CT HB05581

Modifies Connecticut adjusted gross income calculations for tax years starting January 1, 2017 by adding fifty percent of depreciation deductions under Section 179 of the Internal Revenue Code for property placed in service after September 27, 2017, and allowing fifty percent disallowance with carryover to succeeding year.

Changes capital stock tax rates for corporations: 3.1 mills per dollar for income year 2018, declining to 2.1 mills (2019), 1.1 mills (2020), and zero mills (2021 onward).

Eliminates bonus depreciation allowances under Section 168(k) of the Internal Revenue Code for capital stock tax purposes, replacing prior law that allowed these deductions for property placed in service between specific dates.

Increases Social Security benefits income thresholds for tax year 2019 and later: unmarried individuals from $50,000 to $75,000, and married filing jointly from $60,000 to $100,000, allowing fuller exclusion of Social Security benefits below those thresholds.

Expands pension and annuity income exclusions starting 2019 with fourteen percent deduction, increasing annually to one hundred percent by 2025 for qualifying lower-income taxpayers.