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HB 5296

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR NATIONAL GUARD STATE ACTIVE DUTY PAY.

2026 Regular Session Introduced by Juan Candelaria and 5 co-sponsors

Connecticut would allow National Guard active duty members to deduct military pay from state income taxes, providing financial relief to service members at the cost of state revenue.

FILE NO. 139
#federalincometax #incometaxdeductions(state) #nationalguard
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Bill Summary · HB 5296

Legislative bill overview

HB 5296 would create a state income tax deduction for Connecticut residents who earn income from active duty service in the National Guard. This means National Guard members could exclude their active duty pay from Connecticut's personal income tax calculations, reducing their overall state tax liability.

Why is this important

National Guard members often serve their state and country while maintaining civilian employment, creating potential financial strain. A tax deduction would provide direct financial relief to these service members and could improve recruitment and retention for Connecticut's military readiness. This is particularly relevant as states compete to offer competitive benefits for military personnel.

Potential points of contention

  • Revenue impact: The state would lose tax revenue from affected service members; the fiscal cost is unclear without knowing how many Guard members would benefit and their income levels
  • Equity concerns: Critics may argue this creates preferential tax treatment for military service that civilians with similar income don't receive, or question why Guard pay specifically rather than other public service
  • Implementation questions: Defining "active duty" (temporary vs. extended activation), interaction with federal tax deductions, and administration of the deduction require clarification

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

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