AN ACT CONCERNING ADJUSTMENTS TO STATE REVENUE.

Senate
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General Assembly File No. 704
February Session, 2026 Substitute Senate Bill No. 84

Senate, April 20, 2026

The Committee on Finance, Revenue and Bonding reported
through SEN. FONFARA of the 1st Dist., Chairperson of the
Committee on the part of the Senate, that the substitute bill
ought to pass.

AN ACT CONCERNING ADJUSTMENTS TO STATE REVENUE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (b) of section 12 -217 of the 2026 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective from passage): 3
(b) (1) For purposes of determining net income under this section, the 4
deduction allowed for depreciation shall be determined as provided 5
under the Internal Revenue Code of 1986, or any subsequent 6
corresponding internal revenue code of the United States, as from time 7
to time amended, provided in making such determination, the 8
provisions of Section 168(k) of said code and, for income years 9
commencing on or after January 1, 2026, the provisions of Section 168(n) 10
of said code, shall not apply. 11
(2) (A) For purposes of determining net income under this section for 12
taxable years ending after December 31, 2008, and to the extent any 13
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income from the discharge of indebtedness, under Section 108 of the 14
Internal Revenue Code, as amended by Section 1231 of the American 15
Recovery and Reinvestment Act of 2009, in connection with any 16
reacquisition, after December 31, 2008, and [before] prior to January 1, 17
2011, of an applicable debt instrument or instruments, as those terms are 18
defined in said Section 108, as amended by said Section 1231, is not 19
properly includable in gross income for federal income tax purposes for 20
the taxable year, any deferral of the recognition of any such income shall 21
not be allowed. 22
(B) To the extent that any income from the discharge of indebtedness 23
in connection with any reacquisition, after December 31, 2008, and 24
[before] prior to January 1, 2011, of an applicable debt instrument or 25
instruments, as those terms are defined in Section 108 of the Internal 26
Revenue Code, as amended by Section 1231 of the American Recovery 27
and Reinvestment Act of 2009, is properly includable in gross income 28
for federal income tax purposes for the taxable year, any such income 29
shall be deductible in computing net income under this section for a 30
taxable year ending after December 31, 2008, to the extent that the 31
deferral of recognition of such income from such discharge was not 32
allowed pursuant to subparagraph (A) of this subdivision in computing 33
net income for a preceding taxable year. 34
(C) For income years commencing on or after January 1, 2018, eighty 35
per cent of any deduction claimed under Section 179 of the Internal 36
Revenue Code for federal income tax purposes shall be disallowed. To 37
the extent such a deduction is disallowed for purposes of computing the 38
tax under this chapter, twenty-five per cent of the disallowed portion of 39
the deduction shall be allowed as a deduction in each of the four 40
succeeding income years. 41
(D) For purposes of determining net income under this section: 42
(i) For income years commencing on or after January 1, 2022, the 43
deduction under Section 70302(f) of P.L. 119-21 is disallowed; 44
(ii) For income years commencing on or after January 1, 2025, and 45
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prior to January 1, 2026, the deduction under Section 174A of the 46
Internal Revenue Code is disallowed; and 47
(iii) For income years commencing on or after January 1, 2022, and 48
prior to January 1, 2026, any research or experimental expenditures paid 49
or incurred for said income years shall be deducted as permitted under 50
Section 174 of the Internal Revenue Code, as in effect on July 3, 2025. 51
Sec. 2. (Effective from passage) (a) The provisions of section 12-242d of 52
the general statutes shall not apply to any additional tax due as a result 53
of (1) the changes made to subdivision (1) of subsection (b) of section 12-54
217 of the general statutes pursuant to section 1 of this act, for income 55
years commencing on or after January 1, 2026, but prior to the effective 56
date of section 1 of this act, or (2) the enactment of subparagraph (D) of 57
subdivision (2) of subsection (b) of section 12-217 of the general statutes 58
pursuant to section 1 of this act, for income years commencing on or 59
after January 1, 2022, but prior to January 1, 2026. 60
(b) Notwithstanding the provisions of sections 12 -3a and 12 -229 of 61
the general statutes, the Commissioner of Revenue Services shall waive 62
any penalty or interest imposed on the portion of any underpayment for 63
an income year commencing on or after January 1, 2022, but prior to 64
January 1, 2026, that results from any additional tax due as a result of 65
the enactment of subparagraph (D) of subdivision (2) of subsection (b) 66
of section 12-217 of the general statutes pursuant to section 1 of this act. 67
The waiver under this subsection shall not apply to such additional tax 68
that remains underpaid after the later of (1) November 15, 2026, or (2) 69
the due date, without regard to any extension of time to file, of the return 70
on which such additional tax is reported. Taxpayers shall submit 71
information, in a form and manner prescribed by the commissioner, that 72
evidences their eligibility for a waiver under this subsection. 73
Sec. 3. (NEW) ( Effective from passage and applicable to taxable years 74
commencing on or after January 1, 2026) (a) For purposes of this section: 75
(1) "Research and development expenses" means research or 76
experimental expenditures deductible under Section 174 of the Internal 77
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Revenue Code of 1986, as in effect on May 28, 1993, determined without 78
regard to Section 280C(c) of said code or to any elections made by a 79
taxpayer to amortize such expenditures that were otherwise deductible 80
on its federal income tax return; and basic research payments, as defined 81
in Section 41 of said code; that (A) are paid or incurred for such research 82
and experimentation and basic research conducted in the state, and (B) 83
are not funded by a grant, contract or governmental entity or a person 84
other than the taxpayer; 85
(2) "Commissioner" means the Commissioner of Economic and 86
Community Development; 87
(3) "Qualified small business" means a partnership or an S 88
corporation, as both terms are defined in section 12 -699 of the general 89
statutes, that (A) has gross income for the previous taxable year that 90
does not exceed seventy million dollars, and (B) has not, in the 91
determination of the commissioner, exceeded such gross income 92
threshold through transactions with a related person, as defined in 93
section 12-217w of the general statutes; and 94
(4) "Biotechnology business" means a qualified small business 95
engaged in the business of applying technologies, such as recombinant 96
DNA techniques, biochemistry, molecular and cellular biology, genetics 97
and genetic engineering, biological cell fusion techniques, and new 98
bioprocesses, using living organisms, or parts of organisms, to produce 99
or modify products, to improve plants or animals, to develop 100
microorganisms for specific uses, to identify targets for small molecule 101
pharmaceutical development, or to transform biological systems into 102
useful processes and products. 103
(b) (1) The Department of Economic and Community Development 104
shall administer a system of tax credit vouchers, within available 105
appropriations, to allow qualified small businesses to earn and utilize 106
credits for research and development expenses. 107
(2) For taxable years commencing on or after January 1, 2026, there 108
shall be allowed a credit for qualified small businesses against the tax 109
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imposed under chapter 229 of the general statutes, other than the 110
liability imposed by section 12 -707 of the general statutes. Such credit 111
shall be equal to six per cent of the research and development expenses 112
paid or incurred by a qualified small business for a taxable year and 113
shall only be allowed to the extent a qualified small business has applied 114
for and received a tax credit voucher pursuant to this section. 115
(c) (1) Any qualified small business may apply to the commissioner, 116
in a form and manner and at a time prescribed by the commissioner, to 117
reserve an allocation for a credit based on the amount of research and 118
development expenses such business intends to pay or incur for a 119
taxable year. The application shall contain such information as the 120
commissioner deems necessary to administer the provisions of this 121
section. 122
(2) If the commissioner determines that such business is likely to pay 123
or incur research and development expenses for a taxable year, the 124
commissioner may issue a notice to such business, reserving a credit 125
under this section based on the amount the business intends to pay or 126
incur. In determining whether to issue such a notice, the commissioner 127
shall prioritize qualified small businesses that, in the commissioner's 128
opinion, exhibit a likelihood for growth in the state or will best 129
contribute to the economic ecosystem of the state. 130
(3) No qualified small business may reserve more than one million 131
five hundred thousand dollars of credits under this section for any 132
taxable year. The aggregate amount of credits that may be reserved 133
under this section shall not exceed twenty -five million dollars for any 134
taxable year. 135
(d) (1) Not later than ninety days after the end of a taxable year, any 136
qualified small business that received a notice under subsection (c) of 137
this section shall submit verification, in a form and manner prescribed 138
by the commissioner, of the research and development expenses 139
actually paid or incurred by such business for such taxable year. If the 140
commissioner determines, after reviewing such verification, that the 141
qualified small business paid or incurred such expenses for the taxable 142
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year, the commissioner shall issue a tax credit voucher to such business 143
in an amount equal to six per cent of such expenses, provided such 144
amount shall not exceed the amount reserved for such business under 145
subsection (c) of this section. 146
(2) The commissioner shall notify the Commissioner of Revenue 147
Services and the Secretary of the Office of Policy and Management of 148
each tax credit voucher issued under subdivision (1) of this subsection. 149
(e) If the qualified small business is an S corporation or an entity 150
treated as a partnership for federal income tax purposes, the credit may 151
be claimed by the shareholders or partners of such business. If the 152
qualified small business is a single member liability company that is 153
disregarded as an entity separate from its owner, the credit may be 154
claimed by such business's owner, provided such owner is subject to the 155
tax imposed under chapter 229 of the general statutes. 156
(f) To the extent the credit exceeds a taxpayer's liability under chapter 157
229 of the general statutes, the taxpayer may apply to the Commissioner 158
of Revenue Services to exchange the credit, at the same time the 159
taxpayer files the return upon which such credit is claimed, for a credit 160
refund equal to ninety per cent of the excess if the credit was earned by 161
a biotechnology business and sixty -five per cent of the excess if the 162
credit was earned by a qualified small business other than a 163
biotechnology business. 164
(g) The credit allowed under this section shall be claimed before any 165
other credit allowable against the tax imposed under chapter 229 of the 166
general statutes. 167
(h) The commissioner may adopt regulations, in accordance with the 168
provisions of chapter 54 of the general statutes, to carry out the 169
provisions of this section. 170
Sec. 4. Subsection (a) of section 4 -30a of the 2026 supplement to the 171
general statutes is repealed and the following is substituted in lieu 172
thereof (Effective from passage): 173
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(a) (1) (A) For the fiscal years commencing on or after July 1, 2017, 174
and ending on or before June 30, 2024, all revenue in excess of three 175
billion one hundred fifty million dollars received by the state each fiscal 176
year from estimated and final payments of the personal income tax 177
imposed under chapter 229 and the affected business entity tax imposed 178
under section 12 -699 shall be transferred by the Treasurer to a special 179
fund to be known as the Budget Reserve Fund. On and after July 1, 2018, 180
the threshold amount shall be adjusted annually by the compound 181
annual growth rate of personal income in the state over the preceding 182
five calendar years, using data reported by the United States Bureau of 183
Economic Analysis. 184
(B) For the fiscal year ending June 30, 2025, the threshold amount 185
prescribed by subparagraph (A) of this subdivision shall be four billion 186
seventy-nine million three hundred thousand dollars. 187
(C) For the fiscal year ending June 30, 2026, the threshold amount 188
prescribed by subparagraph (A) of this subdivision shall be [four billion 189
seven hundred twenty-eight million six hundred thousand] five billion 190
three hundred seventy-eight million six hundred thousand dollars. 191
(D) For the fiscal year ending June 30, 2027, the threshold amount 192
prescribed by subparagraph (A) of this subdivision shall be five billion 193
nine million one hundred thousand dollars. On and after July 1, [2026] 194
2027, the threshold amount shall be adjusted annually by the compound 195
annual growth rate of personal income in the state over the preceding 196
five calendar years, using data reported by the United States Bureau of 197
Economic Analysis. 198
(2) The General Assembly may amend the threshold amount 199
determined under subdivision (1) of this subsection, by vote of at least 200
three-fifths of the members of each house of the General Assembly, due 201
to changes in state or federal tax law or policy or significant adjustments 202
to economic growth or tax collections. 203
Sec. 5. Section 42 of public act 25-168 is repealed and the following is 204
substituted in lieu thereof (Effective from passage): 205
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Not later than June 30, 2026, the Comptroller shall transfer two 206
hundred [forty-four] fourteen million dollars of the resources of the 207
General Fund for the fiscal year ending June 30, 2026, to be accounted 208
for as revenue of the General Fund for the fiscal year ending June 30, 209
2027. 210
Sec. 6. Section 43 of public act 25-168 is repealed and the following is 211
substituted in lieu thereof (Effective from passage): 212
The following amounts shall be transferred from the resources of the 213
General Fund to the Municipal Revenue Sharing Fund: (1) For the fiscal 214
year ending June 30, 2026, [one hundred one million ] eighty-seven 215
million nine hundred thousand dollars, and (2) for the fiscal year ending 216
June 30, 2027, [ninety million] sixty-eight million six hundred thousand 217
dollars. 218
Sec. 7. Section 472 of public act 25 -168, as amended by section 203 of 219
public act 25 -174, is repealed and the following is substituted in lieu 220
thereof (Effective July 1, 2026): 221
The Secretary of the Office of Policy and Management shall grant 222
additional municipal aid, from Other Expenses, as follows: [(1)] To the 223
city of New Haven, $500,000 for the fiscal year ending June 30, 2026 . [; 224
and (2) to the towns of Ledyard and Montville, $800,000 to each town 225
for the fiscal year ending June 30, 2027.] 226
Sec. 8. ( Effective July 1, 2026 ) Notwithstanding the provisions of 227
section 25 of public act 25-168, as amended by this act, for the fiscal year 228
ending June 30, 2027, the grants paid to the towns of Ledyard and 229
Montville from the moneys available in the Mashantucket Pequot and 230
Mohegan Fund established pursuant to section 3 -55i of the general 231
statutes shall be as follows: To the town of Ledyard, $2,191,000; and to 232
the town of Montville, $2,246,162. 233
Sec. 9. Subsections (a) to (c), inclusive, of section 20-432 of the general 234
statutes are repealed and the following is substituted in lieu thereof 235
(Effective July 1, 2026): 236
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(a) The commissioner shall establish and maintain the Home 237
Improvement Guaranty Fund. 238
(b) Each salesman who receives a certificate pursuant to this chapter 239
shall pay a fee of forty dollars annually. Each contractor (1) who receives 240
a certificate pursuant to this chapter, or (2) receives a certificate pursuant 241
to chapter 399a and has opted to engage in home improvement pursuant 242
to subsection (f) of section 20-417b shall pay a fee of one hundred dollars 243
annually to the guaranty fund. Such fee shall be payable with the fee for 244
an application for a certificate or renewal thereof. The annual fee for a 245
contractor who receives a certificate of registration as a home 246
improvement contractor acting solely as the contractor of record for a 247
corporation shall be waived, provided the contractor of record shall use 248
such registration for the sole purpose of directing, supervising or 249
performing home improvements for such corporation. 250
(c) Payments received under subsection (b) of this section shall be 251
credited to the guaranty fund until the balance in such fund equals 252
[seven hundred fifty thousand ] one million dollars. Annually, if the 253
balance in the fund exceeds [seven hundred fifty thousand dollars] said 254
amount, the first four hundred thousand dollars of the excess shall be 255
deposited into the consumer protection enforcement account 256
established in section 21a-8a. Any excess thereafter shall be deposited in 257
the General Fund. Any money in the guaranty fund may be invested or 258
reinvested in the same manner as funds of the state employees 259
retirement system, and the interest arising from such investments shall 260
be credited to the guaranty fund. 261
Sec. 10. Section 20 -12j of the general statutes is repealed and the 262
following is substituted in lieu thereof (Effective October 1, 2026): 263
(a) As used in this section: 264
(1) "Contact hour" means a minimum of fifty minutes of continuing 265
education and activities; and 266
(2) "Registration period" means the one-year period for which a 267
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license has been renewed in accordance with section 19a-88, as amended 268
by this act, and is current and valid. 269
(b) Each person holding a license as a physician assistant shall, 270
annually, during the month of such person's birth, renew such license 271
with the Department of Public Health [, upon payment of a fee of one 272
hundred fifty-five dollars,] on a form to be provided by the department 273
for such purpose, giving such person's name in full, such person's 274
residence and business address and such other information as the 275
department requests. No such license shall be renewed unless the 276
department is satisfied that the practitioner (1) has met the mandatory 277
continuing medical education requirements of the National 278
Commission on Certification of Physician Assistants or a successor 279
organization for the certification or recertification of physician assistants 280
that may be approved by the department; (2) has passed any 281
examination or continued competency assessment the passage of which 282
may be required by said commission for maintenance of current 283
certification by said commission; (3) has completed not less than one 284
contact hour of training or education in prescribing controlled 285
substances and pain management in the preceding two-year period; and 286
(4) for registration periods beginning on and after January 1, 2022, 287
during the first renewal period and not less than once every six years 288
thereafter, earn not less than two contact hours of training or education 289
screening for post-traumatic stress disorder, risk of suicide, depression 290
and grief and suicide prevention training administered by the American 291
Academy of Physician Associates, or the American Academy of 292
Physician Associates' successor organization, a hospital or other 293
licensed health care institution or a regionally accredited institution of 294
higher education. 295
(c) Each physician assistant applying for license renewal pursuant to 296
section 19a-88, as amended by this act, shall sign a statement attesting 297
that he or she has satisfied the continuing education requirements of 298
subsection (b) of this section on a form prescribed by the Department of 299
Public Health. Each licensee shall retain records of attendance or 300
certificates of completion that demonstrate compliance with the 301
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continuing education requirements of subsection (b) of this section for a 302
minimum of three years following the year in which the continuing 303
education was completed and shall submit such records or certificates 304
to the department for inspection not later than forty -five days after a 305
request by the department for such records or certificates. 306
(d) No fee shall be required for the renewal of a license under this 307
section. 308
Sec. 11. Section 20 -86g of the general statutes is repealed and the 309
following is substituted in lieu thereof (Effective October 1, 2026): 310
Any person who held a current valid license as a midwife on June 30, 311
1983, shall be entitled to renew such license annually [, upon payment 312
of a fee of fifteen dollars, ] in accordance with the provisions of section 313
19a-88, as amended by this act. 314
Sec. 12. Subsection (a) of section 20 -206ll of the 2026 supplement to 315
the general statutes is repealed and the following is substituted in lieu 316
thereof (Effective October 1, 2026): 317
(a) The commissioner shall issue a license as a paramedic to any 318
applicant who furnishes evidence satisfactory to the commissioner that 319
the applicant has met the requirements of section 20 -206mm, as 320
amended by this act . The commissioner shall develop and provide 321
application forms. The license may be renewed annually pursuant to 322
section 19a-88, as amended by this act. [for a fee of one hundred fifty -323
five dollars.] No fee shall be required for the application for a license or 324
for the renewal of such license under this section. 325
Sec. 13. Subsection (c) of section 20 -206mm of the general statutes is 326
repealed and the following is substituted in lieu thereof (Effective October 327
1, 2026): 328
(c) Any person who is certified as an emergency medical technician -329
paramedic by the Department of Public Health on October 1, 1997, shall 330
be deemed a licensed paramedic. Any person so deemed shall renew his 331
license pursuant to section 19a -88, as amended by this act. [for a fee of 332
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one hundred fifty-five dollars.] No fee shall be required for the renewal 333
of such license. 334
Sec. 14. Section 20 -74h of the general statutes is repealed and the 335
following is substituted in lieu thereof (Effective October 1, 2026): 336
(a) Licenses for occupational therapists and occupational therapy 337
assistants issued under this chapter shall be subject to renewal once 338
every two years and shall expire unless renewed in the manner 339
prescribed by regulation . [upon the payment of two times the 340
professional services fee payable to the State Treasurer for class B as 341
defined in section 33-182l, plus five dollars.] The department shall notify 342
any person or entity that fails to comply with the provisions of this 343
section that the person's or entity's license shall become void ninety days 344
after the time for its renewal unless it is so renewed. Any such license 345
shall become void upon the expiration of such ninety -day period. No 346
fee shall be required for the renewal of a license under this section. 347
(b) The commissioner shall establish additional requirements for 348
licensure renewal which provide evidence of continued competency, 349
which, on and after January 1, 2022, shall include not less than two hours 350
of training or education, offered or approved by the Connecticut 351
Occupational Therapy Association, a hospital or other licensed health 352
care institution or a regionally accredited institution of higher 353
education, on (1) screening for post -traumatic stress disorder, risk of 354
suicide, depression and grief, and (2) suicide prevention training during 355
the first renewal period and not less than once every six years thereafter. 356
The requirement described in subdivision (2) of this [section] subsection 357
may be satisfied by the completion of the evidence-based youth suicide 358
prevention training program administered pursuant to section 17a-52a. 359
(c) The holder of an expired license may apply for and obtain a valid 360
license only upon compliance with all relevant requirements for 361
issuance of a new license. A suspended license is subject to expiration 362
and may be renewed as provided in this section, but such renewal shall 363
not entitle the licensee, while the license remains suspended and until it 364
is reinstated, to engage in the licensed activity, or in any other conduct 365
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or activity in violation of the order or judgment by which the license was 366
suspended. [If a license revoked on disciplinary grounds is reinstated, 367
the licensee, as a condition of reinstatement, shall pay the renewal fee.] 368
Sec. 15. Subsections (a) to (c), inclusive, of section 19a -88 of the 2026 369
supplement to the general statutes are repealed and the following is 370
substituted in lieu thereof (Effective October 1, 2026): 371
(a) Each person holding a license to practice dentistry, optometry, 372
midwifery or dental hygiene shall, annually, during the month of such 373
person's birth, register with the Department of Public Health, upon 374
payment of: (1) The professional services fee for class I, as defined in 375
section 33 -182l, plus ten dollars, in the case of a dentist, except as 376
provided in sections 19a -88b and 20-113b; (2) the professional services 377
fee for class H, as defined in section 33-182l, plus five dollars, in the case 378
of an optometrist; (3) twenty dollars in the case of a midwife; and (4) 379
[one hundred five dollars] in the case of a dental hygienist , no fee shall 380
be due . Such registration shall be on blanks to be furnished by the 381
department for such purpose, giving such person's name in full, such 382
person's residence and business address and such other information as 383
the department requests. Each person holding a license to practice 384
dentistry who has retired from the profession may renew such license, 385
but the fee shall be ten per cent of the professional services fee for class 386
I, as defined in section 33 -182l, or ninety -five dollars, whichever is 387
greater. Any license provided by the department at a reduced fee 388
pursuant to this subsection shall indicate that the dentist is retired. 389
(b) Each person holding a license to practice medicine, surgery, 390
podiatry, chiropractic or naturopathy shall, annually, during the month 391
of such person's birth, register with the Department of Public Health, 392
upon payment of the professional services fee for class I, as defined in 393
section 33 -182l, plus five dollars. Each person holding a license to 394
practice medicine or surgery shall pay five dollars in addition to such 395
professional services fee. Such registration shall be on blanks to be 396
furnished by the department for such purpose, giving such person's 397
name in full, such person's residence and business address and such 398
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other information as the department requests. On and after January 1, 399
2026, each person holding a license to practice medicine who has retired 400
from the profession may renew such license. The fee for such license 401
renewal shall be ten per cent of the professional services fee for class I, 402
as determined in accordance with section 33-182l, or ninety-five dollars, 403
whichever is greater. Any such license provided by the department at a 404
reduced fee pursuant to this subsection shall indicate that the 405
practitioner is retired. 406
(c) (1) Each person holding a license to practice as a registered nurse, 407
shall, annually, during the month of such person's birth, register with 408
the Department of Public Health [, upon payment of one hundred ten 409
dollars,] on blanks to be furnished by the department for such purpose, 410
giving such person's name in full, such person's residence and business 411
address and such other information as the department requests. Each 412
person holding a license to practice as a registered nurse who has retired 413
from the profession may renew such license [, but the fee shall be ten 414
per cent of the professional services fee for class B, as defined in section 415
33-182l, plus five dollars. Any license provided by the department at a 416
reduced fee] but any such license shall indicate that the registered nurse 417
is retired. 418
(2) Each person holding a license as an advanced practice registered 419
nurse shall, annually, during the month of such person's birth, register 420
with the Department of Public Health [, upon payment of one hundred 421
thirty dollars, ] on blanks to be furnished by the department for such 422
purpose, giving such person's name in full, such person's residence and 423
business address and such other information as the department 424
requests. No such license shall be renewed unless the department is 425
satisfied that the person maintains current certification as either a nurse 426
practitioner, a clinical nurse specialist or a nurse anesthetist from one of 427
the following national certifying bodies which certify nurses in 428
advanced practice: The American Nurses' Association, the Nurses' 429
Association of the American College of Obstetricians and Gynecologists 430
Certification Corporation, the National Board of Pediatric Nurse 431
Practitioners and Associates or the American Association of Nurse 432
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Anesthetists. Each person holding a license to practice as an advanced 433
practice registered nurse who has retired from the profession may 434
renew such license [, but the fee shall be ten per cent of the professional 435
services fee for class C, as defined in section 33 -182l, plus five dollars. 436
Any license provided by the department at a reduced fee] but any such 437
license shall indicate that the advanced practice registered nurse is 438
retired. 439
(3) Each person holding a license as a licensed practical nurse shall, 440
annually, during the month of such person's birth, register with the 441
Department of Public Health [, upon payment of seventy dollars, ] on 442
blanks to be furnished by the department for such purpose, giving such 443
person's name in full, such person's residence and business address and 444
such other information as the department requests. Each person holding 445
a license to practice as a licensed practical nurse who has retired from 446
the profession may renew such license [, but the fee shall be ten per cent 447
of the professional services fee for class A, as defined in section 33-182l, 448
plus five dollars. Any license provided by the department at a reduced 449
fee] but any such license shall indicate that the licensed practical nurse 450
is retired. 451
(4) Each person holding a license as a nurse-midwife shall, annually, 452
during the month of such person's birth, register with the Department 453
of Public Health [, upon payment of one hundred thirty dollars, ] on 454
blanks to be furnished by the department for such purpose, giving such 455
person's name in full, such person's residence and business address and 456
such other information as the department requests. No such license shall 457
be renewed unless the department is satisfied that the person maintains 458
current certification from the Accreditation Midwifery Certification 459
Board. 460
(5) (A) Each person holding a license to practice physical therapy 461
shall, annually, during the month of such person's birth, register with 462
the Department of Public Health [, upon payment of the professional 463
services fee for class B, as defined in section 33 -182l, plus five dollars, ] 464
on blanks to be furnished by the department for such purpose, giving 465
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such person's name in full, such person's residence and business address 466
and such other information as the department requests. 467
(B) Each person holding a physical therapist assistant license shall, 468
annually, during the month of such person's birth, register with the 469
Department of Public Health [, upon payment of the professional 470
services fee for class A, as defined in section 33 -182l, plus five dollars,] 471
on blanks to be furnished by the department for such purpose, giving 472
such person's name in full, such person's residence and business address 473
and such other information as the department requests. 474
Sec. 16. Section 19a -12d of the general statutes is repealed and the 475
following is substituted in lieu thereof (Effective October 1, 2026): 476
(a) On or before the last day of January, April, July and October in 477
each year, the Commissioner of Public Health shall certify the amount 478
of revenue received as a result of any fee increase in the amount of five 479
dollars (1) that took effect October 1, 2015, pursuant to sections 19a -88, 480
as amended by this act, 19a-515, 20-65k, 20-74bb, 20-74h, as amended by 481
this act, 20-74s, 20-149, 20-162o, 20-162bb, 20-191a, 20-195c, as amended 482
by this act, 20-195o, as amended by this act, 20-195cc, as amended by 483
this act, 20-201, 20 -206b, 20 -206n, 20 -206r, 20 -206bb, 20 -206ll, as 484
amended by this act, 20-222a, 20-275, 20-395d, 20-398 and 20-412, (2) that 485
took effect October 1, 2021, pursuant to section 20-185k, and (3) that took 486
effect July 1, 2021, pursuant to section 20 -12j, as amended by this act, 487
and transfer such amount to the professional assistance program 488
account established in section 19a-12c. 489
(b) On and after October 1, 2025, until [January 1, 2028 ] October 1, 490
2026, in addition to the transfers made pursuant to subsection (a) of this 491
section, the commissioner shall transfer an additional two dollars from 492
each license renewed pursuant to subdivision (1) or (3) of subsection (c) 493
of section 19a-88, as amended by this act, to the professional assistance 494
program account established pursuant to section 19a -12c. Transfers 495
made pursuant to this subsection shall occur at the same times and 496
frequency as the transfers made pursuant to subsection (a) of this 497
section. 498
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Sec. 17. Section 20-195c of the 2026 supplement to the general statutes 499
is repealed and the following is substituted in lieu thereof (Effective 500
October 1, 2026): 501
(a) Each applicant for licensure as a marital and family therapist shall 502
present to the department satisfactory evidence that such applicant has: 503
(1) Completed a graduate degree program specializing in marital and 504
family therapy offered by a regionally accredited college or university 505
or an accredited postgraduate clinical training program accredited by 506
the Commission on Accreditation for Marriage and Family Therapy 507
Education offered by a regionally accredited institution of higher 508
education; (2) completed a supervised practicum or internship with 509
emphasis in marital and family therapy supervised by the program 510
granting the requisite degree or by an accredited postgraduate clinical 511
training program accredited by the Commission on Accreditation for 512
Marriage and Family Therapy Education and offered by a regionally 513
accredited institution of higher education; (3) completed twenty -four 514
months of relevant postgraduate experience, including (A) a minimum 515
of one thousand hours of direct client contact offering marital and 516
family therapy services subsequent to being awarded a master's degree 517
or doctorate or subsequent to the training year specified in subdivision 518
(2) of this subsection, and (B) one hundred hours of postgraduate 519
clinical supervision provided by a licensed marital and family therapist; 520
and (4) passed an examination prescribed by the department. 521
(b) Each applicant for licensure as a marital and family therapist 522
associate shall present to the department satisfactory evidence that such 523
applicant has completed a graduate degree program specializing in 524
marital and family therapy offered by a regionally accredited institution 525
of higher education or an accredited postgraduate clinical training 526
program accredited by the Commission on Accreditation for Marriage 527
and Family Therapy Education and offered by a regionally accredited 528
institution of higher education. 529
(c) The department may grant licensure without examination to any 530
applicant who is currently licensed or certified as (1) a marital or 531
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sSB84 / File No. 704 18

marriage and family therapist in another state, territory or 532
commonwealth of the United States, or (2) a marital and family therapist 533
associate in another state, territory or commonwealth of the United 534
States, provided the state, territory or commonwealth where such 535
marital and family therapist associate is currently licensed or certified 536
maintains licensure or certification standards which, in the opinion of 537
the department, are equivalent to or higher than the standards of this 538
state. No license shall be issued under this section to any applicant 539
against whom professional disciplinary action is pending or who is the 540
subject of an unresolved complaint. 541
(d) (1) A license issued to a marital and family therapist issued under 542
this section may be renewed annually in accordance with the provisions 543
of section 19a-88, as amended by this act. [The fee for such renewal shall 544
be two hundred dollars. ] Each licensed marital and family therapist 545
applying for license renewal shall furnish evidence satisfactory to the 546
commissioner of having participated in continuing education programs. 547
The commissioner shall adopt regulations, in accordance with chapter 548
54, to (A) define basic requirements for continuing education programs, 549
which shall include not less than one contact hour of training or 550
education each registration period on the topic of cultural competency 551
and, on and after January 1, 2016, not less than two contact hours of 552
training or education during the first renewal period in which 553
continuing education is required and not less than once every six years 554
thereafter on the topic of mental health conditions common to veterans 555
and family members of veterans, including (i) determining whether a 556
patient is a veteran or family member of a veteran, (ii) screening for 557
conditions such as post -traumatic stress disorder, risk of suicide, 558
depression and grief, and (iii) suicide prevention training, (B) delineate 559
qualifying programs, (C) establish a system of control and reporting, 560
and (D) provide for waiver of the continuing education requirement for 561
good cause. 562
(2) A license issued to a marital and family therapist associate (A) 563
prior to July 1, 2023, shall expire on or before twenty -four months after 564
the date on which such license was issued, and (B) on or after July 1, 565
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sSB84 / File No. 704 19

