SB 897 — AN ACT CONCERNING AN INCOME TAX DEDUCTION FOR LONG-TERM CARE INSURANCE PREMIUMS.

(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 3569 \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00897-R01 of 8 SB.docx Raised Bill No.

3569897 1 of 8 Raised Bill No.897 of the United States or 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 by3569 such{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00892 individual;of 8 R01-SB.docx } Raised Bill No.

LCO897 No.on by such individual;

3569(ix) 2Ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of 8income Raisedwhich Billis No.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;

897 (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 income3569 tax{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00897- as3 a head of household8 whoseR01-SB.docx federal} adjustedRaised grossBill income for such taxable year is sixty thousand dollars or more, an LCO No.

3569897 3federal income tax as a head of 8household Raisedwhose Billfederal No.897adjusted 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 income3569 tax{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00897-4 purposes and the lesser of twenty-five8 perR01-SB.docx cent} ofRaised theBill 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.

3569897 4federal income tax purposes and the lesser of 8twenty-five Raisedper Billcent No.897of 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 sectionsLCO 3-123aa3569 to{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00895 3-123ff,of inclusive;8 R01-SB.docx } Raised Bill No.

(xvii)897 Tosections the3-123aa extentto properly3-123ff, includableinclusive; in gross income for federal LCO No.

3569(xvii) 5To ofthe 8extent Raisedproperly Billincludable No.897in 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;

(xxi)LCO To3569 the{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00896 extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this8 subparagraphR01-SB.docx and} retirementRaised payBill under clause (xvii) of this LCO No.

3569897 6(xxi) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of 8this Raisedsubparagraph Billand No.897retirement 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,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 andLCO 8-443;3569 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00897 of 8 R01-SB.docx } Raised Bill No.

(xxiv)897 Toand the8-443; extent properly includable in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) LCO No.

3569(xxiv) 7To the extent properly includable in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) of 8section Raised12-704g Billfor No.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;

897 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;

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 3569 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00897- 8 of Purpose:8 R01-SB.docx }

To allow a state income tax deduction for qualified long-term care insurancepremiumstothesameextentsuchdeductionisallowedunder federal law.

[Proposed deletions are enclosed in brackets.

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.

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