Connecticut 2024 Regular Session Status: In Committee Bipartisan · 5 R · 4 D cosponsors

HB 5344 — AN ACT ESTABLISHING FIRST-TIME HOMEBUYER SAVINGS ACCOUNTS AND A RELATED TAX DEDUCTION AND CREDIT.

Last action — REF. BY HOUSE TO COMMITTEE ON Finance, Revenue and Bonding

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

This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

299 added · 54 removed

299 line(s) added, 54 removed.

→
Previous
Latest
General Assembly Raised Bill No.
House of Representatives General Assembly File No.
5344 February Session, 2024 LCO No.
129 February Session, 2024 Substitute House Bill No.
2229 Referred to Committee on BANKING Introduced by:
5344 House of Representatives, March 26, 2024 The Committee on Banking reported through REP.
(BA) AN ACT ESTABLISHING FIRST-TIME HOMEBUYER SAVINGS ACCOUNTS AND A RELATED TAX DEDUCTION AND CREDIT.
DOUCETTE of the 13th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.
AN ACT ESTABLISHING FIRST-TIME HOMEBUYER SAVINGS ACCOUNTS AND A RELATED TAX DEDUCTION AND CREDIT.
(4)"Eligible costs"meansthedownpaymentandallallowableclosing costs paid or reimbursed by a qualified beneficiary to purchase a single- family residence in this state to serve as the qualified beneficiary's LCO No.
(4)"Eligible costs"meansthedownpaymentandallallowableclosing costs paid or reimbursed by a qualified beneficiary to purchase a single- sHB5344 / File No.
2229 1 of 20 Raised Bill No.5344 primary residence;
129 1 sHB5344 File No.
129 family residence in this state to serve as the qualified beneficiary's primary residence;
(b) For purposes of implementing the deduction allowed under LCO No.
(b) For purposes of implementing the deduction allowed under sHB5344 / File No.
2229 2 of 20 Raised Bill No.5344 subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 of the general statutes, as amended by this act, and the credit allowed under section 3 of this act, the commissioner shall prepare forms for (1) the designation of accounts as first-time homebuyer savings accounts, (2) the designation of qualified beneficiaries, and (3) account holders to submit to the commissioner the information described in subparagraph (B) of subdivision (1) of subsection (d) of this section and any additional information that the commissioner reasonably requires pursuant to the provisions of this section.
129 2 sHB5344 File No.
129 subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 of the general statutes, as amended by this act, and the credit allowed under section 3 of this act, the commissioner shall prepare forms for (1) the designation of accounts as first-time homebuyer savings accounts, (2) the designation of qualified beneficiaries, and (3) account holders to submit to the commissioner the information described in subparagraph (B) of subdivision (1) of subsection (d) of this section and any additional information that the commissioner reasonably requires pursuant to the provisions of this section.
The account holder or account holders LCO No.
The account holder or account holders may invest funds deposited in a first-time homebuyer savings account sHB5344 / File No.
2229 3 of 20 Raised Bill No.5344 may invest funds deposited in a first-time homebuyer savings account in money market funds.
129 3 sHB5344 File No.
129 in money market funds.
LCO No.
sHB5344 / File No.
2229 4 of 20 Raised Bill No.5344 (2) No financial institution shall be required to (A) designate an account as a first-time homebuyer savings account, (B) track the use of any funds withdrawn from a first-time homebuyer savings account, or (C) allocate funds in a first-time homebuyer savings account among account holders.
129 4 sHB5344 File No.
129 (2) No financial institution shall be required to (A) designate an account as a first-time homebuyer savings account, (B) track the use of any funds withdrawn from a first-time homebuyer savings account, or (C) allocate funds in a first-time homebuyer savings account among account holders.
(2) No account holder shall be liable for a penalty under subdivision (1) of this subsection, nor shall funds withdrawn from a first-time LCO No.
(2) No account holder shall be liable for a penalty under subdivision (1) of this subsection, nor shall funds withdrawn from a first-time homebuyer savings account be considered income, if the funds sHB5344 / File No.
2229 5 of 20 Raised Bill No.5344 homebuyer savings account be considered income, if the funds withdrawn from the first-time homebuyer savings account:
129 5 sHB5344 File No.
129 withdrawn from the first-time homebuyer savings account:
(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 LCO No.
(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 of the United States or a political subdivision thereof, or the District of Columbia;
2229 6 of 20 Raised Bill No.5344 of the United States or a political subdivision thereof, or the District of Columbia;
sHB5344 / File No.
(iv) To the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in computing Connecticut adjusted gross income, any tier 1 railroad retirement benefits;
