,000 to the Department of Revenue Services in FY 28 associated with programming updates to the CTax tax administration system and myconneCT online portal to establish the refundable credit, and (3) an ongoing cost to the General Fund of $160,057 annually beginning in FY 27.

Ongoing Cost Impact The Department of Agriculture (DoAg) does not currently have the staff or expertise to establish a new tax credit program.

DoAg will require one new Grant and Contract Specialist with an annual salary of The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.82% of payroll in FY 27.

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672 $105,808 and corresponding fringe benefits of $44,249 to establish and administer the tax credit program for milk producers.

Additionally, DoAg will require $10,000 annually for licensing and software updates to manage thedata associatedwiththenewprogram.It isestimatedthat there are approximately 81 eligible milk producers in Connecticut.

The Out Years The annualized ongoing revenue impact identified above would continue into the future subject to the annual aggregate credit cap of $8 million;

the annualized ongoing cost impact identified above would continue into the future subject to inflation.

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