2023, shall expire on or before twelve months after the date on which 566
such license was issued. Such license may be renewed not more than 567
two times if issued prior to July 1, 2023, and not more than three times 568
if issued on or after July 1, 2023, for twelve months in accordance with 569
the provisions of section 19a-88, as amended by this act. [The fee for such 570
renewal shall be one hundred twenty -five dollars. ] Each licensed 571
marital and family therapist associate applying for license renewal shall 572
furnish evidence satisfactory to the commissioner of having satisfied the 573
continuing education requirements prescribed in subdivision (1) of this 574
subsection. 575
(e) No fee shall be required for an application for licensure under 576
subsection (a) or (b) of this section or for the renewal of a license under 577
subsection (d) of this section. 578
(f) Notwithstanding the provisions of this section, a person who is a 579
graduate of a graduate degree program or a postgraduate clinical 580
training program described in subsection (b) of this section may practice 581
marital and family therapy for a period not greater than one hundred 582
twenty calendar days after the date such person completed such 583
program, provided such person works under the clinical supervision of 584
a licensed marital family therapist. 585
Sec. 18. Section 20-195o of the 2026 supplement to the general statutes 586
is repealed and the following is substituted in lieu thereof (Effective 587
October 1, 2026): 588
(a) Application for licensure shall be on forms prescribed and 589
furnished by the commissioner. Each applicant shall furnish evidence 590
satisfactory to the commissioner that he or she has met the requirements 591
of section 20-195n. 592
(b) (1) Notwithstanding the provisions of section 20-195n concerning 593
examinations, on or before October 1, 2015, the commissioner may issue 594
a license without examination, to any master social worker applicant 595
who demonstrates to the satisfaction of the commissioner that, on or 596
before October 1, 2013, he or she held a master's degree from a social 597
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sSB84 / File No. 704 20

work program accredited by the Council on Social Work Education or, 598
if educated outside the United States or its territories, completed an 599
educational program deemed equivalent by the council. 600
(2) Notwithstanding the provisions of section 20 -195n concerning 601
examinations, the commissioner shall waive the requirement to pass the 602
masters level examination of the Association of Social Work Boards or 603
any other examination prescribed by the commissioner, as described in 604
subsection (b) of section 20 -195n until January 1, 2026, at which time 605
such requirement shall be reinstituted. Not later than July 1, 2025, the 606
commissioner shall notify institutions of higher education offering 607
social work programs about the reinstitution of the examination for all 608
persons graduating after January 1, 2026. 609
(c) Each person licensed pursuant to this chapter may apply for 610
renewal of such licensure in accordance with the provisions of 611
subsection (e) of section 19a -88. [A fee of two hundred dollars shall 612
accompany each renewal application for a licensed clinical social worker 613
and a fee of one hundred twenty -five dollars shall accompany each 614
renewal application for a licensed master social worker. ] Each such 615
applicant shall furnish evidence satisfactory to the commissioner of 616
having satisfied the continuing education requirements prescribed in 617
section 20-195u. 618
(d) No fee shall be required for an application for licensure under 619
subsection (a) of this section or for the renewal of a license under 620
subsection (c) of this section. 621
(e) (1) An individual who has been convicted of any criminal offense 622
may request, in writing, at any time, that the commissioner determine 623
whether such individual's criminal conviction disqualifies the 624
individual from obtaining a license issued or conferred by the 625
commissioner pursuant to this chapter based on (A) the nature of the 626
conviction and its relationship to the individual's ability to safely or 627
competently perform the duties or responsibilities associated with such 628
license, (B) information pertaining to the degree of rehabilitation of the 629
individual, and (C) the time elapsed since the conviction or release of 630
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sSB84 / File No. 704 21

the individual. 631
(2) An individual making such request shall include (A) details of the 632
individual's criminal conviction, and (B) any payment required by the 633
commissioner. The commissioner may charge a fee of not more than 634
fifteen dollars for each request made under this subsection. The 635
commissioner may waive such fee. 636
(3) Not later than thirty days after receiving a request under this 637
subsection, the commissioner shall inform the individual making such 638
request whether, based on the criminal record information provided, 639
such individual is disqualified from receiving or holding a license 640
issued or conferred pursuant to this chapter. 641
(4) The commissioner is not bound by a determination made under 642
this subsection, if, upon further investigation, the commissioner 643
determines that an individual's criminal conviction differs from the 644
information presented in the determination request. 645
Sec. 19. Section 20 -195cc of the 2026 supplement to the general 646
statutes is repealed and the following is substituted in lieu thereof 647
(Effective October 1, 2026): 648
(a) The Commissioner of Public Health shall grant a license (1) as a 649
professional counselor to any applicant who furnishes evidence 650
satisfactory to the commissioner that such applicant has met the 651
requirements of section 20 -195dd, and (2) as a professional counselor 652
associate to any applicant who furnishes evidence satisfactory to the 653
commissioner that such applicant has met the requirements of section 654
20-195dd. The commissioner shall develop and provide application 655
forms. 656
(b) Licenses issued to professional counselors and professional 657
counselor associates under this section may be renewed annually 658
pursuant to section 19a -88, as amended by this act . [The fee for such 659
renewal shall be two hundred dollars for a professional counselor and 660
one hundred twenty-five dollars for a professional counselor associate.] 661
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sSB84 / File No. 704 22

Each licensed professional counselor and professional counselor 662
associate applying for license renewal shall furnish evidence 663
satisfactory to the commissioner of having participated in continuing 664
education programs. The commissioner shall adopt regulations, in 665
accordance with chapter 54, to (1) define basic requirements for 666
continuing education programs that shall include (A) not less than one 667
contact hour of training or education each registration period on the 668
topic of cultural competency, (B) on and after January 1, 2016, not less 669
than two contact hours of training or education during the first renewal 670
period in which continuing education is required and not less than once 671
every six years thereafter on the topic of mental health conditions 672
common to veterans and family members of veterans, including (i) 673
determining whether a patient is a veteran or family member of a 674
veteran, (ii) screening for conditions such as post -traumatic stress 675
disorder, risk of suicide, depression and grief, and (iii) suicide 676
prevention training, and (C) on and after January 1, 2018, not less than 677
three contact hours of training or education each registration period on 678
the topic of professional ethics, (2) delineate qualifying programs, (3) 679
establish a system of control and reporting, and (4) provide for a waiver 680
of the continuing education requirement for good cause. 681
(c) (1) Any individual who has been convicted of any criminal offense 682
may request, at any time, that the commissioner determine whether 683
such individual's criminal conviction disqualifies the individual from 684
obtaining a license issued or conferred by the commissioner pursuant to 685
this chapter based on (A) the nature of the conviction and its 686
relationship to the individual's ability to safely or competently perform 687
the duties or responsibilities associated with such license, (B) 688
information pertaining to the degree of rehabilitation of the individual, 689
and (C) the time elapsed since the conviction or release of the individual. 690
(2) An individual making such request shall include (A) details of the 691
individual's criminal conviction, and (B) any payment required by the 692
commissioner. The commissioner may charge a fee of not more than 693
fifteen dollars for each request made under this subsection. The 694
commissioner may waive such fee. 695
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sSB84 / File No. 704 23

(3) Not later than thirty days after receiving a request under this 696
subsection, the commissioner shall inform the individual making such 697
request whether, based on the criminal record information submitted, 698
such individual is disqualified from receiving or holding a license 699
issued or conferred pursuant to this chapter. 700
(4) The commissioner is not bound by a determination made under 701
this section, if, upon further investigation, the commissioner determines 702
that the individual's criminal conviction differs from the information 703
presented in the determination request. 704
(d) Notwithstanding the provisions of this section, a person who is a 705
graduate of a course of study described in subdivision (1) or (2) of 706
subsection (b) of section 20-195dd may practice professional counseling 707
for a period not greater than one hundred twenty calendar days after 708
the date such person completed such course of study, provided such 709
person works under professional supervision. 710
(e) No fee shall be required for an application for licensure under 711
subsection (a) of this section or for the renewal of a license under 712
subsection (b) of this section. 713
Sec. 20. Section 20-333 of the 2026 supplement to the general statutes 714
is repealed and the following is substituted in lieu thereof (Effective 715
October 1, 2026): 716
(a) (1) To obtain a license under this chapter, an applicant shall have 717
attained such applicant's eighteenth birthday and shall furnish such 718
evidence of competency as the appropriate board or the Commissioner 719
of Consumer Protection shall require. A recommendation for review 720
issued pursuant to section 31-22u shall be sufficient to demonstrate such 721
competency. The applicant shall satisfy such board or the commissioner 722
that such applicant possesses a diploma or other evidence of graduation 723
from the eighth grade of grammar school, or possesses an equivalent 724
education to be determined on examination and has the requisite skill 725
to perform the work in the trade for which such applicant is applying 726
for a license and can comply with all other requirements of this chapter 727
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sSB84 / File No. 704 24

and the regulations adopted under this chapter. A recommendation for 728
review issued pursuant to section 31 -22u shall be sufficient to 729
demonstrate that an applicant possesses such requisite skill and can 730
comply with all other requirements of this chapter and the regulations 731
adopted under this chapter. For any application submitted pursuant to 732
this section that requires a hearing or other action by the applicable 733
examining board or the commissioner, such hearing or other action by 734
the applicable examining board or the commissioner shall occur not 735
later than thirty days after the date of submission for such application. 736
[Upon] (2) Except as provided in subdivision (3) of this subsection, 737
upon application for any such license, the applicant shall pay to the 738
department a nonrefundable application fee [of ninety dollars for a 739
license under subdivisions (2) and (3) of subsection (a) and subdivision 740
(4) of subsection (e) of section 20 -334a, or a nonrefundable application 741
fee of one hundred fifty dollars for a license under subdivision (1) of 742
subsection (a), subdivisions (1) and (2) of subsection (b), subdivision (1) 743
of subsection (c) and subdivisions (1), (2) and (3) of subsection (e) of 744
section 20-334a.] as follows: 745
(A) For an unlimited contractor's or a limited contractor's license 746
under subdivision (1) of subsection (a) of section 20 -334a, as amended 747
by this act, one hundred fifty dollars; and 748
(B) For an unlimited journeyman's or a limited journeyman's license 749
or an apprentice's permit under subdivisions (2) and (3) of subsection 750
(a) of section 20-334a, as amended by this act, ninety dollars. 751
(3) No application fee shall be required for the following licenses: 752
(A) Unlimited electrical contractor or unlimited electrical 753
journeyman; 754
(B) Limited electrical contractor or limited electrical journeyman; 755
(C) Limited solar electric contractor or limited solar electric 756
journeyman; 757
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sSB84 / File No. 704 25

(D) Unlimited heating, piping and cooling contractor or unlimited 758
heating, piping and cooling journeyman; 759
(E) Limited heating, piping and cooling contractor or limited heating, 760
piping and cooling journeyman; 761
(F) Heating, piping and cooling operating stationary engineer; 762
(G) Unlimited plumbing and piping contractor or unlimited 763
plumbing and piping journeyman; 764
(H) Limited plumbing and piping contractor or limited plumbing 765
and piping journeyman; or 766
(I) Limited sheet metal work contractor or limited sheet metal work 767
journeyman. 768
(4) Any [such] application fee required under this section shall be 769
waived for persons who present a recommendation for review issued 770
pursuant to section 31-22u. 771
(b) (1) The department shall conduct such written, oral and practical 772
examinations as the appropriate board, with the consent of the 773
commissioner, deems necessary to test the knowledge of the applicant 774
in the work for which a license is being sought. The department shall 775
allow any applicant, who has not participated in a registered 776
apprenticeship program, as set forth in section 31 -22r, but either 777
presents a recommendation for review issued pursuant to section 31 -778
22u or demonstrates to the department, in consultation with the 779
applicable board, equivalent experience and training, to sit for any such 780
examination. 781
(2) Any person completing the required apprentice training program 782
for a journeyman's license under section 20 -334a, as amended by this 783
act, shall, not later than thirty days after completing such program, 784
apply for a licensure examination given by the department or a person 785
authorized by the department to give such examination. If an applicant 786
does not pass such licensure examination, the commissioner shall 787
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sSB84 / File No. 704 26

provide each failed applicant with information on how to retake the 788
examination and a report describing the applicant's strengths and 789
weaknesses in such examination. Any apprentice permit issued under 790
section 20-334a, as amended by this act, to an applicant who fails three 791
licensure examinations in any one -year period shall remain in effect if 792
such applicant applies for and takes the first licensure examination 793
given by the department following the one -year period beginning on 794
the date of such applicant's third and last unsuccessful licensure 795
examination. Otherwise, such permit shall be revoked as of the date of 796
the first examination given by the department following expiration of 797
such one-year period. Upon application to the department for an initial 798
license under the provisions of this chapter, an applicant shall submit 799
evidence of successful completion of the applicant's final licensure 800
examination, which successful completion shall occur not more than 801
two years prior to the date of the relevant licensure application, unless 802
the appropriate board grants a hardship extension of such two -year 803
period. 804
(c) The Commissioner of Consumer Protection, subject to section 46a-805
80, may deny a license or may issue a license pursuant to a consent order 806
containing conditions that shall be met by the applicant if the applicant 807
reports that he or she has been found guilty or convicted as a result of 808
an act which constitutes a felony under (1) the laws of this state at the 809
time of application for such license, (2) federal law at the time of 810
application for such license, or (3) the laws of another jurisdiction, and 811
which, if committed within this state, would constitute a felony under 812
the laws of this state. 813
(d) When an applicant has qualified for a license, the department 814
shall, upon receipt of the license fee , if applicable, or upon waiver of 815
such fee pursuant to section 20-335, as amended by this act, issue to such 816
applicant a license entitling such applicant to engage in the work or 817
occupation for which a license was sought and shall register each 818
successful applicant's name and address in the roster of licensed persons 819
authorized to engage in the work or occupation within the appropriate 820
board's authority. All fees and other moneys collected by the 821
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sSB84 / File No. 704 27

department shall be promptly transmitted to the State Treasurer as 822
provided in section 4-32. 823
Sec. 21. Section 20 -334a of the general statutes is repealed and the 824
following is substituted in lieu thereof (Effective October 1, 2026): 825
(a) Except as otherwise provided in this section, the following 826
licenses may be issued by the Department of Consumer Protection, with 827
the advice and assistance of the boards, under the provisions of section 828
20-333, as amended by this act: 829
(1) (A) An unlimited contractor's license may be issued to a person 830
who has served as a journeyman in the trade for which such person 831
seeks a license for not less than two years and, if such service as a 832
journeyman was outside this state, has furnished evidence satisfactory 833
to the appropriate state board or the department that such service is 834
comparable to similar service in this state, or has furnished satisfactory 835
evidence of education and experience and has passed an examination 836
which has demonstrated that such person is competent in all aspects of 837
such trade to be an unlimited contractor. (B) A limited contractor's 838
license may be issued to a person who fulfills the requirements of 839
subparagraph (A) of this subdivision as to a specific area or areas within 840
the trade for which such person seeks a license. (C) The holder of an 841
unlimited or a limited contractor's license may, within the trade, or the 842
area or areas of the trade, for which such holder has been licensed, 843
furnish supplies and do layout, installation, repair and maintenance 844
work and distribute and handle materials, provided nothing in this 845
subdivision shall be construed to authorize the performance of any 846
action for which licensure is required under the provisions of chapter 847
390 or 391. Such licensee shall furnish the board or the department with 848
evidence that such licensee will comply with all state requirements 849
pertaining to workers' compensation and unemployment insurance and 850
that such evidence shall be available to any properly interested person 851
prior to the issuance of a license under this subdivision. 852
(2) (A) An unlimited journeyman's license may be issued to any 853
person who has completed a bona fide apprenticeship program, 854
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sSB84 / File No. 704 28

including not less than four years' experience in the trade for which such 855
person seeks a license, and has demonstrated such person's competency 856
to perform all services included in the trade for which a license is sought 857
by successfully completing the applicable state licensure examination. 858
(B) A limited journeyman's license may be issued to a person who fulfills 859
the requirements of subparagraph (A) of this subdivision in a specific 860
area or areas of the trade for which such person seeks a license, provided 861
the length of experience required may be less than four years for such 862
area or areas of the trade. 863
(3) An apprentice's permit may be issued for the performance of work 864
in a trade licensed under the provisions of this chapter, for the purpose 865
of training, which work may be performed only under the supervision 866
of a licensed contractor or journeyman. 867
(4) An apprentice permit shall expire upon the failure of the 868
apprentice holding such permit to apply for the first licensure 869
examination given by the department following completion of an 870
apprentice training program as provided in subdivision (2) of this 871
subsection. 872
(b) The following licenses for solar thermal work may be issued by 873
the department, with the advice and assistance of the examining board 874
for heating, piping, cooling and sheet metal work, under the provisions 875
of section 20-333, as amended by this act, including an examination on 876
solar work: 877
(1) A solar thermal contractor's license may be issued to any person 878
who (A) not later than July 1, 1984, (i) has been issued a P-1, P-3, S-1, S-879
3, S-5, S-7, D-1 or D-3 license under subdivision (1) of subsection (a) of 880
this section or installs at least six fully operational solar hot water 881
heating systems, and (ii) qualifies for a solar thermal contractor's license 882
under section 20-333, as amended by this act, or (B) has served as a solar 883
thermal journeyman for not less than two years. 884
(2) A solar thermal journeyman's license may be issued to any person 885
who (A) not later than July 1, 1984, (i) is issued a P -2, P-4, S-2, S-4, S-6, 886
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sSB84 / File No. 704 29

S-8, D -2 or D -4 license under subdivision (2) of subsection (a) of this 887
section, and (ii) qualifies for a solar thermal journeyman's license under 888
section 20-333, as amended by this act, (B) after July 1, 1984, is issued a 889
P-2, P-4, S-2, S-4, S-6, S-8, D-2 or D -4 license under subdivision (2) of 890
subsection (a) of this section and whose bona fide apprenticeship 891
program includes instruction in solar thermal work, or (C) after July 1, 892
1984, completes a bona fide solar thermal work apprenticeship program 893
and has not less than two years' experience in solar thermal work. A 894
solar thermal journeyman may work only under the supervision of a 895
licensed solar thermal contractor. 896
(3) A solar thermal apprentice's permit may be issued for the 897
performance of solar thermal work for the purpose of training. Such 898
work may be performed only under the supervision of a licensed solar 899
thermal contractor or journeyman. 900
(c) The following licenses for fire protection sprinkler systems work 901
may be issued by the department: 902
(1) A fire protection sprinkler contractor's license may be issued to a 903
person who provides satisfactory evidence of education and experience 904
in fire protection sprinkler systems work, as defined in subdivision (9) 905
of section 20 -330, and who has passed an examination which has 906
demonstrated competence in all aspects of such trade. Applicants for 907
such license shall complete a form provided by the commissioner; and 908
(2) [a] A journeyman sprinkler fitter's license may be issued to a 909
person who has completed a bona fide apprenticeship program 910
pursuant to section 20-334c, and who has not less than four [years] years' 911
experience in fire protection sprinkler systems work, as defined in 912
subdivision (9) of section 20 -330, or who has been licensed under this 913
section, and has passed an examination which has demonstrated 914
competence in all aspects of such trade. Applicants for such license shall 915
complete a form provided by the department. 916
(d) The following licenses for irrigation work may be issued by the 917
department upon authorization of the examining board for plumbing 918
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sSB84 / File No. 704 30

and piping work under the provisions of section 20-333, as amended by 919
this act : (1) An irrigation contractor's license, and (2) an irrigation 920
journeyman's license. 921
(e) The following licenses for sheet metal work may be issued by the 922
department upon authorization of the examining board for heating, 923
piping, cooling and sheet metal work, under the provisions of section 924
20-333, as amended by this act, in addition to any licenses or permits 925
issued for such work under subsection (a) of this section: 926
[(1) Prior to January 1, 2002, a limited contractor's license for large 927
commercial sheet metal work may be issued to any person who has 928
worked as a sheet metal contractor or successfully worked in such trade 929
in the capacity of a journeyman sheet metal worker for not less than two 930
years. 931
(2) On or after January 1, 2002, a] (1) A limited contractor's license for 932
large commercial sheet metal work may be issued to any person who 933
has (A) served as a journeyman in the trade for which such person seeks 934
a license for not less than two years, and (B) if such service as a 935
journeyman was outside this state, furnished evidence satisfactory to 936
the examining board for heating, piping, cooling and sheet metal work 937
that such service is comparable to similar service in this state. 938
[(3) Prior to January 1, 2002, a limited journeyman's license for large 939
commercial sheet metal work may be issued to any person who has (A) 940
successfully completed a bona fide apprenticeship program, including 941
not less than four years of experience in the trade for which such person 942
seeks a license, or (B) demonstrated such person's competency to 943
perform such work by furnishing proof of continuous employment in 944
such trade for not less than eight thousand hours within the previous 945
five years, subject to the approval of the examining board for heating, 946
piping, cooling and sheet metal work. 947
(4) On or after January 1, 2002, a ] (2) A limited journeyman's license 948
for large commercial sheet metal work may be issued to any person who 949
has (A) successfully completed a bona fide apprenticeship program, 950
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sSB84 / File No. 704 31

including not less than four years of experience in the trade for which 951
such person seeks a license, and (B) demonstrated such person's 952
competency to perform all services included in the trade for which a 953
license is sought by successfully completing the applicable state 954
licensure examination. 955
(f) On and after January 1, 2002, the following licenses for automotive 956
glass work and flat glass work may be issued by the department upon 957
authorization of the examining board for automotive glass work and flat 958
glass work, under the provisions of section 20 -333, as amended by this 959
act: 960
(1) [On and after January 1, 2002, but before January 1, 2003, an 961
unlimited contractor's license for automotive glass work or flat glass 962
work may be issued to any person who has served as a journeyman in 963
the trade for which such person seeks a license for not less than three 964
years. On and after January 1, 2002, an] An unlimited contractor's license 965
for automotive glass work or flat glass work may be issued to any 966
person who (A) has served as a journeyman in the trade for which such 967
person seeks a license for not less than three years and, if such service 968
as a journeyman was outside this state, has furnished evidence 969
satisfactory to the examining board for automotive glass work and flat 970
glass work that such service is comparable to similar service in this state, 971
and (B) has furnished satisfactory evidence of education and experience 972
and has passed an examination which has demonstrated that such 973
person is competent in all aspects of such trade to be an unlimited 974
contractor for automotive glass work or flat glass work. 975
(2) [On and after January 1, 2002, but before January 1, 2003, an 976
unlimited journeyman's license for automotive glass work or flat glass 977
work may be issued to any person who has served in the trade for which 978
such person seeks a license for not less than two years. On and after 979
January 1, 2002, an] An unlimited journeyman's license for automotive 980
glass work or flat glass work may be issued to any person who has 981
successfully completed a bona fide apprenticeship program as required 982
by the examining board for automotive glass work and flat glass work, 983
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sSB84 / File No. 704 32

and has demonstrated such person's competency to perform all services 984
included in the trade for which a license is sought by successfully 985
completing the applicable state licensure examination. 986
(g) [On or after July 1, 2003, a ] A medical gas and vacuum systems 987
certificate for medical gas and vacuum systems work may be issued by 988
the department, upon the authorization of the Plumbing and Piping 989
Work Board or the Heating, Piping and Cooling Work Board, as 990
appropriate, to any person who (1) has been issued a P -1, P-2, S-1, S-2, 991
S-3 or S-4 license under subdivision (1) of subsection (a) of this section, 992
(2) has been certified as a medical gas and vacuum system brazer issued 993
in accordance with the standards of Section IX entitled "Welding and 994
Brazing Qualifications" of the American Society of Mechanical 995
Engineers Boiler and Pressure Vessel Code, and (3) has been certified as 996
having completed an approved training course on medical gas and 997
vacuum system installation as required by American National 998
Standards Institute -American Society of Sanitary Engineering Series 999
6000. No person shall perform medical gas and vacuum systems work 1000
unless such person has obtained a certificate pursuant to this subsection. 1001
Such certificate shall be renewed consistent with the renewal process for 1002
the prerequisite licenses. The fee for such certificate shall be fifty dollars. 1003
(h) A limited sheet metal power industry license may be issued to any 1004
person upon authorization of the examining board for heating, piping, 1005
cooling and sheet metal work, subject to the provisions of section 20 -1006
333, as amended by this act . Prior to taking the licensure examination, 1007
an applicant shall successfully complete an education and training 1008
program established and approved by the Labor Department with the 1009
advice of the Connecticut State Apprenticeship Council. The holder of 1010
such license may only install, erect, replace, repair or alter breeching 1011
exhaust and inlet air systems at electric generation facilities, including, 1012
but not limited to, cogeneration plants, bio -mass facilities, blast 1013
furnaces, combined cycle facilities, fossil fuel, gas and hydro power 1014
facilities, incinerators and nuclear power facilities. The holder of such 1015
license may only perform such work while in the employ of a contractor 1016
licensed to perform such sheet metal work under this chapter. 1017
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sSB84 / File No. 704 33

(i) The Electrical Work Board shall authorize any person to install, 1018
service and repair residential security systems limited to twenty -five 1019
volts and five amperes in one to three -family residential dwellings, 1020
provided the person is in the employ of an electrical contractor holding 1021
an E-1 unlimited contractor license or an L -5 contractor license issued 1022
pursuant to subdivision (1) of subsection (a) of this section and the 1023
person has successfully completed an apprenticeship and training 1024
program established and approved by the Labor Department with the 1025
advice of the Connecticut State Apprenticeship Council. Any person 1026
authorized to work under this subsection shall not perform 1027
telecommunications electrical work, as defined in section 20-340b, with 1028
the exception of work involving interface wiring from a residential 1029
security system to an existing telephone connection for monitoring 1030
purposes. Any person who is authorized to work under this subsection 1031
shall, no later than fifteen months after being issued [said] such 1032
authorization, secure an L -6 limited electrical journeyperson's license 1033
pursuant to subdivision (2) of subsection (a) of this section. 1034
Sec. 22. Section 20 -334e of the general statutes is repealed and the 1035
following is substituted in lieu thereof (Effective October 1, 2026): 1036
Any person who has been issued an L -5 or L -6 license pursuant to 1037
subdivision (1) of subsection (a) of section 20 -334a, as amended by this 1038
act, shall be eligible to take the licensure examination for a C -5 or C -6 1039
license issued pursuant to subdivision (1) of subsection (a) of section 20-1040
334a, as amended by this act, provided such person submits a complete 1041
license application [and a nonrefundable application fee pursuant to 1042
section 20-333] and provides satisfactory evidence of experience in the 1043
field of telecommunications work to the Electrical Work Board. 1044
Sec. 23. Section 20 -335 of the general statutes is repealed and the 1045
following is substituted in lieu thereof (Effective October 1, 2026): 1046
[Any] (a) (1) Except as provided under subdivision (2) of this 1047
subsection, any person who has successfully completed an examination 1048
for such person's initial license under this chapter shall pay to the 1049
Department of Consumer Protection a fee of one hundred fifty dollars 1050
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sSB84 / File No. 704 34

for a contractor's license or a fee of one hundred twenty dollars for any 1051
other such license. Any such initial license fee shall be waived for 1052
persons who present a recommendation for review issued pursuant to 1053
section 31-22u. 1054
(2) No fee shall be required for the issuance of an initial license under 1055
this section for a person exempt from paying the application fee 1056
pursuant to subdivision (3) of subsection (a) of section 20 -333, as 1057
amended by this act. 1058
(b) (1) All such licenses shall expire annually. No person shall carry 1059
on or engage in the work or occupations subject to this chapter after the 1060
expiration of such person's license until such person has filed an 1061
application bearing the date of such person's registration card with the 1062
appropriate board. Such application shall be in writing, addressed to the 1063
secretary of the board from which such renewal is sought and signed by 1064
the person applying for such renewal. A licensee applying for renewal 1065
shall, at such times as the commissioner shall by regulation prescribe, 1066
furnish evidence satisfactory to the board that the licensee has 1067
completed any continuing professional education required under 1068
sections 20 -330 to 20 -341, inclusive, or any regulations adopted 1069
thereunder. 1070
(2) The board may renew such license if the application for such 1071
renewal is received by the board no later than one month after the date 1072
of expiration of such license. [, upon] Except as provided in subdivision 1073
(3) of this subsection, the licensee shall make payment to the department 1074
of a renewal fee of one hundred fifty dollars in the case of a contractor 1075
and of one hundred twenty dollars for any other such license. For any 1076
completed renewal application submitted pursuant to this section that 1077
requires a hearing or other action by the applicable examining board, 1078
such hearing or other action by the applicable examining board shall 1079
occur not later than thirty days after the date of submission for such 1080
completed renewal application. [The] 1081
(3) No fee shall be required for the renewal of a license under this 1082
section for a person exempt from paying the application fee pursuant to 1083
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sSB84 / File No. 704 35

subdivision (3) of subsection (a) of section 20 -333, as amended by this 1084
act. 1085
(4) If applicable, the department shall issue a receipt stating the fact 1086
of [such] the payment made under subdivision (2) of this subsection , 1087
which receipt shall be a license to engage in such work or occupation. A 1088
licensee who has failed to renew such licensee's license for a period of 1089
over two years from the date of expiration of such license shall have it 1090
reinstated only upon complying with the requirements of section 20 -1091
333, as amended by this act. All license fees and renewal fees paid to the 1092
department pursuant to this section shall be deposited in the General 1093
Fund. 1094
Sec. 24. Subsection (g) of section 20 -331 of the general statutes is 1095
repealed and the following is substituted in lieu thereof (Effective October 1096
1, 2026): 1097
(g) The Automotive Glass Work and Flat Glass Work Board shall 1098
consist of eight members who shall be residents of this state, one of 1099
whom shall be a general contractor or an unlimited contractor licensed 1100
to perform automotive glass work under this chapter, one of whom shall 1101
be a general contractor or an unlimited contractor licensed to perform 1102
flat glass work under this chapter, one of whom shall be an unlimited 1103
contractor licensed to perform automotive glass work under this 1104
chapter, one of whom shall be an unlimited contractor licensed to 1105
perform flat glass work under this chapter, one of whom shall be an 1106
unlimited journeyman licensed to perform flat glass work under this 1107
chapter and three of whom shall be public members. The initial 1108
members appointed under this subsection need not be licensed to 1109
perform such work under this chapter before January 1, 2001, provided 1110
such initial members shall satisfy the applicable criteria set forth in 1111
subsection [(e)] (f) of section 20-334a of the general statutes, revision of 1112
1958, revised to January 1, 2001 . On and after January 1, 2001, each 1113
member appointed under this subsection shall be licensed as provided 1114
in this subsection. 1115
Sec. 25. Subsection (l) of section 10-145b of the 2026 supplement to the 1116
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sSB84 / File No. 704 36

general statutes is repealed and the following is substituted in lieu 1117
thereof (Effective October 1, 2026): 1118
(l) [Upon application to the State Board of Education for the issuance 1119
of any certificate in accordance with this section and section 10 -145d, 1120
there shall be paid to the board by or on behalf of the applicant two 1121
hundred fifty dollars in the case of an applicant for a provisional 1122
educator certificate and three hundred seventy -five dollars in the case 1123
of an applicant for a professional educator certificate, except that 1124
applicants for certificates for teaching adult education programs 1125
mandated under subparagraph (A) of subsection (a) of section 10 -69 1126
shall pay a fee of one hundred dollars; persons eligible for a certificate 1127
or endorsement for which the fee is less than that applied for shall 1128
receive an appropriate refund; persons not eligible for any certificate 1129
shall receive a refund of the application fee minus fifty dollars; and 1130
persons holding standard or permanent certificates on July 1, 1989, who 1131
apply for professional certificates to replace the standard or permanent 1132
certificates, shall not be required to pay such a fee. Upon application to 1133
the State Board of Education for the issuance of a subject area 1134
endorsement there shall be paid to the board by or on behalf of such 1135
applicant a nonreturnable fee of one hundred dollars. ] No fee shall be 1136
required for an application to the State Board of Education [in the case 1137
of an initial educator certificate ] for the issuance of a certificate, a 1138
temporary certificate or a subject area endorsement under this section . 1139
With each request for a duplicate copy of any such certificate or 1140
endorsement there shall be paid to the board a nonreturnable fee of fifty 1141
dollars. 1142
Sec. 26. Section 12-330ll of the 2026 supplement to the general statutes 1143
is repealed and the following is substituted in lieu thereof (Effective 1144
October 1, 2026, and applicable to sales occurring on or after October 1, 2026): 1145
(a) As used in this section and sections 12-330mm and 12-330nn: 1146
(1) "Cannabis" has the same meaning as provided in section 21a-420; 1147
[(2) "Cannabis concentrate" has the same meaning as provided in 1148
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sSB84 / File No. 704 37

section 21a-420; 1149
(3) "Cannabis edible product" means a product containing cannabis 1150
or cannabis concentrate, combined with other ingredients, that is 1151
intended for use or consumption through ingestion, including 1152
sublingual or oral absorption; 1153
(4) "Cannabis plant material" has the same meaning as provided in 1154
section 21a-279a;] 1155
[(5)] (2) "Cannabis retailer" means "retailer", as defined in section 21a-1156
420; 1157
[(6)] (3) "Consumer" has the same meaning as provided in section 21a-1158
420; 1159
[(7)] (4) "Cultivator" has the same meaning as provided in section 21a-1160
420; 1161
[(8)] (5) "Delivery service" has the same meaning as provided in 1162
section 21a-420; 1163
[(9)] (6) "Dispensary facility" has the same meaning as provided in 1164
section 21a-420; 1165
[(10)] (7) "Food and beverage manufacturer" has the same meaning as 1166
provided in section 21a-420; 1167
[(11)] (8) "Hybrid retailer" has the same meaning as provided in 1168
section 21a-420; 1169
[(12)] (9) "Micro-cultivator" has the same meaning as provided in 1170
section 21a-420; 1171
[(13)] (10) "Municipality" has the same meaning as provided in 1172
section 21a-420; 1173
[(14)] (11) "Palliative use" has the same meaning as provided in 1174
section 21a-408; 1175
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sSB84 / File No. 704 38

