Governor's Bill No. 84 proposes extensive amendments to Connecticut's tax laws and licensing regulations, primarily aimed at implementing the Governor's budget for the fiscal year. Key changes include the repeal of subsection (b) of section 12-217, which is replaced with new provisions that disallow certain deductions under the Internal Revenue Code, specifically Sections 168(k) and 168(n) for income years starting January 1, 2026. The bill also modifies tax rates for hospitals, reducing the inpatient hospital services tax from six percent to four and one-tenth percent by July 1, 2026, and further to three and one-half percent by October 1, 2031. Additionally, it introduces a structured tax rate for outpatient hospital services, adjusts income tax exemptions for Social Security benefits and pension income, and establishes a tax credit system for small businesses engaged in research and development.

In terms of licensing, the bill eliminates renewal fees for various health professions and introduces new continuing education requirements. It also streamlines the licensing process for contractors and journeymen, removing nonrefundable application fees and establishing clearer pathways for licensure based on experience and training. Furthermore, the bill allows municipalities to grant property tax exemptions for accessory apartments and modifies the requirements for educator certificates by eliminating application fees for initial and temporary certificates. Overall, Governor's Bill No. 84 aims to enhance tax relief for individuals and businesses while simplifying and modernizing the licensing framework across various professions.

Statutes affected:
Governor's Bill: 20-12j, 20-86g, 20-74h, 20-334a, 20-334e, 20-335