Bill > HB07269

This bill establishes a personal income tax deduction for renters in Connecticut, specifically targeting residents who rent their primary residence and meet certain income thresholds. Starting January 1, 2026 and running through January 1, 2032, eligible taxpayers can deduct a percentage of their annual rent paid, with the deduction amount varying based on their federal adjusted gross income (AGI). For single, married filing separately, or head of household filers with an AGI under $75,000, or joint filers with an AGI under $125,000, the deduction will be 50% of rent, not exceeding $4,000. For those with slightly higher incomes (single/separate/head of household AGI between $75,000-$100,000, or joint filers between $125,000-$150,000), the deduction drops to 35%, maxing out at $2,800. For those with even higher incomes (single/separate/head of household AGI between $100,000-$125,000, or joint filers between $150,000-$175,000), the deduction further reduces to 20%, with a $1,600 cap. To claim the deduction, taxpayers must provide documentation to the Commissioner of Revenue Services to verify their eligibility. The bill defines "rent" broadly to include costs like heat, electricity, and parking when included in the rental agreement, but excludes security deposits, cooperative housing payments, and short-term rental costs.