House Bill No. 6926, also known as File No. 715, is a legislative proposal that aims to introduce a personal income tax deduction for certain home health care expenses in Connecticut. The bill seeks to amend the state's general statutes by repealing existing language and adding new provisions that would allow taxpayers to deduct up to $60,000 for necessary expenses related to the care of a qualifying relative who is either 70 years of age or older or incapable of self-care due to a disability. These expenses include costs for medical supplies and services provided by registered homemaker companion agencies and licensed home health agencies. The deductions are applicable to the extent that they are not already deductible under federal AGI or other state provisions. The bill specifies that this deduction would be effective from January 1, 2024, and would apply to taxable years starting on or after that date.

The fiscal impact of HB6926 is projected to result in a General Fund revenue loss of $19.8 million in FY 24 and $20.8 million in FY 25. Additionally, the Department of Revenue Services (DRS) will incur costs related to the administration of the deduction, including the hiring of a Revenue Examiner and one-time programming updates to tax administration systems. The bill has received a Joint Favorable report from the Finance, Revenue and Bonding Committee with a unanimous vote in favor on April 19, 2023. The bill also includes various other provisions related to the calculation of Connecticut adjusted gross income, the inclusion and deduction of certain amounts for federal income tax purposes, and the payment of financial assistance from the Crumbling Foundations Assistance Fund.

Statutes affected:
Raised Bill: 12-701
FIN Joint Favorable: 12-701
File No. 715: 12-701