CT SB00084

Summary of Governor's Bill No. 84

• Hospital Tax Restructuring: Reduces the inpatient hospital services tax rate from 6% to 4.1% effective July 1, 2026, with further reductions to 4% by October 2030 and 3.5% by October 2031; reduces the outpatient tax base amount from $1.195 billion to $920 million starting FY 2027, with $25 million annual increases thereafter

• Sales Tax Rebate Program: Provides one-time rebates of 2024 sales taxes to eligible residents who filed 2024 state income tax returns by December 31, 2025—$200 for single filers under $200,000 income, $320 for heads of household under $320,000, and $400 for joint filers under $400,000

• R&D Tax Credit for Small Businesses: Creates a 6% tax credit for research and development expenses for qualified small businesses (under $70 million gross income), capped at $1.5 million per business and $25 million aggregate annually, with biotechnology businesses eligible for 90% refundability of excess credits

• Professional License Fee Eliminations: Removes renewal fees for numerous healthcare professionals including registered nurses, dental hygienists, physical therapists, social workers, counselors, and physician assistants; eliminates educator certificate application fees and waives application fees for certain trade licenses

• Budget Reserve Fund Threshold Increase: Raises the FY 2026 threshold for transfers to the Budget Reserve Fund from $4.728 billion to $5.228 billion, and sets FY 2027 threshold at $5.009 billion before resuming annual adjustments based on personal income growth