CT HB06243

Amends Chapter 229 of Connecticut General Statutes to create reduced personal income tax rates on income spent on child care based on filing status and income thresholds.

Imposes a 3% tax rate on child care expenses for unmarried individuals, married filing separately, and heads of household with Connecticut adjusted income not exceeding $80,000, and married filing jointly with income not exceeding $100,000.

Imposes a 4% tax rate on child care expenses for unmarried individuals, married filing separately, and heads of household with income over $80,000 up to $200,000, and married filing jointly with income over $100,000 up to $200,000.

Imposes a 5% tax rate on child care expenses for all qualifying taxpayers with Connecticut adjusted income over $200,000 up to $400,000.

Applies reduced rates only to the portion of income actually spent on child care expenses.