Connecticut HB 5570: AN ACT CONCERNING A TAX CREDIT FOR MILK PRODUCERS.

Bill Text

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General Assembly  
Substitute Bill No. 5570  
February Session, 2026 
 
 
 
 
 
AN ACT CONCERNING A TAX CREDIT FOR MILK PRODUCERS.  
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section 1. (NEW) (Effective January 1, 2027, and applicable to income and 1 
taxable  years  commencing  on  or  after January  1,  2027)  (a)  As  used  in  this 2 
section, "federal pay price", "milk producer" and "minimum sustainable 3 
monthly  cost  of  production"  have  the  same  meanings  as  provided  in 4 
section 22-265b of the general statutes. 5 
(b)  Each  milk  producer  shall  be  allowed  a  credit  against  the  tax 6 
imposed under chapter 208 or 229 of the general statutes, other than the 7 
liability imposed by section 12-707 of the general statutes, in an amount 8 
equal to, for each month of the income or taxable year the federal pay 9 
price is below the minimum sustainable monthly cost of production, (1) 10 
the  dollar  amount  the  federal  pay  price  was  below  the  minimum 11 
sustainable monthly cost of production, (2) multiplied by the amount of 12 
milk  produced  by  such  milk  producer  for  such  month.  Each  milk 13 
producer shall file with the Commissioner of Agriculture, in a form and 14 
manner   prescribed   by   the   commissioner,   such   information   the 15 
commissioner requires to substantiate the amount of milk produced by 16 
such milk producer. 17 
(c) (1) Any milk producer subject to the tax imposed under chapter 18 
208  or  229  of  the  general  statutes  may  apply  to  the  Commissioner  of 19 

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Agriculture, in a form and manner prescribed by the commissioner, to 20 
reserve an allocation for a credit under this section. The application shall 21 
contain  such  information  as  the  commissioner  deems  necessary  to 22 
administer  the  provisions  of  this  section. The  aggregate  amount  of 23 
credits reserved under this section shall not exceed eight million dollars 24 
in any calendar year.  25 
(2)  Upon  verification  by  the  commissioner  that  the  conditions  set 26 
forth in subsection (b) of this section have been satisfied and the amount 27 
of  milk  produced  by  a  milk  producer  has  been  substantiated,  the 28 
commissioner shall issue a voucher to the milk producer in the amount 29 
calculated pursuant to subsection (b) of this section. The taxpayer shall 30 
file  the  voucher  with  the  taxpayer's  state  tax  return  for  the  applicable 31 
income or taxable year.  32 
(d) If  the  taxpayer  is  an  S  corporation  or  an  entity  treated  as  a 33 
partnership for federal income tax purposes, the credit may be claimed 34 
by  the  taxpayer's  shareholders  or  partners.  If  the  taxpayer  is  a  single 35 
member  limited  liability  company  that  is  disregarded  as  an  entity 36 
separate  from  its  owner,  the  credit  may  be  claimed  by  such  limited 37 
liability  company's  owner,  provided  such  owner  is  subject  to  the  tax 38 
imposed under chapter 208 or 229 of the general statutes. 39 
(e)  If  the  amount  of  the  credit  allowed  pursuant  to  this  section 40 
exceeds the taxpayer's liability for the tax imposed under chapter 208 or 41 
229 of the general statutes, the Commissioner of Revenue Services shall 42 
treat such excess as an overpayment and, except as provided in section 43 
12-739 or 12-742 of the general statutes, shall refund the amount of such 44 
excess, without interest, to such taxpayer. 45 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 
January 1, 2027, and 
applicable to income and 
taxable years commencing 
on or after January 1, 2027 
New section 

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FIN Joint Favorable Subst.