CT SB00443

Interest will not accrue on tax underpayments under chapters 208, 228z, or 229 when the underpayment resulted from filing an amended return due to IRS Notice 2021-20 guidance on the federal Employee Retention Credit program, effective July 1, 2025.

Taxpayers who already paid such interest to the Department of Revenue Services will receive a refund of that amount, without interest.

Operating loss carry-over periods are extended from 20 years to 30 years for business operating losses incurred in income years beginning on or after January 1, 2025.

Operating losses incurred before January 1, 2000 may still be carried over for 5 years, and losses incurred between January 1, 2000 and January 1, 2025 may be carried over for 20 years.

For income years beginning on or after January 1, 2015, operating loss carry-over deductions remain limited to 50% of net income for that year.