General Assembly Raised Bill No. 7055 seeks to enhance tax relief measures for specific groups, particularly focusing on the surviving domestic partners of police officers, firefighters, and emergency medical technicians who have died in the line of duty. The bill allows municipalities to enact ordinances that provide property tax abatements for the principal residence of these surviving partners, thereby expanding current law to include domestic partners alongside surviving spouses. This change acknowledges the sacrifices made by these individuals. Additionally, the bill introduces a personal income tax deduction for stipends paid to volunteer firefighters, volunteer fire police officers, and volunteer ambulance members, with the new provisions set to take effect on January 1, 2026.

The legislation also proposes amendments to the Connecticut tax code regarding the treatment of various income types, including distributions from individual retirement accounts (IRAs) and deductions for specific expenses. It allows for a phased deduction of IRA distributions based on federal adjusted gross income, with a gradual increase in the percentage deductible over the coming years. Other deductions introduced include those for student loan reimbursements, contributions to ABLE accounts, and payments related to organ donations. The bill aims to provide comprehensive tax relief to retirees, volunteers, and individuals engaged in charitable acts, while also addressing the treatment of income from various sources more favorably for taxpayers.

Statutes affected:
Raised Bill: 12-81x, 12-701