General Assembly Raised Bill No. 373 proposes amendments to the Connecticut tax code to provide a personal income tax deduction for stipends received by volunteer firefighters, volunteer fire police officers, and volunteer ambulance members. The bill seeks to replace subparagraph (B) of subdivision (20) of subsection (a) of section 12-701, allowing these volunteers to subtract their stipends from their taxable income, effective January 1, 2027. This change aims to offer financial relief and recognition to individuals serving in these critical roles, thereby encouraging community participation in emergency services. The bill also repeals existing language that may conflict with this new provision.

In addition to the volunteer stipend deduction, the bill introduces various tax provisions aimed at providing deductions based on federal adjusted gross income (AGI) and specific circumstances. Key insertions include phased deductions for IRA distributions for individuals and couples with AGIs below certain thresholds, as well as provisions for first-time homebuyer savings accounts and the treatment of payments related to marijuana businesses and student loan reimbursements. The act is set to take effect on January 1, 2027, and includes a comprehensive schedule for tax relief and clarification of income treatment for Connecticut taxpayers.