CT HB06934

Reduces the lowest personal income tax bracket from 3% to 2% for taxable years beginning January 1, 2023, applying to the first $10,000-$20,000 of income depending on filing status, with the next bracket set at 4.75% instead of 5%

Increases the state Earned Income Tax Credit from 30.5% to 40% of the federal EITC for taxable years beginning January 1, 2023

Establishes income phase-out schedules for pension/annuity and IRA distribution deductions, providing 100% deductions for single filers under $75,000 and joint filers under $100,000, phasing down to 0% at $100,000 and $150,000 respectively

Expands the Human Capital Investment Tax Credit from 5% to 10% for job training and education expenses, and to 25% for child care facility construction and employee child care subsidies, effective January 1, 2024

Requires the Commissioner of Revenue Services to annually estimate the state tax gap, develop compliance strategies, and publish enhanced biennial tax incidence reports including analysis by the top 0.5% of income taxpayers and distribution of major tax credits