129 6 sHB5344 File No.
129 (iv) To the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in computing Connecticut adjusted gross income, any tier 1 railroad retirement benefits;
(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 fromfederal income tax,totheextentthat such interest on indebtedness is not deductible in determining federal adjusted gross income and is attributable to a trade or business carried on by such individual;
(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 on by such individual;
LCO No.
(ix) Ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject sHB5344 / File No.
2229 7 of 20 Raised Bill No.
129 7 sHB5344 File No.
5344 (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;
129 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 federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an 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 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 sHB5344 / File No.
2229 8 of 20 Raised Bill No.5344 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;
129 8 sHB5344 File No.
129 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 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 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 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;
2229 9 of 20 Raised Bill No.5344 Revenue Code;
sHB5344 / File No.
(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;
129 9 sHB5344 File No.
129 (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;
LCO No.
(xvii) To the extent properly includable in gross income for federal income tax purposesfor thetaxableyear,any income fromthedischarge sHB5344 / File No.
2229 10 of 20 Raised Bill No.5344 (xvii) 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;
129 10 sHB5344 File No.
129 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, 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 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 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, sHB5344 / File No.
2229 11 of 20 Raised Bill No.5344 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;
129 11 sHB5344 File No.
Show all 192 changed rows (152 more)
Previous
Latest
129 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;
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% T5 $80,000 but not over $82,499 55.0% T6 $82,500 but not over $84,999 40.0% T7 $85,000 but not over $87,499 25.0% 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% T5 $80,000 but not over $82,499 55.0% T6 $82,500 but not over $84,999 40.0% T7 $85,000 but not over $87,499 25.0% T8 $87,500 but not over $89,999 10.0% T9 $90,000 but not over $94,999 5.0% T10 $95,000 but not over $99,999 2.5% sHB5344 / File No.
2229 12 of 20 Raised Bill No.5344 T8 $87,500 but not over $89,999 10.0% T9 $90,000 but not over $94,999 5.0% 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:
129 12 sHB5344 File No.
129 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:
(xxiv) 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 LCO No.
(xxiv) 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 and 8-443;
2229 13 of 20 Raised Bill No.5344 behalf of the owner of a residential building pursuant to sections 8-442 and 8-443;
(xxv) To the extent properly includable in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) sHB5344 / File No.
(xxv) To the extent 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;
129 13 sHB5344 File No.
129 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;
(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 LCO 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 sHB5344 / File No.
2229 14 of 20 Raised Bill No.5344 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.
129 14 sHB5344 File No.
129 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% T29 $85,000 but not over $87,499 25.0% T30 $87,500 but not over $89,999 10.0% T31 $90,000 but not over $94,999 5.0% T32 $95,000 but not over $99,999 2.5% 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 LCO No.
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% T29 $85,000 but not over $87,499 25.0% T30 $87,500 but not over $89,999 10.0% T31 $90,000 but not over $94,999 5.0% T32 $95,000 but not over $99,999 2.5% 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.
2229 15 of 20 Raised Bill No.5344 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 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.
T34 Federal Adjusted Gross Income Deduction T35 Less than $100,000 100.0% sHB5344 / File No.
129 15 sHB5344 File No.
129 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 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.
(xxxii) To the extent properly includable in gross income for federal LCO No.
(xxxii) To the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing on or after January 1, 2025, and each taxable year thereafter, any common stock received by the taxpayer during the taxable year under a share plan, as defined in section 12-217ss;
