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HB 5114

AN ACT ESTABLISHING A REFUNDABLE CREDIT AGAINST THE PERSONAL INCOME TAX FOR A PORTION OF ANNUAL RENT PAYMENTS MADE BY A TAXPAYER FOR A PRIMARY RESIDENCE IN THE STATE.

2026 Regular Session Introduced by Aundré Bumgardner and 13 co-sponsors

Connecticut proposes refundable tax credit allowing renters to claim portion of annual rent payments, providing direct financial relief to residents with housing cost burden.

FILE NO. 663
#incometaxcredits(state) #propertytax #rent #housing #departmentof #landlordandtenant #reports #revenueservices
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Bill Summary · HB 5114

Legislative bill overview

HB 5114 would create a refundable tax credit allowing Connecticut residents to claim a portion of their rent payments as a credit against their personal income tax liability. The credit would be refundable, meaning taxpayers could receive money back even if their tax liability is zero. This targets renters who spend significant portions of their income on housing costs.

Why is this important

Housing affordability is a major challenge in Connecticut, where renters often spend 30% or more of income on rent. A refundable rent credit would provide direct financial relief to lower and middle-income renters while potentially stimulating economic activity as recipients spend freed-up money elsewhere. The refundable nature makes it more impactful than a non-refundable credit for low-income households.

Potential points of contention

  • Fiscal cost: Refundable credits create ongoing state revenue loss; the bill's cost depends on credit percentage and income thresholds, which aren't specified in the summary provided
  • Income eligibility: Determining who qualifies (income caps, household size) will affect whether this aids struggling renters or benefits higher earners, with significant political disagreement likely
  • Landlord incentives: Critics may argue the credit inflates demand without increasing housing supply, potentially enabling landlords to raise rents without improving affordability for the poorest renters

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

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