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HB 5053

AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS MADE TO CONNECTICUT-BASED CHARITIES.

2026 Regular Session Introduced by Mitch Bolinsky and 2 co-sponsors

Connecticut tax credit incentivizes charitable donations to state nonprofits by allowing taxpayers to reduce state tax liability based on qualified donations made.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#charitablecontributions #incometaxcredits(state)
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WeVote Research Nonpartisan
Bill Summary · HB 5053

Legislative bill overview

HB 5053 creates a state tax credit for Connecticut residents and businesses that donate to qualified Connecticut-based charitable organizations. The bill incentivizes charitable giving by allowing taxpayers to reduce their state tax liability based on donations made throughout the tax year.

Why is this important

Charitable organizations rely heavily on individual and corporate donations to fund critical services in education, healthcare, social services, and community development. By reducing the after-tax cost of giving, tax credits can significantly increase donation levels, particularly from middle and upper-income taxpayers who benefit most from tax incentives.

Potential points of contention

  • Revenue impact: The state will lose tax revenue from the credit, requiring either budget cuts elsewhere or demonstration that increased charitable giving offsets the loss through economic benefits
  • Equity concerns: Tax credits primarily benefit higher-income taxpayers who have sufficient tax liability to claim them; lower-income donors see no benefit regardless of generosity
  • Definition of qualified charities: Disputes may arise over which organizations qualify (religious institutions, political nonprofits, donor-advised funds, etc.) and how broadly or narrowly the bill defines eligibility
  • Credit structure details: The bill's specifics—percentage of donation credited, caps on total credit per taxpayer, carryover provisions—will determine actual cost and effectiveness

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

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