General Assembly Raised Bill No. 373 seeks to amend the Connecticut tax code by introducing a personal income tax deduction for stipends paid to volunteer firefighters, volunteer fire police officers, and volunteer ambulance members. The bill replaces the existing subparagraph (B) of subdivision (20) of subsection (a) of section 12-701, which is set to take effect on January 1, 2027. The new legal language allows these stipends to be subtracted from gross income for state tax purposes, thereby providing financial relief to individuals serving in these vital community roles. This change reflects a broader effort to recognize and support the contributions of volunteer emergency service personnel.

In addition to the provisions for volunteer service stipends, the bill proposes several other changes to the income tax laws, including a phased approach to the taxation of retirement income for retired members of the Armed Forces and National Guard, as well as new deductions for organ donation expenses and financial assistance from the Crumbling Foundations Assistance Fund. The bill also introduces deductions for first-time homebuyer savings accounts and clarifies eligibility and limits for these deductions. Overall, Raised Bill No. 373 aims to provide targeted tax relief and incentives for specific groups, enhancing the financial benefits for those who contribute to public safety and community welfare.