Bill > HB05552

This bill modifies tax regulations for pass-through entities, which are business structures like partnerships, S corporations, and limited liability companies where business income "passes through" to the owners' personal tax returns. Currently, these entities are likely required to spread out bonus depreciation deductions for eligible assets over multiple years, but this legislation would allow them to claim the full depreciation amount in the first year the asset is placed into service. Bonus depreciation is a tax incentive that permits businesses to deduct a larger percentage of the purchase price of eligible assets (such as equipment, machinery, or vehicles) in the year they are first used, rather than gradually depreciating the asset's value over its useful life. By enabling pass-through entities to immediately deduct the full value of qualifying assets, the bill aims to provide businesses with improved cash flow and a more significant upfront tax benefit, potentially encouraging investment in new business assets.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05552&which_year=2025