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 text defines 'capital gain' only by context (profit on sale) and does not provide a formal definition for terms like 'primary home', so those definitions were removed to strictly follow source-only rules.

Tax Deduction for Home Sales by Taxpayers Aged 65 or Older

This bill proposes a state personal income tax deduction for taxpayers aged 65 or older on capital gains from selling their primary home that are included in federal gross income.

What This Bill Does

• Amends Chapter 229 of the general statutes to create a new rule.
• Establishes a personal income tax deduction for specific taxpayers.
• Allows taxpayers aged 65 or older to deduct capital gains from selling their primary home.
• Applies only to profits that are included in gross income for federal taxes.

Who It Names or Affects

• Taxpayers who are sixty-five years of age or older.
• People who sell a primary home and have taxable capital gains on their federal return.

Limits and Unknowns

• The bill has been referred to the Joint Committee on Finance, Revenue and Bonding for further review as of February 4, 2026.
• No effective date is listed in the provided source material.

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.