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HB 5971

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR THE PUBLIC BENEFITS CHARGE ON ELECTRIC BILLS.

2025 Regular Session Introduced by Anthony Nolan

Connecticut bill allows personal income tax deduction for public benefits charges on electricity bills, providing greater tax relief to higher-income households than lower-income residents.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · HB 5971

Legislative bill overview

HB 5971 would create a personal income tax deduction for charges related to public benefits on electric bills in Connecticut. The bill allows individual taxpayers to deduct these specific utility charges from their taxable income. This targets the "public benefits charge" (PBC), a fee typically added to electricity bills that funds energy efficiency programs, renewable energy development, and low-income assistance programs.

Why is this important

The public benefits charge represents a meaningful expense for Connecticut households, and this deduction could provide tax relief to residents who pay these mandatory utility fees. However, the deduction's value depends on Connecticut's tax bracket structure, meaning higher-income earners would receive greater absolute tax savings than lower-income households. This policy reflects a broader debate about how to allocate the cost of public energy initiatives.

Potential points of contention

  • Regressive impact: The tax deduction benefits higher-income earners more (in absolute dollars), while low-income households who pay the same PBC but have lower tax liability receive minimal or no benefit
  • Funding mechanism concerns: Public benefits charges fund essential programs for low-income energy assistance and renewable infrastructure; reducing revenue through tax deductions could strain these programs unless alternative funding is identified
  • Policy inconsistency: Deducting utility charges through income tax is an indirect subsidy that differs from direct bill credits, which would provide equal relief to all ratepayers regardless of income level

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

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