The proposed bill, General Assembly Proposed Bill No. 5115, aims to amend chapter 229 of the general statutes to establish a personal income tax deduction for losses incurred due to cryptocurrency investment fraud or wire fraud. Specifically, the bill allows taxpayers to deduct amounts that are properly deductible for federal income tax purposes as losses resulting from these types of fraud.

This legislation seeks to provide financial relief to individuals who have suffered losses from fraudulent activities related to cryptocurrency investments, thereby aligning state tax policy with federal tax provisions regarding such losses. The bill does not include any deletions from current law but introduces new legal language to facilitate this tax deduction.