2229 16 of 20 Raised Bill No.5344 income tax purposes, for the taxable year commencing on or after January 1, 2025, and each taxable year thereafter, any common stock received by the taxpayer during the taxable year under a share plan, as defined in section 12-217ss;
(xxxiii) To the extent properly includable in gross income for federal income tax purposes, the amount of any student loan reimbursement sHB5344 / File No.
(xxxiii) To the extent properly includable in gross income for federal income tax purposes, the amount of any student loan reimbursement payment received by a taxpayer pursuant to section 10a-19m;
129 16 sHB5344 File No.
129 payment received by a taxpayer pursuant to section 10a-19m;
[.] (xxxv) For an account holder, as defined in section 1 of this act, 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 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 thousand dollars:
(xxxv) For an account holder, as defined in section 1 of this act, 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 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 thousand dollars:
LCO No.
(II)To theextent not deductibleindetermining federaladjustedgross income, for the taxable year commencing January 1, 2027, and each taxable year thereafter, an amount equal to the contributions deposited during the taxable year in a first-time homebuyer savings account established pursuant to subsection (c) of section 1 of this act, less any amounts withdrawn during the taxable year by the account holder from such account pursuant to subparagraph (D) of subdivision (2) of sHB5344 / File No.
2229 17 of 20 Raised Bill No.5344 (II)To theextent not deductibleindetermining federaladjustedgross income, for the taxable year commencing January 1, 2027, and each taxable year thereafter, an amount equal to the contributions deposited during the taxable year in a first-time homebuyer savings account established pursuant to subsection (c) of section 1 of this act, less any amounts withdrawn during the taxable year by the account holder from such account pursuant to subparagraph (D) of subdivision (2) of subsection (f) of section 1 of this act.
129 17 sHB5344 File No.
129 subsection (f) of section 1 of this act.
(NEW) (Effective January 1, 2025) (a) (1) For the taxable or LCO No.
(NEW) (Effective January 1, 2025) (a) (1) For the taxable or income year commencing on or after January 1, 2026, but prior to January 1, 2027, there 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, for contributions deposited by the employer of an account holder in a first-time homebuyer savings account established pursuant to subsection (c) of section 1 of this act during the taxable or income years commencing on sHB5344 / File No.
2229 18 of 20 Raised Bill No.5344 income year commencing on or after January 1, 2026, but prior to January 1, 2027, there 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, for contributions deposited by the employer of an account holder in a first-time homebuyer savings account established pursuant to subsection (c) of section 1 of this act during the taxable or income years commencing on or after January 1, 2025, but prior to January 1, 2027, provided such account holder was employed by such employer at the time such contributions were made.
129 18 sHB5344 File No.
129 or after January 1, 2025, but prior to January 1, 2027, provided such account holder was employed by such employer at the time such contributions were made.
(3) The amount of the credit allowed under subdivisions (1) and (2) of this subsection shall be equal to fifty per cent of the amount of the contributions made by the taxpayer into the first-time homebuyer savings accounts of account holders of such accounts during the income or taxable year, provided the amount of the credit allowed for any income or taxable year with respect to aspecific account holder shall not exceed two thousand five hundred dollars.
(3) The amount of the credit allowed under subdivisions (1) and (2) of this subsection shall be equal to ten per cent of the amount of the contributions made by the taxpayer into the first-time homebuyer savings accounts of account holders of such accounts during the income or taxable year, provided the amount of the credit allowed for any income or taxable year with respect to aspecific account holder shall not exceed two thousand five hundred dollars.
Any LCO No.
Any taxpayerclaimingthecreditshallprovidetotheDepartmentofRevenue Services documentation supporting such claim in the form and manner prescribed by the Commissioner of Revenue Services.
2229 19 of 20 Raised Bill No.
5344 taxpayerclaimingthecreditshallprovidetotheDepartmentofRevenue Services documentation supporting such claim in the form and manner prescribed by the Commissioner of Revenue Services.
