CT HB05114

Creates a refundable personal income tax credit for Connecticut renters equal to 20% of annual rent paid minus 4% of federal adjusted gross income, effective January 1, 2027

Caps the maximum credit at $2,500 per tax return for all filing statuses (single, married filing separately, head of household, or married filing jointly)

Limits eligibility to renters with federal adjusted gross income at or below $75,000 (single/head of household/married filing separately) or $150,000 (married filing jointly) who rented a primary residence in Connecticut for the entire tax year

Excludes from "rent" security deposits, last month's rent prepayments, cooperative housing payments, condo/HOA fees, and short-term rental or hotel stays unless under a lease agreement

Requires the Commissioner of Revenue Services to submit annual reports to the Finance, Revenue and Bonding Committee starting in 2028 on total credits claimed