The proposed bill, General Assembly Proposed Bill No. 119, aims to amend chapter 229 of the general statutes to introduce a child tax credit of five hundred dollars per child, applicable for up to three children. This credit is designed for tax filers who come from asset-limited, income-constrained, employed households, as defined by the most recent annual report from the United Way of Connecticut. To qualify, 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 seeks to provide financial relief to families by establishing this targeted tax credit, thereby supporting those who are working but still face economic challenges. The introduction of this credit is intended to alleviate some of the financial burdens on low to moderate-income families, encouraging employment and supporting child-rearing in Connecticut.