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HB 5031

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR FULL-TIME HOME HEALTH CARE COSTS.

2025 Regular Session Introduced by Tami Zawistowski

Connecticut bill creating state income tax deduction for full-time home health care costs, favoring higher-income households while reducing state tax revenue.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#homehealthcare #incometaxdeductions(state) #medicalsuppliesandequipment
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Bill Summary · HB 5031

Legislative bill overview

HB 5031 proposes to create a state income tax deduction for Connecticut residents who pay for full-time home health care services. The deduction would reduce taxable income for those with qualifying home health care expenses, effectively lowering their state tax liability. The bill was referred to the Joint Committee on Finance, Revenue and Bonding in January 2025 for review.

Why is this important

Home health care costs represent a significant financial burden for families managing chronic illness, disability, or aging relatives, often exceeding $50,000+ annually. A tax deduction could provide meaningful relief to middle and upper-income households while potentially encouraging more people to use regulated home care services instead of institutional care. However, the deduction's value depends entirely on income level—higher earners benefit more than lower-income families with the same care expenses.

Potential points of contention

  • Regressive tax structure: Tax deductions primarily benefit higher-income earners who can afford the care upfront and have tax liability to offset, potentially widening inequality rather than helping the most financially vulnerable families
  • Fiscal impact uncertainty: The bill lacks detail on cost estimates, deduction limits, or definitions of "full-time" care, making it unclear how much state revenue would be foregone
  • Definition and verification challenges: Determining what qualifies as "full-time home health care" and how to prevent abuse or gaming of the deduction would require clear regulatory language and administrative oversight

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

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