AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN TAXPAYERS FOR CERTAIN CAPITAL GAINS ON THE SALE OF A PRIMARY HOME.

Plain English Breakdown

The official source material does not provide specific details about the effective date of the bill, nor does it specify the amount of tax revenue that will be affected by this deduction.

Tax Deduction for Older Home Sellers

This act creates a personal income tax deduction for people aged sixty-five or older who sell their primary homes and have capital gains that are included in their federal income taxes.

What This Bill Does

• Creates a new tax rule allowing people over age 65 to deduct some money from their state income taxes if they sold their main home with a profit (capital gain).
• The deduction applies only to the part of the capital gains that are included in federal taxable income.

Who It Names or Affects

• People aged sixty-five or older who sell their main home and make a profit from it.
• The state government, which will collect less tax revenue due to the new deduction.

Terms To Know

Capital Gain

Money made when selling something for more than its original cost, like a home or stock.

Primary Home

The main house where someone lives and considers their true home address.

Limits and Unknowns

• It is not clear how much tax revenue the state will lose due to this deduction.
• The bill does not specify when this new rule would start or end.

Official Summary Text

To establish a personal income tax deduction, for taxpayers sixty-five years of age or older, for the amount of any capital gain on the sale of a primary home that is includable in gross income for federal income tax purposes.

Current Bill Text

LCO No. 464 1 of 1

General Assembly Proposed Bill No. 41
February Session, 2026 LCO No. 464

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. SOMERS, 18th Dist.

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
FOR CERTAIN TAXPAYERS FOR CERTAIN CAPITAL GAINS ON THE
SALE OF A PRIMARY HOME.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 229 of the general statutes be amended to establish a 1
personal income tax deduction, for taxpayers sixty -five years of age or 2
older, for the amount of any capital gain on the sale of a primary home 3
that is includable in gross income for federal income tax purposes. 4
Statement of Purpose:
To establish a personal income tax deduction, for taxpayers sixty -five
years of age or older, for the amount of any capital gain on the sale of a
primary home that is includable in gross income for federal income tax
purposes.