The bill, Substitute House Bill No. 5514, proposes an additional tax reduction for eligible homeowners under the Circuit Breaker property tax relief program, effective July 1, 2025. It specifies that any homeowner who has qualified for the tax reduction under section 12-170aa of the general statutes for the fiscal year ending June 30, 2026, will receive an additional tax reduction. The amount of this additional reduction is determined by the homeowner's income bracket, with reductions ranging from $100 to $300. The bill also allows the Secretary of the Office of Policy and Management to reimburse municipalities for the loss of property tax revenue related to this additional tax reduction, within available appropriations, for the fiscal year ending June 30, 2026.

The fiscal impact statement indicates that the bill could result in a $6.5 million cumulative revenue loss for municipalities beginning in FY 26, based on the participation of approximately 30,000 homeowners in the program in FY 23. There is also a potential cost to the Office of Policy and Management (OPM) beginning in FY 26 if they choose to reimburse municipalities for the revenue loss. Historically, this program has not been reimbursed by the OPM. The bill's ongoing fiscal impact is expected to continue into the future, subject to inflation and the extent of OPM reimbursement to municipalities. The bill has been reported favorably by the Committee on Finance, Revenue and Bonding and includes new legal language marked by insertions, such as "File No. 564" and the effective date of the new section.