[(15)] (12) "Producer" has the same meaning as provided in section 1176
21a-420; 1177
[(16)] (13) "Product manufacturer" has the same meaning as provided 1178
in section 21a-420; 1179
[(17)] (14) "Product packager" has the same meaning as provided in 1180
section 21a-420; and 1181
[(18) "Social Equity Council" has the same meaning as provided in 1182
section 21a-420; 1183
(19) "Total THC" has the same meaning as provided in section 21a -1184
240; and] 1185
[(20)] (15) "Transporter" has the same meaning as provided in section 1186
21a-420. 1187
(b) (1) For the privilege of making any sales of cannabis in this state, 1188
a tax is hereby imposed on each cannabis retailer, hybrid retailer or 1189
micro-cultivator at the [following rates: ] rate of ten and seventy -five-1190
hundredths per cent of the gross receipts from the sale of cannabis. 1191
[(A) Cannabis plant material, at the rate of six hundred twenty -five-1192
thousandths of one cent per milligram of total THC, as reflected on the 1193
product label; 1194
(B) Cannabis edible products, at the rate of two and seventy -five-1195
hundredths cents per milligram of total THC, as reflected on the product 1196
label; and 1197
(C) Cannabis, other than cannabis plant material or cannabis edible 1198
products, at the rate of nine -tenths of one cent per milligram of total 1199
THC, as reflected on the product label.] 1200
(2) The tax under this section: 1201
(A) Shall be collected from the consumer, except as provided under 1202
subparagraphs (B) and (D) of this subdivision, by the cannabis retailer, 1203
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sSB84 / File No. 704 39

hybrid retailer or micro -cultivator at the time of sale and such tax 1204
reimbursement, termed "tax" in this section, shall be paid by the 1205
consumer to the cannabis retailer, hybrid retailer or micro -cultivator. 1206
Each cannabis retailer, hybrid retailer or micro -cultivator shall collect 1207
from the consumer the full amount of the tax imposed by this section or 1208
an amount equal to the average equivalent thereof to the nearest amount 1209
practicable. Such tax shall be a debt from the consumer to the cannabis 1210
retailer, hybrid retailer or micro -cultivator, when so added to the 1211
original sales price, and shall be recoverable at law in the same manner 1212
as other debts except as provided in section 12-432a; [.] 1213
(B) Shall not apply to the sale of cannabis for palliative use; 1214
(C) Shall not apply to the transfer of cannabis to a transporter for 1215
transport to any other cultivator, micro -cultivator, food and beverage 1216
manufacturer, product manufacturer, product packager, dispensary 1217
facility, cannabis retailer, hybrid retailer or producer; 1218
(D) Shall not apply to the sale of cannabis by a delivery service to a 1219
consumer; 1220
(E) Shall be in addition to the taxes imposed under section 12-330mm 1221
and chapter 219; and 1222
(F) When so collected, shall be deemed to be a special fund in trust 1223
for the state until remitted to the state. 1224
(c) On or before the last day of each month in which a cannabis 1225
retailer, hybrid retailer or micro -cultivator may legally sell cannabis 1226
other than cannabis for palliative use, each such cannabis retailer, 1227
hybrid retailer or micro -cultivator shall file a return with the 1228
Department of Revenue Services. Such return shall be in such form and 1229
contain such information as the Commissioner of Revenue Services 1230
prescribes as necessary for administration of the tax under this section 1231
and shall be accompanied by a payment of the amount of the tax shown 1232
to be due thereon. Each cannabis retailer, hybrid retailer and micro -1233
cultivator shall file such return electronically with the department and 1234
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sSB84 / File No. 704 40

make such payment by electronic funds transfer in the manner provided 1235
by chapter 228g, to the extent possible. 1236
(d) If any cannabis retailer, hybrid retailer or micro-cultivator fails to 1237
pay the amount of tax reported due on its return within the time 1238
specified under this section, there shall be imposed a penalty equal to 1239
twenty-five per cent of such amount due and unpaid, or two hundred 1240
fifty dollars, whichever is greater. Such amount shall bear interest at the 1241
rate of one per cent per month or fraction thereof, from the due date of 1242
such tax until the date of payment. Subject to the provisions of section 1243
12-3a, the commissioner may waive all or part of the penalties provided 1244
under this section when it is proven to the commissioner's satisfaction 1245
that the failure to pay any tax was due to reasonable cause and was not 1246
intentional or due to neglect. Any penalty that is waived shall be applied 1247
as a credit against tax liabilities owed by the cannabis retailer, hybrid 1248
retailer or micro-cultivator. 1249
(e) Each person, other than a cannabis retailer, hybrid retailer or 1250
micro-cultivator, who is required, on behalf of such cannabis retailer, 1251
hybrid retailer or micro-cultivator, to collect, truthfully account for and 1252
pay over a tax imposed on such cannabis retailer, hybrid retailer or 1253
micro-cultivator under this section and who wilfully fails to collect, 1254
truthfully account for and pay over such tax or who wilfully attempts in 1255
any manner to evade or defeat the tax or the payment thereof, shall, in 1256
addition to other penalties provided by law, be liable for a penalty equal 1257
to the total amount of the tax evaded, or not collected, or not accounted 1258
for and paid over, including any penalty or interest attributable to such 1259
wilful failure to collect or truthfully account for and pay over such tax 1260
or such wilful attempt to evade or defeat such tax, provided such 1261
penalty shall only be imposed against such person in the event that such 1262
tax, penalty or interest cannot otherwise be collected from such cannabis 1263
retailer, hybrid retailer or micro-cultivator. The amount of such penalty 1264
with respect to which a person may be personally liable under this 1265
section shall be collected in accordance with the provisions of section 1266
12-555a and any amount so collected shall be allowed as a credit against 1267
the amount of such tax, penalty or interest due and owing from the 1268
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sSB84 / File No. 704 41

cannabis retailer, hybrid retailer or micro -cultivator. The dissolution of 1269
the cannabis retailer, hybrid retailer or micro -cultivator shall not 1270
discharge any person in relation to any personal liability under this 1271
section for wilful failure to collect or truthfully account for and pay over 1272
such tax or for a wilful attempt to evade or defeat such tax prior to 1273
dissolution, except as otherwise provided in this section. For purposes 1274
of this section, "person" includes any individual, corporation, limited 1275
liability company or partnership and any officer or employee of any 1276
corporation, including a dissolved corporation, and a member of or 1277
employee of any partnership or limited liability company who, as such 1278
officer, employee or member, is under a duty to file a tax return under 1279
this section on behalf of a cannabis retailer, hybrid retailer or micro -1280
cultivator or to collect or truthfully account for and pay over a tax 1281
imposed under this section on behalf of such cannabis retailer, hybrid 1282
retailer or micro-cultivator. 1283
(f) The provisions of sections 12-548, 12-551 to 12-554, inclusive, and 1284
12-555a shall apply to the provisions of this section in the same manner 1285
and with the same force and effect as if the language of said sections had 1286
been incorporated in full into this section and had expressly referred to 1287
the tax under this section, except to the extent that any provision is 1288
inconsistent with a provision in this section. 1289
(g) The commissioner shall not issue a refund of any tax paid by a 1290
cannabis retailer, hybrid retailer or micro-cultivator under this section. 1291
(h) The commissioner may adopt regulations, in accordance with the 1292
provisions of chapter 54, to implement the provisions of this section and 1293
sections 12 -330mm and 12 -330nn. Notwithstanding the provisions of 1294
sections 4-168 to 4-172, inclusive, prior to adopting any such regulations, 1295
the commissioner shall issue policies and procedures, which shall have 1296
the force and effect of law, to implement the [taxes] tax imposed under 1297
this section and sections 12 -330mm and 12-330nn. At least fifteen days 1298
prior to the effective date of any policy or procedure issued pursuant to 1299
this subsection, the commissioner shall post such policy or procedure 1300
on the department's Internet web site and submit such policy or 1301
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sSB84 / File No. 704 42

procedure to the Secretary of the State for posting on the eRegulations 1302
System. Any such policy or procedure shall no longer be effective upon 1303
the adoption of such policy or procedure as a final regulation in 1304
accordance with the provisions of chapter 54 or forty -eight months of 1305
July 1, 2021, whichever is earlier. 1306
(i) The tax received by the state under this section shall be deposited 1307
as follows: 1308
(1) For the fiscal years ending June 30, 2022, and June 30, 2023, in the 1309
cannabis regulatory and investment account established under section 1310
21a-420f of the general statutes, revision of 1958, revised to January 1, 1311
2025; 1312
(2) For the fiscal years ending June 30, 2024, and June 30, 2025, sixty 1313
per cent of such tax received in the Cannabis Social Equity and 1314
Innovation Fund established under section 21a -420f of the general 1315
statutes, revision of 1958, revised to January 1, 2025, twenty-five per cent 1316
of such tax received in the Cannabis Prevention and Recovery Services 1317
Fund established under section 21a-420f of the general statutes, revision 1318
of 1958, revised to January 1, 2025, and fifteen per cent in the General 1319
Fund; 1320
(3) For the fiscal year ending June 30, 2026, sixty per cent of such tax 1321
received in the social equity and innovation account established under 1322
section 21a -420f, twenty -five per cent of such tax received in the 1323
Cannabis Prevention and Recovery Services Fund established under 1324
section 21a-420f and fifteen per cent in the General Fund; 1325
(4) For the fiscal years ending June 30, 2027, and June 30, 2028, [sixty-1326
five] seventy per cent of such tax received in the social equity and 1327
innovation account established under section 21a -420f, twenty-five per 1328
cent of such tax received in the Cannabis Prevention and Recovery 1329
Services Fund established under section 21a-420f and [ten] five per cent 1330
in the General Fund; and 1331
(5) For the fiscal year ending June 30, 2029, and each fiscal year 1332
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sSB84 / File No. 704 43

thereafter, seventy-five per cent of such tax received in the social equity 1333
and innovation account established under section 21a-420f and twenty-1334
five per cent of such tax received in the Cannabis Prevention and 1335
Recovery Services Fund established under section 21a-420f. 1336
Sec. 27. (NEW) ( Effective January 1, 2027, and applicable to income and 1337
taxable years commencing on or after January 1, 2027 ) (a) As used in this 1338
section, "federal pay price", "milk producer" and "minimum sustainable 1339
monthly cost of production" have the same meanings as provided in 1340
section 22-265b of the general statutes. 1341
(b) Each milk producer shall be allowed a credit against the tax 1342
imposed under chapter 208 or 229 of the general statutes, other than the 1343
liability imposed by section 12-707 of the general statutes, in an amount 1344
equal to, for each month of the income or taxable year the federal pay 1345
price is below the minimum sustainable monthly cost of production, (1) 1346
the dollar amount the federal pay price was below the minimum 1347
sustainable monthly cost of production, (2) multiplied by the amount of 1348
milk produced by such milk producer for such month. Each milk 1349
producer shall file with the Commissioner of Agriculture, in a form and 1350
manner prescribed by the commissioner, such information the 1351
commissioner requires to substantiate the amount of milk produced by 1352
such milk producer. 1353
(c) (1) Any milk producer subject to the tax imposed under chapter 1354
208 or 229 of the general statutes may apply to the Commissioner of 1355
Agriculture, in a form and manner prescribed by the commissioner, to 1356
reserve an allocation for a credit under this section. The application shall 1357
contain such information as the commissioner deems necessary to 1358
administer the provisions of this section. The aggregate amount of 1359
credits reserved under this section shall not exceed eight million dollars 1360
in any calendar year. 1361
(2) Upon verification by the commissioner that the conditions set 1362
forth in subsection (b) of this section have been satisfied and the amount 1363
of milk produced by a milk producer has been substantiated, the 1364
commissioner shall issue a voucher to the milk producer in the amount 1365
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sSB84 / File No. 704 44

calculated pursuant to subsection (b) of this section. The taxpayer shall 1366
file the voucher with the taxpayer's state tax return for the applicable 1367
income or taxable year. 1368
(d) If the taxpayer is an S corporation or an entity treated as a 1369
partnership for federal income tax purposes, the credit may be claimed 1370
by the taxpayer's shareholders or partners. If the taxpayer is a single 1371
member limited liability company that is disregarded as an entity 1372
separate from its owner, the credit may be claimed by such limited 1373
liability company's owner, provided such owner is subject to the tax 1374
imposed under chapter 208 or 229 of the general statutes. 1375
(e) If the amount of the credit allowed pursuant to this section 1376
exceeds the taxpayer's liability for the tax imposed under chapter 208 or 1377
229 of the general statutes, the Commissioner of Revenue Services shall 1378
treat such excess as an overpayment and, except as provided in section 1379
12-739 or 12-742 of the general statutes, shall refund the amount of such 1380
excess, without interest, to such taxpayer. 1381
Sec. 28. Subdivision (1) of section 12 -408 of the general statutes is 1382
repealed and the following is substituted in lieu thereof (Effective October 1383
1, 2026, and applicable to sales occurring on or after October 1, 2026): 1384
(1) (A) For the privilege of making any sales, as defined in 1385
subdivision (2) of subsection (a) of section 12 -407, at retail, in this state 1386
for a consideration, a tax is hereby imposed on all retailers at the rate of 1387
six and thirty -five-hundredths per cent of the gross receipts of any 1388
retailer from the sale of all tangible personal property sold at retail or 1389
from the rendering of any services constituting a sale in accordance with 1390
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 1391
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 1392
subdivision; 1393
(B) (i) At a rate of fifteen per cent with respect to each transfer of 1394
occupancy, from the total amount of rent received by a hotel or lodging 1395
house for the first period not exceeding thirty consecutive calendar 1396
days; 1397
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sSB84 / File No. 704 45

(ii) At a rate of eleven per cent with respect to each transfer of 1398
occupancy, from the total amount of rent received by a bed and 1399
breakfast establishment for the first period not exceeding thirty 1400
consecutive calendar days; 1401
(C) With respect to the sale of a motor vehicle to any individual who 1402
is a member of the armed forces of the United States and is on full-time 1403
active duty in Connecticut and who is considered, under 50 [App] USC 1404
App 574, a resident of another state, or to any such individual and the 1405
spouse thereof, at a rate of four and one -half per cent of the gross 1406
receipts of any retailer from such sales, provided such retailer requires 1407
and maintains a declaration by such individual, prescribed as to form 1408
by the commissioner and bearing notice to the effect that false 1409
statements made in such declaration are punishable, or other evidence, 1410
satisfactory to the commissioner, concerning the purchaser's state of 1411
residence under 50 [App] USC App 574; 1412
(D) (i) With respect to the sales of computer and data processing 1413
services occurring on or after July 1, 2001, at the rate of one per cent, and 1414
(ii) with respect to sales of Internet access services, on and after July 1, 1415
2001, such services shall be exempt from such tax; 1416
(E) (i) With respect to the sales of labor that is otherwise taxable under 1417
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 1418
12-407 on existing vessels and repair or maintenance services on vessels 1419
occurring on and after July 1, 1999, such services shall be exempt from 1420
such tax; 1421
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 1422
used for transporting a vessel, at the rate of two and ninety -nine-1423
hundredths per cent, except that the sale of a vessel shall be exempt from 1424
such tax if such vessel is docked in this state for sixty or fewer days in a 1425
calendar year; 1426
(iii) With respect to the sale of dyed diesel fuel, as defined in 1427
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 1428
for marine purposes, at the rate of two and ninety-nine-hundredths per 1429
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sSB84 / File No. 704 46

cent; 1430
(F) With respect to patient care services for which payment is 1431
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 1432
at the rate of five and three-fourths per cent and on and after July 1, 2001, 1433
such services shall be exempt from such tax; 1434
(G) (i) With respect to the rental or leasing of a passenger motor 1435
vehicle for a period of thirty consecutive calendar days or less, at a rate 1436
of nine and thirty-five-hundredths per cent; 1437
(ii) With respect to peer-to-peer car sharing, as defined in section 13b-1438
127, for a period of thirty consecutive calendar days or less, at a rate of 1439
nine and thirty-five-hundredths per cent; 1440
(H) With respect to the sale of (i) a motor vehicle for a sales price 1441
exceeding [fifty] seventy-five thousand dollars, at a rate of seven and 1442
three-fourths per cent on the entire sales price, (ii) jewelry, whether real 1443
or imitation, for a sales price exceeding five thousand dollars, at a rate 1444
of seven and three-fourths per cent on the entire sales price, and (iii) an 1445
article of clothing or footwear intended to be worn on or about the 1446
human body, a handbag, luggage, umbrella, wallet or watch for a sales 1447
price exceeding one thousand dollars, at a rate of seven and three -1448
fourths per cent on the entire sales price. For purposes of this 1449
subparagraph, "motor vehicle" has the meaning provided in section 14-1450
1, but does not include a motor vehicle subject to the provisions of 1451
subparagraph (C) of this subdivision, a motor vehicle having a gross 1452
vehicle weight rating over twelve thousand five hundred pounds, or a 1453
motor vehicle having a gross vehicle weight rating of twelve thousand 1454
five hundred pounds or less that is not used for private passenger 1455
purposes, but is designed or used to transport merchandise, freight or 1456
persons in connection with any business enterprise and issued a 1457
commercial registration or more specific type of registration by the 1458
Department of Motor Vehicles; 1459
(I) With respect to the sale of meals, as defined in subdivision (13) of 1460
section 12-412, sold by an eating establishment, caterer or grocery store; 1461
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sSB84 / File No. 704 47

and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 1462
such as are ordinarily dispensed at bars and soda fountains, or in 1463
connection therewith; in addition to the tax imposed under 1464
subparagraph (A) of this subdivision, at the rate of one per cent; 1465
(J) The rate of tax imposed by this chapter shall be applicable to all 1466
retail sales upon the effective date of such rate, except that a new rate 1467
that represents an increase in the rate applicable to the sale shall not 1468
apply to any sales transaction wherein a binding sales contract without 1469
an escalator clause has been entered into prior to the effective date of the 1470
new rate and delivery is made within ninety days after the effective date 1471
of the new rate. For the purposes of payment of the tax imposed under 1472
this section, any retailer of services taxable under subdivision (37) of 1473
subsection (a) of section 12 -407, who computes taxable income, for 1474
purposes of taxation under the Internal Revenue Code of 1986, or any 1475
subsequent corresponding internal revenue code of the United States, 1476
as amended from time to time, on an accounting basis that recognizes 1477
only cash or other valuable consideration actually received as income 1478
and who is liable for such tax only due to the rendering of such services 1479
may make payments related to such tax for the period during which 1480
such income is received, without penalty or interest, without regard to 1481
when such service is rendered; 1482
(K) (i) For calendar quarters ending on or after September 30, 2019 , 1483
the commissioner shall deposit into the regional planning incentive 1484
account, established pursuant to section 4-66k, six and seven-tenths per 1485
cent of the amounts received by the state from the tax imposed under 1486
subparagraph (B) of this subdivision and ten and seven -tenths per cent 1487
of the amounts received by the state from the tax imposed under 1488
subparagraph (G)(i) of this subdivision; 1489
(ii) For calendar quarters ending on or after September 30, 2018, the 1490
commissioner shall deposit into the Tourism Fund established under 1491
section 10-395b ten per cent of the amounts received by the state from 1492
the tax imposed under subparagraph (B) of this subdivision; 1493
(L) (i) For calendar months commencing on or after July 1, 2021, but 1494
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sSB84 / File No. 704 48

prior to July 1, 2023, the commissioner shall deposit into the municipal 1495
revenue sharing account established pursuant to section 4-66l seven and 1496
nine-tenths per cent of the amounts received by the state from the tax 1497
imposed under subparagraph (A) of this subdivision, including such 1498
amounts received on or after July 1, 2023, attributable to the fiscal year 1499
ending June 30, 2023; and 1500
(ii) For calendar months commencing on or after July 1, 2023, the 1501
commissioner shall deposit into the Municipal Revenue Sharing Fund 1502
established pursuant to section 4-66p seven and nine-tenths per cent of 1503
the amounts received by the state from the tax imposed under 1504
subparagraph (A) of this subdivision; [and] 1505
(M) (i) For calendar months commencing on or after July 1, 2017, the 1506
commissioner shall deposit into the Special Transportation Fund 1507
established under section 13b -68 seven and nine -tenths per cent of the 1508
amounts received by the state from the tax imposed under 1509
subparagraph (A) of this subdivision; 1510
(ii) For calendar months commencing on or after July 1, 2018, but 1511
prior to July 1, 2019, the commissioner shall deposit into the Special 1512
Transportation Fund established under section 13b -68 eight per cent of 1513
the amounts received by the state from the tax imposed under 1514
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1515
vehicle; 1516
(iii) For calendar months commencing on or after July 1, 2019, but 1517
prior to July 1, 2020, the commissioner shall deposit into the Special 1518
Transportation Fund established under section 13b -68 seventeen per 1519
cent of the amounts received by the state from the tax imposed under 1520
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1521
vehicle; 1522
(iv) For calendar months commencing on or after July 1, 2020, but 1523
prior to July 1, 2021, the commissioner shall deposit into the Special 1524
Transportation Fund established under section 13b -68 twenty-five per 1525
cent of the amounts received by the state from the tax imposed under 1526
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sSB84 / File No. 704 49

subparagraphs (A) and (H) of this subdivision on the sale of a motor 1527
vehicle; 1528
(v) For calendar months commencing on or after July 1, 2021, but 1529
prior to July 1, 2022, the commissioner shall deposit into the Special 1530
Transportation Fund established under section 13b -68 seventy-five per 1531
cent of the amounts received by the state from the tax imposed under 1532
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1533
vehicle; and 1534
(vi) For calendar months commencing on or after July 1, 2022, the 1535
commissioner shall deposit into the Special Transportation Fund 1536
established under section 13b -68 one hundred per cent of the amounts 1537
received by the state from the tax imposed under subparagraphs (A) 1538
and (H) of this subdivision on the sale of a motor vehicle; 1539
(N) For calendar quarters ending on or after December 31, 2026, the 1540
commissioner shall deposit into the Special Transportation Fund 1541
established under section 13b -68 one hundred per cent of the amounts 1542
received by the state from the tax imposed under subparagraph (G)(ii) 1543
of this subdivision; and 1544
(O) For calendar months commencing on or after October 1, 2026, the 1545
commissioner shall deposit into the Tourism Fund established under 1546
section 10-395b fifty per cent of the amounts received by the state from 1547
the tax imposed under subparagraph (I) of this subdivision. 1548
Sec. 29. Subdivision (1) of section 12 -411 of the general statutes is 1549
repealed and the following is substituted in lieu thereof (Effective October 1550
1, 2026, and applicable to sales occurring on or after October 1, 2026): 1551
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1552
consumption or any other use in this state of tangible personal property 1553
purchased from any retailer for storage, acceptance, consumption or any 1554
other use in this state, the acceptance or receipt of any services 1555
constituting a sale in accordance with subdivision (2) of subsection (a) 1556
of section 12-407, purchased from any retailer for consumption or use in 1557
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sSB84 / File No. 704 50

this state, or the storage, acceptance, consumption or any other use in 1558
this state of tangible personal property which has been manufactured, 1559
fabricated, assembled or processed from materials by a person, either 1560
within or without this state, for storage, acceptance, consumption or any 1561
other use by such person in this state, to be measured by the sales price 1562
of materials, at the rate of six and thirty-five-hundredths per cent of the 1563
sales price of such property or services, except, in lieu of said rate: 1564
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 1565
house for the first period not exceeding thirty consecutive calendar 1566
days; 1567
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 1568
establishment for the first period not exceeding thirty consecutive 1569
calendar days; 1570
(C) With respect to the storage, acceptance, consumption or use in 1571
this state of a motor vehicle purchased from any retailer for storage, 1572
acceptance, consumption or use in this state by any individual who is a 1573
member of the armed forces of the United States and is on full -time 1574
active duty in Connecticut and who is considered, under 50 [App] USC 1575
App 574, a resident of another state, or to any such individual and the 1576
spouse of such individual at a rate of four and one -half per cent of the 1577
sales price of such vehicle, provided such retailer requires and 1578
maintains a declaration by such individual, prescribed as to form by the 1579
commissioner and bearing notice to the effect that false statements made 1580
in such declaration are punishable, or other evidence, satisfactory to the 1581
commissioner, concerning the purchaser's state of residence under 50 1582
[App] USC App 574; 1583
(D) (i) With respect to the acceptance or receipt in this state of labor 1584
that is otherwise taxable under subparagraph (C) or (G) of subdivision 1585
(2) of subsection (a) of section 12 -407 on existing vessels and repair or 1586
maintenance services on vessels occurring on and after July 1, 1999, such 1587
services shall be exempt from such tax; 1588
(ii) (I) With respect to the storage, acceptance or other use of a vessel 1589
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sSB84 / File No. 704 51

in this state, at the rate of two and ninety -nine-hundredths per cent, 1590
except that such storage, acceptance or other use shall be exempt from 1591
such tax if such vessel is docked in this state for sixty or fewer days in a 1592
calendar year; 1593
(II) With respect to the storage, acceptance or other use of a motor for 1594
a vessel or a trailer used for transporting a vessel in this state, at the rate 1595
of two and ninety-nine-hundredths per cent; 1596
(III) With respect to the storage, acceptance or other use of dyed diesel 1597
fuel, as defined in subsection (d) of section 12 -487, exclusively for 1598
marine purposes, at the rate of two and ninety -nine-hundredths per 1599
cent; 1600
(E) (i) With respect to the acceptance or receipt in this state of 1601
computer and data processing services purchased from any retailer for 1602
consumption or use in this state occurring on or after July 1, 2001, at the 1603
rate of one per cent of such services, and (ii) with respect to the 1604
acceptance or receipt in this state of Internet access services, on and after 1605
July 1, 2001, such services shall be exempt from such tax; 1606
(F) With respect to the acceptance or receipt in this state of patient 1607
care services purchased from any retailer for consumption or use in this 1608
state for which payment is received by the hospital on or after July 1, 1609
1999, and prior to July 1, 2001, at the rate of five and three -fourths per 1610
cent and on and after July 1, 2001, such services shall be exempt from 1611
such tax; 1612
(G) (i) With respect to the rental or leasing of a passenger motor 1613
vehicle for a period of thirty consecutive calendar days or less, at a rate 1614
of nine and thirty-five-hundredths per cent; 1615
(ii) With respect to peer-to-peer car sharing, as defined in section 13b-1616
127, for a period of thirty consecutive calendar days or less, at a rate of 1617
nine and thirty-five-hundredths per cent; 1618
(H) With respect to the acceptance or receipt in this state of (i) a motor 1619
vehicle for a sales price exceeding [fifty] seventy-five thousand dollars, 1620
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sSB84 / File No. 704 52

at a rate of seven and three-fourths per cent on the entire sales price, (ii) 1621
jewelry, whether real or imitation, for a sales price exceeding five 1622
thousand dollars, at a rate of seven and three -fourths per cent on the 1623
entire sales price, and (iii) an article of clothing or footwear intended to 1624
be worn on or about the human body, a handbag, luggage, umbrella, 1625
wallet or watch for a sales price exceeding one thousand dollars, at a 1626
rate of seven and three -fourths per cent on the entire sales price. For 1627
purposes of this subparagraph, "motor vehicle" has the meaning 1628
provided in section 14-1, but does not include a motor vehicle subject to 1629
the provisions of subparagraph (C) of this subdivision, a motor vehicle 1630
having a gross vehicle weight rating over twelve thousand five hundred 1631
pounds, or a motor vehicle having a gross vehicle weight rating of 1632
twelve thousand five hundred pounds or less that is not used for private 1633
passenger purposes, but is designed or used to transport merchandise, 1634
freight or persons in connection with any business enterprise and issued 1635
a commercial registration or more specific type of registration by the 1636
Department of Motor Vehicles; 1637
(I) With respect to the acceptance or receipt in this state of meals, as 1638
defined in subdivision (13) of section 12 -412, sold by an eating 1639
establishment, caterer or grocery store; and spirituous, malt or vinous 1640
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 1641
at bars and soda fountains, or in connection therewith; in addition to the 1642
tax imposed under subparagraph (A) of this subdivision, at the rate of 1643
one per cent; 1644
(J) (i) For calendar quarters ending on or after September 30, 2019, the 1645
commissioner shall deposit into the regional planning incentive 1646
account, established pursuant to section 4-66k, six and seven-tenths per 1647
cent of the amounts received by the state from the tax imposed under 1648
subparagraph (B) of this subdivision and ten and seven -tenths per cent 1649
of the amounts received by the state from the tax imposed under 1650
subparagraph (G)(i) of this subdivision; 1651
(ii) For calendar quarters ending on or after September 30, 2018, the 1652
commissioner shall deposit into the Tourism Fund established under 1653
sSB84 File No. 704

sSB84 / File No. 704 53

section 10-395b ten per cent of the amounts received by the state from 1654
the tax imposed under subparagraph (B) of this subdivision; 1655
(K) (i) For calendar months commencing on or after July 1, 2021, but 1656
prior to July 1, 2023, the commissioner shall deposit into the municipal 1657
revenue sharing account established pursuant to section 4-66l seven and 1658
nine-tenths per cent of the amounts received by the state from the tax 1659
imposed under subparagraph (A) of this subdivision, including such 1660
amounts received on or after July 1, 2023, attributable to the fiscal year 1661
ending June 30, 2023; and 1662
(ii) For calendar months commencing on or after July 1, 2023, the 1663
commissioner shall deposit into the Municipal Revenue Sharing Fund 1664
established pursuant to section 4-66p seven and nine-tenths per cent of 1665
the amounts received by the state from the tax imposed under 1666
subparagraph (A) of this subdivision; [and] 1667
(L) (i) For calendar months commencing on or after July 1, 2017, the 1668
commissioner shall deposit into said Special Transportation Fund seven 1669
and nine-tenths per cent of the amounts received by the state from the 1670
tax imposed under subparagraph (A) of this subdivision; 1671
(ii) For calendar months commencing on or after July 1, 2018, but 1672
prior to July 1, 2019, the commissioner shall deposit into the Special 1673
Transportation Fund established under section 13b -68 eight per cent of 1674
the amounts received by the state from the tax imposed under 1675
subparagraphs (A) and (H) of this subdivision on the acceptance or 1676
receipt in this state of a motor vehicle; 1677
(iii) For calendar months commencing on or after July 1, 2019, but 1678
prior to July 1, 2020, the commissioner shall deposit into the Special 1679
Transportation Fund established under section 13b -68 seventeen per 1680
cent of the amounts received by the state from the tax imposed under 1681
subparagraphs (A) and (H) of this subdivision on the acceptance or 1682
receipt in this state of a motor vehicle; 1683
(iv) For calendar months commencing on or after July 1, 2020, but 1684
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sSB84 / File No. 704 54

prior to July 1, 2021, the commissioner shall deposit into the Special 1685
Transportation Fund established under section 13b -68 twenty-five per 1686
cent of the amounts received by the state from the tax imposed under 1687
subparagraphs (A) and (H) of this subdivision on the acceptance or 1688
receipt in this state of a motor vehicle; 1689
(v) For calendar months commencing on or after July 1, 2021, but 1690
prior to July 1, 2022, the commissioner shall deposit into the Special 1691
Transportation Fund established under section 13b -68 seventy-five per 1692
cent of the amounts received by the state from the tax imposed under 1693
subparagraphs (A) and (H) of this subdivision on the acceptance or 1694
receipt in this state of a motor vehicle; and 1695
(vi) For calendar months commencing on or after July 1, 2022, the 1696
commissioner shall deposit into the Special Transportation Fund 1697
established under section 13b -68 one hundred per cent of the amounts 1698
received by the state from the tax imposed under subparagraphs (A) 1699
and (H) of this subdivision on the acceptance or receipt in this state of a 1700
motor vehicle; 1701
(M) For calendar quarters ending on or after December 31, 2026, the 1702
commissioner shall deposit into the Special Transportation Fund 1703
established under section 13b -68 one hundred per cent of the amounts 1704
received by the state from the tax imposed under subparagraph (G)(ii) 1705
of this subdivision; and 1706
(N) For calendar months commencing on or after October 1, 2026, the 1707
commissioner shall deposit into the Tourism Fund established under 1708
section 10-395b fifty per cent of the amounts received by the state from 1709
the tax imposed under subparagraph (I) of this subdivision. 1710
Sec. 30. Subdivision (55) of section 12 -412 of the 2026 supplement to 1711
the general statutes is repealed and the following is substituted in lieu 1712
thereof (Effective October 1, 2026, and applicable to sales occurring on or after 1713
October 1, 2026): 1714
(55) Sales of (A) tangible personal property by any funeral 1715
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sSB84 / File No. 704 55