(Effective from passage) Not later than July 1, 2025, the Treasurer shall make recommendations, in accordance with section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to banking regarding whether and how marketable securities may be held in a first-time homebuyer savings account established pursuant to subsection (c) of section 1 of this act.
(Effective from passage) Not later than July 1, 2025, the Treasurer shall make recommendations, in accordance with section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to banking regarding sHB5344 / File No.
129 19 sHB5344 File No.
129 whether and how marketable securities may be held in a first-time homebuyer savings account established pursuant to subsection (c) of section 1 of this act.
4 from passage New section Statement of Purpose:
4 from passage New section BA Joint Favorable Subst.
To establish a first-time homebuyer savings account and a related tax deduction and credit.
sHB5344 / File No.
[Proposed deletions are enclosed in brackets.
129 20 sHB5344 File No.
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.
129 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.
2229 20 of 20
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $ Revenue Serv., Dept.
GF - Cost None Up to 175,000 Revenue Serv., Dept.
GF - Revenue None None Loss Note:
GF=General Fund Municipal Impact:
None Explanation The bill, which establishes a first-time homebuyer savings account programandassociatedpersonalincometaxdeductionandbusinesstax credit, results in a General Fund revenue loss of up to $712,000 in FY 27 and up to $960,000 in FY 28.
The revenue loss would grow in FY 29 and beyond subject to program utilization rates.
The bill also results in a one-time cost of up to $175,000 to the Department of Revenue Services in FY 26 associated with programming updates to the CTax tax administration system and myconneCT online portal, form modification, and printing/mailing costs.
The Out Years Personal Income Tax Deduction The personal income tax deduction for qualifying account contributions, accrued interest, and withdrawals is estimated to result sHB5344 / File No.
129 21 sHB5344 File No.
129 in a revenue loss of up to $112,000 in FY 27 and up to $79,500 in FY 28.
1 The revenue loss could approach $425,000 by FY 35.
Business Tax Credit The credit for employer contributions is estimated to result in a revenue loss of up to $600,000 in FY 27 and up to $880,500 in FY 28.
The revenuelosscouldannualizetoapproximately$800,000beginninginFY 30.
This estimate assumes that the same level of qualifying accounts as the estimate for the personal income tax deduction.
Sources:
Iowa Department of Revenue 1The estimated revenue loss is larger in FY 27 as the bill specifies that, for the 2026 tax year only, account holders may deduct the amount contributed (less withdrawals) for both the 2025 and 2026 tax years.
sHB5344 / File No.
129 22 sHB5344 File No.
129 OLR Bill Analysis sHB 5344 AN ACT ESTABLISHING FIRST-TIME HOMEBUYER SAVINGS ACCOUNTS AND A RELATED TAX DEDUCTION AND CREDIT.
SUMMARY This bill creates a first-time homebuyer savings program, generally allowing individuals and employers to contribute into specialized accounts to be used for eligible homebuying expenses and receive tax benefits for doing so.
Specifically, the bill creates (1) personal income tax deductions for certain individuals who contribute to, or are the qualified beneficiaries of, funds deposited into a first-time homebuyer savings account and (2) a business tax credit for employers who similarly contribute to the accountoftheiremployees.ThebillrequirestheDepartmentofRevenue Services (DRS) commissioner to implement the tax deduction and credit, including by preparing associated forms, and allows him to adopt implementing regulations.
Under the bill, individuals may open at financial institutions (i.e., banks, out-of-state banks, credit unions, or their affiliates or third-party providers) savings accounts that are dedicated to paying for or reimbursing the down payment and closing costs of an account holder who is a first-time homebuyer and resides in a Connecticut home purchased with account funds (i.e., the “qualified beneficiary”).
The bill designates “first-time homebuyers” as those who have not previously owned or purchased, either individually or with someone else, a single- family residence (including a mobile manufactured home or a unit in a cooperative, common interest community, or condominium).
To qualify for the bill’s tax deductions, account holders must have a sHB5344 / File No.
129 23 sHB5344 File No.
129 federal adjusted gross income (AGI) below $100,000 for single filers or $200,000 for jointfilers.
They may deduct (1)thecontributionsdeposited in the account, generally capped at $2,500 for single filers and $5,000 for joint filers;
(2) accrued interest;
and (3) for an account holder who is also the account’s qualified beneficiary, the amount withdrawn that is used to pay or reimburse him or her for program eligible costs.
For the bill’s tax credit, employers may annually claim 10% of their contributions to employees’ accounts, but the amount is capped at $2,500 for any specific employee.
