HB05186 • 2026

AN ACT CONCERNING THE AFFECTED BUSINESS ENTITY TAX AND THE CREDIT RELATED THERETO AND ESTABLISHING A SURCHARGE ON THE AMOUNT OF FEDERAL QUALIFIED BUSINESS INCOME DEDUCTIONS CLAIMED BY CERTAIN FILERS.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. Jason Doucette, 13th Dist.
Last action: 2026-02-11
Official status: Referred to Joint Committee on Finance, Revenue and Bonding
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details on how the additional revenue will be used or which businesses and individuals will be affected.

A Bill About Business Taxes and Deductions

This bill sets up a surcharge on certain business taxes and adjusts tax credits based on income levels, while also imposing an additional charge on federal business income deductions for high-income filers.

What This Bill Does

Establishes a one percent surcharge on the affected business entity tax.
Adjusts the credit allowed against this tax for different personal income tax marginal rates.
Increases the credit for those in lower income brackets and decreases it for those in higher income brackets.
Imposes a ten percent surcharge on federal qualified business income deductions claimed by filers subject to the highest marginal rate.

Who It Names or Affects

Businesses that pay the affected business entity tax.
Individuals who file personal income taxes and claim qualified business income deductions for federal purposes, especially those in higher income brackets.

Terms To Know

Surcharge: An extra amount of money added to a regular tax or fee.
Credit: A reduction in the total amount of taxes owed, based on certain conditions.

Limits and Unknowns

The bill does not specify how the additional revenue from these surcharges will be used.
It is unclear which specific businesses or individuals will be affected by this new tax and credit adjustments.

Bill History

2026-02-11 Connecticut General Assembly
Referred to Joint Committee on Finance, Revenue and Bonding

Official Summary Text

To (1) establish a surcharge on the affected business entity tax and adjust, for certain personal income tax marginal rates, the amount of the credit allowed against said tax, and (2) establish a surcharge on the amount of the qualified business income deduction claimed for federal income tax purposes by filers subject to the highest marginal rate under section 12-700 of the general statutes.

Current Bill Text

Read the full stored bill text

LCO No. 946 1 of 2

General Assembly Proposed Bill No. 5186
February Session, 2026 LCO No. 946

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. DOUCETTE, 13th Dist.
REP. BIGGINS, 11th Dist.
REP. BROWN, 56th Dist.
REP. BROWN M., 127th Dist.
REP. CHAFEE, 33rd Dist.
REP. DEMICCO, 21st Dist.
REP. ELLIOTT, 88th Dist.
REP. FARRAR, 20th Dist.
REP. FORTIER, 79th Dist.
REP. GAUTHIER, 38th Dist.
REP. GILCHREST, 18th Dist.
REP. GODFREY, 110th Dist.
REP. GUCKER, 138th Dist.
REP. HEFFERNAN, 115th Dist.
REP. JOHNSON, 49th Dist.
REP. KAVROS DEGRAW, 17th Dist.
REP. KEITT, 134th Dist.
REP. KHAN, 5th Dist.
REP. LEMAR, 96th Dist.
REP. LUXENBERG, 12th Dist.
REP. MARTINEZ, 22nd Dist.
REP. MENAPACE, 37th Dist.
REP. MCGEE T., 116th Dist.
REP. MORRIN BELLO, 28th Dist.
REP. NOLAN, 39th Dist.
REP. PARIS, 145th Dist.
REP. ROCHELLE, 104th Dist.
REP. SHAKE, 120th Dist.
REP. SHANNON, 117th Dist.
REP. SIMMS, 140th Dist.
SEN. SLAP, 5th Dist.
REP. SWEET, 91st Dist.
REP. TURCO, 27th Dist.
REP. WINTER, 94th Dist.

AN ACT CONCERNING THE AFFECTED BUSINESS ENTITY TAX AND
THE CREDIT RELATED THERETO AND ESTABLISHING A
SURCHARGE ON THE AMOUNT OF FEDERAL QUALIFIED BUSINESS
INCOME DEDUCTIONS CLAIMED BY CERTAIN FILERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That title 12 of the general statutes be amended to (1) establish a one 1
Proposed Bill No. 5186

LCO No. 946 2 of 2

percentage point surcharge on the tax imposed under chapter 228z of 2
the general statutes, (2) reduce the credit allowed against said tax, for 3
filers subject to the highest marginal rate under section 12 -700 of the 4
general statutes, to eighty-three and six-tenths per cent, (3) increase the 5
credit allowed against said tax, for filers subject to the three lowest 6
marginal rates under section 12 -700 of the general statutes, to ninety -7
three and one -hundredths per cent, and (4) establish a ten per cent 8
surcharge on the amount of the qualified business income deduction 9
claimed for federal income tax purposes by filers subject to the highest 10
marginal rate under section 12-700 of the general statutes. 11
Statement of Purpose:
To (1) establish a surcharge on the affected business entity tax and
adjust, for certain personal income tax marginal rates, the amount of the
credit allowed against said tax, and (2) establish a surcharge on the
amount of the qualified business income deduction claimed for federal
income tax purposes by filers subject to the highest marginal rate under
section 12-700 of the general statutes.