HB 5511 — AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR HOME CARE COSTS FOR VETERANS.

House of Representatives General Assembly CommitteeFile Bill No.

5511210 January Session, 2023 LCOHouse Bill No.

47945511 ReferredHouse toof Representatives, March 27, 2023 The Committee on VETERANS'Veterans' ANDand MILITARYMilitary AFFAIRSAffairs Introducedreported by:through REP.

(VA)NOLAN ANof ACTthe ESTABLISHING39th ADist., PERSONALChairperson INCOMEof TAXthe DEDUCTIONCommittee FORon HOMEthe CAREpart COSTSof FORthe VETERANS.House, that the bill ought to pass.

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR HOME CARE COSTS FOR VETERANS.

(iii) To the extent properly includable in gross income for federal income tax purposes, the amount of any refund or credit for overpaymentHB5511 of/ incomeFile taxes imposed by this state, or any other state LCO 4794 \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05511-R021 of 9 HB.docx Committee Bill No.

5511210 of1 theHB5511 UnitedFile StatesNo. or a political subdivision thereof, or the District of Columbia;

210 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;

(vii) To the extent properly includable in determining the net gain or losslossfromthesale fromorother thedispositionofcapital saleassetsfor orfederalincome other disposition of capital assets for federal income tax purposes, any gain from the sale or exchange of obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, in the income year such gain was recognized;

(viii) Any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is subject to tax under thisthischapter chapterbutexempt butfromfederalincome exempttax,totheextentthat from federal income tax, to the extent that such interest on indebtedness is not deductible in determining federal adjusted gross income and is attributable to a LCOtrade 4794or {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-055112business ofcarried 9HB5511 R02-HB.docx/ }File Committee Bill No.

5511210 trade2 orHB5511 businessFile carriedNo. on by such individual;

210 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 LCOfiles 4794a {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-055113return ofunder 9the R02-HB.docxHB5511 }/ CommitteeFile Bill No.

5511210 files3 aHB5511 returnFile underNo. 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;

(III)210 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 less than seventy-five thousand dollars, or as a marriedhead individualof filinghousehold separately whose federal adjusted gross income for such taxable year is lesssixty than seventy-five thousand dollars,dollars or formore, aan husbandamount andequal wifeto whothe filedifference abetween return under the federalamount incomeof taxSocial asSecurity marriedbenefits individualsincludable filingfor jointly whose federal adjusted gross income fortax suchpurposes taxableand year is less than one hundred thousand dollars or a person who files a return under the federallesser incomeof taxtwenty-five asper acent head of householdthe whoseSocial federalSecurity adjustedbenefits grossreceived incomeduring forthe such taxable yearyear, isor lesstwenty-five thanper onecent hundredof thousand dollars, an amount equal to the Socialexcess Securitydescribed benefitsin includableSection for86(b)(1) federalof incomethe taxInternal purposes;Revenue Code;

and(III) (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 less than seventy-five thousand dollarsdollars, or more,asamarriedindividualfiling or as a married individual filing separately whosewhosefederaladjustedgross federal adjusted gross income for such taxable year is less than seventy-five thousand dollarsdollars, 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 fromfor such taxable year is less than 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 less than one hundred thousand dollarsdollars, oran LCOamount 4794equal {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05511-4to ofthe 9Social R02-HB.docxSecurity }benefits Committeeincludable Billfor No.federal income tax purposes;

5511and more,(IV) anFor amountthe equaltaxable toyear thecommencing differenceJanuary between1, 2019, and each taxable year thereafter, for a person who files a return under the amountfederal ofincome Socialtax Securityas benefitsan includableunmarried 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 purposesas andmarried 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 lesserfederal ofincome twenty-fivetax peras centa head of thehousehold Socialwhose Securityfederal benefitsadjusted receivedgross duringincome thefor such taxable year,year is one hundred thousand dollars or twenty-fivemore, peran centamount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the excesslesser describedof intwenty-five Sectionper 86(b)(1)cent of the InternalHB5511 Revenue/ Code;File No.

210 4 HB5511 File No.

