Bill > SB01558

This bill addresses income tax issues for Connecticut residents working in other jurisdictions through three main provisions. First, the bill requires the Attorney General to conduct a study by January 1, 2026, exploring legal strategies to protect Connecticut residents from being taxed by other states for work performed while physically located in Connecticut. Second, the bill introduces a tax credit mechanism for residents who have been subjected to taxes by other jurisdictions and successfully appealed those taxes, allowing them to receive a 60% credit against their Connecticut state taxes. To qualify for this credit, residents must have paid taxes to another jurisdiction, been denied a refund, filed a formal appeal, and ultimately received a refund for taxes paid on work performed in Connecticut. Third, the bill provides protection against late payment penalties for Connecticut state taxes if the late payment results from a tax credit reduction stemming from a refund received from another jurisdiction, specifically in cases where the other jurisdiction requires income to be sourced to an employer's location when work is performed from an out-of-state location. These provisions aim to provide financial relief and legal protection for Connecticut residents facing potentially unfair taxation by other states.

Budget and Finance

Finance, Revenue and Bonding Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01558&which_year=2025