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SB 922

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE AND REQUIRING WORLD-WIDE COMBINED REPORTING FOR CORPORATE TAX LIABILITY PURPOSES.

2025 Regular Session Introduced by Gary Winfield

Connecticut bill adds capital gains surcharge and requires corporations to report worldwide income for state tax purposes, expanding the tax base.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#capitalgainsanddividendstax #corporationbusinesstax
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Bill Summary · SB 922

Legislative bill overview

SB 922 would impose a surcharge on capital gains income in Connecticut and require corporations to report their worldwide combined income for state tax purposes rather than just Connecticut-based income. The bill aims to increase tax revenue by capturing gains from investment activities and broadening the corporate tax base to include global earnings of multistate corporations.

Why is this important

Capital gains taxes directly affect investment income, wealth accumulation, and potentially individual investor behavior. Worldwide combined reporting could significantly increase tax liability for multinational corporations operating in Connecticut, affecting business competitiveness and potentially influencing where companies locate or conduct operations. These changes would reshape Connecticut's tax structure and could impact both high-net-worth individuals and major employers.

Potential points of contention

  • Competitiveness concerns: Connecticut could become less attractive to corporations and wealthy individuals compared to neighboring states without similar taxes, potentially triggering relocations or discouraging business investment in the state
  • Capital gains definition and rates: Disputes likely over which transactions qualify, tax rate levels, and whether exemptions should exist for retirement accounts, primary residences, or small business sales
  • Worldwide reporting complexity: Multinational corporations may argue the administrative burden and compliance costs are excessive, and questions exist about how to fairly allocate global income to Connecticut versus other jurisdictions

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

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