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SB 321

AN ACT ESTABLISHING A CAREGIVER TAX CREDIT AGAINST THE PERSONAL INCOME TAX.

2025 Regular Session Introduced by Jeff Gordon and 1 co-sponsor

Connecticut would establish a tax credit for caregivers to reduce their income tax liability, financially recognizing unpaid family care work.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#incometaxcredits(state) #relativecaregivers
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Bill Summary · SB 321

Legislative bill overview

SB 321 would create a new tax credit under Connecticut's personal income tax system specifically for individuals who serve as caregivers. The bill aims to provide financial relief to people who provide unpaid care for dependents, elderly relatives, or other family members, reducing their tax liability dollar-for-dollar based on caregiving responsibilities.

Why is this important

Caregiving—whether for children, aging parents, or disabled family members—represents significant unpaid labor that many households depend on but governments rarely recognize financially. A caregiver tax credit could help offset lost wages for those who reduce work hours or leave employment to provide care, while also acknowledging the economic value of family-based caregiving. This addresses a demographic reality: as Connecticut's population ages and childcare costs remain high, more residents juggle caregiving responsibilities with employment.

Potential points of contention

  • Definition and verification challenges: What qualifies as "caregiving" and how would the state verify claims? The definition could be narrow (licensed daycare alternatives only) or broad (any family care), creating either limited benefit or high administrative burden.
  • Cost and tax revenue impact: The fiscal cost depends entirely on the credit amount and eligibility scope. Large credits could significantly reduce state revenue, requiring spending cuts elsewhere or tax increases.
  • Equity concerns: Tax credits primarily benefit higher-income filers who have tax liability to offset. Lower-income caregivers might receive little benefit unless the credit is refundable, raising questions about who truly benefits from this policy.

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

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