CT SB00001

Reduces the entity-level tax on limited liability companies, limited liability partnerships, limited partnerships, and S corporations from an unspecified amount to $250 per year, effective for taxable years beginning January 1, 2010.

Exempts affected business entities with net income of $50,000 or less from the $250 tax for 2010 and 2011 if they employed at least one full-time employee (35+ hours per week) in Connecticut for at least eight consecutive months during those years.

Imposes an 8.97% tax on "TARP bonuses" (aggregate disqualified bonuses of $500,000 or more) received from entities that received federal Troubled Assets Relief Program funds for taxable years 2010 and 2011.

Defines disqualified bonuses as retention, incentive, or other bonus payments beyond regular compensation, excluding commissions, welfare benefits, and expense reimbursements.

Requires covered TARP recipients paying $1 million or more in TARP bonuses during 2010-2011 to comply with Connecticut reporting requirements; allows taxpayers to avoid the TARP bonus tax by irrevocably waiving or returning the full bonus amount by December 31 of the applicable year.