CT HB05490

Establishes a Connecticut personal income tax deduction equal to 50% of rent paid on a primary residence in the state, with a maximum deduction of $5,000 per taxpayer per year.

Applies to taxable years commencing on or after January 1, 2022, with the provision becoming effective July 1, 2022.

For married couples filing jointly or separately, the combined deduction cannot exceed $5,000 per taxable year.

Adds clause (xxvii) to the list of allowable subtractions from Connecticut adjusted gross income under section 12-701(a)(20)(B).