The Substitute Senate Bill No. 1246 (sSB1246) proposes extensive amendments to Connecticut's tax laws, particularly focusing on operating and capital loss carry-overs for businesses, tax credits, and hospital provider taxes. The bill introduces a tiered system for deducting operating losses based on the year incurred, allowing carry-over periods of five years for losses prior to 2000, twenty years for losses from 2000 to 2025, and thirty years for losses from 2025 onward. It also modifies the tax obligations for combined groups and establishes new provisions for tax credits for production companies and small businesses. Additionally, the bill repeals and substitutes various sections of existing law, including the cap on tax calculated for combined groups and the structure for hospital provider taxes, which will now be based on audited net revenue from applicable federal fiscal years.

Moreover, the bill introduces new tax credits, such as a Child Tax Credit for families and a business tax credit for contributions to Connecticut Higher Education Trust (CHET) accounts. It imposes a temporary capital gains surcharge on high-income taxpayers and raises the threshold for dues tax exemptions. The bill also eliminates various occupational licensing fees, streamlining the process for healthcare professionals and other trades. Overall, sSB1246 aims to enhance revenue collection, provide targeted tax relief, and improve the regulatory framework for various professions while ensuring compliance with federal regulations.

Statutes affected:
Governor's Bill: 12-217ee, 3-20, 12-704c, 12-263q, 3-114c, 3-114m, 3-115b, 20-12j, 20-86c, 20-86g, 20-93, 20-94, 20-94a, 20-96, 20-97, 20-126i, 20-126k, 20-71, 20-74d, 20-74h, 20-195c, 20-195o, 20-195t, 20-333, 20-334a, 20-334e, 20-335
FIN Joint Favorable Substitute: 12-217ee, 12-263q, 3-114c, 3-114m, 20-12j, 20-86c, 20-86g, 20-93, 20-94, 20-94a, 20-96, 20-97, 20-126i, 20-126k, 20-71, 20-74d, 20-74h, 20-195c, 20-195o, 20-195t, 20-333, 20-334a, 20-334e, 20-335, 12-412, 12-543
File No. 893: 12-217ee, 12-263q, 3-114c, 3-114m, 20-12j, 20-86c, 20-86g, 20-93, 20-94, 20-94a, 20-96, 20-97, 20-126i, 20-126k, 20-71, 20-74d, 20-74h, 20-195c, 20-195o, 20-195t, 20-333, 20-334a, 20-334e, 20-335, 12-412, 12-543