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SB 112

AN ACT ESTABLISHING A CHILD AND DEPENDENT TAX CREDIT AGAINST THE PERSONAL INCOME TAX.

2025 Regular Session Introduced by Jeff Gordon and 3 co-sponsors

Connecticut bill creates personal income tax credit for taxpayers with children and dependents to reduce family tax burden while decreasing state revenue.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#children #dependents #incometaxcredits(state)
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Bill Summary · SB 112

Legislative bill overview

SB 112 would establish a new tax credit against Connecticut's personal income tax for taxpayers with children and dependents. The bill creates a financial incentive for families by allowing them to reduce their state income tax liability based on qualifying dependent status. This represents a direct reduction in state revenue in exchange for targeted tax relief to families with dependent care responsibilities.

Why is this important

Connecticut's tax structure significantly affects family finances and the state's competitiveness in retaining working families. A dependent tax credit could meaningfully reduce the effective tax burden on middle and lower-income households, though it would also reduce state revenue that currently funds education, infrastructure, and social services. The design details—such as credit amount, income limits, and eligibility criteria—will determine whether this primarily benefits higher-income families or provides broader middle-class relief.

Potential points of contention

  • Revenue impact and funding tradeoffs: Establishing a new tax credit reduces state revenue; legislators will debate whether the state can afford this without cutting services or raising other taxes
  • Credit structure and equity: Questions about credit amount, phase-out thresholds, and whether it applies equally to all income levels could create winners and losers among different demographic groups
  • Definition of "dependent": The bill's scope regarding which dependents qualify (biological children only, grandchildren, foster children, adult dependents) will affect both costs and fairness perceptions

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

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