establishment performing the primary services in preparation for and 1716
the conduct of burial or cremation, provided any such property must be 1717
used directly in the performance of such services and the total amount 1718
of such exempt sales with respect to any single funeral may not exceed 1719
[two thousand five hundred ] ten thousand dollars, or (B) caskets used 1720
for burial or cremation. 1721
Sec. 31. Section 12 -407e of the general statutes is repealed and the 1722
following is substituted in lieu thereof (Effective from passage): 1723
(a) [(1) From the third Sunday in August until the Saturday next 1724
succeeding, inclusive, during the period beginning July 1, 2004, and 1725
ending June 30, 2015, the provisions of this chapter shall not apply to 1726
sales of any article of clothing or footwear intended to be worn on or 1727
about the human body the cost of which article to the purchaser is less 1728
than three hundred dollars. 1729
(2) On and after July 1, 2015, from] From the third Sunday in August 1730
until the Saturday next succeeding, inclusive, the provisions of this 1731
chapter shall not apply to sales of any article of clothing or footwear , 1732
including cleated shoes, intended to be worn on or about the human 1733
body or to any backpack , the cost of which article or backpack to the 1734
purchaser is less than [one] three hundred dollars. 1735
(b) For the purposes of this section, clothing or footwear shall not 1736
include (1) any special clothing or footwear primarily designed for 1737
athletic activity or protective use and which is not normally worn except 1738
when used for the athletic activity or protective use for which it was 1739
designed, and (2) jewelry, handbags, luggage other than backpacks , 1740
umbrellas, wallets, watches and similar items carried on or about the 1741
human body but not worn on the body in the manner characteristic of 1742
clothing intended for exemption under this section. 1743
Sec. 32. Section 12-217jj of the 2026 supplement to the general statutes 1744
is repealed and the following is substituted in lieu thereof (Effective from 1745
passage): 1746
sSB84 File No. 704

sSB84 / File No. 704 56

(a) As used in this section: 1747
(1) "Commissioner" means the Commissioner of Revenue Services. 1748
(2) "Department" means the Department of Economic and 1749
Community Development. 1750
(3) (A) "Qualified production" means entertainment content created 1751
in whole or in part within the state, including motion pictures, except as 1752
otherwise provided in this subparagraph; documentaries; long -form, 1753
specials, mini-series, series, sound recordings, videos and music videos 1754
and interstitials television programming; interactive television; 1755
relocated television production; interactive games; videogames; 1756
commercials; any format of digital media, including an interactive web 1757
site, created for distribution or exhibition to the general public; and any 1758
trailer, pilot, video teaser or demo created primarily to stimulate the 1759
sale, marketing, promotion or exploitation of future investment in either 1760
a product or a qualified production via any means and media in any 1761
digital media format, film or videotape, provided such program meets 1762
all the underlying criteria of a qualified production. For state fiscal years 1763
ending on or after June 30, 2014, "qualified production" shall not include 1764
a motion picture that has not been designated as a state -certified 1765
qualified production prior to July 1, 2013, and no tax credit voucher for 1766
such motion picture may be issued for such motion picture, except, for 1767
state fiscal years ending on or after June 30, 2015, "qualified production" 1768
shall include a motion picture for which twenty-five per cent or more of 1769
the principal photography shooting days are in this state at a facility that 1770
receives not less than twenty -five million dollars in private investment 1771
and opens for business on or after July 1, 2013, and a tax credit voucher 1772
may be issued for such motion picture. 1773
(B) "Qualified production" shall not include any ongoing television 1774
program created primarily as news, weather or financial market reports; 1775
a production featuring current events, other than a relocated television 1776
production, sporting events, an awards show or other gala event; a 1777
production whose sole purpose is fundraising; a long -form production 1778
that primarily markets a product or service; a production used for 1779
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sSB84 / File No. 704 57

corporate training or in -house corporate advertising or other similar 1780
productions; or any production for which records are required to be 1781
maintained under 18 USC 2257, as amended from time to time, with 1782
respect to sexually explicit content. 1783
(4) "Eligible production company" means a corporation, partnership, 1784
limited liability company, or other business entity engaged in the 1785
business of producing qualified productions on a one -time or ongoing 1786
basis, and qualified by the Secretary of the State to engage in business 1787
in the state. 1788
(5) "Production expenses or costs" means all expenditures clearly and 1789
demonstrably incurred in the state in the preproduction, production or 1790
postproduction costs of a qualified production, including: 1791
(A) Expenditures incurred in the state in the form of either 1792
compensation or purchases including production work, production 1793
equipment not eligible for the infrastructure tax credit provided in 1794
section 12 -217kk, production software, postproduction work, 1795
postproduction equipment, postproduction software, set design, set 1796
construction, props, lighting, wardrobe, makeup, makeup accessories, 1797
special effects, visual effects, audio effects, film processing, music, 1798
sound mixing, editing, location fees, soundstages and any and all other 1799
costs or services directly incurred in connection with a state -certified 1800
qualified production; 1801
(B) Expenditures for distribution, including preproduction, 1802
production or postproduction costs relating to the creation of trailers, 1803
marketing videos, commercials, point -of-purchase videos and any and 1804
all content created on film or digital media, including the duplication of 1805
films, videos, CDs, DVDs and any and all digital files now in existence 1806
and those yet to be created for mass consumer consumption; the 1807
purchase, by a company in the state, of any and all equipment relating 1808
to the duplication or mass market distribution of any content created or 1809
produced in the state by any digital media format which is now in use 1810
and those formats yet to be created for mass consumer consumption; 1811
and 1812
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sSB84 / File No. 704 58

(C) "Production expenses or costs" does not include the following: (i) 1813
On and after January 1, 2008, compensation in excess of fifteen million 1814
dollars paid to any individual or entity representing an individual, for 1815
services provided in the production of a qualified production and on or 1816
after January 1, 2010, compensation subject to Connecticut personal 1817
income tax in excess of twenty million dollars paid in the aggregate to 1818
any individuals or entities representing individuals, for star talent 1819
provided in the production of a qualified production; (ii) media buys, 1820
promotional events or gifts or public relations associated with the 1821
promotion or marketing of any qualified production; (iii) deferred, 1822
leveraged or profit participation costs relating to any and all personnel 1823
associated with any and all aspects of the production, including, but not 1824
limited to, producer fees, director fees, talent fees and writer fees; (iv) 1825
costs relating to the transfer of the production tax credits; (v) any 1826
amounts paid to persons or businesses as a result of their participation 1827
in profits from the exploitation of the qualified production; and (vi) any 1828
expenses or costs relating to an independent certification, as required by 1829
subsection (h) of this section, or as the department may otherwise 1830
require, pertaining to the amount of production expenses or costs set 1831
forth by an eligible production company in its application for a 1832
production tax credit. 1833
(6) "Sound recording" means a recording of music, poetry or spoken-1834
word performance, but does not include the audio portions of dialogue 1835
or words spoken and recorded as part of a motion picture, video, 1836
theatrical production, television news coverage or athletic event. 1837
(7) "State-certified qualified production" means a qualified 1838
production produced by an eligible production company that (A) is in 1839
compliance with regulations adopted pursuant to subsection (l) of this 1840
section, (B) is authorized to conduct business in this state, and (C) has 1841
been approved by the department as qualifying for a production tax 1842
credit under this section. 1843
(8) "Interactive web site" means a web site, the production expenses 1844
or costs of which (A) exceed five hundred thousand dollars per income 1845
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year, and (B) is primarily (i) interactive games or end user applications, 1846
or (ii) animation, simulation, sound, graphics, story lines or video 1847
created or repurposed for distribution over the Internet. An interactive 1848
web site does not include a web site primarily used for institutional, 1849
private, industrial, retail or wholesale marketing or promotional 1850
purposes, or which contains obscene content. 1851
(9) "Post-certification remedy" means the recapture, disallowance, 1852
recovery, reduction, repayment, forfeiture, decertification or any other 1853
remedy that would have the effect of reducing or otherwise limiting the 1854
use of a tax credit provided by this section. 1855
(10) "Compensation" means base salary or wages and does not 1856
include bonus pay, stock options, restricted stock units or similar 1857
arrangements. 1858
(11) "Relocated television production" means: 1859
(A) An ongoing television program all of the prior seasons of which 1860
were filmed outside this state, and may include current events shows, 1861
except those referenced in subparagraph (B)(i) of this subdivision. 1862
(B) An eligible production company's television programming in this 1863
state that (i) is not a general news program, sporting event or game 1864
broadcast, and (ii) is created at a qualified production facility that has 1865
had a minimum investment of twenty-five million dollars made by such 1866
eligible production company on or after January 1, 2012, at which 1867
facility the eligible production company creates ongoing television 1868
programming as defined in subparagraph (A) of this subdivision, and 1869
creates at least two hundred new jobs in Connecticut on or after January 1870
1, 2012. For purposes of this subdivision, "new job" means a full -time 1871
job, as defined in section 12-217ii, that did not exist in this state prior to 1872
January 1, 2012, and is filled by a new employee, and "new employee" 1873
includes a person who was employed outside this state by the eligible 1874
production company prior to January 1, 2012, but does not include a 1875
person who was employed in this state by the eligible production 1876
company or a related person, as defined in section 12-217ii, with respect 1877
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to the eligible production company during the prior twelve months. 1878
(C) A relocated television production may be a state -certified 1879
qualified production for not more than ten successive income years, 1880
after which period the eligible production company shall be ineligible 1881
to resubmit an application for certification. 1882
(b) (1) The Department of Economic and Community Development 1883
shall administer a system of tax credit vouchers within the resources, 1884
requirements and purposes of this section for eligible production 1885
companies producing a state-certified qualified production in the state. 1886
(2) Any eligible production company incurring production expenses 1887
or costs shall be eligible for a credit (A) for income years commencing 1888
on or after January 1, 2010, but prior to January 1, 2018, against the tax 1889
imposed under chapter 207 or this chapter, (B) for income years 1890
commencing on or after January 1, 2018, but prior to January 1, 2022, 1891
against the tax imposed under chapter 207 or 211 or this chapter, and 1892
(C) for income years commencing on or after January 1, 2022, against the 1893
tax imposed under chapter 207, 211, 219 or this chapter, as follows: (i) 1894
For any such company incurring such expenses or costs of not less than 1895
one hundred thousand dollars, but not more than five hundred 1896
thousand dollars, a credit equal to ten per cent of such expenses or costs, 1897
(ii) for any such company incurring such expenses or costs of more than 1898
five hundred thousand dollars, but not more than one million dollars, a 1899
credit equal to fifteen per cent of such expenses or costs, and (iii) for any 1900
such company incurring such expenses or costs of more than one million 1901
dollars, a credit equal to thirty per cent of such expenses or costs. 1902
(c) No eligible production company incurring an amount of 1903
production expenses or costs that qualifies for such credit shall be 1904
eligible for such credit unless on or after January 1, 2010, such company 1905
conducts (1) not less than fifty per cent of principal photography days 1906
within the state, or (2) expends not less than fifty per cent of 1907
postproduction costs within the state, or (3) expends not less than one 1908
million dollars of postproduction costs within the state. The provisions 1909
of this subsection shall not apply to an eligible production company that 1910
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produces an interactive Internet web site created for distribution or 1911
exhibition to the general public. 1912
(d) For income years commencing on or after January 1, 2010, no 1913
expenses or costs incurred outside the state and used within the state 1914
shall be eligible for a credit, and one hundred per cent of such expenses 1915
or costs shall be counted toward such credit when incurred within the 1916
state and used within the state. 1917
(e) (1) On and after July 1, 2006, and for income years commencing 1918
on or after January 1, 2006, any credit allowed pursuant to this section 1919
may be sold, assigned or otherwise transferred, in whole or in part, to 1920
one or more taxpayers, provided (A) no credit, after issuance, may be 1921
sold, assigned or otherwise transferred, in whole or in part, more than 1922
three times, (B) in the case of a credit allowed for the income year 1923
commencing on or after January 1, 2011, but prior to January 1, 2012, 1924
any entity that is not subject to tax under chapter 207 or this chapter may 1925
transfer not more than fifty per cent of such credit in any one income 1926
year, and (C) in the case of a credit allowed for an income year 1927
commencing on or after January 1, 2012, any entity that is not subject to 1928
tax under chapter 207 or this chapter may transfer not more than 1929
twenty-five per cent of such credit in any one income year. 1930
(2) Notwithstanding the provisions of subdivision (1) of this 1931
subsection, any entity that is not subject to tax under this chapter or 1932
chapter 207 shall not be subject to the limitations on the transfer of 1933
credits provided in subparagraphs (B) and (C) of said subdivision (1), 1934
provided such entity owns not less than fifty per cent, directly or 1935
indirectly, of a business entity, as defined in section 12-284b. 1936
(3) Notwithstanding the provisions of subdivision (1) of this 1937
subsection, any qualified production that is created in whole or in 1938
significant part, as determined by the Commissioner of Economic and 1939
Community Development, at a qualified production facility shall not be 1940
subject to the limitations of subparagraph (B) or (C) of said subdivision 1941
(1). For purposes of this subdivision, "qualified production facility" 1942
means a facility (A) located in this state, (B) intended for film, television 1943
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or digital media production, and (C) that has had a minimum 1944
investment of three million dollars, or less if the Commissioner of 1945
Economic and Community Development determines such facility 1946
otherwise qualifies. 1947
(4) (A) For the income year commencing on or after January 1, 2018, 1948
but prior to January 1, 2019, any credit that is sold, assigned or otherwise 1949
transferred, in whole or in part, to one or more taxpayers pursuant to 1950
subdivision (1) of this subsection may be claimed against the tax 1951
imposed under chapter 211 only if there is common ownership of at least 1952
fifty per cent between such taxpayer and the eligible production 1953
company that sold, assigned or otherwise transferred such credit. Such 1954
taxpayer may only claim ninety -two per cent of the amount of such 1955
credit entered by the department on the production tax credit voucher. 1956
(B) For income years commencing on or after January 1, 2019, any 1957
credit that is sold, assigned or otherwise transferred, in whole or in part, 1958
to one or more taxpayers pursuant to subdivision (1) of this subsection, 1959
which credit is claimed against the tax imposed under chapter 211, shall 1960
be subject to the following limits: 1961
(i) The taxpayer may only claim ninety-five per cent of the amount of 1962
such credit entered by the department on the production tax credit 1963
voucher; and 1964
(ii) If there is common ownership of at least fifty per cent between 1965
such taxpayer and the eligible production company that sold, assigned 1966
or otherwise transferred such credit, such taxpayer may only claim 1967
ninety-two per cent of the amount of such credit entered by the 1968
department on the production tax credit voucher. 1969
(5) (A) For income years commencing on or after January 1, 2022, but 1970
prior to January 1, 2024, and on or after January 1, [2026] 2028, any credit 1971
that is claimed against the tax imposed under chapter 219 shall be 1972
subject to the following limits: 1973
(i) Any credit that is sold, assigned or otherwise transferred, in whole 1974
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or in part, to one or more taxpayers pursuant to subdivision (1) of this 1975
subsection may be claimed against the tax imposed under chapter 219 1976
only if there is common ownership of at least fifty per cent between such 1977
taxpayer and the eligible production company that sold, assigned or 1978
otherwise transferred such credit; and 1979
(ii) The eligible production company or taxpayer claiming the credit 1980
against the tax imposed under chapter 219 may only claim seventy-eight 1981
per cent of the amount of such credit entered by the department on the 1982
production tax credit voucher. 1983
(B) For income years commencing on or after January 1, 2024, but 1984
prior to January 1, [2026] 2028, any credit that is claimed against the tax 1985
imposed under chapter 219 shall be subject to the following limits: 1986
(i) Any credit that is sold, assigned or otherwise transferred, in whole 1987
or in part, to one or more taxpayers pursuant to subdivision (1) of this 1988
subsection may be claimed against the tax imposed under chapter 219 1989
only if there is common ownership of at least fifty per cent between such 1990
taxpayer and the eligible production company that sold, assigned or 1991
otherwise transferred such credit; and 1992
(ii) The eligible production company or taxpayer claiming the credit 1993
against the tax imposed under chapter 219 may only claim ninety -two 1994
per cent of the amount of such credit entered by the department on the 1995
production tax credit voucher. 1996
(f) (1) On and after July 1, 2006, and for income years commencing on 1997
or after January 1, 2006, but prior to January 1, 2015, all or part of any 1998
such credit allowed under this section may be claimed against the tax 1999
imposed under chapter 207 or this chapter for the income year in which 2000
the production expenses or costs were incurred, or in the three 2001
immediately succeeding income years. 2002
(2) For production tax credit vouchers issued on or after July 1, 2015, 2003
but prior to January 1, 2018, all or part of any such credit may be claimed 2004
against the tax imposed under chapter 207 or this chapter, for the 2005
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income year in which the production expenses or costs were incurred, 2006
or in the five immediately succeeding income years. 2007
(3) For production tax credit vouchers issued on or after July 1, 2018, 2008
but prior to January 1, 2022, all or part of any such credit may be claimed 2009
against the tax imposed under chapter 207 or 211 or this chapter, for the 2010
income year in which the production expenses or costs were incurred, 2011
or in the five immediately succeeding income years. 2012
(4) For production tax credit vouchers issued on or after January 1, 2013
2022, all or part of any such credit may be claimed against the tax 2014
imposed under chapter 207, 211, 219 or this chapter, for the income year 2015
in which the production expenses or costs were incurred, or in the five 2016
immediately succeeding income years. 2017
(g) Any production tax credit allowed under this section shall be 2018
nonrefundable. 2019
(h) (1) An eligible production company shall apply to the department 2020
for a tax credit voucher on an annual basis, but not later than ninety days 2021
after the first production expenses or costs are incurred in the 2022
production of a qualified production, and shall provide with such 2023
application such information as the department may require to 2024
determine such company's eligibility to claim a credit under this section. 2025
No production expenses or costs may be listed more than once for 2026
purposes of the tax credit voucher pursuant to this section or section 12-2027
217kk, and if a production expense or cost has been included in a claim 2028
for a credit, such production expense or cost may not be included in any 2029
subsequent claim for a credit. 2030
(2) Not later than ninety days after the end of the annual period, or 2031
after the completion of the independent certification, an eligible 2032
production company shall apply to the department for a production tax 2033
credit voucher, and shall provide with such application (A) a report that 2034
includes the number of full-time jobs and the number of part -time jobs 2035
created by the eligible production company during the annual period, a 2036
description of each such job and an explanation of what the eligible 2037
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production company considers to be job creation for purposes of the 2038
report, and (B) such information and independent certification as the 2039
department may require pertaining to the amount of such company's 2040
production expenses or costs. Such independent certification shall be 2041
provided by an audit professional chosen from a list compiled by the 2042
department. If the department determines that such company is eligible 2043
to be issued a production tax credit voucher, the department shall enter 2044
on the voucher the amount of production expenses or costs that has been 2045
established to the satisfaction of the department and the amount of such 2046
company's credit under this section. The department shall provide a 2047
copy of such voucher to the commissioner, upon request. 2048
(3) The department shall charge a reasonable and nonrefundable 2049
administrative fee sufficient to cover the department's costs to analyze 2050
applications submitted under this section. 2051
(i) If an eligible production company sells, assigns or otherwise 2052
transfers a credit under this section to another taxpayer, the transferor 2053
and transferee shall jointly submit written notification of such transfer 2054
to the department not later than thirty days after such transfer. If such 2055
transferee sells, assigns or otherwise transfers a credit under this section 2056
to a subsequent transferee, such transferee and such subsequent 2057
transferee shall jointly submit written notification of such transfer to the 2058
department not later than thirty days after such transfer. The 2059
notification after each transfer shall include the credit voucher number, 2060
the date of transfer, the amount of such credit transferred, the tax credit 2061
balance before and after the transfer, the tax identification numbers for 2062
both the transferor and the transferee, and any other information 2063
required by the department. Failure to comply with this subsection will 2064
result in a disallowance of the tax credit until there is full compliance on 2065
the part of the transferor and the transferee, and for a second or third 2066
transfer, on the part of all subsequent transferors and transferees. The 2067
department shall provide a copy of the notification of assignment to the 2068
commissioner upon request. 2069
(j) Any eligible production company that submits information to the 2070
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department that it knows to be fraudulent or false shall, in addition to 2071
any other penalties provided by law, be liable for a penalty equal to the 2072
amount of such company's credit entered on the production tax credit 2073
voucher issued under this section. 2074
(k) No tax credits transferred pursuant to this section shall be subject 2075
to a post -certification remedy, and the department and the 2076
commissioner shall have no right, except in the case of possible material 2077
misrepresentation or fraud, to conduct any further or additional review, 2078
examination or audit of the expenditures or costs for which such tax 2079
credits were issued. The sole and exclusive remedy of the department 2080
and the commissioner shall be to seek collection of the amount of such 2081
tax credits from the entity that committed the fraud or 2082
misrepresentation. 2083
(l) The department, in consultation with the commissioner, may 2084
adopt regulations, in accordance with the provisions of chapter 54, as 2085
may be necessary for the administration of this section. 2086
Sec. 33. (NEW) (Effective from passage) (a) As used in this section: 2087
(1) "Certified community development corporation" has the same 2088
meaning as provided in section 32-7s of the general statutes; 2089
(2) "Community partnership opportunity agreement" means a 2090
written agreement entered into pursuant to this section among the 2091
Department of Economic and Community Development, participating 2092
investors, certified community development corporations and 2093
implementing organizations and independent evaluators to implement 2094
the provisions of this section; 2095
(3) "Early childhood implementing organization" means any school 2096
or for-profit or nonprofit organization, with the professional capacity to 2097
provide preschool or early childhood instruction designed to increase 2098
kindergarten-readiness; 2099
(4) "Implementing organization" means an early childhood 2100
implementing organization, a literacy implementing organization or a 2101
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workforce implementing organization, as applicable, that is responsible 2102
for delivering services or interventions to achieve the performance 2103
metrics set forth in a community opportunity partnership agreement; 2104
(5) "Independent evaluator" means an individual or entity that is 2105
responsible for measuring performance metrics and progress milestones 2106
using methodologies set forth in a community opportunity partnership 2107
agreement and verifying that such metrics and milestones have been 2108
met and (A) is an academic institution, a professional evaluative 2109
consultant or an organization with a documented history of verifying 2110
performance-based program outcomes, (B) possesses expertise in the 2111
specific subject matter of the community opportunity partnership 2112
agreement, including educational assessment metrics or workforce 2113
development metrics or both, and (C) has no financial interest in the 2114
outcome of the agreement other than the fee for evaluation services; 2115
(6) "Literacy implementing organization" means any school or for -2116
profit or nonprofit organization, with the professional capacity to 2117
provide intensive tutoring or reading interventions designed to ensure 2118
grade-level reading proficiency by grade three; 2119
(7) "Participating investor" means a private, philanthropic or mission-2120
driven investor that provides the necessary capital to fund the initiatives 2121
set forth in a community opportunity partnership agreement; and 2122
(8) "Workforce implementing organization" means an institution of 2123
higher education or a for -profit or nonprofit organization, with the 2124
capacity to provide training in specialized skills, such as in health care, 2125
manufacturing or other high-demand fields. 2126
(b) (1) There is established a program under which the Department 2127
of Economic and Community Development shall enter into community 2128
partnership opportunity agreements to expand, in communities in the 2129
state that are experiencing persistent economic disadvantages, (A) 2130
educational achievement, pursuant to an educational outcome 2131
community partnership opportunity agreement, or (B) workforce skills, 2132
pursuant to a workforce outcome community partnership opportunity 2133
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agreement, or both. Upon verification by the independent evaluator that 2134
all the performance metrics set forth in the community partnership 2135
opportunity agreement have been met, each participating investor shall 2136
receive a repayment of the amount of invested capital, plus a 2137
performance-based premium in accordance with the terms of the 2138
community partnership opportunity agreement. 2139
(2) Each community partnership opportunity agreement shall 2140
include, at a minimum: 2141
(A) A five-year performance period from the date such agreement is 2142
executed that includes an implementation period during which 2143
interventions are delivered, an outcome measurement period during 2144
which performance metrics are evaluated by an independent evaluator 2145
and the timing of baseline and performance progress measurements; 2146
(B) Performance metrics and progress milestones, evaluation 2147
methodologies to measure such metrics and milestones and the timing 2148
of the conduct of evaluations; 2149
(C) The participating investors and the amount of capital committed 2150
by such investors; 2151
(D) The certified community development corporation that will serve 2152
as the coordinator of the initiatives undertaken to achieve the 2153
performance metrics and progress milestones and the fee for such 2154
services; 2155
(E) The implementing organization or organizations that will carry 2156
out such initiatives and the fee for such services; 2157
(F) The independent evaluator that will conduct evaluations of 2158
performance metrics and progress milestones and verify that the 2159
performance metrics have been met and the fee for such services; and 2160
(G) A success payment contract that sets forth a schedule of success 2161
payments to participating investors, contingent on achievement of the 2162
performance metrics set forth in the agreement, including repayment of 2163
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the amount of invested capital, a performance -based premium on such 2164
amount and the maximum success payment obligation under the 2165
agreement. Success payments shall be recognition of the acquisition of 2166
a high-yield economic asset upon the achievement of the performance 2167
metrics and of the projected lifetime value of such achievements to the 2168
state. Any success payment shall be made by the Commissioner of 2169
Economic and Community Development as an authorized capital 2170
expenditure. 2171
(3) In addition to the requirements set forth in subdivision (2) of this 2172
subsection: 2173
(A) An education outcome community partnership opportunity 2174
agreement shall focus on achieving measurable improvements in 2175
kindergarten-readiness and grade three reading proficiency for children 2176
residing in the community serviced by the certified community 2177
development corporation. Such agreement shall include (i) for 2178
kindergarten-readiness, performance metrics based on an increase in 2179
the percentage of such children who meet the state's standard for 2180
kindergarten-readiness upon enrollment, and (ii) for grade three 2181
literacy-proficiency, performance metrics based on an increase in the 2182
percentage of such children, regardless of the specific school attended, 2183
who achieve grade-level reading proficiency by grade three; and 2184
(B) A workforce outcome community partnership opportunity 2185
agreement shall focus on increasing workforce skills attainment and 2186
career-linked employment for working-age residents of the community 2187
serviced by the certified community development corporation. Such 2188
agreement shall include performance metrics such as industry -2189
recognized credential attainment and placement in career -path 2190
employment with specific wage and retention milestones. 2191
(4) Any community partnership opportunity agreement executed 2192
pursuant to this section may be amended only by written agreement by 2193
all parties to the community partnership opportunity agreement. 2194
(c) (1) Each certified community development corporation shall 2195
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submit a proposal to the Commissioner of Economic and Community 2196
Development to enter into a community partnership opportunity 2197
agreement. The commissioner shall assist the certified community 2198
development corporation in the preparation of such proposal, which 2199
shall include the names and contact information of the other parties 2200
required for a community partnership opportunity agreement and 2201
sufficient information to demonstrate the following to the 2202
commissioner's satisfaction: 2203
(A) The implementing organizations possess the necessary 2204
experience in delivering evidence -based interventions in early 2205
childhood education, literacy or workforce development, as applicable, 2206
in distressed municipalities, as defined in section 32 -9p of the general 2207
statutes; 2208
(B) The proposed intervention model is designed to reach a minimum 2209
participation threshold of not less than (i) twenty per cent of children 2210
grade three and younger residing in the community serviced by the 2211
certified community development corporation, and (ii) twenty per cent 2212
of the working-age residents of such community; 2213
(C) The proposed intervention model demonstrates a reasonable 2214
probability of achieving the applicable agreed -upon performance 2215
metrics; 2216
(D) Verified commitments of sufficient capital from participating 2217
investors to fund the full five -year duration of the performance period 2218
without reliance on state appropriations; and 2219
(E) The proposed outcomes for kindergarten -readiness, grade three 2220
literacy and workforce employment are clearly linked to the 2221
longitudinal success of the resident populations in the community 2222
serviced by the certified community development corporation. 2223
(2) If the commissioner finds that the proposal meets the criteria set 2224
forth in subdivision (1) of this subsection, the commissioner shall 2225
execute a community partnership opportunity agreement not later than 2226
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ninety days after the commissioner receives the proposal. If the 2227
commissioner determines such requirements have not been met, the 2228
commissioner shall provide a written notice to the person submitting 2229
the proposal, identifying the specific requirements that were not met. 2230
(d) Upon the execution of a community partnership opportunity 2231
agreement, the certified community development corporation may do 2232
all things necessary to meet the performance metrics and progress 2233
milestones set forth in the agreement, including, but not limited to, 2234
collaborating with the implementing organization, independent 2235
evaluator and state agencies to measure achievement of such metrics 2236
and milestones; collaborating with early childhood education providers, 2237
schools and other educational institutions, employers, workforce 2238
development organizations and any other entities necessary to help 2239
achieve such metrics and milestones; and engaging with participating 2240
investors. 2241
(e) There is established an account to be known as the " community 2242
partnership opportunity account", which shall be a separate, nonlapsing 2243
account. The account shall contain any moneys required by law to be 2244
deposited in the account. Moneys in the account shall be expended by 2245
the Commissioner of Economic and Community Development for the 2246
purposes of making payments for the necessary expenses related to the 2247
initiatives implemented to achieve the performance metrics and 2248
progress milestones set forth in a community opportunity partnership 2249
agreement and evaluation of such metrics and milestones and making 2250
success payments in accordance with the provisions of a community 2251
opportunity partnership agreement. Any moneys provided by a 2252
participating investor pursuant to a community opportunity 2253
partnership program under this section shall be deposited in the 2254
account. The Treasurer shall invest the moneys in the account, subject 2255
to use for purposes of the program. 2256
(f) The commissioner shall submit a report, in accordance with the 2257
provisions of section 11 -4a of the general statutes, to the joint standing 2258
committees of the General Assembly having cognizance of matters 2259
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relating to commerce and finance, revenue and bonding for each 2260
community opportunity partnership agreement executed. Such report 2261
shall be submitted for each year of the five-year period of the agreement, 2262
describing the results of any performance metrics or performance 2263
progress evaluations conducted in such year and a summary by the 2264
certified community development corporation of the initiatives 2265
undertaken in such year. 2266
Sec. 34. (NEW) ( Effective July 1, 2026 ) As used in this section and 2267
section 35 of this act, unless the context otherwise requires: 2268
(1) "Audited net inpatient revenue for federal fiscal year 2024" means 2269
the amount of revenue that the commissioner determines, in accordance 2270
with federal law, that a hospital received for the provision of inpatient 2271
hospital services during the 2024 federal fiscal year; 2272
(2) "Audited net outpatient revenue for federal fiscal year 2024" 2273
means the amount of revenue that the commissioner determines, in 2274
accordance with federal law, that a hospital received for the provision 2275
of outpatient hospital services during the 2024 federal fiscal year; 2276
(3) "Audited net revenue for federal fiscal year 2024" means, (A) for 2277
each hospital with audited financial statements for federal fiscal year 2278
2024, the net revenue, as reported in such hospital's audited financial 2279
statements, less the amount of revenue that the commissioner 2280
determines, in accordance with federal law, that the hospital received 2281
from other than the provision of inpatient hospital services and 2282
outpatient hospital services, and (B) for each hospital without audited 2283
financial statements for federal fiscal year 2024, the net revenue, as 2284
reported in the hospital's financial filings submitted to the Office of 2285
Health Strategy as adjusted in accordance with audited financial 2286
statement standards, less the amount of revenue that the commissioner 2287
determines, in accordance with federal law, that the hospital received 2288
from other than the provision of inpatient hospital services and 2289
outpatient hospital services; 2290
(4) "Charity care" means free or discounted health care services 2291
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rendered by a health care provider to an individual who cannot afford 2292
to pay for such services, including, but not limited to, health care 2293
services provided to an uninsured patient who is not expected to pay all 2294
or part of a health care provider's bill based on income guidelines and 2295
other financial criteria set forth in the general statutes or in a health care 2296
provider's charity care policies on file at the office of such provider. 2297
"Charity care" does not include bad debts or payer discounts; 2298
(5) "Commissioner" means the Commissioner of Revenue Services; 2299
(6) "Gross receipts" means the amount received, whether in cash or in 2300
kind, from patients, third-party payers and others for taxable health care 2301
items or services provided by the taxpayer in the state, including 2302
retroactive adjustments under reimbursement agreements with third -2303
party payers, without any deduction for any expenses of any kind; 2304
(7) "Health care provider" means an individual or entity that receives 2305
any payment or payments for health care items or services provided; 2306
(8) "Hospital" means any health care facility, as defined in section 19a-2307
630 of the general statutes, that (A) is licensed by the Department of 2308
Public Health as a short -term general hospital; (B) is maintained 2309
primarily for the care and treatment of patients with disorders other 2310
than mental diseases; (C) meets the requirements for participation in 2311
Medicare as a hospital; and (D) has in effect a utilization review plan, 2312
applicable to all Medicaid patients, that meets the requirements of 42 2313
CFR 482.30, as amended from time to time, unless a waiver has been 2314
granted by the Secretary of the United States Department of Health and 2315
Human Services; 2316
(9) "Inpatient" means a patient who has been admitted to a medical 2317
institution as an inpatient on the recommendation of a physician or 2318
dentist and who (A) receives room, board and professional services in 2319
the institution for a twenty-four-hour period or longer, or (B) is expected 2320
by the institution to receive room, board and professional services in the 2321
institution for a twenty -four-hour period or longer, even if the patient 2322
does not actually stay in the institution for a twenty-four-hour period or 2323
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sSB84 / File No. 704 74

longer; 2324
(10) "Inpatient hospital services" means, in accordance with federal 2325
law, all services that are (A) ordinarily furnished in a hospital for the 2326
care and treatment of inpatients; (B) furnished under the direction of a 2327
physician or dentist; and (C) furnished in a hospital. "Inpatient hospital 2328
services" does not include skilled nursing facility services and 2329
intermediate care facility services furnished by a hospital with swing 2330
bed approval; 2331
(11) "Intermediate care facility" means a residential facility for 2332
persons with intellectual disability that is certified to meet the 2333
requirements of 42 CFR 442, Subpart C, as amended from time to time, 2334
and, in the case of a private facility, licensed pursuant to section 17a-227 2335
of the general statutes; 2336
(12) "Medicaid" means the program operated by the Department of 2337
Social Services pursuant to section 17b -260 of the general statutes and 2338
authorized by Title XIX of the Social Security Act, as amended from time 2339
to time; 2340
(13) "Medicare" means the program operated by the Centers for 2341
Medicare and Medicaid Services in accordance with Title XVIII of the 2342
Social Security Act, as amended from time to time; 2343
(14) "Net revenue" means gross receipts less payer discounts, charity 2344
care and bad debts, to the extent the taxpayer previously paid tax under 2345
section 12-263q of the general statutes, as amended by this act, on the 2346
amount of such bad debts; 2347
(15) "Outpatient" means a patient of an organized medical facility or 2348
a distinct part of such facility, who is expected by the facility to receive, 2349
and who does receive, professional services for less than a twenty-four-2350
hour period regardless of the hour of admission, whether or not a bed 2351
is used or the patient remains in the facility past midnight; 2352
(16) "Outpatient hospital services" means, in accordance with federal 2353
law, preventive, diagnostic, therapeutic, rehabilitative or palliative 2354
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sSB84 / File No. 704 75

services that are (A) furnished to an outpatient; (B) furnished by or 2355
under the direction of a physician or dentist; and (C) furnished by a 2356
hospital; 2357
(17) "Payer discounts" means the difference between a health care 2358
provider's published charges and the payments received by the health 2359
care provider from one or more health care payers for a rate or method 2360
of payment that is different than or discounted from such published 2361
charges. "Payer discounts" does not include charity care or bad debts; 2362
(18) "Received" means "received" or "accrued", construed according 2363
to the method of accounting customarily employed by the taxpayer; and 2364
(19) "Taxpayer" means any hospital subject to tax under section 35 of 2365
this act. 2366
Sec. 35. (NEW) ( Effective July 1, 2026 ) (a) (1) (A) For each calendar 2367
quarter commencing on or after July 1, 2026, each hospital shall pay a 2368
tax on the total net revenue received by such hospital for (i) the 2369
provision of inpatient hospital services, and (ii) the provision of 2370
outpatient hospital services. 2371
(B) On and after July 1, 2026, and prior to July 1, 2031, the rate of tax 2372
for the provision of inpatient hospital services shall be four per cent of 2373
each hospital's audited net revenue for federal fiscal year 2024 2374
attributable to inpatient hospital services, for each hospital that is 2375
required to pay the tax. Such rate shall apply for state fiscal years 2376
commencing on or after July 1, 2031, unless modified through any 2377
provision of the general statutes. 2378
(C) (i) On and after July 1, 2026, the rate of tax for the provision of 2379
outpatient hospital services shall be the percentages specified as follows 2380
applied to the audited net revenue for federal fiscal year 2024 2381
attributable to outpatient hospital services, for each hospital that is 2382
required to pay the tax: 2383
(I) For the state fiscal year commencing July 1, 2026, seven and eight 2384
thousand two hundred twenty-three ten-thousandths (7.8223) per cent; 2385
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sSB84 / File No. 704 76

