Connecticut 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.

Bill Text

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General Assembly  
Substitute Bill No. 5114  
February Session, 2026 
 
 
 
 
 
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.  
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section 1. (NEW) (Effective January 1, 2027) (a) As used in this section: 1 
(1) "Condominium" has the same meaning as provided in section 47-2 
68a of the general statutes; 3 
(2) "Common interest community" has the same meaning as provided 4 
in section 47-202 of the general statutes; 5 
(3) "Dwelling unit" has the same meaning as provided in section 47a-6 
1 of the general statutes; 7 
(4)   "Eligible   renter"   means   an   individual   (A)   who   rented   and 8 
occupied one or more dwelling units in the state for the entirety of the 9 
applicable taxable year as such individual's primary residence and paid 10 
rent  for  such  dwelling  unit  or  units,  (B) who  was  not  claimed  as  a 11 
dependent  on  another  individual's  federal  income  tax  return  for  the 12 
applicable  taxable  year,  and  (C)  whose  federal  adjusted  gross  income 13 
for the applicable taxable year does not exceed (i) seventy-five thousand 14 
dollars for individuals who file a return under the federal income tax as 15 

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an  unmarried  individual,  a  married  individual  filing  separately  or  a 16 
head  of  household, or  (ii)  one  hundred  fifty  thousand  dollars  for 17 
individuals  who  file  a  return  under the  federal  income  tax  as  married 18 
individuals filing jointly; 19 
(5) "Hotel", "lodging" and "bed and breakfast establishment" have the 20 
same meanings as provided in section 12-407 of the general statutes; 21 
(6) "Mobile manufactured home" has the same meaning as provided 22 
in section 12-63a of the general statutes; and 23 
(7) "Short-term rental" has the same meaning as provided in section 24 
12-408h of the general statutes. 25 
(b)  Any  eligible  renter  who  is  subject  to  the  tax  imposed  under 26 
chapter 229 of the general statutes for any taxable year commencing on 27 
or  after  January  1,  2027,  shall  be  allowed  a  credit  against  the  tax 28 
otherwise due under chapter 229 of the general statutes, other than the 29 
liability imposed by section 12-707 of the general statutes, in an amount 30 
equal to twenty per cent of the eligible renter's annual rent actually paid 31 
by the eligible renter for the applicable taxable year, minus four per cent 32 
of the eligible renter's federal adjusted gross income for the applicable 33 
taxable year, provided the amount of the credit for any taxable year shall 34 
not exceed (1) for any eligible renter who files a return under the federal 35 
income  tax  as  an  unmarried  individual,  a  married  individual  filing 36 
separately or a head of household, two thousand five hundred dollars, 37 
and  (2)  for  any  two  eligible  renters  who  file  a  return  as  married 38 
individuals filing jointly, two thousand five hundred dollars jointly for 39 
such two eligible renters. 40 
(c)  (1)  Each owner  or  managing  agent,  including  the owner  or 41 
managing agent of a mobile manufactured home park, of any property 42 
in the state that is occupied by a renter as a primary residence and for 43 
which the renter pays rent, shall furnish a certificate of rent paid to each 44 
such renter who is a renter on December thirty-first. The certificate shall 45 
be  in  such  form  and  manner  as  prescribed  by  the  Commissioner  of 46 
Revenue Services and shall be provided to each renter before February 47 

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first  of  the  year  following  the  year  in  which  the  rent  was  paid.  Each 48 
eligible  renter  claiming  the  credit  under  this  section  shall  file  such 49 
certificate with the eligible renter's state tax filing. 50 
(2)  If  a  renter  moves  before  December  thirty-first,  the  owner  or 51 
managing agent may furnish the certificate to the renter at the time of 52 
moving  or  send  the  certificate  by  mail  to  a  forwarding  address,  if 53 
known,  or  by  electronic  mail  if  the  renter  provided  an  electronic  mail 54 
address to the owner or managing agent. 55 
(3)  Each  owner  or  managing  agent  shall  retain  a  duplicate  of  each 56 
certificate, or an equivalent record that shows the information that was 57 
included  in  each  certificate,  for  a  period  of  four  years  and  shall  make 58 
such duplicate or record available to the commissioner upon request. 59 
(4) If an eligible renter does not receive a certificate from the owner 60 
or  managing  agent,  the  eligible  renter  may  submit  an  affidavit  that 61 
includes the information that would be included in a certificate of rent 62 
paid. The Department of