Raised Bill No. 1106 Summary

• Establishes the Connecticut Equitable Investment Fund effective July 1, 2021, managed by the Connecticut Equitable Investment Council to receive, invest, and distribute dedicated tax revenues for economic development and community investment purposes.

• Imposes four new taxes effective January 1, 2022: a 2% surcharge on capital gains for high-income taxpayers, a 5% wage compensation tax on employers of participating employees, a consumption tax on residents with federal adjusted gross income of $140,000 or more (ranging from 0.1% to 1.5%), and a tax on digital advertising services revenue (2.5% to 10% depending on company size).

• Creates a voluntary wage compensation tax program allowing employees earning over $40,000 annually to participate, with employers paying 5% tax on participating employees' wages and employees receiving a 95% credit against state income tax.

• Directs all revenue from the four new taxes, recreational cannabis taxes, and online wagering revenues into the fund for investments in underserved communities, workforce development, property tax relief, and venture capital initiatives.

• Allows estate tax reduction of 50% of amounts invested in private investment funds or funds of funds for at least 10 years, with a $5 million cap per decedent and $30 million aggregate limit.