If funds are withdrawn from a first-time homebuyer savings account for a reason other than an allowed purpose, the bill generally imposes a civil penalty of 10% of the withdrawn amount.
The bill also requires the treasurer, by July 1, 2025, to recommend to the Banking Committee whether and how marketable securities may be held in a first-time homebuyer savings account (§ 4).
EFFECTIVE DATE:
January 1, 2025, except the provision on the treasurer’s recommendations to the Banking Committee is effective upon passage.
ACCOUNT CONTRIBUTIONS The bill allows anyone to contribute to a first-time homebuyer savings account with no limit on contributions made to, or contained in, an account.
Accounts must only contain cash, but account holders may invest the funds in money market funds.
It prohibits employers of account holders from seeking reimbursement for contributions they make to an employee’s account if the employee leaves their employment.
USE OF ACCOUNT FUNDS The bill limits the use of account funds to paying for (1) a qualified beneficiary’s down payment and closing costs to purchase a single- family residence in the state as his or her primary residence (i.e., “eligible costs”) and (2) the financial institution’s account service fees.
sHB5344 / File No.
129 24 sHB5344 File No.
129 Allowable closing costs are the disbursements listed on the statement of receipts and disbursements associated with the home purchase.
The bill allows an account holder to withdraw funds from an account to be deposited into another account established for the same purpose.
ACCOUNT HOLDER POWERS AND RESPONSIBILITIES Establishing the Account Under the bill, an individual may establish one or more accounts.
Individuals who file a joint tax return may jointly establish and hold accounts, so long as they jointly filetax returnsfor each taxable year that the account exists.
The bill prohibits an account holder from using any funds deposited into an account for administrative fees or expenses, other than the financial institution’s service fees.
Designating the Beneficiary The bill requires individual or joint account holders to designate the account’s qualified beneficiary.
They must do so by April 15 of the taxable year immediately after the taxable year during which the account was established.
Under the bill, account holders may designate a new qualified beneficiary at any time, but there may be only one qualified beneficiary associated with an account at a time.
In addition, the bill prohibits anyone from establishing or holding more than one account with the same qualified beneficiary.
Tax Reporting The bill requires an account holder to submit to the DRS commissioner the following information for each tax year during which the holder has a first-time homebuyer savings account:
1.
his or her tax return;
2.
any information the commissioner requires about the account to implement the tax deduction and credit;
sHB5344 / File No.
129 25 sHB5344 File No.
129 3.
the IRS Form 1099 issued by the financial institution for the account;
and 4.
if the account holder withdrew funds, (a) a detailed accounting of the eligible and ineligible costs paid or reimbursed with account funds and (b) the remaining account balance.
Withdrawing Funds The bill establishes a civil penalty, collectible by the DRS commissioner, of 10% of the withdrawn amount for an account holder who withdraws account funds for a reason other than transferring the funds to another such account or paying or reimbursing the qualified beneficiary for the home purchase down payment or closing costs.
If the account holder deducted these withdrawn funds for state income tax purposes, the withdrawn funds are considered income.
The bill waives the withdrawal penalty and does not consider the withdrawn funds as income under the following circumstances:
1.
the account holder did not claim the funds for a state income tax deduction, 2.
the withdrawn funds were subsequently deposited in another program account, 3.
the withdrawal was due to the death or disability of an account holder who established the account, or 4.
the withdrawal is considered an asset disbursement as part of a bankruptcy proceeding.
Commissioner Responsibilities To implement the deduction and credit, the bill requires the DRS commissioner to prepare forms to:
1.
designate (a) accounts as first-time homebuyer savings accounts and (b) qualified beneficiaries and sHB5344 / File No.
129 26 sHB5344 File No.
129 2.
collect from account holders information for tax purposes and any other information the commissioner needs to perform his program duties.
Financial Institution Responsibilities The bill authorizes the DRS commissioner to require that financial institutions provide certain unspecified information about each first- time homebuyer account.
However, it limits the role of financial institutions by specifying that they are not required to:
1.
designate an account as a “first-time homebuyer savings account,” 2.
