Connecticut SB 84: AN ACT CONCERNING ADJUSTMENTS TO STATE REVENUE.
Status: FILE NO. 704 (as of 2026-04-20)
State: Connecticut · Session: 2026 · Bill: SB 84
Subjects: Accessory apartments, Advanced practice nurses, Apprentices, Audits, Certificates and certification, Chiropractic and chiropractors, Consumer Protection Department, Contractors, Corporation business tax credits for research and development expenses, Dental hygienists, Dentistry, Economic and Community Development, Department of, Federal income tax, Fees, Film production tax credits, General Fund, Governor's bills, Home Improvement Guaranty Fund, Home improvement contractors, Hospital net patient revenue tax, Hospital net revenue limit, Hospitals, Income tax (State), Income tax returns (State), Ledyard, Luxury tax, Marijuana and controlled substances tax, Marital and family therapists, Medicaid, Midwifery, Milk and milk products, Montville, Motor vehicles, Municipal Revenue Sharing Fund, Municipalities, Natureopathy, Notices, Nurses, Nursing homes, Occupational therapy, Optometry, Physical therapists, Physician assistants, Physicians, Podiatry, Professional counselors, Professional licenses, Property tax exemptions, Public Health, Department of, Sales and use tax, Small businesses, Social Services, Department of, Social workers, State aid programs, State budget, State grants to municipalities, Tax credits, Tax returns, Teachers
Sponsors: Geraldo C. Reyes, Anthony L. Nolan
Bill Text
LCO 1 of 107 General Assembly Substitute Bill No. 84 February Session, 2026 AN ACT CONCERNING ADJUSTMENTS TO STATE REVENUE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (b) of section 12-217 of the 2026 supplement to 1 the general statutes is repealed and the following is substituted in lieu 2 thereof (Effective from passage): 3 (b) (1) For purposes of determining net income under this section, the 4 deduction allowed for depreciation shall be determined as provided 5 under the Internal Revenue Code of 1986, or any subsequent 6 corresponding internal revenue code of the United States, as from time 7 to time amended, provided in making such determination, the 8 provisions of Section 168(k) of said code and, for income years 9 commencing on or after January 1, 2026, the provisions of Section 168(n) 10 of said code, shall not apply. 11 (2) (A) For purposes of determining net income under this section for 12 taxable years ending after December 31, 2008, and to the extent any 13 income from the discharge of indebtedness, under Section 108 of the 14 Internal Revenue Code, as amended by Section 1231 of the American 15 Recovery and Reinvestment Act of 2009, in connection with any 16 reacquisition, after December 31, 2008, and [before] prior to January 1, 17 2011, of an applicable debt instrument or instruments, as those terms are 18 defined in said Section 108, as amended by said Section 1231, is not 19 Substitute Bill No. 84 LCO 2 of 107 properly includable in gross income for federal income tax purposes for 20 the taxable year, any deferral of the recognition of any such income shall 21 not be allowed. 22 (B) To the extent that any income from the discharge of indebtedness 23 in connection with any reacquisition, after December 31, 2008, and 24 [before] prior to January 1, 2011, of an applicable debt instrument or 25 instruments, as those terms are defined in Section 108 of the Internal 26 Revenue Code, as amended by Section 1231 of the American Recovery 27 and Reinvestment Act of 2009, is properly includable in gross income 28 for federal income tax purposes for the taxable year, any such income 29 shall be deductible in computing net income under this section for a 30 taxable year ending after December 31, 2008, to the extent that the 31 deferral of recognition of such income from such discharge was not 32 allowed pursuant to subparagraph (A) of this subdivision in computing 33 net income for a preceding taxable year. 34 (C) For income years commencing on or after January 1, 2018, eighty 35 per cent of any deduction claimed under Section 179 of the Internal 36 Revenue Code for federal income tax purposes shall be disallowed. To 37 the extent such a deduction is disallowed for purposes of computing the 38 tax under this chapter, twenty-five per cent of the disallowed portion of 39 the deduction shall be allowed as a deduction in each of the four 40 succeeding income years. 41 (D) For purposes of determining net income under this section: 42 (i) For income years commencing on or after January 1, 2022, the 43 deduction under Section 70302(f) of P.L. 119-21 is disallowed; 44 (ii) For income years commencing on or after January 1, 2025, and 45 prior to January 1, 2026, the deduction under Section 174A of the 46 Internal Revenue Code is disallowed; and 47 (iii) For income years commencing on or after January 1, 2022, and 48 prior to January 1, 2026, any research or experimental expenditures paid 49 or incurred for said income years shall be deducted as permitted under 50 Substitute Bill No. 84 LCO 3 of 107 Section 174 of the Internal Revenue Code, as in effect on July 3, 2025. 51 Sec. 2. (Effective from passage) (a) The provisions of section 12-242d of 52 the general statutes shall not apply to any additional tax due as a result 53 of (1) the changes made to subdivision (1) of subsection (b) of section 12-54 217 of the general statutes pursuant to section 1 of this act, for income 55 years commencing on or after January 1, 2026, but prior to the effective 56 date of section 1 of this act, or (2) the enactment of subparagraph (D) of 57 subdivision (2) of subsection (b) of section 12-217 of the general statutes 58 pursuant to section 1 of this act, for income years commencing on or 59 after January 1, 2022, but prior to January 1, 2026. 60 (b) Notwithstanding the provisions of sections 12-3a and 12-229 of 61 the general statutes, the Commissioner of Revenue Services shall waive 62 any penalty or interest imposed on the portion of any underpayment for 63
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