CT HB05487

Increases property tax credit against personal income tax from $200 to $400 for the 2022 taxable year, effective July 1, 2022.

Implements automatic annual inflation adjustments to the credit amount and income thresholds beginning in 2023, calculated using the consumer price index on an August-over-August basis.

Raises the income threshold for married couples filing jointly from $70,500 to $80,000 and changes the credit reduction rate from 15% per $10,000 to 15% per $20,000 of income above the threshold.

Allows excess credits to be treated as overpayments and refunded to taxpayers without interest, rather than limiting the credit to only reduce tax liability without generating refunds.

Extends eligibility restrictions (age 65+ or claiming dependents) through 2021 for taxable years 2017-2021, and adds a new credit provision for taxpayers who paid conveyance tax on real property, allowing them to claim 33⅓% of that tax over three years.