The proposed bill, General Assembly Proposed Bill No. 740, aims to establish a refundable child tax credit within chapter 229 of the general statutes. This credit will be applicable against the personal income tax for up to three children, starting at $150 per child for the taxable year beginning January 1, 2025. The credit is designed to phase up to $600 per child over the subsequent three taxable years. However, the amount of the credit will be reduced by 5% for every $1,000 or fraction thereof of federal adjusted gross income that exceeds specified thresholds: $100,000 for unmarried individuals or married individuals filing separately, $160,000 for heads of household, and $200,000 for married individuals filing jointly.

The bill introduces new legal language to implement this refundable child tax credit while making no deletions from existing law. The primary goal of the legislation is to provide financial relief to families with children, thereby supporting their economic well-being.