CT HB06654

Establishes a child tax credit against Connecticut personal income tax, effective January 1, 2022, for eligible taxpayers with dependent children under seventeen years of age

Defines eligible taxpayers by filing status and federal adjusted gross income limits: single/married filing separately ($100,000), head of household ($160,000), and married filing jointly/surviving spouse ($200,000)

For 2022 tax year, offers two credit options per child (maximum three children): $300 per child reduced 10% for each $1,000 over income threshold, or $210 per child with 2.25% income cap (refundable if credit exceeds liability)

For 2023 and subsequent tax years, increases credit options to $600 per child reduced 10% over threshold, or $420 per child with 4.5% income cap (refundable if credit exceeds liability)

Requires tax liability calculations to exclude other credits under state law and provides for refunds of excess credits when credit amount exceeds tax liability