Raised Bill No. 1245 is designed to address the needs of high poverty-low opportunity census tracts by defining these areas and authorizing the issuance of bonds to support development within them. The bill defines high poverty-low opportunity census tracts as areas where at least 40% of residents live below the federal poverty level. The Secretary of the Office of Policy and Management is responsible for identifying and listing these tracts. The State Bond Commission is authorized to issue bonds up to $2.5 billion, with an annual limit of $250 million from July 1, 2023, to July 1, 2033, to fund improvements in housing, education, infrastructure, and violence prevention programs. The bill also amends the allocation of tax revenue under section 12-330ll, directing a portion to the Social Equity and Innovation Fund for these purposes, and is effective from July 1, 2023.

The bill further introduces a personal income tax exemption program for residents of qualifying census tracts to encourage homeownership and tenant retention. To be eligible, residents must have lived in the tract for at least two years and meet income requirements. Municipalities must inform residents about the program, and the Commissioner of Revenue Services is tasked with collecting eligibility information and reporting on the program's impact. The bill repeals Section 12-724a of the general statutes and is applicable to taxable years starting on or after January 1, 2023. The overall goal of the bill is to foster economic development and provide tax relief to residents in disadvantaged areas.

Statutes affected:
Raised Bill: 12-724a