HB 6516 Summary

• Connecticut residents who paid income tax to other states while working remotely from Connecticut during 2020 due to COVID-19 receive a tax credit against Connecticut income tax, including residents in states using "convenience of the employer" rules.

• The state Department of Revenue Services shall not consider remote work activities by employees during 2020 when determining employer nexus with Connecticut for tax purposes.

• Effective July 1, 2021, the state eliminates liens on real property for cash assistance and medical assistance to public assistance beneficiaries, except where federal law requires recovery; existing liens are deemed released if recovery is not federally mandated.

• Establishes a three-tiered grants-in-lieu-of-taxes system based on equalized net grand list per capita: Tier One municipalities ($0-$100,000 per capita) receive 50% of calculated grants, Tier Two (100k-200k) receive 40%, and Tier Three (200k+) receive 30% when appropriations are insufficient.

• Bridgeport receives an additional $5 million annual payment for tax-exempt property loss, paid by September 30 annually from the General Fund.