Substitute House Bill No. 5570 establishes a refundable tax credit for milk producers in Connecticut, effective January 1, 2027. This credit aims to provide financial support when the federal pay price for milk falls below the minimum sustainable monthly cost of production. The credit is calculated based on the difference between these two figures, multiplied by the amount of milk produced by the producer for that month. Producers must file information with the Commissioner of Agriculture to substantiate their production and can reserve an allocation for the credit, which is capped at $8 million annually. The bill also allows shareholders or partners of S corporations and partnerships, as well as owners of single-member limited liability companies, to claim the credit.

Furthermore, the bill includes provisions for the Department of Agriculture to hire staff to manage the program, with estimated costs of $160,057 annually starting in FY 27. If the credit exceeds a taxpayer's liability, the excess will be treated as an overpayment and refunded without interest, unless the producer has outstanding state or municipal tax obligations or is in default on certain student loans. The bill aligns with similar provisions in related legislation, sSB 84, § 27, and aims to provide financial relief to milk producers while potentially resulting in a revenue loss of up to $8 million for the state.