The proposed bill, General Assembly Proposed Bill No. 119, aims to establish a child tax credit of five hundred dollars per child, applicable to a maximum of three children, against the personal income tax. This credit is specifically designed for tax filers who come from asset-limited, income-constrained, employed households, as identified in the latest annual report by the United Way of Connecticut. To qualify, these tax filers must have a federal adjusted gross income of less than one hundred thousand dollars for single filers or two hundred thousand dollars for married couples filing jointly. Additionally, they must have earned taxable compensation and been employed full-time for at least nine months during the taxable year.

The bill proposes to amend chapter 229 of the general statutes to incorporate this new child tax credit, thereby providing financial relief to eligible families. The introduction of this credit reflects a targeted approach to support working families who may be struggling financially while also encouraging full-time employment. The bill does not specify any deletions from current law, focusing solely on the insertion of the new provisions related to the child tax credit.