The proposed bill, General Assembly Proposed Bill No. 66, aims to amend title 12 of the general statutes by establishing a temporary personal income tax deduction for tips or gratuities. This deduction would allow taxpayers to deduct up to twenty-five thousand dollars for declared tips or gratuities for taxable years starting from January 1, 2026, and ending before January 1, 2029. Additionally, the bill includes provisions for income threshold phase-outs of the deduction, which would apply to single filers with an adjusted gross income exceeding one hundred fifty thousand dollars and married individuals filing jointly with an income over three hundred thousand dollars.

The purpose of this legislation is to provide financial relief to certain taxpayers who receive tips or gratuities, thereby encouraging reporting of such income. The bill does not specify any deletions from current law, focusing solely on the new insertion of the tax deduction and the associated income thresholds.