SB 274 — AN ACT CONCERNING AN INCOME TAX DEDUCTION FOR THE COST OF HOME HEALTH CARE.

(iii) To the extent properly includable in gross income for federal income tax purposes, the amount of any refund or credit for overpayment of income taxes imposed by this state, or any other state ofLCO the2929 United\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00274-R01 Statesof or9 aSB.docx politicalCommittee subdivisionBill thereof, or the District of LCO No.

2929274 1 of 9the CommitteeUnited BillStates No.274or 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 adjusted gross income and is attributable to a trade or business carried onLCO by2929 such{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00272 individual;of 9 R02-SB.docx } Committee Bill No.

LCO274 No.on by such individual;

2929 2 of 9 Committee Bill No.274 (ix) Ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject to taxation under this chapter but exempt from federal income tax, or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal adjusted gross income and are 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 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 federalLCO income2929 tax{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00274- as3 a head of household9 whoseR02-SB.docx federal} adjustedCommittee grossBill LCO No.

2929274 3federal income tax as a head of 9household Committeewhose Billfederal No.274adjusted 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 is one hundred thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federalLCO income2929 tax{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00274-4 purposes and the lesser of twenty-five9 perR02-SB.docx cent} ofCommittee theBill LCO No.

2929274 4federal income tax purposes and the lesser of 9twenty-five Committeeper Billcent No.274of 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 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 LCO 2929 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00275 of 9 R02-SB.docx } Committee Bill No.

2929274 5 of 9 Committee Bill No.274 sections 3-123aa to 3-123ff, inclusive;

(xviii) To the extent properly includable in gross income for federal income tax purposesfor thetaxableyear,any income fromthefromthedischarge 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;

LCO 2929 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00276 of 9 R02-SB.docx } Committee Bill No.

2929274 6 of 9 Committee Bill No.274 (xxi) 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 (xvii) 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, (IV) for the taxable year commencing January 1, 2022, fifty-six per cent of any pension or annuity income, (V) for thetaxableyearcommencing January 1,2023,seventypercent1,2023, seventypercent ofany pension or annuity income, (VI) for the taxable year commencing January 1, 2024, eighty-four per cent of any pension or annuity income, and (VII) for the taxable year commencing January 1, 2025, and each taxable year thereafter, any pension or annuity income;

(xxiii) To the extent properly includable in gross income for federal income tax purposes, the amount of any financial assistance received from the Crumbling Foundations Assistance Fund or paid to or on behalf of the owner of a residential building pursuant to sections 8-442 LCO 2929 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00277 of 9 R02-SB.docx } Committee Bill No.

2929274 7 of 9 Committee Bill No.274 and 8-443;

LCO 2929 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-002748 of 9 R02-SB.docx } Committee Bill No.

2929 8 of 9 Committee Bill No.

Section 1 from passage and 12-701(a)(20)(B) applicable to taxable years commencing on or after January 1, 2021 StatementAGE Joint Favorable C/R FIN LCO 2929 R02-SB.docx }OUSERS\FORZANOF\WS\2021SB-00274- 9 of Purpose:9

To allow a state income tax deduction of up to sixty thousand dollars for the cost of full-time home health care.

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.

KELLY, 21st Dist.;

REP.

BOLINSKY, 106th Dist.

S.B.

274 LCO No.

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