track the use of funds withdrawn from an account, or 3.
allocate account funds among account holders.
Additionally, under the bill, a financial institution is not liable or responsible for:
1.
determining if, or ensuring that, an account meets the bill’s requirements;
2.
determining if account funds are used to pay for or reimburse eligible costs;
or 3.
disclosing or remitting taxes or penalties unless applicable law requires it.
However, the bill requires a financial institution to distribute funds in a first-time homebuyer savings account in accordance with the contract governing the account when it receives proof of an account holder’s death and all other information required by the contract.
TAX BENEFIT — INDIVIDUAL DEDUCTION Beginning with the 2026 tax year, the bill establishes three tax deductions for first-time homebuyer account holders for (1) qualifying contributions, (2) accrued interest, and (3) withdrawals.
The deductions sHB5344 / File No.
129 27 sHB5344 File No.
129 apply only to the extent the income is included in the taxpayer’s federal AGI.
Income Thresholds To qualify for the deductions, account holders must meet the following income thresholds:
1.
for single filers (i.e., unmarried individuals, married individuals filing separately, and heads of household), a federal AGI of less than $100,000 and 2.
for joint filers, a federal AGI of less than $200,000.
Deduction Amounts Contributions.
The bill establishes a deduction for contributions that generally equals the amount contributed to an account during the applicabletaxyear,minusanyfundswithdrawnduringthetaxyearthat were not already claimed for a deduction, up to $2,500 for single filers and $5,000 for joint filers for each such tax year.
For the 2026 tax year, account holders may deduct the amount contributed (less withdrawals) for both the 2025 and 2026 tax years, so allowing an aggregate deduction of up to $5,000 for single filers and $10,000 for joint filers.
Accrued Interest.
The bill allows account holders to deduct the total interest accrued on their accounts during each tax year.
Qualified Beneficiary Deduction.
For an account holder who is a qualified beneficiary, the bill establishes a tax deduction in the amount of any withdrawal from an account that is used to pay, or reimburse for, the eligible costs he or she incurs (i.e., the income from a withdrawal used to pay eligible expenses is offset by this tax deduction).
TAX BENEFIT — EMPLOYER CREDIT Beginning with the 2026 tax year, the bill establishes a business tax credit for employers that contribute to a current employee’s first-time homebuyer savings account (against the corporation business tax or sHB5344 / File No.
129 28 sHB5344 File No.
129 income tax and excluding withholding taxes).
The bill sets the annual credit amount at 10% of the employer’s contributions to the accounts of its employees, but it cannot exceed $2,500 for any specific employee.
(Corresponding with the bill’s individual deductions, the 2026 taxable income year includes contributions made during 2025 and 2026.) Under the bill, if the employer is an S corporation or a partnership for federal income tax purposes, the employer’s shareholders or partners mayclaimthecredit.Forasingle-memberlimitedliabilitycompanythat isdisregardedasanentityseparatefromitsowner,theownermayclaim the credit if he or she is subject to business corporation or income tax.
Claimers of the credit must provide DRS documentation that supports their claim, as the commissioner requires.
COMMITTEE ACTION Banking Committee Joint Favorable Substitute Yea 12 Nay 0 (03/12/2024) sHB5344 / File No.
129 29
⬇ Download PDF
View plain text versions (3)

Action History

  1. REF. BY HOUSE TO COMMITTEE ON Finance, Revenue and Bonding

  2. FILE NO. 129

  3. HOUSE CALENDAR NUMBER 115

  4. FAV. RPT., TABLED FOR HOUSE CALENDAR

  5. RPTD. OUT OF LCO

  6. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/25/24

  7. FILED WITH LCO

  8. Joint Favorable Substitute

  9. PUBLIC HEARING 0305

  10. REF. TO JOINT COMM. ON Banking

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

11 sponsors · 0 co-sponsors · 176 not signed on

Sponsors (11)

Co-sponsors (0)

None.

Not signed on (176)

176 members have not signed on to this bill.

Show all 176 →

"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 housing
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 5344?
HB 5344 is sponsored by Jaime S. Foster (Democratic), Seth Bronko (Republican), Rachel Khanna, Holly H. Cheeseman, Tom Delnicki (Republican), Eleni Kavros DeGraw (Democratic), Jill Barry (Democratic), Devin R. Carney (Republican), Joseph H. Zullo (Republican), Tony J. Scott (Republican), and Gary A. Turco (Democratic).
What is the current status of HB 5344?
This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 5344?
Track HB 5344 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on HB 5344

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of HB 5344

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →