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SB 1201

AN ACT DISALLOWING CERTAIN CORPORATE DEDUCTIONS FROM GROSS INCOME.

2025 Regular Session Introduced by Sujata Gadkar-Wilcox

Connecticut bill eliminates specific corporate tax deductions to increase state tax revenue and corporate tax liability.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#corporations #incometaxdeductions(state) #realestate
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Bill Summary · SB 1201

Legislative bill overview

SB 1201 proposes to eliminate specific corporate tax deductions from gross income calculations in Connecticut. The bill would narrow what corporations can deduct when calculating their taxable income, effectively increasing their tax liability. The measure was referred to the Joint Committee on Finance, Revenue and Bonding on January 30, 2025.

Why is this important

This bill directly affects state tax revenue and corporate operating costs in Connecticut. Disallowing certain deductions could increase state tax collections but may also influence business location decisions and competitiveness relative to neighboring states. The outcome would reshape the Connecticut corporate tax landscape and state budget dynamics.

Potential points of contention

  • Business competitiveness: Connecticut already has relatively high corporate tax rates; further reducing deductions could disadvantage businesses compared to lower-tax states
  • Revenue targeting: Unclear which specific deductions would be eliminated—some may have legitimate policy purposes (e.g., research credits, pollution control equipment) versus others seen as unnecessary loopholes
  • Economic impact: Opponents may argue this discourages business investment and job creation, while supporters would argue it ensures fair contribution to state services

Compiled from official sources — confirm details with the bill’s official record.

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