SB 734 — AN ACT ESTABLISHING A TAX DEDUCTION FOR CONTRIBUTIONS TO A CITIZENS IN NEED ACCOUNT.

General Assembly   CommitteeSubstitute Bill No.

734 January Session, 2017   LCO*_____SB00734FIN___042817____* No.AN ACT ESTABLISHING A TAX DEDUCTION FOR CONTRIBUTIONS TO A CITIZENS IN NEED ACCOUNT.

5130   *05130SB00734FIN* Referred to Committee on FINANCE, REVENUE AND BONDING   Introduced by:

  (FIN)   AN ACT ESTABLISHING A TAX DEDUCTION FOR CONTRIBUTIONS TO A CITIZENS IN NEED ACCOUNT.

(NEW) (Effective fromJuly passage1, 2017, and applicable to incometaxable years commencing on or after January 1, 2017) (a) (1) There is established an account to be known as the "citizens in need account" which shall be a separate, nonlapsing account within the General Fund.

(b) Any taxpayer may make a charitable contribution to the citizens in need account and such taxpayer shall be allowed a deduction from the tax imposed under chapter 219229 of the general statutes at the rate of two hundred per cent of the amount of such contribution.

(c) The Commissioner of Social Services may adopt regulations, in consultation with the Comptroller and in accordance with the provisions of chapter 54 of the general statutes, to establish standards or criteria for determining what social services programs are eligible to receive moneys from the account and how disbursements from the account will be made, methods to determine the amounts of and a schedule for making such disbursements and any other regulations necessary to implement the provisions of this section.

and (II) 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 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, (xi) to the extent properly includable in gross income for federal income tax purposes, any amount rebated to a taxpayer pursuant to section 12-746, (xii) to the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, any distribution to such beneficiary from any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state, (xiii) to the extent allowable under section 12-701a, contributions to accounts established pursuant to any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state, (xiv) to the extent properly includable in gross income for federal income tax purposes, the amount of any Holocaust victims' settlement payment received in the taxable year by a Holocaust victim, (xv) to the extent properly includable in gross income for federal income tax purposes of an account holder, as defined in section 31-51ww, interest earned on funds deposited in the individual development account, as defined in section 31-51ww, of such account holder, (xvi) to the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, as defined in section 3-123aa, interest, dividends or capital gains earned on contributions to accounts established for the designated beneficiary pursuant to the Connecticut Homecare Option Program for the Elderly established by sections 3-123aa to 3-123ff, inclusive, (xvii) 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 United States Code, or (II) the National Guard, as defined in Section 101 of Title 10 of the United States Code, (xviii) to the extent properly includable in gross income for federal income tax purposes for the taxable year, any income from the discharge of indebtedness in connection with any reacquisition, after December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal Revenue Code, as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any such income was added to federal adjusted gross income pursuant to subparagraph (A)(xi) of this subdivision in computing Connecticut adjusted gross income for a preceding taxable year, (xix) to the extent not deductible in determining federal adjusted gross income, the amount of any contribution to a manufacturing reinvestment account established pursuant to section 32-9zz in the taxable year that such contribution is made, [and] (xx) to the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2015, ten per cent of the income received from the state teachers' retirement system, for the taxable year commencing January 1, 2016, twenty-five per cent of the income received from the state teachers' retirement system, and for the taxable year commencing January 1, 2017, and each taxable year thereafter, fifty per cent of the income received from the state teachers' retirement system, and (xxi) the amount calculated pursuant to subsection (b) of section 1 of this act for donationscontributions made during the taxable year.

Section 1 fromJuly passage1, 2017, and applicable to incometaxable years commencing on or after January 1, 2017 New section Sec.

2 July 1, 2017, and applicable to taxable years commencing on or after January 1, 2017 12-701(a)(20)(B) Statement of Purpose:Legislative Commissioners:

ToIn establishSection a1, citizens in need account to receive charitable contributions to assist residents of this state who have had their benefits from state social services programs administered by the Departmenteffective ofdate Social Services reduced due to state budgetary constraints, and toapplicability providewere achanged statefor taxconsistency, deduction"chapter at219" thewas ratechanged ofto two"chapter hundred229" perin centSubsec. of the amount contributed to said account.

[Proposed(b) deletionsfor areaccuracy, enclosedand "social services" was added in brackets.Subsec.

Proposed(c) additionsfor areconsistency; 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.] Co-Sponsors:

SEN.and in Section 2, "donations" was changed to "contributions" for consistency.

SUZIO,FIN 13thJoint Dist.;Favorable Subst.

SEN.-LCO  

LINARES, 33rd Dist.

REP.

CAMILLO, 151st Dist.;

SEN.

FASANO, 34th Dist.

S.B.

734