CT SB00787

Establishes a voluntary tax amnesty "fresh start" program allowing taxpayers who failed to file returns or report full taxes by December 31, 2016, to voluntarily disclose and pay back taxes with waived penalties and 50% interest reduction from July 1, 2017, through October 31, 2018.

Reduces the Connecticut income tax capital gains rate from 30% to 27.5% for taxable years commencing on or after January 1, 2017.

Creates a $500 annual personal income tax credit for college graduates with degrees in science, technology, engineering, or math fields who work and reside in Connecticut, claimable for five years after graduation beginning January 1, 2018.

Simplifies Social Security income taxation by allowing all Connecticut residents to exclude the full amount of Social Security benefits from state income tax starting January 1, 2019, removing prior income-based limitations.

Modifies estate and gift tax structures effective 2018-2020 with new exemption thresholds tied to federal basic exclusion amounts, reduced tax caps from $20 million to $15 million for certain years, and limited three-year lookback periods on taxable gifts.