(II) For the state fiscal year commencing July 1, 2027, eight and nine 2386
hundred seventy-three ten-thousandths (8.0973) per cent; 2387
(III) For the state fiscal year commencing July 1, 2028, eight and three 2388
thousand seven hundred ninety-nine ten-thousandths (8.3799) per cent; 2389
(IV) For the state fiscal year commencing July 1, 2029, eight and six 2390
thousand seven hundred four ten-thousandths (8.6704) per cent; and 2391
(V) For the state fiscal year commencing July 1, 2030, eight and nine 2392
thousand six hundred eighty-nine ten-thousandths (8.9689) per cent. 2393
(ii) The rate specified under clause (i)(V) of this subparagraph shall 2394
apply for state fiscal years commencing on or after July 1, 2031, unless 2395
modified through any provision of the general statutes. 2396
(D) If a hospital or hospitals subject to the taxes imposed under this 2397
subdivision merge, consolidate, are acquired or otherwise reorganize, 2398
the surviving hospital shall assume and be liable for the total taxes 2399
imposed under this subdivision on the merged, consolidated, acquired 2400
or reorganized hospitals, including any outstanding liabilities from 2401
periods prior to such merger, consolidation, acquisition or 2402
reorganization. 2403
(E) (i) For each state fiscal year commencing on or after July 1, 2026, 2404
if the Commissioner of Social Services determines for any state fiscal 2405
year that the effective rate of tax for the tax imposed on net revenue for 2406
the provision of inpatient hospital services exceeds the rate permitted 2407
under the provisions of 42 CFR 433.68(f), as amended from time to time, 2408
the amount of tax collected that exceeds the permissible amount shall be 2409
refunded to hospitals, in proportion to the amount of net revenue for 2410
the provision of inpatient hospital services upon which the hospitals 2411
were taxed. The effective rate of tax shall be calculated by comparing 2412
the amount of tax paid by hospitals on net revenue for the provision of 2413
inpatient hospital services in a state fiscal year with the amount of net 2414
revenue received by hospitals subject to the tax for the provision of 2415
inpatient hospital services for the equivalent fiscal year. 2416
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sSB84 / File No. 704 77

(ii) Each hospital subject to the taxes imposed under this subdivision 2417
shall report to the Commissioner of Social Services, in the manner 2418
prescribed by and on forms provided by said commissioner, the amount 2419
of tax paid annually pursuant to this subsection by such hospital and 2420
the amount of net revenue received by such hospital for the provision 2421
of inpatient hospital services, in the state fiscal year commencing two 2422
years prior to each such reporting date. Not later than ninety days after 2423
said commissioner receives completed reports from all hospitals 2424
required to submit such reports, said commissioner shall notify the 2425
Commissioner of Revenue Services of the amount of any refund due 2426
each hospital to be in compliance with 42 CFR 433.68(f), as amended 2427
from time to time. Not later than thirty days after receiving such notice, 2428
the Commissioner of Revenue Services shall notify the Comptroller of 2429
the amount of each such refund and the Comptroller shall draw an order 2430
on the Treasurer for payment of each such refund. No interest shall be 2431
added to any refund issued pursuant to this subparagraph. 2432
(2) For each state fiscal year commencing on or after July 1, 2026, each 2433
hospital subject to the taxes imposed under subdivision (1) of this 2434
subsection shall pay the total amount due in four quarterly payments 2435
consistent with section 12 -263s of the general statutes, as amended by 2436
this act, with the first quarter commencing with the first day of each 2437
state fiscal year and the last quarter ending on the last day of each state 2438
fiscal year. Hospitals shall calculate the amount of tax due, in 2439
accordance with the provisions of subdivision (1) of this subsection, on 2440
forms prescribed by the commissioner. 2441
(3) (A) (i) Not later than July 31, 2026, each hospital required to pay 2442
tax on inpatient hospital services or outpatient hospital services shall 2443
submit to the commissioner such information as the commissioner 2444
requires in order to calculate the audited net inpatient revenue for 2445
federal fiscal year 2024 and the audited net outpatient revenue for 2446
federal fiscal year 2024 of each hospital subject to the tax. The amounts 2447
reported by each hospital shall be deemed accepted on July 1, 2026, 2448
provided the commissioner has not initiated an audit of the hospital 2449
before such first day. 2450
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sSB84 / File No. 704 78

(ii) If the commissioner initiates an audit of a hospital, such hospital 2451
shall comply with all additional requests by the commissioner for 2452
information necessary to enable the commissioner to fully audit the 2453
hospital within thirty days of the date the commissioner requests such 2454
information. The commissioner may extend such period upon request. 2455
(iii) The commissioner shall issue any notice setting forth additional 2456
audited net revenue not later than the first day of the state fiscal year. 2457
Such additional audited net revenue shall be final thirty days after the 2458
date such notice is mailed to the taxpayer, except for any amounts as to 2459
which the taxpayer files a written protest with the commissioner. If a 2460
protest is filed, the commissioner shall reconsider the additional audited 2461
net revenue and, if the taxpayer or the taxpayer's authorized 2462
representative has requested a hearing, shall grant or deny such hearing. 2463
The commissioner shall mail notice of the commissioner's determination 2464
to the taxpayer, which notice shall briefly set forth the commissioner's 2465
findings of fact and the basis of the commissioner's decision in each case 2466
decided adversely, in whole or in part, to the taxpayer. The 2467
commissioner's action on the taxpayer's protest shall be final upon the 2468
expiration of one month from the date the commissioner mails the notice 2469
of the commissioner's determination to the taxpayer, unless the 2470
taxpayer seeks judicial review of such determination within such 2471
period. 2472
(iv) If any protest or appeal is pending on the first day of the next 2473
succeeding state fiscal year, the amounts reported by the protesting or 2474
appealing taxpayer shall be used to tentatively calculate the tax due 2475
under this section until such protest or appeal is finally resolved. If any 2476
amount is revised pursuant to such protest or appeal from the amount 2477
originally reported by a hospital, the commissioner shall recalculate for 2478
each hospital the amounts due under this section and shall issue 2479
assessments or refunds, as applicable, with respect to any affected 2480
calendar quarter. 2481
(v) A notice under this subparagraph shall not be required for any 2482
hospital for which an audit has not been issued. 2483
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sSB84 / File No. 704 79

(B) Any hospital that fails to provide the requested information by 2484
the date specified in subparagraph (A) of this subdivision or fails to 2485
comply with a request for additional information made under this 2486
subdivision shall be subject to a penalty of one thousand dollars per day 2487
for each day the hospital fails to provide the requested information or 2488
additional information. 2489
(C) The commissioner may engage an independent auditor to assist 2490
in the performance of the commissioner's duties and responsibilities 2491
under this subdivision. 2492
(4) Net revenue derived from providing a health care item or service 2493
to a patient shall be taxed only one time under this section. 2494
(5) For purposes of this section, if a hospital's audited financial 2495
statements for federal fiscal year 2024 do not report revenue for the 2496
entire fiscal year, such hospital's audited net revenue for federal fiscal 2497
year 2024 shall be calculated by projecting the amount of revenue such 2498
hospital would have received for the entire fiscal year based 2499
proportionally on the audited net revenue reported on its audited 2500
financial statements or through review of the hospital's financial filings 2501
with the Office of Health Strategy. 2502
(6) Audited net inpatient revenue and audited net outpatient revenue 2503
shall be based on information provided by each hospital required to pay 2504
tax on inpatient hospital services or outpatient hospital services. 2505
(b) (1) (A) The Commissioner of Social Services shall seek approval 2506
from the Centers for Medicare and Medicaid Services to exempt from 2507
the net revenue tax imposed under subsection (a) of this section the 2508
following: (i) Specialty hospitals; and (ii) hospitals owned and operated 2509
exclusively by the state other than a short -term general hospital 2510
operated by the state as a receiver pursuant to chapter 920 of the general 2511
statutes. Any hospital for which the Centers for Medicare and Medicaid 2512
Services grants an exemption shall be exempt from the taxes imposed 2513
under subsection (a) of this section. Any hospital for which the Centers 2514
for Medicare and Medicaid Services denies an exemption shall be 2515
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sSB84 / File No. 704 80

deemed to be a hospital for purposes of this section and shall be 2516
required to pay the taxes imposed under subsection (a) of this section 2517
on inpatient hospital services and outpatient hospital services at the 2518
same effective rates set forth in subsection (a) of this section. 2519
(B) Each hospital shall provide to the Commissioner of Social 2520
Services, upon request, such information as said commissioner may 2521
require to make any computations necessary to seek approval for 2522
exemption under this subdivision. 2523
(C) As used in this subdivision, "specialty hospital" means a health 2524
care facility, as defined in section 19a -630 of the general statutes, other 2525
than a facility licensed by the Department of Public Health as a short -2526
term general hospital or a short -term children's hospital. "Specialty 2527
hospital" includes, but is not limited to, a psychiatric hospital or a 2528
chronic disease hospital. 2529
(2) (A) For each state fiscal year commencing on or after July 1, 2026, 2530
the Commissioner of Social Services shall seek approval from the 2531
Centers for Medicare and Medicaid Services to exempt sole community 2532
hospitals from the net revenue tax imposed on outpatient hospital 2533
services. Any such hospital for which the Centers for Medicare and 2534
Medicaid Services grants an exemption shall be exempt from the net 2535
revenue tax imposed on outpatient hospital services under subsection 2536
(a) of this section. Any hospital for which the Centers for Medicare and 2537
Medicaid Services denies an exemption shall be required to pay the net 2538
revenue tax imposed on outpatient hospital services under subsection 2539
(a) of this section. 2540
(B) For purposes of this subdivision, "sole community hospital" 2541
means a hospital that is classified by the Centers for Medicare and 2542
Medicaid Services for purposes of Medicare as a sole community 2543
hospital under 42 CFR 412.92. Upon said commissioner's receipt of a 2544
determination by the Centers for Medicare and Medicaid Services that 2545
a hospital is not exempt, the total audited net revenue from the 2546
provision of outpatient hospital services for federal fiscal year 2024 shall 2547
be increased by such hospital's audited net revenue from the provision 2548
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sSB84 / File No. 704 81

of outpatient hospital services for federal fiscal year 2024 and the 2549
effective rate of the tax due under this section shall be adjusted to ensure 2550
that the total amount of such tax to be collected under subsection (a) of 2551
this section is redistributed, commencing with the calendar quarter next 2552
succeeding the date of the determination by the Centers for Medicare 2553
and Medicaid Services. 2554
(3) Upon receipt of a determination by the Centers for Medicare and 2555
Medicaid Services under this subsection that a hospital is not exempt, 2556
said commissioner shall notify all hospitals subject to the taxes under 2557
subsection (a) of this section of such determination, the corresponding 2558
increase to the total audited net revenue for federal fiscal year 2024 and 2559
the change in any effective rate of the taxes to be collected under 2560
subsection (a) of this section. Such notice shall be provided prior to the 2561
end of the calendar quarter next succeeding the date of the 2562
determination by the Centers for Medicare and Medicaid Services. If a 2563
state fiscal year has commenced when such determination is made, the 2564
adjusted audited net revenue for federal fiscal year 2024 and the change 2565
in any effective rate of the tax to be collected under subsection (a) of this 2566
section shall be prorated to take into account the amount of the tax 2567
already paid during the state fiscal year. 2568
(4) The provisions of section 17b -8 of the general statutes shall not 2569
apply to any exemption or exemptions sought by the Commissioner of 2570
Social Services from the Centers for Medicare and Medicaid Services 2571
under this subsection. 2572
(c) The commissioner shall issue guidance regarding the 2573
administration of the tax on inpatient hospital services and outpatient 2574
hospital services. Such guidance shall be issued upon completion of a 2575
study of the applicable federal law governing the administration of tax 2576
on inpatient hospital services and outpatient hospital services. The 2577
commissioner shall conduct such study in collaboration with the 2578
Commissioner of Social Services, the Secretary of the Office of Policy 2579
and Management, the Connecticut Hospital Association and the 2580
hospitals subject to the tax imposed on inpatient hospital services and 2581
sSB84 File No. 704

sSB84 / File No. 704 82

outpatient hospital services. 2582
(d) (1) The commissioner shall determine, in consultation with the 2583
Commissioner of Social Services, the Secretary of the Office of Policy 2584
and Management, the Connecticut Hospital Association and the 2585
hospitals subject to the tax imposed on inpatient hospital services and 2586
outpatient hospital services, if there is any underreporting of revenue 2587
on hospitals' audited financial statements. Such consultation shall only 2588
be as authorized under section 12 -15 of the general statutes. The 2589
commissioner shall issue guidance, if necessary, to address any such 2590
underreporting. 2591
(2) If the commissioner determines, in accordance with this 2592
subsection, that a hospital underreported net revenue on its audited 2593
financial statements or on its financial filings submitted to the Office of 2594
Health Strategy, the amount of underreported net revenue shall be 2595
added to the amount of net revenue reported on such hospital's audited 2596
financial statements or financial filings so as to comply with federal law 2597
and the revised net revenue amount shall be used for purposes of 2598
calculating the amount of tax owed by such hospital under this section. 2599
For purposes of this subsection, "underreported net revenue" means any 2600
revenue of a hospital subject to the tax imposed under this section that 2601
is required to be included in net revenue from the provision of inpatient 2602
hospital services and net revenue from the provision of outpatient 2603
hospital services to comply with 42 CFR 433.56, as amended from time 2604
to time, 42 CFR 433.68, as amended from time to time, and Section 2605
1903(w) of the Social Security Act, as amended from time to time, but 2606
that was not reported on such hospital's audited financial statements of 2607
financial filings. Underreported net revenue shall only include revenue 2608
of the hospital subject to such tax. 2609
(e) On or before November 15, 2026, and quarterly thereafter, the 2610
commissioner shall report to the Commissioner of Social Services and 2611
the Secretary of the Office of Policy and Management the amount of tax 2612
paid under this section by each hospital for the most recently completed 2613
calendar quarter and the amount of any delinquent tax, plus penalty 2614
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sSB84 / File No. 704 83

and interest thereon, owed by a hospital and due under this section. 2615
(f) Nothing in this section shall affect the commissioner's obligations 2616
under section 12 -15 of the general statutes regarding disclosure and 2617
inspection of returns and return information. 2618
Sec. 36. Section 12-263s of the 2026 supplement to the general statutes 2619
is repealed and the following is substituted in lieu thereof (Effective July 2620
1, 2026): 2621
(a) No tax credit or credits shall be allowable against any tax or fee 2622
imposed under section 12-263q, as amended by this act, [or] 12-263r or 2623
section 35 of this act . Notwithstanding any other provision of the 2624
general statutes, any health care provider that has been assigned tax 2625
credits under section 32 -9t for application against the taxes imposed 2626
under chapter 211a may further assign such tax credits to another 2627
taxpayer or taxpayers one time, provided such other taxpayer or 2628
taxpayers may claim such credit only with respect to a taxable year for 2629
which the assigning health care provider would have been eligible to 2630
claim such credit and such other taxpayer or taxpayers may not further 2631
assign such credit. The assigning health care provider shall file with the 2632
commissioner information requested by the commissioner regarding 2633
such assignments, including but not limited to, the current holders of 2634
credits as of the end of the preceding calendar year. 2635
(b) (1) Each taxpayer doing business in this state shall, on or before 2636
the last day of January, April, July and October of each year, render to 2637
the commissioner a quarterly return, on forms prescribed or furnished 2638
by the commissioner and signed by one of the taxpayer's principal 2639
officers, stating specifically the name and location of such taxpayer, the 2640
amount of its net patient revenue or resident days during the calendar 2641
quarter ending on the last day of the preceding month and such other 2642
information as the commissioner deems necessary for the proper 2643
administration of this section and the state's Medicaid program. Except 2644
as provided in subdivision (2) of this subsection, the taxes and fees 2645
imposed under section 12-263q, as amended by this act, [or] 12-263r or 2646
section 35 of this act shall be due and payable on the due date of such 2647
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sSB84 / File No. 704 84

return. Each taxpayer shall be required to file such return electronically 2648
with the department and to make such payment by electronic funds 2649
transfer in the manner provided by chapter 228g, irrespective of 2650
whether the taxpayer would have otherwise been required to file such 2651
return electronically or to make such payment by electronic funds 2652
transfer under the provisions of said chapter. 2653
(2) (A) A taxpayer may file, on or before the due date of a payment of 2654
tax or fee imposed under section 12 -263q, as amended by this act, [or] 2655
12-263r or section 35 of this act , a request for a reasonable extension of 2656
time for such payment for reasons of undue hardship. Undue hardship 2657
shall be demonstrated by a showing that such taxpayer is at substantial 2658
risk of defaulting on a bond covenant or similar obligation if such 2659
taxpayer were to make payment on the due date of the amount for 2660
which the extension is requested. Such request shall be filed on forms 2661
prescribed by the commissioner and shall include complete information 2662
of such taxpayer's inability, due to undue hardship, to make payment of 2663
the tax or fee on or before the due date of such payment. The 2664
commissioner shall not grant any extension for a general statement of 2665
hardship by the taxpayer or for the convenience of the taxpayer. 2666
(B) The commissioner may grant an extension if the commissioner 2667
determines an undue hardship exists. Such extension shall not exceed 2668
three months from the original due date of the payment, except that the 2669
commissioner may grant an additional extension not exceeding three 2670
months from the initial extended due date of the payment (i) upon the 2671
filing of a subsequent request by the taxpayer on or before the extended 2672
due date of the payment, on forms prescribed by the commissioner, and 2673
(ii) upon a showing of extraordinary circumstances, as determined by 2674
the commissioner. 2675
(3) If the commissioner grants an extension pursuant to subdivision 2676
(2) of this subsection, no penalty shall be imposed and no interest shall 2677
accrue during the period of time for which an extension is granted if the 2678
taxpayer pays the tax or fee due on or before the extended due date of 2679
the payment. If the taxpayer does not pay such tax or fee by the extended 2680
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sSB84 / File No. 704 85

due date, a penalty shall be imposed in accordance with subsection (c) 2681
of this section and interest shall begin to accrue at a rate of one per cent 2682
per month for each month or fraction thereof from the extended due 2683
date of such tax or fee until the date of payment. 2684
(c) (1) Except as provided in subdivision (2) of subsection (b) of this 2685
section, if any taxpayer fails to pay the amount of tax or fee reported to 2686
be due on such taxpayer's return within the time specified under the 2687
provisions of this section, there shall be imposed a penalty equal to ten 2688
per cent of such amount due and unpaid, or fifty dollars, whichever is 2689
greater. The tax or fee shall bear interest at the rate of one per cent per 2690
month or fraction thereof, from the due date of such tax or fee until the 2691
date of payment. 2692
(2) If any taxpayer has not made its return within one month of the 2693
due date of such return, the commissioner may make such return at any 2694
time thereafter, according to the best information obtainable and 2695
according to the form prescribed. There shall be added to the tax or fee 2696
imposed upon the basis of such return an amount equal to ten per cent 2697
of such tax or fee, or fifty dollars, whichever is greater. The tax or fee 2698
shall bear interest at the rate of one per cent per month or fraction 2699
thereof, from the due date of such tax or fee until the date of payment. 2700
(3) Subject to the provisions of section 12 -3a, the commissioner may 2701
waive all or part of the penalties provided under this subsection when 2702
it is proven to the commissioner's satisfaction that the failure to pay any 2703
tax or fee on time was due to reasonable cause and was not intentional 2704
or due to neglect. 2705
(4) The commissioner shall notify the Commissioner of Social 2706
Services of any amount delinquent under this section and, upon receipt 2707
of such notice, the Commissioner of Social Services shall deduct and 2708
withhold such amount from amounts otherwise payable by the 2709
Department of Social Services to the delinquent taxpayer. 2710
(d) (1) Any person required under sections 12 -263q to 12 -263v, 2711
inclusive, as amended by this act, or section 35 of this act, to pay any tax 2712
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sSB84 / File No. 704 86

or fee, make a return, keep any records or supply any information, who 2713
wilfully fails, at the time required by law, to pay such tax or fee, make 2714
such return, keep such records or supply such information, shall, in 2715
addition to any other penalty provided by law, be fined not more than 2716
one thousand dollars or imprisoned not more than one year, or both. As 2717
used in this subsection, "person" includes any officer or employee of a 2718
taxpayer under a duty to pay such tax or fee, make such return, keep 2719
such records or supply such information. Notwithstanding the 2720
provisions of section 54 -193, no person shall be prosecuted for a 2721
violation of the provisions of this subsection committed on or after July 2722
1, 1997, except within three years next after such violation has been 2723
committed. 2724
(2) Any person who wilfully delivers or discloses to the commissioner 2725
or the commissioner's authorized agent any list, return, account, 2726
statement or other document, known by such person to be fraudulent 2727
or false in any material matter, shall, in addition to any other penalty 2728
provided by law, be guilty of a class D felony. No person shall be 2729
charged with an offense under both this subdivision and subdivision (1) 2730
of this subsection in relation to the same tax period but such person may 2731
be charged and prosecuted for both such offenses upon the same 2732
information. 2733
Sec. 37. Section 12 -263aa of the 2026 supplement to the general 2734
statutes is repealed and the following is substituted in lieu thereof 2735
(Effective July 1, 2026): 2736
(a) For the state fiscal years ending June 30, 2020, through June 30, 2737
2026, the tax imposed under section 12-263q, as amended by this act, on 2738
the provision of inpatient hospital services and outpatient hospital 2739
services shall cease to be imposed if the Centers for Medicare and 2740
Medicaid Services (1) determines that such tax is an impermissible tax 2741
under Section 1903(w) of the Social Security Act, as amended from time 2742
to time, or (2) does not approve the applicable Medicaid state plan 2743
amendments necessary for the state to receive federal financial 2744
participation under the Medicaid program for the payments set forth in 2745
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sSB84 / File No. 704 87

subsection (i) of section 17b -239 and subsection (c) of section 17b -239e. 2746
In the event of such a determination or disapproval, the General 2747
Assembly shall consider, during the next occurring regular or special 2748
session, whichever is sooner, such amendments to the general statutes 2749
as are necessary to comply with federal law regarding such tax. 2750
(b) For state fiscal years commencing on or after July 1, 2026, the taxes 2751
imposed under subsection (a) of section 35 of this act shall revert to the 2752
tax set forth in section 12 -263q of the general statutes, revision of 1958, 2753
revised to January 1, 2025, if the Centers for Medicare and Medicaid 2754
Services determines that either tax under subsection (a) of section 35 of 2755
this act is an impermissible tax under Section 1903(w) of the Social 2756
Security Act, as amended from time to time, declines to issue any tax 2757
waiver that may be required or finds any aspect of the taxes imposed 2758
under section 35 of this act to be invalid. In the event of such an 2759
occurrence, the General Assembly shall consider, during the next 2760
occurring regular or special session, whichever is sooner, such 2761
amendments to the general statutes as are necessary to comply with 2762
federal law regarding such taxes. 2763
Sec. 38. Section 12-263q of the 2026 supplement to the general statutes 2764
is repealed and the following is substituted in lieu thereof (Effective July 2765
1, 2026): 2766
(a) (1) For each calendar quarter commencing on or after July 1, 2017, 2767
and prior to July 1, 2026, each hospital shall pay a tax on the total net 2768
revenue received by such hospital for the provision of inpatient hospital 2769
services and outpatient hospital services. 2770
(A) On and after July 1, 2017, through June 30, 2026, the rate of tax for 2771
the provision of inpatient hospital services shall be six per cent of each 2772
hospital's audited net revenue for fiscal year 2016 attributable to 2773
inpatient hospital services. [Such rate shall apply for fiscal years 2774
commencing on or after July 1, 2026, unless modified through any 2775
provision of the general statutes.] 2776
(B) (i) On and after July 1, 2017, and prior to July 1, 2019, the rate of 2777
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sSB84 / File No. 704 88

tax for the provision of outpatient hospital services shall be nine 2778
hundred million dollars less the total tax imposed on all hospitals for 2779
the provision of inpatient hospital services, which sum shall be divided 2780
by the total audited net revenue for fiscal year 2016 attributable to 2781
outpatient hospital services, of all hospitals that are required to pay such 2782
tax, resulting in an effective rate of twelve and three thousand three 2783
hundred twenty -five ten thousandths (12.3325) per cent of each 2784
hospital's audited net revenue for fiscal year 2016 attributable to 2785
outpatient hospital services. 2786
(ii) On and after July 1, 2019, and prior to July 1, 2020, the rate of tax 2787
for the provision of outpatient hospital services shall be eight hundred 2788
ninety million dollars less the total tax imposed on all hospitals for the 2789
provision of inpatient hospital services, which sum shall be divided by 2790
the total audited net revenue for fiscal year 2016 attributable to 2791
outpatient hospital services, of all hospitals that are required to pay such 2792
tax, resulting in an effective rate of twelve and nine hundred forty -two 2793
ten thousandths (12.0942) per cent of each hospital's audited net revenue 2794
for fiscal year 2016 attributable to outpatient hospital services, subject to 2795
any hospital dissolutions or cessation of operations pursuant to 2796
subparagraph (D) of this subdivision or disallowed exemptions 2797
pursuant to subsections (b) and (c) of this section. 2798
(iii) On and after July 1, 2020, and prior to July 1, 2021, the rate of tax 2799
for the provision of outpatient hospital services shall be eight hundred 2800
eighty-two million dollars less the total tax imposed on all hospitals for 2801
the provision of inpatient hospital services, which sum shall be divided 2802
by the total audited net revenue for fiscal year 2016 attributable to 2803
outpatient hospital services, of all hospitals that are required to pay such 2804
tax, resulting in an effective rate of eleven and seven thousand five 2805
hundred three ten thousandths (11.7503) per cent of each hospital's 2806
audited net revenue for fiscal year 2016 attributable to outpatient 2807
hospital services, subject to any hospital dissolutions or cessation of 2808
operations pursuant to subparagraph (D) of this subdivision or 2809
disallowed exemptions pursuant to subsections (b) and (c) of this 2810
section. 2811
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sSB84 / File No. 704 89