210 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 LCOpursuant 4794to {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-055115the ofConnecticut 9Homecare R02-HB.docxOption }Program Committeefor Billthe No.Elderly established by sections 3-123aa to 3-123ff, inclusive;

5511HB5511 pursuant/ toFile theNo. Connecticut Homecare Option Program for the Elderly established by sections 3-123aa to 3-123ff, inclusive;

(xvii)210 To5 theHB5511 extentFile properlyNo. 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)210 (xvii) To the extent properly includable in gross income for federal income tax purposespurposes, for the taxable year, any income received from the dischargeUnited ofStates indebtednessgovernment inas connectionretirement withpay anyfor reacquisition,a afterretired Decembermember 31,of 2008,(I) andthe beforeArmed JanuaryForces 1, 2011, of anthe applicableUnited debtStates, instrument or instruments, as those terms are defined in Section 108101 of theTitle Internal10 Revenue Code, as amended by Section 1231 of the AmericanUnited RecoveryStates andCode, Reinvestmentor Act(II) of 2009, to the extentNational anyGuard, suchas incomedefined wasin addedSection to101 federalof adjustedTitle gross10 income pursuant to subparagraph (A)(xi) of thisthe subdivisionUnited inStates computingCode; Connecticut adjusted gross income for a preceding taxable year;

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

(xx) To the extent properly includable in gross income for federal income tax purposes, (I) for the taxable year commencing January 1, 2015, ten per cent of the income received from the state teachers' retirement system, (II) for the taxable years commencing January 1, 2016, to January 1, 2020, inclusive, twenty-five per cent of the income received from the state teachers' retirement system, and (III) for the taxable year commencing January 1, 2021, and each taxable year thereafter, fifty per cent of the income received from the state teachers' retirement system or, for a taxpayer whose federal adjusted gross income does not exceed the applicable threshold under clause (xxi) of LCOthis 4794subparagraph, {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-055116the percentage pursuant to said clause of 9the R02-HB.docxincome }received Committeefrom Billthe No.state teachers' retirement system, whichever deduction is greater;

5511HB5511 this/ subparagraph,File theNo. percentage pursuant to said clause of the income received from the state teachers' retirement system, whichever deduction is greater;

(xxi)210 To6 theHB5511 extentFile properlyNo. 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 taxable year is less than one hundred thousand dollars, (I) for the taxable 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 year commencing January 1, 2022, and each taxable year thereafter, one hundred per cent of any pension or annuity income;

210 (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, and (IV) for the taxable year commencing January 1, 2022, and each taxable year thereafter, one hundred per cent of any pension or annuity income;

LCO(xxiv) 4794To {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05511-7the extent properly includable in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) of 9section R02-HB.docx12-704g }for Committeeincome Billreceived by a general partner of a venture HB5511 / File No.

5511210 (xxiv)7 ToHB5511 theFile extentNo. properly includable in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) of section 12-704g for income received by a general partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to time;

210 capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to time;

(xxvi) 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 asasamarriedindividualfiling a married individual filing separately whosewhosefederaladjustedgross 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 taxabletaxableyearislessthanonehundredthousanddollars,(I)forthetaxable year is less than one hundred thousand dollars, (I) 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, (II) for the taxable year commencing January 1, 2024, fifty per cent of any distribution from an individual retirement account other thanthanaRothindividual a Roth individual retirement account,account,(III) (III) 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 (IV) 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;

[and] LCO(xxvii) 4794To {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-055118the ofextent 9properly R02-HB.docxincludable }in Committeegross Billincome for federal income tax purposes, for the taxable year commencing January 1, 2022, the amount or amounts paid or otherwise credited to any eligible HB5511 / File No.

5511210 (xxvii)8 ToHB5511 theFile extentNo. 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.

210 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.

and (xxviii) To the extent not deductible in determining federal adjusted gross income, ordinary and necessary expenses paid or incurred by a taxpayer for the care of any veteran, as defined in section 27-103, related by blood, adoption or marriage to the taxpayer, or paid or incurred by a veteran for the care of such veteran, during the taxable year, in an amount not to exceed sixty thousand dollars for the cost of full-time home care, including, but not limited to, the cost of medical supplies, in-homein- serviceshomeservicesprovidedbyahomemaker-companionagency,asdefined provided by a homemaker-companion agency, as defined in section 20-670, and health care provided by a home health agency, as defined in section 19a-490.

Section 1 July 1, 2023, and 12-701(a)(20)(B) applicable to taxable years commencing on or after January 1, 2023 VA Joint Favorable LCOHB5511 4794/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05511-File 9No. of 9 R02-HB.docx }

210 9 HB5511 File No.

210 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.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.