(iv) On and after July 1, 2021, and prior to July 1, 2025, the rate of tax 2812
for the provision of outpatient hospital services shall be eight hundred 2813
fifty million dollars less the total tax imposed on all hospitals for the 2814
provision of inpatient hospital services, which sum shall be divided by 2815
the total audited net revenue for fiscal year 2016 attributable to 2816
outpatient hospital services, of all hospitals that are required to pay such 2817
tax, resulting in an effective rate of eleven and nine hundred seventy-six 2818
ten thousandths (11.0976) per cent of each hospital's audited net revenue 2819
for fiscal year 2016 attributable to outpatient hospital services, subject to 2820
any hospital dissolutions or cessation of operations pursuant to 2821
subparagraph (D) of this subdivision or disallowed exemptions 2822
pursuant to subsections (b) and (c) of this section. 2823
(v) On and after July 1, 2025, and prior to July 1, 2026, the rate of tax 2824
for the provision of outpatient hospital services shall be eight hundred 2825
twenty million dollars less the total tax imposed on all hospitals for the 2826
provision of inpatient hospital services, which sum shall be divided by 2827
the total audited net revenue for fiscal year 2016 attributable to 2828
outpatient hospital services, of all hospitals that are required to pay such 2829
tax, resulting in an effective rate of ten and four thousand eight hundred 2830
fifty-eight ten thousandths (10.4858) per cent of each hospital's audited 2831
net revenue for fiscal year 2016 attributable to outpatient hospital 2832
services, subject to any hospital dissolutions or cessation of operations 2833
pursuant to subparagraph (D) of this subdivision or disallowed 2834
exemptions pursuant to subsections (b) and (c) of this section. The rate 2835
set forth in this clause shall apply for fiscal years commencing on or after 2836
July 1, 2026, unless modified through any provision of the general 2837
statutes. 2838
(C) (i) For each state fiscal year commencing on or after July 1, 2019, 2839
and prior to July 1, 2026, the total audited net revenue for fiscal year 2840
2016 attributable to inpatient hospital services, of all hospitals that are 2841
required to pay the tax under this section shall be five billion ninety -2842
seven million eight hundred twenty thousand one hundred ninety -2843
seven dollars, subject to any hospital dissolutions or cessation of 2844
operations pursuant to subparagraph (D) of this subdivision or 2845
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sSB84 / File No. 704 90

disallowed exemptions pursuant to subsections (b) and (c) of this 2846
section. 2847
(ii) (I) For the state fiscal year commencing on or after July 1, 2019, 2848
and prior to July 1, 2020, the total audited net revenue for fiscal year 2849
2016 attributable to outpatient hospital services, of all hospitals that are 2850
required to pay the tax under this section shall be four billion eight 2851
hundred twenty-nine million eight hundred fifty -nine thousand three 2852
hundred ninety -nine dollars, subject to any hospital dissolutions or 2853
cessation of operations pursuant to subparagraph (D) of this 2854
subdivision or disallowed exemptions pursuant to subsections (b) and 2855
(c) of this section. 2856
(II) For each state fiscal year commencing on or after July 1, 2020, the 2857
total audited net revenue for fiscal year 2016 attributable to outpatient 2858
hospital services, of all hospitals that are required to pay the tax under 2859
this section shall be four billion nine hundred three million one hundred 2860
twenty-seven thousand one hundred thirty-three dollars, subject to any 2861
hospital dissolutions or cessation of operations pursuant to 2862
subparagraph (D) of this subdivision or disallowed exemptions 2863
pursuant to subsections (b) and (c) of this section. 2864
(D) (i) If a hospital or hospitals subject to the tax imposed under this 2865
subdivision merge, consolidate, are acquired or otherwise reorganize, 2866
the surviving hospital shall assume and be liable for the total tax 2867
imposed under this subdivision on the merged, consolidated, acquired 2868
or reorganized hospitals, including any outstanding liabilities from 2869
periods prior to such merger, consolidation, acquisition or 2870
reorganization. 2871
(ii) If a hospital ceases to operate as a hospital for any reason other 2872
than a merger, consolidation, acquisition or reorganization, or ceases for 2873
any reason to be subject to the tax imposed under this subdivision, the 2874
amount of tax due from each taxpayer under this subdivision shall not 2875
be recalculated to take into account such occurrence for the state fiscal 2876
year in which the hospital dissolves or ceases to operate. The amount of 2877
tax that would be due from the dissolved hospital after its dissolution 2878
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sSB84 / File No. 704 91

or cessation of operations shall not be collected by the commissioner for 2879
the state fiscal year in which such hospital dissolves or ceases to operate. 2880
In the next succeeding state fiscal year after the hospital dissolves or 2881
ceases to operate and in each subsequent state fiscal year, the total 2882
audited net revenue for fiscal year 2016 shall be reduced by such 2883
hospital's audited net revenue for fiscal year 2016 and the effective rate 2884
of the tax due under this section shall be adjusted to ensure that the total 2885
amount of such tax to be collected under subparagraphs (A) and (B) of 2886
this subdivision is redistributed among the surviving hospitals in 2887
proportion to the reduced total audited net revenue for fiscal year 2016 2888
attributable to inpatient hospital services and outpatient hospital 2889
services, of all hospitals. 2890
[(E) (i) For each state fiscal year commencing on or after July 1, 2026, 2891
if the Commissioner of Social Services determines for any fiscal year that 2892
the effective rate of tax for the tax imposed on net revenue for the 2893
provision of inpatient hospital services exceeds the rate permitted under 2894
the provisions of 42 CFR 433.68(f), as amended from time to time, the 2895
amount of tax collected that exceeds the permissible amount shall be 2896
refunded to hospitals, in proportion to the amount of net revenue for 2897
the provision of inpatient hospital services upon which the hospitals 2898
were taxed. The effective rate of tax shall be calculated by comparing 2899
the amount of tax paid by hospitals on net revenue for the provision of 2900
inpatient hospital services in a state fiscal year with the amount of net 2901
revenue received by hospitals subject to the tax for the provision of 2902
inpatient hospital services for the equivalent fiscal year.] 2903
[(ii)] (E) On or before July 1, 2026, [and annually thereafter, ] each 2904
hospital subject to the tax imposed under this subdivision shall report 2905
to the Commissioner of Social Services, in the manner prescribed by and 2906
on forms provided by said commissioner, the amount of tax paid 2907
pursuant to this subsection by such hospital and the amount of net 2908
revenue received by such hospital for the provision of inpatient hospital 2909
services, in the state fiscal year commencing two years prior to each such 2910
reporting date. Not later than ninety days after said commissioner 2911
receives completed reports from all hospitals required to submit such 2912
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sSB84 / File No. 704 92

reports, said commissioner shall notify the Commissioner of Revenue 2913
Services of the amount of any refund due each hospital to be in 2914
compliance with 42 CFR 433.68(f), as amended from time to time. Not 2915
later than thirty days after receiving such notice, the Commissioner of 2916
Revenue Services shall notify the Comptroller of the amount of each 2917
such refund and the Comptroller shall draw an order on the Treasurer 2918
for payment of each such refund. No interest shall be added to any 2919
refund issued pursuant to this subparagraph. 2920
(2) Except as provided in subdivision (3) of this subsection, each 2921
hospital subject to the tax imposed under subdivision (1) of this 2922
subsection shall be required to pay the total amount due in four 2923
quarterly payments consistent with section 12-263s, as amended by this 2924
act, with the first quarter commencing with the first day of each state 2925
fiscal year and the last quarter ending on the last day of each state fiscal 2926
year. Hospitals shall make all payments required under this subsection 2927
in accordance with procedures established by and on forms provided 2928
by the commissioner. 2929
(3) (A) For the state fiscal year commencing July 1, 2017, each hospital 2930
required to pay tax on inpatient hospital services or outpatient hospital 2931
services shall make an estimated tax payment on December 15, 2017, 2932
which estimated payment shall be equal to one hundred thirty-three per 2933
cent of the tax due under chapter 211a for the period ending June 30, 2934
2017. If a hospital was not required to pay tax under chapter 211a on 2935
either inpatient hospital services or outpatient hospital services, such 2936
hospital shall make its estimated payment based on its unaudited net 2937
patient revenue. 2938
(B) Each hospital required to pay tax pursuant to this subdivision on 2939
inpatient hospital services or outpatient hospital services shall pay the 2940
remaining balance determined to be due in two equal payments, which 2941
shall be due on April 30, 2018, and July 31, 2018, respectively. 2942
(C) (i) For each state fiscal year commencing on or after July 1, 2017, 2943
and prior to July 1, 2026, each hospital required to pay tax on inpatient 2944
hospital services or outpatient hospital services shall calculate the 2945
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sSB84 / File No. 704 93

amount of tax due on forms prescribed by the commissioner by 2946
multiplying the applicable rate set forth in subdivision (1) of this 2947
subsection by its audited net revenue for fiscal year 2016. 2948
(ii) For the state fiscal year commencing July 1, 2019, the payment 2949
made for the period ending September 30, 2019, by each hospital 2950
required to pay tax on inpatient hospital services or outpatient hospital 2951
services shall be considered an estimated payment for purposes of the 2952
tax due for said state fiscal year. Each hospital required to pay the tax 2953
under this section on inpatient hospital services or outpatient hospital 2954
services shall pay the remaining balance due in three equal payments, 2955
which shall be due on January 31, 2020, April 30, 2020, and July 31, 2020, 2956
respectively. 2957
(D) The commissioner shall apply any payment made by a hospital 2958
in connection with the tax under chapter 211a for the period ending 2959
September 30, 2017, as a partial payment of such hospital's estimated tax 2960
payment due on December 15, 2017, under subparagraph (A) of this 2961
subdivision. The commissioner shall return to a hospital any credit 2962
claimed by such hospital in connection with the tax imposed under 2963
chapter 211a for the period ending September 30, 2017, for assignment 2964
as provided under section 12-263s, as amended by this act. 2965
(4) (A) Each hospital required to pay tax on inpatient hospital services 2966
or outpatient hospital services under this subsection shall submit to the 2967
commissioner such information as the commissioner requires in order 2968
to calculate the audited net inpatient revenue for fiscal year 2016, the 2969
audited net outpatient revenue for fiscal year 2016 and the audited net 2970
revenue for fiscal year 2016 of all such health care providers. Such 2971
information shall be provided to the commissioner not later than 2972
January 1, 2018. The commissioner shall make additional requests for 2973
information as necessary to fully audit each hospital's net revenue. 2974
Upon completion of the commissioner's examination, the commissioner 2975
shall notify, prior to February 28, 2018, each hospital of its audited net 2976
inpatient revenue for fiscal year 2016, audited net outpatient revenue for 2977
fiscal year 2016 and audited net revenue for fiscal year 2016. 2978
sSB84 File No. 704

sSB84 / File No. 704 94

(B) Any hospital that fails to provide the requested information by 2979
the dates specified in subparagraph (A) of this subdivision or fails to 2980
comply with a request for additional information made under this 2981
subdivision shall be subject to a penalty of one thousand dollars per day 2982
for each day the hospital fails to provide the requested information or 2983
additional information. 2984
(C) The commissioner may engage an independent auditor to assist 2985
in the performance of the commissioner's duties and responsibilities 2986
under this subdivision. 2987
(5) Net revenue derived from providing a health care item or service 2988
to a patient shall be taxed only one time under this section. 2989
(6) (A) For purposes of this section: 2990
(i) "Audited net inpatient revenue for fiscal year 2016" means the 2991
amount of revenue that the commissioner determines, in accordance 2992
with federal law, that a hospital received for the provision of inpatient 2993
hospital services during the 2016 federal fiscal year; 2994
(ii) "Audited net outpatient revenue for fiscal year 2016" means the 2995
amount of revenue that the commissioner determines, in accordance 2996
with federal law, that a hospital received for the provision of outpatient 2997
hospital services during the 2016 federal fiscal year; and 2998
(iii) "Audited net revenue for fiscal year 2016" means net revenue, as 2999
reported in each hospital's audited financial statements, less the amount 3000
of revenue that the commissioner determines, in accordance with 3001
federal law, that a hospital received from other than the provision of 3002
inpatient hospital services and outpatient hospital services. The total 3003
audited net revenue for fiscal year 2016 shall be the sum of all audited 3004
net revenue for the 2016 fiscal year for all hospitals required to pay tax 3005
on inpatient hospital services and outpatient hospital services. 3006
(B) For purposes of this section, if a hospital's audited financial 3007
statements for fiscal year 2016 does not report revenue for the entire 3008
fiscal year, such hospital's audited net revenue for fiscal year 2016 shall 3009
sSB84 File No. 704

sSB84 / File No. 704 95

be calculated by projecting the amount of revenue such hospital would 3010
have received for the entire fiscal year based proportionally on the 3011
audited net revenue reported on its audited financial statements. 3012
(C) Audited net inpatient revenue and audited net outpatient 3013
revenue shall be based on information provided by each hospital 3014
required to pay tax on inpatient hospital services or outpatient hospital 3015
services. 3016
(b) (1) The Commissioner of Social Services shall seek approval from 3017
the Centers for Medicare and Medicaid Services to exempt from the net 3018
revenue tax imposed under subsection (a) of this section the following: 3019
(A) Specialty hospitals; (B) children's general hospitals; and (C) 3020
hospitals operated exclusively by the state other than a short -term 3021
general hospital operated by the state as a receiver pursuant to chapter 3022
920. Any hospital for which the Centers for Medicare and Medicaid 3023
Services grants an exemption shall be exempt from the net revenue tax 3024
imposed under subsection (a) of this section. Any hospital for which the 3025
Centers for Medicare and Medicaid Services denies an exemption shall 3026
be deemed to be a hospital for purposes of this section and shall be 3027
required to pay the net revenue tax imposed under subsection (a) of this 3028
section on inpatient hospital services and outpatient hospital services at 3029
the same effective rates set forth in subsection (a) of this section. 3030
(2) Each hospital shall provide to the Commissioner of Social 3031
Services, upon request, such information as said commissioner may 3032
require to make any computations necessary to seek approval for 3033
exemption under this subsection. 3034
(3) As used in this subsection, (A) "specialty hospital" means a health 3035
care facility, as defined in section 19a -630, other than a facility licensed 3036
by the Department of Public Health as a short -term general hospital or 3037
a short-term children's hospital. "Specialty hospital" includes, but is not 3038
limited to, a psychiatric hospital or a chronic disease hospital, and (B) 3039
"children's general hospital" means a health care facility, as defined in 3040
section 19a-630, that is licensed by the Department of Public Health as a 3041
short-term children's hospital. "Children's general hospital" does not 3042
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sSB84 / File No. 704 96

include a specialty hospital. 3043
(c) (1) (A) For each state fiscal year commencing on or after July 1, 3044
2017, and prior to July 1, 2020, the Commissioner of Social Services shall 3045
seek approval from the Centers for Medicare and Medicaid Services to 3046
exempt financially distressed hospitals from the net revenue tax 3047
imposed on outpatient hospital services. Any such hospital for which 3048
the Centers for Medicare and Medicaid Services grants an exemption 3049
shall be exempt from the net revenue tax imposed on outpatient hospital 3050
services under subsection (a) of this section. Any hospital for which the 3051
Centers for Medicare and Medicaid Services denies an exemption shall 3052
be required to pay the net revenue tax imposed on outpatient hospital 3053
services under subsection (a) of this section. 3054
(B) For purposes of this subdivision, "financially distressed hospital" 3055
means a hospital that has experienced over the five -year period from 3056
October 1, 2011, through September 30, 2016, an average net loss of more 3057
than five per cent of aggregate revenue. A hospital has an average net 3058
loss of more than five per cent of aggregate revenue if such a loss is 3059
reflected in the applicable years of financial reporting that have been 3060
made available by the Health Systems Planning Unit of the Office of 3061
Health Strategy for such hospital in accordance with section 19a -670. 3062
Upon said commissioner's receipt of a determination by the Centers for 3063
Medicare and Medicaid Services that a hospital is not exempt, the total 3064
audited net revenue from the provision of outpatient hospital services 3065
for fiscal year 2016 shall be increased by such hospital's audited net 3066
revenue from the provision of outpatient hospital services for fiscal year 3067
2016 and the effective rate of the tax due under this section shall be 3068
adjusted to ensure that the total amount of such tax to be collected under 3069
subsection (a) of this section is redistributed, commencing with the 3070
calendar quarter next succeeding the date of the determination by the 3071
Centers for Medicare and Medicaid Services. 3072
(2) (A) For each state fiscal year commencing on or after July 1, 2020, 3073
and prior to July 1, 2026, the Commissioner of Social Services shall seek 3074
approval from the Centers for Medicare and Medicaid Services to 3075
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sSB84 / File No. 704 97

exempt sole community hospitals from the net revenue tax imposed on 3076
outpatient hospital services. Any such hospital for which the Centers for 3077
Medicare and Medicaid Services grants an exemption shall be exempt 3078
from the net revenue tax imposed on outpatient hospital services under 3079
subsection (a) of this section. Any hospital for which the Centers for 3080
Medicare and Medicaid Services denies an exemption shall be required 3081
to pay the net revenue tax imposed on outpatient hospital services 3082
under subsection (a) of this section. 3083
(B) For purposes of this subdivision, "sole community hospital" 3084
means a hospital that is classified by the Centers for Medicare and 3085
Medicaid Services for purposes of Medicare as a sole community 3086
hospital under 42 CFR 412.92. Upon said commissioner's receipt of a 3087
determination by the Centers for Medicare and Medicaid Services that 3088
a hospital is not exempt, the total audited net revenue from the 3089
provision of outpatient hospital services for fiscal year 2016 shall be 3090
increased by such hospital's audited net revenue from the provision of 3091
outpatient hospital services for fiscal year 2016 and the effective rate of 3092
the tax due under this section shall be adjusted to ensure that the total 3093
amount of such tax to be collected under subsection (a) of this section is 3094
redistributed, commencing with the calendar quarter next succeeding 3095
the date of the determination by the Centers for Medicare and Medicaid 3096
Services. 3097
(3) Upon receipt of a determination by the Centers for Medicare and 3098
Medicaid Services under this subsection that a hospital is not exempt, 3099
said commissioner shall notify all hospitals subject to the tax under this 3100
section of such determination, the corresponding increase to the total 3101
audited net revenue for fiscal year 2016 and the change in any effective 3102
rate of the tax to be collected under subsection (a) of this section through 3103
the state fiscal year 2026. Such notice shall be provided prior to the end 3104
of the calendar quarter next succeeding the date of the determination by 3105
the Centers for Medicare and Medicaid Services. If a state fiscal year has 3106
commenced when such determination is made, the adjusted audited net 3107
revenue for fiscal year 2016 and the change in any effective rate of the 3108
tax to be collected under subsection (a) of this section shall be prorated 3109
sSB84 File No. 704

sSB84 / File No. 704 98

to take into account the amount of the tax already paid during the 3110
applicable state fiscal year. 3111
(d) The commissioner shall issue guidance regarding the 3112
administration of the tax on inpatient hospital services and outpatient 3113
hospital services under subsection (a) of this section . Such guidance 3114
shall be issued upon completion of a study of the applicable federal law 3115
governing the administration of tax on inpatient hospital services and 3116
outpatient hospital services. The commissioner shall conduct such study 3117
in collaboration with the Commissioner of Social Services, the Secretary 3118
of the Office of Policy and Management, the Connecticut Hospital 3119
Association and the hospitals subject to the tax imposed on inpatient 3120
hospital services and outpatient hospital services. 3121
(e) (1) The commissioner shall determine, in consultation with the 3122
Commissioner of Social Services, the Secretary of the Office of Policy 3123
and Management, the Connecticut Hospital Association and the 3124
hospitals subject to the tax imposed on inpatient hospital services and 3125
outpatient hospital services under subsection (a) of this section, if there 3126
is any underreporting of revenue on hospitals' audited financial 3127
statements. Such consultation shall only be as authorized under section 3128
12-15. The commissioner shall issue guidance, if necessary, to address 3129
any such underreporting. 3130
(2) If the commissioner determines, in accordance with this 3131
subsection, that a hospital underreported net revenue on its audited 3132
financial statements, the amount of underreported net revenue shall be 3133
added to the amount of net revenue reported on such hospital's audited 3134
financial statements so as to comply with federal law and the revised 3135
net revenue amount shall be used for purposes of calculating the 3136
amount of tax owed by such hospital under this section. For purposes 3137
of this subsection, "underreported net revenue" means any revenue of a 3138
hospital subject to the tax imposed under this section that is required to 3139
be included in net revenue from the provision of inpatient hospital 3140
services and net revenue from the provision of outpatient hospital 3141
services to comply with 42 CFR 433.56, as amended from time to time, 3142
sSB84 File No. 704

sSB84 / File No. 704 99

42 CFR 433.68, as amended from time to time, and Section 1903(w) of 3143
the Social Security Act, as amended from time to time, but that was not 3144
reported on such hospital's audited financial statements. Underreported 3145
net revenue shall only include revenue of the hospital subject to such 3146
tax. 3147
(f) Nothing in this section shall affect the commissioner's obligations 3148
under section 12-15 regarding disclosure and inspection of returns and 3149
return information. 3150
(g) The provisions of section 17b-8 shall not apply to any exemption 3151
or exemptions sought by the Commissioner of Social Services from the 3152
Centers for Medicare and Medicaid Services under this section. 3153
Sec. 39. Section 12 -263t of the general statutes is repealed and the 3154
following is substituted in lieu thereof (Effective July 1, 2026): 3155
(a) (1) The commissioner may examine the records of any taxpayer 3156
subject to a tax or fee imposed under section 12 -263q, as amended by 3157
this act, [or] 12-263r or section 35 of this act as the commissioner deems 3158
necessary. If the commissioner determines from such examination that 3159
there is a deficiency with respect to the payment of any such tax or fee 3160
due under section 12 -263q, as amended by this act, [or] 12-263r or 3161
section 35 of this act, the commissioner shall assess the deficiency in tax 3162
or fee, give notice of such deficiency assessment to the taxpayer and 3163
make demand for payment. Such amount shall bear interest at the rate 3164
of one per cent per month or fraction thereof from the date when the 3165
original tax or fee was due and payable. 3166
(A) When it appears that any part of the deficiency for which a 3167
deficiency assessment is made is due to negligence or intentional 3168
disregard of the provisions of this section or regulations adopted 3169
thereunder, there shall be imposed a penalty equal to ten per cent of the 3170
amount of such deficiency assessment, or fifty dollars, whichever is 3171
greater. 3172
(B) When it appears that any part of the deficiency for which a 3173
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sSB84 / File No. 704 100

deficiency assessment is made is due to fraud or intent to evade the 3174
provisions of this section or regulations adopted thereunder, there shall 3175
be imposed a penalty equal to twenty-five per cent of the amount of such 3176
deficiency assessment. No taxpayer shall be subject to more than one 3177
penalty under this subdivision in relation to the same tax period. Not 3178
later than thirty days after the mailing of such notice, the taxpayer shall 3179
pay to the commissioner, in cash or by check, draft or money order 3180
drawn to the order of the Commissioner of Revenue Services, any 3181
additional amount of tax, penalty and interest shown to be due. 3182
(2) Except in the case of a wilfully false or fraudulent return with 3183
intent to evade the tax or fee, no assessment of additional tax or fee shall 3184
be made after the expiration of more than three years from the date of 3185
the filing of a return or from the original due date of a return, whichever 3186
is later. Where, before the expiration of the period prescribed under this 3187
subsection for the assessment of an additional tax or fee, a taxpayer has 3188
consented, in writing, that such period may be extended, the amount of 3189
such additional tax due may be determined at any time within such 3190
extended period. The period so extended may be further extended by 3191
subsequent consents, in writing, before the expiration of the extended 3192
period. 3193
(b) (1) The commissioner may enter into an agreement with the 3194
Commissioner of Social Services delegating to the Commissioner of 3195
Social Services the authority to examine the records and returns of any 3196
taxpayer subject to any tax or fee imposed under section 12 -263q, as 3197
amended by this act, [or] 12-263r or section 35 of this act and to 3198
determine whether such tax has been underpaid or overpaid. If such 3199
authority is so delegated, examinations of such records and returns by 3200
the Commissioner of Social Services and determinations by the 3201
Commissioner of Social Services that such tax or fee has been underpaid 3202
or overpaid shall have the same effect as similar examinations or 3203
determinations made by the commissioner. 3204
(2) The commissioner may enter into an agreement with the 3205
Commissioner of Social Services in order to facilitate the exchange of 3206
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sSB84 / File No. 704 101

returns or return information necessary for the Commissioner of Social 3207
Services to perform his or her responsibilities under this section and to 3208
ensure compliance with the state's Medicaid program. 3209
(3) The Commissioner of Social Services may engage an independent 3210
auditor to assist in the performance of said commissioner's duties and 3211
responsibilities under this subsection. Any reports generated by such 3212
independent auditor shall be provided simultaneously to the 3213
department and the Department of Social Services. 3214
(c) (1) The commissioner may require all persons subject to a tax or 3215
fee imposed under section 12-263q, as amended by this act, [or] 12-263r 3216
or section 35 of this act to keep such records as the commissioner may 3217
prescribe and may require the production of books, papers, documents 3218
and other data, to provide or secure information pertinent to the 3219
determination of the taxes or fees imposed under section 12 -263q, as 3220
amended by this act, [or] 12-263r or section 35 of this act and the 3221
enforcement and collection thereof. 3222
(2) The commissioner or any person authorized by the commissioner 3223
may examine the books, papers, records and equipment of any person 3224
liable under the provisions of this section and may investigate the 3225
character of the business of such person to verify the accuracy of any 3226
return made or, if no return is made by the person, to ascertain and 3227
determine the amount required to be paid. 3228
(d) The commissioner may adopt regulations, in accordance with the 3229
provisions of chapter 54, to implement the provisions of sections 12 -3230
263q to 12-263x, inclusive, as amended by this act, and section 35 of this 3231
act. 3232
Sec. 40. Subsection (a) of section 12 -263u of the general statutes is 3233
repealed and the following is substituted in lieu thereof (Effective July 1, 3234
2026): 3235
(a) Any taxpayer subject to any tax or fee under section 12 -263q, as 3236
amended by this act, [or] 12-263r or section 35 of this act, believing that 3237
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sSB84 / File No. 704 102

it has overpaid any tax or fee due under said sections, may file a claim 3238
for refund, in writing, with the commissioner not later than three years 3239
after the due date for which such overpayment was made, stating the 3240
specific grounds upon which the claim is founded. Failure to file a claim 3241
within the time prescribed in this subsection shall constitute a waiver of 3242
any demand against the state on account of overpayment. Within a 3243
reasonable time, as determined by the commissioner, following receipt 3244
of such claim for refund, the commissioner shall determine whether 3245
such claim is valid and, if so determined, the commissioner shall notify 3246
the Comptroller of the amount of such refund and the Comptroller shall 3247
draw an order on the Treasurer in the amount thereof for payment to 3248
the taxpayer. If the commissioner determines that such claim is not 3249
valid, either in whole or in part, the commissioner shall mail notice of 3250
the proposed disallowance in whole or in part of the claim to the 3251
taxpayer, which notice shall set forth briefly the commissioner's findings 3252
of fact and the basis of disallowance in each case decided in whole or in 3253
part adversely to the taxpayer. Sixty days after the date on which it is 3254
mailed, a notice of proposed disallowance shall constitute a final 3255
disallowance except only for such amounts as to which the taxpayer has 3256
filed, as provided in subsection (b) of this section, a written protest with 3257
the commissioner. 3258
Sec. 41. Section 12 -263v of the general statutes is repealed and the 3259
following is substituted in lieu thereof (Effective July 1, 2026): 3260
(a) Any taxpayer subject to any tax or fee under section 12 -263q, as 3261
amended by this act, [or] 12-263r or section 35 of this act that is 3262
aggrieved by the action of the commissioner, the Commissioner of 3263
Social Services or an authorized agent of said commissioners in fixing 3264
the amount of any tax, penalty, interest or fee under sections 12-263q to 3265
12-263t, inclusive, as amended by this act, or section 35 of this act may 3266
apply to the commissioner, in writing, not later than sixty days after the 3267
notice of such action is delivered or mailed to such taxpayer, for a 3268
hearing and a correction of the amount of such tax, penalty, interest or 3269
fee, setting forth the reasons why such hearing should be granted and 3270
the amount by which such tax, penalty, interest or fee should be 3271
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sSB84 / File No. 704 103

reduced. The commissioner shall promptly consider each such 3272
application and may grant or deny the hearing requested. If the hearing 3273
request is denied, the taxpayer shall be notified immediately. If the 3274
hearing request is granted, the commissioner shall notify the applicant 3275
of the date, time and place for such hearing. After such hearing, the 3276
commissioner may make such order as appears just and lawful to the 3277
commissioner and shall furnish a copy of such order to the taxpayer. 3278
The commissioner may, by notice in writing, order a hearing on the 3279
commissioner's own initiative and require a taxpayer or any other 3280
individual who the commissioner believes to be in possession of 3281
relevant information concerning such taxpayer to appear before the 3282
commissioner or the commissioner's authorized agent with any 3283
specified books of account, papers or other documents, for examination 3284
under oath. 3285
(b) Any taxpayer subject to any tax or fee under section 12 -263q, as 3286
amended by this act, [or] 12-263r or section 35 of this act that is 3287
aggrieved because of any order, decision, determination or 3288
disallowance of the commissioner made under sections 12 -263q to 12 -3289
263u, inclusive, as amended by this act, [or] subsection (a) of this section 3290
or section 35 of this act may, not later than thirty days after service of 3291
notice of such order, decision, determination or disallowance, take an 3292
appeal therefrom to the superior court for the judicial district of New 3293
Britain, which appeal shall be accompanied by a citation to the 3294
commissioner to appear before said court. Such citation shall be signed 3295
by the same authority and such appeal shall be returnable at the same 3296
time and served and returned in the same manner as is required in case 3297
of a summons in a civil action. The authority issuing the citation shall 3298
take from the appellant a bond or recognizance to the state of 3299
Connecticut, with surety, to prosecute the appeal to effect and to comply 3300
with the orders and decrees of the court in the premises. Such appeals 3301
shall be preferred cases, to be heard, unless cause appears to the 3302
contrary, at the first session, by the court or by a committee appointed 3303
by the court. Said court may grant such relief as may be equitable and, 3304
if such tax or charge has been paid prior to the granting of such relief, 3305
may order the Treasurer to pay the amount of such relief, with interest 3306
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sSB84 / File No. 704 104

at the rate of two-thirds of one per cent per month or fraction thereof, to 3307
such taxpayer. If the appeal has been taken without probable cause, the 3308
court may tax double or triple costs, as the case demands and, upon all 3309
such appeals that are denied, costs may be taxed against such taxpayer 3310
at the discretion of the court but no costs shall be taxed against the state. 3311
Sec. 42. Section 12 -263x of the general statutes is repealed and the 3312
following is substituted in lieu thereof (Effective July 1, 2026): 3313
The amount of any tax, penalty, interest or fee, due and unpaid under 3314
the provisions of sections 12-263q to 12-263v, inclusive, as amended by 3315
this act, or section 35 of this act may be collected under the provisions 3316
of section 12-35. The warrant therein provided for shall be signed by the 3317
commissioner or the commissioner's authorized agent. The amount of 3318
any such tax, penalty, interest or fee shall be a lien on the real estate of 3319
the taxpayer from the last day of the month next preceding the due date 3320
of such tax until such tax is paid. The commissioner may record such 3321
lien in the records of any town in which the real estate of such taxpayer 3322
is situated but no such lien shall be enforceable against a bona fide 3323
purchaser or qualified encumbrancer of such real estate. When any tax 3324
or fee with respect to which a lien has been recorded under the 3325
provisions of this subsection has been satisfied, the commissioner shall, 3326
upon request of any interested party, issue a certificate discharging such 3327
lien, which certificate shall be recorded in the same office in which the 3328
lien was recorded. Any action for the foreclosure of such lien shall be 3329
brought by the Attorney General in the name of the state in the superior 3330
court for the judicial district in which the property subject to such lien is 3331
situated, or, if such property is located in two or more judicial districts, 3332
in the superior court for any one such judicial district, and the court may 3333
limit the time for redemption or order the sale of such property or make 3334
such other or further decree as it judges equitable. For purposes of 3335
section 12-39g, a fee under this section shall be treated as a tax. 3336
Sec. 43. Section 3 -114s of the general statutes is repealed and the 3337
following is substituted in lieu thereof (Effective July 1, 2026): 3338
At the close of each fiscal year , [commencing with the fiscal year 3339
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sSB84 / File No. 704 105

ending June 30, 2018, ] the Comptroller is authorized to record as 3340
revenue for each such fiscal year the amount of tax and fee imposed 3341
under sections 12-263q to 12-263x, inclusive, as amended by this act, and 3342
section 35 of this act, that is received by the Commissioner of Revenue 3343
Services not later than five business days after the last day of July 3344
immediately following the end of such fiscal year. 3345
Sec. 44. Sections 359 to 364, inclusive, of public act 25 -168 are 3346
repealed. (Effective from passage) 3347
This act shall take effect as follows and shall amend the following
sections:

Section 1 from passage 12-217(b)
Sec. 2 from passage New section
Sec. 3 from passage and
applicable to taxable years
commencing on or after
January 1, 2026
New section
Sec. 4 from passage 4-30a(a)
Sec. 5 from passage PA 25-168, Sec. 42
Sec. 6 from passage PA 25-168, Sec. 43
Sec. 7 July 1, 2026 PA 25-168, Sec. 472
Sec. 8 July 1, 2026 New section
Sec. 9 July 1, 2026 20-432(a) to (c)
Sec. 10 October 1, 2026 20-12j
Sec. 11 October 1, 2026 20-86g
Sec. 12 October 1, 2026 20-206ll(a)
Sec. 13 October 1, 2026 20-206mm(c)
Sec. 14 October 1, 2026 20-74h
Sec. 15 October 1, 2026 19a-88(a) to (c)
Sec. 16 October 1, 2026 19a-12d
Sec. 17 October 1, 2026 20-195c
Sec. 18 October 1, 2026 20-195o
Sec. 19 October 1, 2026 20-195cc
Sec. 20 October 1, 2026 20-333
Sec. 21 October 1, 2026 20-334a
Sec. 22 October 1, 2026 20-334e
Sec. 23 October 1, 2026 20-335
Sec. 24 October 1, 2026 20-331(g)
sSB84 File No. 704

sSB84 / File No. 704 106

Sec. 25 October 1, 2026 10-145b(l)
Sec. 26 October 1, 2026, and
applicable to sales
occurring on or after
October 1, 2026
12-330ll
Sec. 27 January 1, 2027, and
applicable to income and
taxable years commencing
on or after January 1, 2027
New section
Sec. 28 October 1, 2026, and
applicable to sales
occurring on or after
October 1, 2026
12-408(1)
Sec. 29 October 1, 2026, and
applicable to sales
occurring on or after
October 1, 2026
12-411(1)
Sec. 30 October 1, 2026, and
applicable to sales
occurring on or after
October 1, 2026
12-412(55)
Sec. 31 from passage 12-407e
Sec. 32 from passage 12-217jj
Sec. 33 from passage New section
Sec. 34 July 1, 2026 New section
Sec. 35 July 1, 2026 New section
Sec. 36 July 1, 2026 12-263s
Sec. 37 July 1, 2026 12-263aa
Sec. 38 July 1, 2026 12-263q
Sec. 39 July 1, 2026 12-263t
Sec. 40 July 1, 2026 12-263u(a)
Sec. 41 July 1, 2026 12-263v
Sec. 42 July 1, 2026 12-263x
Sec. 43 July 1, 2026 3-114s
Sec. 44 from passage Repealer section

FIN Joint Favorable Subst.

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sSB84 / File No. 704 107

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact: See Below
Municipal Impact: See Below
Explanation
Revenue Impacts in $ millions
Policy Fund – Acct
impacted
FY 26 FY 27 FY 28 Reference
Decouple from Federal P.L.
119-21 as it relates to bonus
depreciation for Qualified
Production Properties
General Fund –
Corporation
Tax
- 0.0 103.6 Sections 1 and 2
Conform to Federal P.L.
119-21 research and
experimentation rules
beginning in Income Year
(IY) 2026
General Fund –
Corporation
Tax
- 66.8 (33.4) Sections 1 and 2
Allow certain pass-through
entities to earn (partially
refundable) research and
development tax credits
General Fund –
Estimates and
Finals
- (20.0) (20.0)
Section 3
General Fund –
Volatility Cap
Adjustment
- 20.0 20.0
General Fund –
R&D Credit
Exchange
- (5.0) (5.0)
Temporarily adjust the
volatility cap threshold
General Fund –
Volatility
Adjustment
650.0 - - Section 4
Adjust the FY 26 – FY 27
revenue transfer to support
FY 26 balance
General Fund -
Transfers
30.0 (30.0) - Section 5
General Fund –
Transfers
13.1 21.4 - Section 6
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sSB84 / File No. 704 108

Revenue Impacts in $ millions
Policy Fund – Acct
impacted
FY 26 FY 27 FY 28 Reference
Update the General Fund
subsidy of the Municipal
Revenue Sharing Fund
Municipal
Revenue
Sharing Fund
(13.1) (21.4) -
Shift the funding source for
municipal aid grants to
Ledyard and Montville
General Fund - (1.6) (1.6)
Sections 7 and 8 Mashantucket
Pequot and
Mohegan Fund
- 1.6 1.6
Increase the fund balance
retained by the Home
Improvement Guaranty
Fund
General Fund –
Transfers
- (0.2) (0.2) Section 9
Home
Improvement
Guaranty Fund
- 0.2 0.2
Eliminate certain
occupational license
application and renewal
fees

General Fund –
Licenses, Fees
and Permits
- (15.9) (21.2) Sections 10 - 25
Replace the Cannabis total
THC potency tax with an
excise tax of 10.75
General fund –
Miscellaneous
Tax
- (1.4) (1.5)
Section 26 Prevention and
Recovery
Services Fund
- (0.5) (0.5)
Provide a refundable tax
credit for milk producers
General Fund –
Corporation
and Personal
Income Tax
- - (8.0) Section 27
Tax peer-to-peer car
services at the 9.35% rate

Special
Transportation
Fund
- 0.7 0.9 Sections 28 - 29
Increases the sales price
threshold for a motor
vehicle subject to the 7.75%
sales tax from $50,000 to
$75,000
Special
Transportation
Fund – Sales
Tax
- (14.5) (19.8) Sections 28 - 29
Diverts 50% of the
additional 1% sales and use
tax on meals and beverages
to the Tourism Fund
General Fund - (44.5) (60.8)
Sections 28 - 29 Tourism Fund - 44.5 60.8
Increases the sales tax
exemption for certain
General Fund –
Sales Tax
- (2.5) (3.5) Section 30
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sSB84 / File No. 704 109

Revenue Impacts in $ millions
Policy Fund – Acct
impacted
FY 26 FY 27 FY 28 Reference
personal property used in
burials and cremations
from $2,500 to $10,000
Special
Transportation
Fund – Sales
Tax
- (0.2) (0.3)
Municipal
Revenue
Sharing Fund –
Sales Tax
(0.2) (0.3)
Raise the per-item cost
(from $100 to $300) for
clothing and footwear
exempt from the sales tax
during the "tax free week";
expand the items exempt
during the "tax free week"
to include backpacks and
certain athletic footwear
General Fund;
Special
Transportation
Fund; and
Municipal
Revenue
Sharing Fund –
Sales Tax
- (3.0) (3.0) Section 31
Extend the Redemption
Rate of Film and Digital
Media Production Tax
Credits Against the Sales
and Use Tax
General Fund;
Special
Transportation
Fund; and
Municipal
Revenue
Sharing Fund –
Sales Tax
- - - Section 32
Provide for Community
Partnership Opportunity
Agreements
General Fund - - - Section 33
Adjust the Hospital Tax General Fund –
Health Provider
Tax
- (221.0) (221.0) Sections 34-44
(see "Adjust
Hospital Tax"
table below for
summary)
Repeals the 6% tax on
nursing home and
intermediate care facilities
revenue scheduled to take
effect on July 1, 2026
General Fund - - - Section 44

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sSB84 / File No. 704 110

Adjust Hospital Tax – Total Changes in $ millions
FY Current Law Committee Difference
2026 820 820 0
2027 1,195 974 (221)
2028 1,220 999 (221)
2029 1,245 1,024 (221)
2030 1,270 1,049 (221)
2031 1,295 1,074 (221)

Expenditure Changes
Section 44 repeals the provision in the FY 26 – FY 27 budget that
implements the Medicaid supplemental payments to hospitals for FY 27
(a $140 million budgeted increase over FY 26). The underlying
appropriation is unchanged in the bill. Section 44 also effectively repeals
scheduled $25 million increases annually in FY 28 and beyond to the
Medicaid supplemental hospital payments.
Section 33 results in an annualized cost of $146,000 ($103,000 in salary
and related $43,000 in fringe benefits) for one community development
specialist in the Department of Economic and Community Development
(DECD) to administer the program. Section 33 also results in a potential
revenue gain and potential cost by creating a “community partnership
opportunity" account. The revenue gain includes the funding received
from participating investors in the program which, under the bill, is
deposited into the account. Section 33 also requires the state treasurer to
invest those funds in the account for use in the program. The revenues
in the account are to be used to finance the costs associated with the
program including: (1) implementing the specified initiativ es, (2)
evaluating their performance, and (3) making the success payments. The
actual fiscal impact will be contingent on the number of agreements and
specifics within the agreement.
The Out Years
The annualized ongoing expenditures fiscal impact identified above
would continue subject to inflation and scheduled out -year policy
changes, as described above. Out year estimated total revenue impacts
by fund are provided in the table below.
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sSB84 / File No. 704 111

Out-year revenue impact by major fund – in $ millions
FY 26 FY 27 FY 28 FY 29 FY 30 FY 31
General Fund 693.1 (236.9) (255.6) (250.6) (237.1) (233.1)
Mashantucket Pequot and Mohegan
Fund - 1.6 1.6 1.6 1.6 1.6
Special Transportation Fund - (14.0) (19.2) (20.2) (20.7) (21.3)
Municipal Revenue Sharing Fund (13.1) (21.6) (0.3) (0.3) (0.3) (0.3)
Tourism Fund - 44.5 60.8 62.3 63.9 65.5
Cannabis Prevention and Recovery
Services Fund - (0.5) (0.5) - - -
Total 680.0 (226.9) (213.2) (207.2) (192.6) (187.6)

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sSB84 / File No. 704 112

OLR Bill Analysis
sSB 84

AN ACT CONCERNING ADJUSTMENTS TO STATE REVENUE.

TABLE OF CONTENTS:
SUMMARY
§§ 1 & 2 — CORPORATION BUSINESS TAX
Decouples the state corporation business tax from the federal bonus depreciation deduction for
qualified production property, starting with the 2026 income year; delays, by one year,
conforming the state corporation business tax to recent changes to the fe deral deduction for
domestic R&E expenditures and disallows the retroactive application of these changes for the
2022 to 2025 income years; generally exempts corporation business taxpayers from penalties
and interest on any additional tax due to these changes
§ 3 — RESEARCH AND DEVELOPMENT TAX CREDIT FOR
QUALIFIED SMALL BUSINESSES
Creates an income tax credit for qualifying small businesses that incur eligible R&D spending
in Connecticut and requires DECD to administer a tax credit voucher system for the credit;
Caps the maximum amount of these credits that DECD can reserve each tax year at $1.5 million
per business and $25 million in total
§ 4 — VOLATILITY CAP THRESHOLD
Increases the volatility cap threshold for FY 26 by $650 million, from $4,728.6 million to
$5,378.6 million, and resets it for FY 27 at $5,009.1 million
§ 5 — TRANSFER OF FY 26 GENERAL FUND REVENUE TO FY 27
Decreases, by $30 million, the amount of FY 26 General Fund resources the state comptroller
must transfer to be accounted for as FY 27 General Fund revenue
§ 6 — GENERAL FUND TRANSFER TO THE MUNICIPAL REVENUE
SHARING FUND
Decreases, by $13.1 million for FY 26 and $21.4 million for FY 27, the required transfers from
the General Fund to the Municipal Revenue Sharing Fund
§§ 7 & 8 — MUNICIPAL AID TO LEDYARD AND MONTVILLE
Shifts the funding source for municipal aid grants to Ledyard and Montville in FY 27 from
Other Expenses to the Mashantucket Pequot and Mohegan Fund
§ 9 — HOME IMPROVEMENT GUARANTY FUND
Increases, from $750,000 to $1 million, the Home Improvement Guaranty Fund’s annual
maximum balance
§§ 10-25 — OCCUPATIONAL LICENSE OR CERTIFICATION FEES
Eliminates numerous occupational license or certification fees
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sSB84 / File No. 704 113

§ 26 — TAX ON CANNABIS SALES
Replaces the current state taxes on retail sales of cannabis plant material, cannabis edible
products, and other cannabis with a single tax
§ 27 — MILK PRODUCER REFUNDABLE TAX CREDIT
Establishes a refundable tax credit for milk producers that they may earn when the federally
set milk price is lower than the cost of production
§§ 28 & 29 — SALES AND USE TAX ON PEER-TO-PEER CAR
SHARING
Explicitly subjects short -term peer -to-peer car sharing to the 9.35% sales and use tax rate
applicable to passenger motor vehicle rentals or leases and directs this revenue to the Special
Transportation Fund
§§ 28 & 29 — MOTOR VEHICLES SUBJECT TO LUXURY TAX RATE
Increases the sales price threshold for a motor vehicle subject to the 7.75% sales and use tax
rate from $50,000 to $75,000
§§ 28 & 29 — MEALS AND BEVERAGES TAX DIVERSION TO
TOURISM FUND
Directs 50% of the additional 1% sales and use tax on meals and beverages to the Tourism
Fund
§ 30 — PERSONAL PROPERTY USED IN BURIALS AND
CREMATIONS
Increases the sales and use tax exemption for certain personal property used in burials and
cremations from $2,500 to $10,000
§ 31 — SALES TAX FREE WEEK
Increases the exemption amount for “sales tax free week” from $100 to $300 and adds
backpacks and cleated shoes to the list of exempt items
§ 32 — FILM AND DIGITAL MEDIA TAX CREDIT
Extends, to the 2026 and 2027 income years, the increased redemption rate for film and digital
media tax credits claimed against the sales tax
§ 33 — COMMUNITY PARTNERSHIP OPPORTUNITY AGREEMENTS
Creates a program within DECD designed to increase educational achievement and workforce
skills in communities experiencing persistent economic disadvantages through partnerships
between DECD and specified stakeholders
§§ 34-44 — HOSPITAL PROVIDER TAX
Replaces the current hospital provider tax, starting in FY 27, with new taxes on inpatient and
outpatient hospital services but requires the taxes to cease and the current tax structure to be
reimposed if CMS determines that either tax is impermissible; repeals provisions in the FY 26-
27 biennial budget act, scheduled to take effect on July 1, 2026, that principally change the
base year on which the provider tax is calculated and increase the total tax revenue on which
the tax is calculated
§ 44 — TAX ON NURSING HOMES AND INTERMEDIATE CARE
FACILITIES
Repeals the 6% tax on nursing home and ICF revenue scheduled to take effect on July 1, 2026,
and instead retains the current user fee on these facilities
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sSB84 / File No. 704 114

§ 44 — HOSPITAL MEDICAID SUPPLEMENTAL PAYMENTS
Repeals the increases to Medicaid supplemental payments to hospitals for FY 27 and after, and
instead retains the requirement that DSS pay out the same amount paid in FY 26 for these years

SUMMARY
This bill makes various changes to state taxes and fees, and
adjustments to the FY 26 -27 biennial budget act, as described in the
section-by-section analysis below.
EFFECTIVE DATE: Various, see below.
§§ 1 & 2 — CORPORATION BUSINESS TAX
Decouples the state corporation business tax from the federal bonus depreciation
deduction for qualified production property, starting with the 2026 income year; delays,
by one year, conforming the state corporation business tax to recent changes to the fe deral
deduction for domestic R&E expenditures and disallows the retroactive application of
these changes for the 2022 to 2025 income years; generally exempts corporation business
taxpayers from penalties and interest on any additional tax due to these changes
Qualified Production Property (§ 1)
Beginning with the 2026 income year, the bill disallows the federal
bonus depreciation deduction for qualified production property (26 U.S.
C. § 168(n)). In doing so, it requires taxpayers to add back this deduction
when calculating their net income for Co nnecticut’s corporation
business tax. Existing law already disallows the federal bonus
depreciation deduction that applies to other qualifying property (26
U.S.C. § 168(k)).
The federal FY 25 reconciliation act (P.L. 119 -21) allows federal
corporation income taxpayers to take a 100% bonus depreciation
allowance for qualified production property, rather than depreciating
the costs over 39 years. Under federal law, qualified pro duction
property is generally manufacturing -related real property, other than
property used for offices, lodging, sales, research, software
development, parking, and other non -manufacturing functions. To
qualify for this tax treatment, the property must be built after January
19, 2025, and before January 1, 2029, and placed in service before
January 1, 2031.
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Research and Experimental (R&E) Expenditures (§ 1)
Starting in 2025, P.L. 119 -21 allows federal corporation income
taxpayers to deduct domestic R&E expenditures in the year paid or
incurred, rather than requiring them to capitalize and amortize the
expenses over five or, if elected, over 10 years. Under the bill, this federal
treatment of R&E expenditures flows through for Connecticut
corporation business tax purposes beginning only in the 2026 income
year. Specifically, the bill disallows this deduction for Connecticut tax
purposes for the 2025 income year and instead requires any R&E
expenditures paid or incurred for the 2022 through 2025 income years
to be deducted as allowed under the federal law on amortizing R&E
expenditures in effect on July 3, 2025 (before P.L. 119-21 took effect).
P.L. 119 -21 also gives eligible small business taxpayers (generally
those with average annual gross receipts below a specified threshold
($31 million or less for 2025)) the option to retroactively apply this
change starting with the 2022 tax year. Taxpayers making this federal
election must do so by July 4, 2026, and file an amended return for each
affected tax year. The bill disallows the retroactive application of this
change starting with the 2022 tax year.
Relief From Penalties and Interest on Related Tax Underpayments
(§ 2)
The bill exempts corporation business taxpayers from interest on
estimated tax underpayments for any additional tax due because of the
changes described above. Specifically, the exemption applies to
underpayments for (1) income years starting on or after January 1, 2026,
but before the bill’s passage, for the change made to the qualified
production property deduction and (2) the 2022 through 2025 income
years for the changes to the R&E deduction.
The bill also requires the Department of Revenue Services (DRS)
commissioner to waive any interest or penalties for any part of an
underpayment for the 2022 through 2025 income years because of the
changes to the R&E deduction if the taxpayer pays the additional tax by
(1) November 15, 2026, or (2) the due date for the tax return on which
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sSB84 / File No. 704 116

they report the additional tax, regardless of any filing extension.
Taxpayers must submit evidence that they are eligible for this waiver as
the DRS commissioner prescribes.
EFFECTIVE DATE: Upon passage
§ 3 — RESEARCH AND DEVELOPMENT TAX CREDIT FOR
QUALIFIED SMALL BUSINESSES
Creates an income tax credit for qualifying small businesses that incur eligible R&D
spending in Connecticut and requires DECD to administer a tax credit voucher system
for the credit; Caps the maximum amount of these credits that DECD can reserve each tax
year at $1.5 million per business and $25 million in total
The bill creates a tax credit for qualifying small businesses that incur
eligible research and development (R&D) spending in Connecticut and
allows the businesses’s owners to claim the credit against their personal
income tax liability (other than income tax withholding). It requires the
Department of Economic and Community Development (DECD) to
administer a voucher system for the credit program within available
appropriations. Qualified small businesses must apply for and receive a
credit voucher to claim the credit, which equals 6% of the R&D spending
they pay or incur for a tax year.
Eligible R&D Spending
Under the bill, credit -eligible R&D spending generally includes the
same two categories of expenditures that are eligible under the state’s
existing corporation R&D tax credit: (1) federally deductible R&D
expenditures the business incurs and (2) qualifyin g “basic research
payments” that are eligible for a federal R&D tax credit. The first
category of credit -eligible spending generally includes the R&D
expenditures a business incurs to develop or improve a product
(current-year R&D expenditures deductible under 26 USCA § 174, as in
effect on May 28, 1993, and determined without regard to the federal
credit for increasing research activities). The second category includes
payments made to qualifying nonprofit educational institutions,
scientific research organizations, or grant organizations for eligible
research.
In both cases, the expenditures or payments must (1) be paid or
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incurred for R&D and basic research done in Connecticut and (2) not be
funded by any grant or contract with a public or private entity.
Qualified Small Businesses
To qualify for the credit, the business must be an S corporation or
entity considered a partnership for federal income tax purposes, such as
a limited liability company (LLC), and have gross income for the
previous tax year of $70 million or less, including income derived from
transactions with related entities, as determined by the DECD
commissioner. (S corporations and partnerships are generally referred
to as pass -through businesses because their profits “pass -through” to
their owners and are taxed as part of the owners’ personal income tax.)
Credit Administration
Reserving Credits. Under the bill, a qualified small business may
apply to the DECD commissioner to reserve a credit allocation based on
the amount of R&D spending it intends to pay or incur for a tax year.
The commissioner may reserve a credit for the business based on thi s
amount, and notify the business of its reserved credit, if he determines
that it is likely to pay or incur R&D spending for the tax year.
The bill caps the maximum amount of these credits that can be
reserved each tax year at $1.5 million per business and $25 million in
total. In deciding whether to issue credit reservation notices, the
commissioner must prioritize qualified small businesses that, in his
opinion, show a likelihood for in-state growth or will best contribute to
the state’s economic ecosystem.
The commissioner must set the credit application form and process
and may require the application to contain any information he finds
necessary to administer the credit program. Additionally, he may adopt
regulations to implement the credit.
Issuing Vouchers. Within 90 days after the end of a tax year, a
qualified small business that received a credit reservation notice must
verify the R&D spending it paid or incurred for the tax year as the DECD
commissioner prescribes. In reviewing this verification, if the
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commissioner determines that the business paid or incurred the
spending, he must issue the business a tax credit voucher for 6% of the
expenses. The voucher’s amount cannot exceed the business’s credit
reservation.
The DECD commissioner must notify the DRS commissioner and
Office of Policy and Management (OPM) secretary about each tax credit
voucher issued under the program.
Credit Claims and Refunds
Under the bill, if the qualified small business is an S corporation or
entity treated as a partnership for federal income tax purposes, its
shareholders or partners may claim the credit. If it is a single member
LLC that is disregarded as an entity separate from its owner, the owner
may claim the credit if he or she is subject to income tax.
Taxpayers claiming the credit must apply it before applying any
other income tax credits. If the credit exceeds the taxpayer’s income tax
liability, the bill allows the taxpayer to apply to the DRS commissioner
to exchange it for a partial refund for the excess amount when filing the
tax return on which it claimed the credit.
The refund amount equals 90% of the excess for credits earned by
biotechnology businesses and 65% for credits earned by other qualified
small businesses. Under the bill, a “biotechnology business” is one that
applies certain technologies (such as biochemistry or genetics) to
produce or modify products, improve plants or animals, identify targets
for small molecule pharmaceutical development, transform biological
systems into useful processes and products, or develop microorganisms
for specific uses.
EFFECTIVE DATE: Upon passage and applicable to tax years starting
on or after January 1, 2026.
§ 4 — VOLATILITY CAP THRESHOLD
Increases the volatility cap threshold for FY 26 by $650 million, from $4,728.6 million to
$5,378.6 million, and resets it for FY 27 at $5,009.1 million
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The bill increases the volatility cap threshold for FY 26 by $650
million, from $4,728.6 million to $5,378.6 million, and resets it for FY 27
at $5,009.1 million (the estimated FY 27 threshold based on January
consensus revenue estimates). For FY 28 and af ter, it requires the
$5,009.1 million threshold to be annually adjusted for inflation as under
existing law (based on the compound annual growth rate of state
personal income over the preceding five calendar years, using U.S.
Bureau of Economic Analysis data).
The “volatility cap” is a mechanism for diverting volatile tax revenue
to the Budget Reserve Fund (BRF). It requires the state treasurer to
transfer to the BRF any revenue the state receives each fiscal year over
the applicable threshold from (1) personal income tax estimated and
final payments (generated from taxpayers who make estimated income
tax payments on a quarterly basis) and (2) the passthrough entity tax.
By law, the legislature may amend the threshold amount, by a vote
of three-fifths of the members of each house, due to changes in state or
federal tax law or policy or significant adjustments to economic growth
or tax collections.
EFFECTIVE DATE: Upon passage
§ 5 — TRANSFER OF FY 26 GENERAL FUND REVENUE TO FY 27
Decreases, by $30 million, the amount of FY 26 General Fund resources the state
comptroller must transfer to be accounted for as FY 27 General Fund revenue
The FY 26 -27 biennial budget act currently requires the state
comptroller, by June 30, 2026, to transfer $244 million of FY 26 General
Fund resources to be accounted for as FY 27 General Fund revenue. The
bill decreases this required transfer by $30 million, to $214 million.
EFFECTIVE DATE: Upon passage
§ 6 — GENERAL FUND TRANSFER TO THE MUNICIPAL REVENUE
SHARING FUND
Decreases, by $13.1 million for FY 26 and $21.4 million for FY 27, the required transfers
from the General Fund to the Municipal Revenue Sharing Fund
The bill reduces the required transfers from the General Fund to the
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Municipal Revenue Sharing Fund by (1) $13.1 million for FY 26, from
$101 million to $87.9 million, and (2) $21.4 million for FY 27, from $90
million to $68.6 million.
EFFECTIVE DATE: Upon passage
§§ 7 & 8 — MUNICIPAL AID TO LEDYARD AND MONTVILLE
Shifts the funding source for municipal aid grants to Ledyard and Montville in FY 27
from Other Expenses to the Mashantucket Pequot and Mohegan Fund
The FY 26-27 biennial budget act earmarks $800,000 each to Ledyard
and Montville for FY 27. The bill shifts the funding source for these
municipal aid grants from Other Expenses to the Mashantucket Pequot
and Mohegan Fund.
EFFECTIVE DATE: July 1, 2026
§ 9 — HOME IMPROVEMENT GUARANTY FUND
Increases, from $750,000 to $1 million, the Home Improvement Guaranty Fund’s annual
maximum balance
The bill increases the Home Improvement Guaranty Fund’s annual
maximum balance from $750,000 to $1 million. By law, unchanged by
the bill, if the fund’s balance exceeds the cap, the first $400,000 of the
excess is transferred into the Department of Consume r Protection’s
consumer protection enforcement account and the remainder is
transferred to the General Fund.
The Home Improvement Guaranty Fund generally reimburses
consumers who are unable to collect on losses for damages caused by a
registered home improvement contractor. Contractors and home
improvement salespeople pay an annual fee to the fund ($100 and $40,
respectively).
EFFECTIVE DATE: July 1, 2026
Background — Related Bill
sHB 5224 (File 185), favorably reported by the General Law
Committee, makes minor changes to the Home Improvement Guaranty
Fund law, including requiring an applicant for an award to provide a
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signed, sworn statement that he or she made a good faith effort to collect
what is owed before receiving a payment from the fund.
§§ 10-25 — OCCUPATIONAL LICENSE OR CERTIFICATION FEES
Eliminates numerous occupational license or certification fees
The FY 26-27 biennial budget act eliminated occupational license or
certification fees for specified health care professionals and educators.
The bill eliminates the (1) applicable renewal fees for these specified
professionals and (2) initial and applicab le renewal fees for other
occupational licenses or certifications, including various tradespeople
and educators.
The following table lists the occupational license or certification fees
eliminated under the bill. It also makes technical and conforming
changes, including eliminating a provision that requires $2 from each
registered nurse (RN) or licensed practical nurse (LPN) license renewal
fee to be transferred to the professional assistance program account until
January 1, 2028 (§ 16).
Table: Occupational License Fees Eliminated Under the Bill
§ Citation Occupational License or Certification Current
Fee
10 20-12j Physician assistant license renewal $155
11 20-86g Midwife renewal license 15
12 20-260ll Paramedic license renewal 155
13 20-206mm Certified EMT as licensed paramedic renewal 155
14 20-74h Occupational therapist and occupational therapy
assistant license renewal
205
15 19a-88 Dental hygienist license renewal 105
15 19a-88 RN license renewal 110
15 19a-88 Retired RN license renewal 15
15 19a-88 Advanced practice registered nurse license renewal 130
15 19a-88 Retired advanced practice registered nurse license
renewal
17
15 19a-88 LPN license renewal 70
15 19a-88 Retired LPN license renewal 11
15 19a-88 Nurse-midwife license renewal 130
15 19a-88 Physical therapist license renewal 105
15 19a-88 Physical therapist assistant license renewal 65
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§ Citation Occupational License or Certification Current
Fee
17 20-195c Marital and family therapist license renewal 200
17 20-195c Marital and family therapist associate license renewal 125
18 20-195o Clinical social worker license renewal 200
18 20-195o Master social worker license renewal 125
19 20-195cc Professional counselor license renewal 200
19 20-195cc Professional counselor associate renewal 125
20,
23
20-333,
20-335
Electrical unlimited or limited contractor: (1) application
fee and (2) initial and renewal license
(1) 150
(2) 150
20,
23
20-333,
20-335
Electrical unlimited or limited journeyperson: (1)
application fee and (2) initial and renewal license
(1) 90
(2) 120
20,
23
20-333,
20-335
Solar electric limited contractor: (1) application fee and
(2) initial and renewal license
(1) 150
(2) 150
20,
23
20-333,
20-335
Solar electric limited journeyperson: (1) application fee
and (2) initial and renewal license
(1) 90
(2) 120
20,
23
20-333,
20-335
Heating, piping, and cooling unlimited or limited
contractor: (1) application fee and (2) initial and renewal
license
(1) 150
(2) 150
20,
23
20-333,
20-335
Heating, piping, and cooling unlimited or limited
journeyperson: (1) application fee and (2) initial and
renewal license
(1) 90
(2) 120
20,
23
20-333,
20-335
Heating, piping, and cooling stationary engineer: (1)
application fee and (2) initial and renewal license
(1) 90
(2) 120
20,
23
20-333,
20-335
Plumbing and piping unlimited or limited contractor: (1)
application fee and (2) initial and renewal license
(1) 150
(2) 150
20,
23
20-333,
20-335
Plumbing and piping unlimited journeyperson: (1)
application fee and (2) initial and renewal license
(1) 90
(2) 120
20,
23
20-333,
20-335
Sheet metal work limited contractor: (1) application fee
and (2) initial and renewal license
(1) 150
(2) 150
20,
23
20-333,
20-335
Sheet metal work limited journeyperson: (1) application
fee and (2) initial and renewal license
(1) 90
(2) 120
25 10-145b Provisional educator certificate 250
25 10-145b Professional educator certificate 375
25 10-145b Adult educator program teacher certificate 100
25 10-145b Issuance of subject area endorsement 100

EFFECTIVE DATE: October 1, 2026
§ 26 — TAX ON CANNABIS SALES
Replaces the current state taxes on retail sales of cannabis plant material, cannabis edible
products, and other cannabis with a single tax
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The bill replaces the current state taxes on retail sales of cannabis
plant material, cannabis edible products, and other cannabis (which are
0.625 cents, 2.75 cents, and 0.9 cents, respectively, per milligram of total
THC reflected on its label) with a single tax of 10.75% of a retailer’s gross
receipts from cannabis sales.
As under existing law, the tax applies to sales by a cannabis retailer,
hybrid retailer, or micro -cultivator. It does not apply to (1) sales of
cannabis for palliative (medical) use; (2) sales of cannabis by a delivery
service to a consumer; or (3) the transfer of cannabis to a transporter for
transport to any other cultivator, micro -cultivator, food and beverage
manufacturer, product manufacturer, product packager, dispensary
facility, cannabis retailer, hybrid retailer, or producer.
Under existing law and the bill, retailers and micro -cultivators must
collect the tax from consumers at the time of sale (except for the exempt
sales described above). The tax applies in addition to the 3% municipal
cannabis tax and the 6.35% state general sales tax.
Relatedly, the bill increases, from 65% to 70%, the amount of cannabis
tax revenue directed to the social equity and innovation account for FYs
27 and 28 and correspondingly decreases the amount directed to the
General Fund for those years, from 10% to 5%.
The bill also makes technical and conforming changes, including
deleting an obsolete definition.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
Background — Cannabis Terms
By law, “cannabis” has the same meaning as “marijuana,” which is
all parts of a plant or species of the genus cannabis, whether growing or
not, and including its resin, compounds, manufactures, salts,
derivatives, mixtures, and preparations; high -THC hemp products;
manufactured cannabinoids; or cannabinon, cannabinol, cannabidiol
(CBD), and similar compounds, except CBD derived from hemp.
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Marijuana and cannabis do not include the following:
1. a plant’s mature stalks; fiber made from the stalks; oil or cake
made from the plant’s seeds; a compound, manufacture, salt,
derivative, mixture, or preparation made from the stalks other
than the extracted resin;
2. the plant’s seeds;
3. hemp with a total THC concentration of up to 0.3% on a dry
weight basis that is not a high-THC product;
4. any substance the federal Food and Drug Administration
approves as a drug and that is reclassified in any controlled
substance schedule, or that it un-schedules; or
5. infused beverages.
A “cannabis edible product” is a product containing cannabis or
cannabis concentrate, combined with other ingredients, that is intended
to be ingested, including by sublingual or oral absorption.
“Cannabis plant material” is the cannabis flower, trim, and all parts
of the cannabis plant or species, excluding (1) a growing plant and its
seeds or (2) hemp as defined under state law.
“Total THC” is the sum of the percentage by weight of
tetrahydrocannabinolic acid, multiplied by 0.877, plus the percentage of
weight of THC.
Background — Social Equity and Innovation Account
The social equity and innovation account’s money must be allocated
by the OPM secretary for purposes that the Social Equity Council
determines further the principles of equity and may include providing
(1) access to capital for businesses in any industry, (2) technical
assistance for the start -up and operation of a business in any i ndustry,
(3) funding for workforce education in any industry, (4) funding
community investments, and (5) funding investments in
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disproportionately impacted areas.
Background — Related Bills
sSB 405 (File 303), § 2, favorably reported by the Public Safety and
Security Committee, reduces, by 5%, the amount of tax revenue the
social equity and innovation account receives under current law (from
65% to 60% in FYs 27 and 28 and from 75% to 70% starting in FY 29).
sHB 5109, favorably reported by the Finance, Revenue and Bonding
Committee, has identical provisions.
sHB 5350 (File 401), §§ 17 & 47, favorably reported by the General
Law Committee, make several changes to the definition of cannabis.
§ 27 — MILK PRODUCER REFUNDABLE TAX CREDIT
Establishes a refundable tax credit for milk producers that they may earn when the
federally set milk price is lower than the cost of production
The bill establishes a refundable tax credit for “milk producers ”
(people, firms, and corporations registered with the Department of
Agriculture (DoAg) as producers of milk for pasteurization). The credit
amount is calculated using the same formula that is used for an existing
state grant program that pays milk produce rs based on, generally, (1)
the federally set milk price and (2) an amount needed to sustain state
dairy operations.
The credit is available starting with the 2027 income and tax year and
may be applied against the corporation business or personal income tax,
but not the withholding tax. The bill caps the total amount of credits that
may be reserved for this program at $8 million per year.
EFFECTIVE DATE: January 1, 2027, and applicable to income and tax
years starting on or after that date.
Milk Pricing and Terms
Federal law governs the price paid to dairy farmers for milk.
Generally, U.S. Department of Agriculture (USDA) marketing orders set
the price for milk and milk products by region. One order sets the price
paid in the New England and Mid -Atlantic states and is broken down
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into class 1 (fluid) milk and various other classes of milk products.
Under existing law and the bill, “federal pay price” is the northeast
monthly uniform price for milk in the Hartford zone pursuant to the
USDA Northeast Federal Milk Marketing Order. “Minimum sustainable
monthly cost of production” is 82% of the baseline the USDA’s
Economic Research Service determines as the monthly average cost of
production for a New England state, or, if the baseline is unavailable, a
baseline determined by the DoAg commissioner using data and
variables published by USDA.
Credit Formula, Reservations, and Vouchers
Under the bill, for each month of the income and tax year that the
federal pay price is below the minimum sustainable monthly cost of
production, the tax credit equals the difference between the federal pay
price and the minimum sustainable monthly cost of production,
multiplied by the amount of milk a milk producer produced during the
month.
Under the bill, milk producers may apply to the DoAg commissioner
to reserve a credit allocation. The commissioner must create the
application form, which must include the information he needs to
administer the tax credit program. Relatedly, the bill requires milk
producers to file with the commissioner information to support the
amount of milk they produced, in a way he prescribes. Once verified,
the commissioner must issue the milk producer a voucher for its credit
amount. The milk producer must file this voucher with its state tax
return for the applicable income or tax year.
Credit Claims
If the milk producer is an S corporation or treated as a partnership for
federal income tax purposes, the milk producer’s shareholders and
partners may claim the credit. If the milk producer is a single member
LLC that is disregarded as an entity separate from its owner, the LLC’s
owner may claim the credit, as long as the owner is subject to either the
corporation business or personal income tax.
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Credit Refundability
As is the case under existing law for most other refundable tax
credits, t he bill requires the DRS commissioner to refund, without
interest, any amount of the tax credit that exceeds a milk producer’s
liability, unless he retains the refund, which, by law, he may do if the
milk producer (1) owes state or municipal taxes or other obligations or
(2) is in default of a student loan made by the Connecticut Student Loan
Foundation or the Connecticut Higher Education Supplemental Loan
Authority.
Background — Related Bill
sHB 5570 (File 672), favorably reported by the Finance, Revenue and
Bonding Committee, has identical provisions.
§§ 28 & 29 — SALES AND USE TAX ON PEER -TO-PEER CAR
SHARING
Explicitly subjects short-term peer-to-peer car sharing to the 9.35% sales and use tax rate
applicable to passenger motor vehicle rentals or leases and directs this revenue to the
Special Transportation Fund
The bill explicitly subjects short -term peer-to-peer (P2P) car sharing
to sales and use tax at the 9.35% rate that applies to short-term car rentals
or leases under existing law (see Background — DRS Guidance on P2P Car
Sharing and Sales and Use Tax). As with car rentals and leases, the 9.35%
tax rate applies only to P2P car sharing for periods of 30 consecutive
days or less. By law, car rentals and leases for longer periods are subject
to sales and use tax at the 6.35% rate.
Under the bill, the revenue from sales and use tax on short-term P2P
car sharing must be directed to the Special Transportation Fund, starting
with calendar quarters ending on or after December 31, 2026.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
Background — DRS Guidance on P2P Car Sharing and Sales and
Use Tax
In 2021, DRS issued guidance stating that P2P car sharing constitutes
a lease of a motor vehicle under the sales and use tax laws and is taxable
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if the sale is made by a retailer (and not on a casual or isolated basis).
The guidance notes that 9.35% sales tax applies to the rental or lease of
a passenger motor vehicle for a period of 30 consecutive days or less.
It further concluded that a P2P car sharing company that meets the
law’s definition of a marketplace facilitator must collect and remit tax
on sales that take place on its platform. (Marketplace facilitators are
generally businesses that (1) facilitate ret ail sales of at least $250,000
during the previous 12 -month period for sellers by providing a forum
that lists or advertises the sellers’ goods and services, (2) collect receipts
from customers, (3) remit payments to sellers, and (4) are compensated
for their services. By law, they are considered retailers for these sales
and therefore must collect and remit sales tax for them.)
Background — Related Bill
sHB 5443, §§ 1 & 2, favorably reported by the Finance, Revenue and
Bonding Committee, includes identical provisions.
§§ 28 & 29 — MOTOR VEHICLES SUBJECT TO LUXURY TAX RATE
Increases the sales price threshold for a motor vehicle subject to the 7.75% sales and use
tax rate from $50,000 to $75,000
The bill increases, from $50,000 to $75,000, the sales price threshold
for motor vehicles subject to the 7.75% sales and use tax rate (known as
the luxury tax rate).
By law, this rate applies to the full sales price of motor vehicles
costing more than the threshold amount, except for vehicles (1)
purchased by an active duty U. S. military member stationed in
Connecticut; (2) weighing over 12,500 pounds; or (3) weighing 12,500
pounds or less that are designed or used for commercial purposes and
issued a commercial or more specific type of registrati on from the
Department of Motor Vehicles.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
Background — Related Bill
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sHB 5443, §§ 1 & 2, favorably reported by the Finance, Revenue and
Bonding Committee, includes identical provisions.
§§ 28 & 29 — MEALS AND BEVERAGES TAX DIVERSION TO
TOURISM FUND
Directs 50% of the additional 1% sales and use tax on meals and beverages to the Tourism
Fund
Existing law imposes an additional 1% tax on meals and certain
beverages that applies on top of the 6.35% sales and use tax rate. Starting
October 1, 2026, the bill directs half of the revenue from this 1% tax to
the Tourism Fund.
Under current law, the Tourism Fund receives 10% of room
occupancy tax revenue.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
Background — Related Bills
sHB 5443, §§ 1 & 2, favorably reported by the Finance, Revenue and
Bonding Committee, includes identical provisions.
sSB 1, § 7, favorably reported by the Finance, Revenue and Bonding
Committee, exempts from sales and use tax sandwiches, grinders,
coffee, and tea prepared and sold in a supermarket for takeout, other
than when they are sold in the food court or snack bar area (which are
currently subject to the additional 1% meals and beverages tax).
sSB 2, §§ 2 -5, favorably reported by the Finance, Revenue and
Bonding Committee, dedicates half of the additional 1% tax on meals
and beverages to the Tourism Fund and the other half to a new
municipal diversification account, starting October 1, 2026.
§ 30 — PERSONAL PROPERTY USED IN BURIALS AND
CREMATIONS
Increases the sales and use tax exemption for certain personal property used in burials and
cremations from $2,500 to $10,000
Current law exempts from the 6.35% sales and use tax p roperty sold
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by funeral homes and used directly in preparing and conducting burials
and cremations , up to $2,500 per funeral. The bill increases this
exemption to up to $10,000 per funeral.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
Background — Related Bill
sHB 5443, § 3, favorably reported by the Finance, Revenue and
Bonding Committee, includes an identical provision.
§ 31 — SALES TAX FREE WEEK
Increases the exemption amount for “sales tax free week” from $100 to $300 and adds
backpacks and cleated shoes to the list of exempt items
The bill expands the sales and use tax exemption for clothing and
footwear sold from the third Sunday in August through the following
Saturday (sales tax free week) to (1) items costing less than $300, rather
than $100, and (2) backpacks and cleated shoes costing less than $300.
Basketball and running shoes (without cleats) are already exempt under
current DRS guidance.
Under current law, during this week, the state’s 6.35% sales and use
tax does not apply to clothing and footwear costing less than $100,
except for (1) special athletic and protective clothing and footwear not
normally worn except for its specialized use and (2) jewelry, handbags,
luggage, umbrellas, wallets, watches, and similar items that people
carry but do not wear.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
Background — Related Bills
sSB 1, §§ 1 & 7, favorably reported by the Finance, Revenue and
Bonding Committee, exempts from sales and use tax (1) nonelectronic
school supplies, including backpacks, and (2) clothing and footwear
costing less than $100 (and correspondingly eliminates “ sales tax free
week” for these items).
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sHB 5443, § 4, favorably reported by the Finance, Revenue and
Bonding Committee, incl udes a similar provision increasing the
exemption amount for “sales tax free week” from $100 to $300 and
adding backpacks to the list of exempt items.
§ 32 — FILM AND DIGITAL MEDIA TAX CREDIT
Extends, to the 2026 and 2027 income years, the increased redemption rate for film and
digital media tax credits claimed against the sales tax
Existing law allows eligible production companies and certain
taxpayers to whom they transfer credits (transferees) to apply film and
digital media production tax credits against the sales and use tax at a
reduced amount of their face value. The law tempor arily increased this
amount from 78% to 92% of the credits’ value for the 2024 and 2025
income years. The bill extends this 92% redemption rate for two
additional years, to the 2026 and 2027 income years.
As under existing law, transferees may claim these credits against the
sales and use tax only if there is at least 50% common ownership
between the transferee and the eligible production company that sold,
assigned, or otherwise transferred the credits. Th e credits may also be
claimed against the corporation business and insurance premiums taxes
at full face value and the community antenna television systems tax at a
reduced value.
EFFECTIVE DATE: Upon passage
§ 33 — COMMUNITY PARTNERSHIP OPPORTUNITY
AGREEMENTS
Creates a program within DECD designed to increase educational achievement and
workforce skills in communities experiencing persistent economic disadvantages through
partnerships between DECD and specified stakeholders
The bill creates a program within DECD designed to increase
educational achievement and workforce skills in communities
experiencing persistent economic disadvantages through partnerships
between DECD and specified stakeholders (participating investors,
certified community development corporations (CDCs, see Background
— CDC Certification Process and Grant Eligibility), service providers, and
independent evaluators). These partnerships are commonly referred to
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as social impact bonds.
Under the bill, DECD and these stakeholders must enter into
“community partnership opportunity agreements” under which
participating investors commit capital to fund specified education and
workforce development programs offered by eligible service providers.
The programs are tied to specific performance outcomes over a five-year
period and their progress must be measured by an independent
evaluator. If the programs achieve the performance metrics outlined in
the agreement, investors are repaid their invest ment plus a
performance-based premium, in the form of a “success payment” from
DECD.
Under the bill, a community partnership opportunity agreement
must first be proposed by a certified CDC and then approved by DECD
if it meets the bill’s criteria. The bill sets specific requirements for these
agreements, including that they have (1) a five -year performance
period; (2) performance metrics, progress milestones, and evaluation
methodologies; and (3) a success payment contract.
The bill also establishes the community partnership opportunity
account as a separate, nonlapsing account to hold any moneys the law
requires to be deposited in it. Under the bill, any funds participating
investors provide must be deposited in the account. DECD must use the
account to fund the program and specifically to pay for (1)
implementing the specified initiatives, (2) evaluating their performance,
and (3) making the success payments. The state treasurer must invest
the moneys in the account subject to use for the program’s purposes.
Lastly, the DECD commissioner must annually report to the Finance,
Revenue and Bonding Committee on each of these agreements, for each
year of the agreement’s five-year period. For each year, the reports must
describe the results of any performance metrics or progress evaluations
done and summarize the certified CDC’s initiatives.
EFFECTIVE DATE: Upon passage
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Community Partnership Opportunity Agreements
Required Components for All Agreements. Under the bill, the
community partnership opportunity agreements must at least include
the following:
1. a five-year performance period that begins when the agreement
is executed and includes (a) specified periods for delivering
services and measuring outcomes and (b) when baseline
performance and progress is measured;
2. performance metrics and progress milestones, including how
and when they are evaluated;
3. participating investors, which can include private, philanthropic,
or mission-driven investors, and their capital commitment;
4. the certified CDC that will coordinate the agreement’s initiatives
to achieve its specified performance metrics and progress
milestones, and the fee for these services;
5. the implementing organization, as described below, and the fee
for its services;
6. the independent evaluator, which will evaluate the performance
metrics and progress milestones and verify that they have been
met, and the fee for its services; and
7. a success payment contract, as described below.
Any amendments to these agreements must be agreed to, in writing,
by all the parties.
Requirements for Education Outcome Agreements. These
agreements must focus on achieving measurable improvements in
kindergarten-readiness and grade -three reading proficiency for
children living in the community the certified CDC serves. They must
include performance metrics for:
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1. kindergarten-readiness that are based on increasing the
percentage of these children who meet the state’s standard for
kindergarten-readiness at enrollment and
2. grade three literacy proficiency that are based on increasing the
percentage of these children achieving grade -level reading
proficiency by grade three, regardless of which school they
attend.
Requirements for Workforce Outcome Agreements. These
agreements must focus on increasing workforce skills attainment and
career-linked employment for working -age people living in the
community the certified CDC serves. They must include performance
metrics like industry -recognized credential attainmen t and placement
in career-path jobs with specific wage and retention milestones.
Implementing Organizations. Under the bill, implementing
organizations are responsible for delivering the services or interventions
to achieve the community partnership agreement’s performance
metrics. They can be one of three types:
1. an “early childhood implementing organization,” which is any
school or for -profit or nonprofit organization with the
professional capacity to provide preschool or early childhood
instruction designed to increase kindergarten-readiness;
2. a “literacy implementing organization,” which is any school, for-
profit, or nonprofit organization with the professional capacity to
provide intensive tutoring or reading interventions for ensuring
grade-level reading proficiency by grade three; or
3. a “workforce implementing organization,” which is a higher
education institution or for -profit or nonprofit organization
capable of providing training in specialized skills, such as health
care, manufacturing, or other high-demand fields.
Independent Evaluator. An “independent evaluator” is the person
or entity responsible for measuring performance metrics and progress
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milestones using the methods laid out in the agreement and verifying
that they have been met. It may be an academic institution, professional
consultant, or organization with a documented history of verifying
performance-based program outcomes. It must hav e expertise in the
agreement’s specific subject matter and may not have a financial interest
in the agreement’s outcome, other than the fee for its evaluation
services.
Success Payment Contract. The agreement’s success payment
contract must establish a schedule of success payments to participating
investors that are contingent on the agreement achieving its
performance metrics. The schedule must include the repayment of the
investors’ capital, a performance-based premium on that amount, and
the maximum success payment obligation. The bill specifies that these
payments are to recognize the (1) acquisition of a high -yield economic
asset once the performance metrics are achieved and (2) projected
lifetime value of these achievements to the state.
Under the bill, the DECD commissioner must make these payments
as authorized capital expenditures. The legal effect of this provision is
unclear.
Proposals
The bill requires each certified CDC to submit a proposal to the
DECD commissioner to enter into a community partnership
opportunity agreement that includes the names and contact information
of the agreement’s other required stakeholders. The commissioner must
help the CDC prepare the proposal.
The proposal must include enough information to demonstrate, to
the commissioner’s satisfaction, that:
1. the implementing organizations have the necessary experience in
delivering the applicable evidence -based interventions in
distressed municipalities (see Background — Distressed
Municipalities),
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2. the proposed intervention model is designed to reach at least 20%
of the people living in the community the certified CDC serves
that are (a) children grade three or younger or (b) working -age
residents,
3. the proposed intervention model demonstrates a reasonable
probability of achieving the applicable performance metrics,
4. participating investors have made verified commitments of
enough capital to fund the full five -years of the agreement’s
performance period without relying on state appropriations, and
5. the proposed outcomes are clearly linked to the longitudinal
success of the people living in the community.
The commissioner must execute the agreement within 90 days after
receiving the proposal if he finds that it meets the bill’s criteria. If he
determines that it does not meet these criteria, he must notify the person
who submitted the proposal in writing an d identify the unmet
requirements.
Once an agreement is executed, the certified CDC may do anything
necessary to meet its performance metrics and progress milestones. This
may include (1) collaborating with the implementing organization,
independent evaluator, and state agencies to measure these metrics and
milestones; (2) collaborating with other entities (such as early childhood
education providers, schools, employers, and workforce development
organizations) needed to help achieve the metrics and milestones; and
(3) engaging with participating investors.
Background — CDC Certification Process and Grant Eligibility
Existing law allows nonprofits that meet certain eligibility
requirements to become certified CDCs by applying to DECD’s Office
of Community Economic Development Assistance (OCEDA). To date,
DECD has certified one CDC under this program, the Clay Arsenal
CDC.
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To be a certified CDC, the nonprofit must:
1. focus a substantial majority of its efforts on serving one or more
target areas, as described below;
2. have the purpose of engaging and working with local residents
and businesses on community development efforts to
sustainably develop and improve urban communities in a way
that creates and expands economic opportunities for low - and
moderate-income people; and
3. show OCEDA that its constituency is meaningfully represented
on its board in specified ways.
A “target area” is a contiguous geographic area in which the (1)
current unemployment rate exceeds the state’s by at least 25% or (2)
mean household income is 80% or less of the state’s in the most recent
decennial census. OCEDA must identify the eligible target areas and
post them on DECD’s website.
Background — Distressed Municipalities
DECD annually ranks municipalities based on their relative
economic and fiscal distress and designates the top 25 as “distressed
municipalities.” Most recently, in 2025, DECD designated the following
municipalities as distressed: Bridgeport, Derby, East Ha rtford, East
Haven, Hartford, Killingly, Lisbon, Mansfield, Meriden, New Britain,
New London, North Canaan, Norwich, Plainfield, Plymouth, Putnam,
Sprague, Stafford, Sterling, Torrington, Waterbury, West Haven,
Willington, Winchester, and Windham.
Background — Related Bills
sSB 514, favorably reported by the Finance, Revenue and Bonding
Committee, has identical provisions.
sSB 307 (File 561), favorably reported by the Commerce Committee,
eliminates OCEDA and transfers its responsibilities to DECD.
§§ 34-44 — HOSPITAL PROVIDER TAX
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Replaces the current hospital provider tax, starting in FY 27, with new taxes on inpatient
and outpatient hospital services but requires the taxes to cease and the current tax
structure to be reimposed if CMS determines that either tax is impermissible; re peals
provisions in the FY 26-27 biennial budget act, scheduled to take effect on July 1, 2026,
that principally change the base year on which the provider tax is calculated and increase
the total tax revenue on which the tax is calculated
The bill replaces the current hospital provider tax with new taxes on
inpatient and outpatient hospital services, starting in FY 27. In doing so,
it (1) sunsets the current provider tax on June 30, 2026, (§ 38) and (2)
repeals provisions in the FY 26-27 biennial budget act, scheduled to take
effect on July 1, 2026, that change the base year on which the provider
tax is calculated and increase the total tax revenue on which the tax is
calculated by $375 million, among other things.
Generally, the new taxes established under the bill:
1. update the base year for calculating the taxes on inpatient and
outpatient services from FY 16 to federal fiscal year (FFY) 24;
2. impose a 4% tax rate on inpatient hospital services, rather than the
current 6% rate;
3. impose a 7.8223% tax rate on outpatient hospital services for FY
27, rather than the current effective rate of 10.4858%, and then
incrementally increase the rate over the next four years to
8.9689%;
4. extend the tax to cover children’s general hospitals, which are
exempt from the current hospital provider tax;
5. incorporate various administrative provisions that apply to the
current tax; and
6. require the new taxes to cease and the current tax structure to be
reimposed if the Centers for Medicare and Medicaid Services
(CMS) determine that either tax is impermissible.
The bill also makes numerous technical and conforming changes.
EFFECTIVE DATE: July 1, 2026, except the repealed provisions take
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effect upon passage.
Repeal of Hospital Provider Tax Changes Enacted in PA 25-168 (§
44)
The FY 26 -27 biennial budget act (PA 25 -168, §§ 360 & 361) makes
various changes to the hospital provider tax that are due to take effect
July 1, 2026. Principally, it:
1. updates the base year on which the tax is calculated, requiring
that it be tied to net revenue from an applicable FFY as shown in
the table below, rather than FY 16, and makes various
corresponding changes to the tax structure;
2. increases, by $375 million, the total revenue on which the tax on
outpatient hospital services is calculated and requires the starting
amount used to calculate the tax in later years to be increased by
$25 million over the prior fiscal year;
3. requires the Department of Social Services (DSS) commissioner
to seek approval from CMS to remove the exemption for
children’s general hospitals; and
4. makes other administrative changes to the tax, including
eliminating provisions allowing taxpayers to request a payment
extension under certain circumstances.
Table: Applicable FFY for the Hospital Provider Tax Under PA 25-168, § 360
State FY
(July 1 – June 30)
Applicable FFY
(October 1 – September 30)
FYs 27-29 FFY 24
FY2 30-33 FFY 27
FY 34 and every four
years
FFY that ended in the calendar year two years before the four-
year period started

The bill repeals these changes before they take effect, but incorporates
select provisions into the new taxes established under the bill, as
described below.
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New Taxes on Inpatient and Outpatient Hospital Services (§§ 34 &
35(a))
Current law imposes a 6% tax on each hospital’s FY 16 audited net
revenue attributable to inpatient hospital services. Starting in FY 27, the
bill instead imposes a 4% tax on each hospital’s “audited net revenue for
FFY 24” attributable to inpatient hospital services. The bill specifies that
this rate applies through FY 31 and after unless it is changed by law.
Under current law, the tax on outpatient hospital services is based on
a total amount of revenue ($820 million for FY 26 and after) minus the
total tax imposed on all hospitals for providing inpatient services,
divided by the total FY 16 audited net revenu e for outpatient services.
It results in an effective tax rate on outpatient hospital services of
10.4858% for FY 26 and after, subject to specific adjustments, including
for any hospital dissolutions or disallowed exemptions.
The bill instead imposes a tax on “audited net revenue for FFY 24”
attributable to outpatient hospital services equal to:
1. 7.8223% for FY 27,
2. 8.0973% for FY 28,
3. 8.3799% for FY 29,
4. 8.6704% for FY 30, and
5. 8.9689% for FY 31 and after (unless changed by law).
Under the bill, as under the current hospital provider tax, net revenue
derived from providing a health care item or service to a patient may
only be taxed once.
“Audited Net Revenue for FFY 24.” For any hospital with audited
financial statements for FFY 24, its “audited net revenue for FFY 24” is
the net revenue reported in these statements, minus any revenue the
DRS commissioner determines, based on federal law, that the hospital
received from a nything other than providing inpatient and outpatient
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hospital services. For any hospital without these audited financial
statements, it is the net revenue reported in the hospital’s financial
filings submitted to the Office of Health Strategy (OHS), adjusted
according to audited financial statement standards , minus the same
adjustment described above.
If an audited financial statement for FFY 24 does not report revenue
for the entire fiscal year, its net revenue must be calculated by projecting
the amount it would have received for the entire year based
proportionally on the amount reported in the audit ed financial
statements or by reviewing its financial filings with OHS.
Under the bill, as under current law, audited net inpatient revenue
and audited net outpatient revenue must be based on information
provided by each hospital required to pay the taxes.
Other Defined Terms. For purposes of these taxes, the bill retains the
same definitions of hospitals, inpatient and outpatient hospital services,
net revenue, and related terms that apply under the current hospital
provider tax.
Tax Recalculations Based on Organizational Changes (§ 35(a))
Under the bill, as under the current hospital provider tax, if a hospital
or hospitals subject to the taxes merge, consolidate, are acquired, or
otherwise reorganize, then the surviving hospital is liable for the total
taxes imposed on the merging, consolidating, acquired, or reorganizing
hospitals. The surviving hospital must also assume any outstanding
liabilities from periods before the merger, consolidation, acquisition, or
reorganization.
Unlike the current tax, however, the amount of taxes due from each
hospital is not recalculated if a hospital dissolves or ceases to be subject
to the taxes. Under current law, if a hospital dissolves (ceases to operate
for any reason other than a merger, consolidation, acquisition, or
reorganization) or ceases for any reason to be subject to the hospital tax,
the amount due from each hospital is not recalculated for the fiscal year
in which the hospital dissolves or ceases to operate. But, in the following
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fiscal year and each subsequent year, the tax must be recalculated so that
the total tax amount to be collected is proportionately redistributed
among the surviving hospitals.
Refunds for Exceeding Federally Permissible Tax Rate (§ 35(a))
Under the current hospital provider tax, starting in FY 27, the state
must issue refunds if the DSS commissioner determines that the
effective tax rate for inpatient services exceeds the rate allowed under
federal Medicaid law. The bill applies this same provision to the taxes
imposed under the bill. As under current law, each hospita l’s refund
must be in proportion to the amount of inpatient hospital service net
revenue on which it was taxed for the same fiscal year.
As under the current tax, each hospital subject to the bill’s taxes must
report annually to the DSS commissioner the amount of (1) tax paid and
(2) net revenue it received for providing inpatient hospital services in
the fiscal year two years prior to the reporting date. The same timeframe
and procedures for issuing these refunds under current law apply under
the bill.
Tax Payment Requirements (§ 35(a))
Under the bill, as under current law, hospitals must pay the taxes in
four quarterly payments according to the existing filing and payment
requirements.
Information Reporting Requirements (§ 35(a))
By July 31, 2026, each hospital required to pay the taxes must submit
to the DRS commissioner the information he requires to calculate
“audited net inpatient revenue for FFY 24” and “audited net outpatient
revenue for FFY 24” for each hospital. Under the bill, this is the amount
of revenue that the DRS commissioner determines, based on federal law,
that a hospital received for providing these services during FFY 24. The
amounts reported are deemed accepted on July 1, 2026, as long as the
commissioner has not started an audit of the hospital before then. (It is
unclear whether the DRS commissioner can start this audit before the
tax takes effect.)
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If he has started an audit, the hospital must comply with the
commissioner’s requests for the additional information he needs to fully
audit the hospital within 30 days after his request. The commissioner
may extend this period by request.
Under the bill, hospitals that do not provide the requested
information by July 31, 2026, or fail to comply with a request for
additional information, are subject to a penalty of $1,000 for each day
the failure continues. And as under current law, the commissioner may
engage an independent auditor to help him with these duties and
responsibilities.
Administrative Protests (§ 35(a))
The bill allows hospitals to file an administrative protest to contest
the DRS commissioner’s determination of additional audited net
revenue. (The FY 26 -27 biennial budget act’s changes to the hospital
provider tax include similar provisions on administrative protests.)
Under the bill, the commissioner must mail the taxpayer a notice by
the first day of the state fiscal year if he determines there is additional
audited net revenue. The amount becomes final 30 days after he mails
the notice unless the taxpayer files a written protest. If the taxpayer files
a protest, the commissioner must reconsider the additional audited net
revenue. The commissioner may hold a hearing if the taxpayer or its
authorized representative requests one. The commissioner must mail
the taxpayer a notice about his determination, which must briefly state
his findings of fact and the basis for any decision that goes against the
taxpayer. The commissioner’s action on the taxpayer’s protest becomes
final one month after the notice is mailed unless the taxpayer appeals to
the courts within this timeframe.
If the protest or appeal is pending on the first day of the next
succeeding state fiscal year, the protesting or appealing taxpayer must
use the amounts it reported to tentatively calculate the tax due until the
matter is resolved. If any of these amounts is later revised under the
protest or appeal, the commissioner must recalculate the amounts due
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for each hospital and issue assessments or refunds, as applicable, for any
affected quarter.
Exempt Hospitals (§ 35(b))
The bill requires the DSS commissioner to seek approval from CMS
to exempt from the taxes (1) specialty hospitals ; (2) hospitals owned
exclusively by the state, other than those the state operates as a receiver;
and (3) “sole community hospitals” (but only from the tax on outpatient
hospital services). Current law requires the commissioner to seek CMS’s
approval to exempt these same hospitals, as well as children’s general
hospitals, from the current hospital provider tax. (The FY 26-27 biennial
budget act requires the DSS commissioner to seek approval from CMS
to remove the exemption for children’s general hospitals. The bill
repeals this requirement along with the other changes that act made to
the hospital provider tax.)
As under current law, any hospital for which CMS grants an
exemption is exempt from the taxes , and any hospital denied an
exemption must pay the taxes at the same effective rates imposed on
other hospitals. Hospitals must give the commissioner any information
he requests to make any calculations needed to seek these exemption
approvals.
As under current law, these CMS requests are exempt from a separate
state law that requires the DSS commissioner to notify and, in some
cases, get approval from the Appropriations and Human Services
committees for certain CMS applications before submitting them to the
federal government.
Sole Community Hospitals. Under federal law, CMS classifies a
hospital as a “sole community hospital” if it is more than 35 miles from
similar hospitals or located in a rural area and meets one of several other
conditions (42 C.F.R. § 412.92). Under the bill, similar to current law , if
CMS denies a sole community hospital’s exemption, then in the
following calendar quarter the total tax due for outpatient hospital
services from each hospital must be adjusted to ensure that the total tax
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to be collected is redistributed. (It is unclear how this redistribution is
calculated under the bill.)
Notice to Hospitals. As under current law, the bill requires the DSS
commissioner to notify all of the hospitals subject to the taxes whenever
she receives a determination by CMS that a hospital is not exempt.
Specifically, the commissioner must notify the hospitals about (1) the
corresponding increase to the total audited net revenue for FFY 24 and
(2) any change in the effective tax rate to be collected. (However, unlike
the current hospital provider tax, the bill does not contemplate an
effective tax rate for either the inpatient or outpatient hospital services
taxes.)
Under the bill, she must issue the notice before the end of the calendar
quarter following the date of CMS’s determination. If the determination
is made after the start of a fiscal year, the recalculations must be prorated
to account for the amount already paid.
DRS Reporting Requirements (§ 35(c)-(f))
As under the current hospital provider tax, the bill requires the DRS
commissioner to:
1. issue guidance on administering the tax after completing a study
of the applicable federal law governing the administration of
health care provider taxes, in collaboration with various
stakeholders, and
2. determine if there is any underreporting of revenue on audited
financial statements, in consultation with certain state officials
and entities.
It also requires the commissioner, starting by November 15, 2026, to
report quarterly to the DSS commissioner and the OPM secretary on the
amount of (1) tax paid by each hospital for the most recently completed
calendar quarter and (2) any delinquent hospital provider taxes,
penalties, and interest owed by a hospital. However, as under current
law, the bill’s tax provisions do not affect the DRS commissioner’s
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statutory obligations to keep confidential tax returns and return
information, except under certain narrow conditions.
Tax Administration (§§ 36 & 39-43)
Under the bill, various provisions that apply to the current hospital
provider tax also apply to the new taxes. Principally, these provisions:
1. prohibit tax credits from being applied against the taxes;
2. establish specific requirements for filing the quarterly returns
and remitting the taxes;
3. allow taxpayers to request a reasonable extension for paying the
taxes due to undue hardship, subject to certain conditions;
4. set the penalty and interest that apply to unpaid taxes and allow
the DRS commissioner to waive all or part of any penalty for
reasonable cause;
5. authorize the DSS commissioner to deduct and withhold tax
amounts due from any amount DSS would otherwise pay the
taxpayer;
6. impose a penalty for willfully (a) failing to pay the taxes, file
returns, keep records, or supply information or (b) supplying
fraudulent or false information;
7. authorize the DRS commissioner to (a) require taxpayers to keep
certain records, (b) examine taxpayer records, and (c) make
deficiency assessments;
8. authorize the DRS commissioner to enter into agreements with
the DSS commissioner to administer the tax and ensure
compliance with the state’s Medicaid program;
9. allow the commissioner to adopt implementing regulations;
10. allow taxpayers to file claims for tax overpayments;
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11. establish hearing and appeals procedures for aggrieved
taxpayers;
12. authorize the DRS commissioner to take certain actions to collect
and enforce the tax; and
13. allow the comptroller, at the close of each fiscal year, to record as
revenue the amount of the taxes received by the DRS
commissioner within five business days after the July 31
following the end of the fiscal year.
Reinstatement of the Current Hospital Provider Tax Structure (§
37)
Under the bill, the taxes on inpatient and outpatient hospital services
will revert to the current tax structure (CGS § 12-263q, revised to January
1, 2025) if CMS (1) determines that either tax is an impermissible tax
under the federal health provider tax law (see Background — Limits on
Provider Tax Rates Under P.L. 119 -21), (2) does not issue a required tax
waiver, or (3) finds any aspect of the taxes to be invalid. If any of these
events happen, the General Assembly must consider amending the
statutes to ensure compliance with federal law. It must do so during the
next regular or special session, whichever comes first.
Background — Limits on Provider Tax Rates Under P.L. 119-21
Federal law allows states to use health care provider taxes to help
finance their share of Medicaid expenditures but requires that the taxes
be broad-based, uniform, and not hold providers harmless for the cost
of the tax. P.L. 119 -21 imposes new limits on these taxes effective
October 1, 2026, including lowering the threshold for determining
whether a tax holds providers harmless (the indirect hold harmless
threshold) (§ 71115). Under the law, the tax rate for most existing
provider taxes must phase down f rom FFY 28 through FFY 32 to the
lower of the (1) rate in place on July 4, 2025, or (2) applicable percent for
that year (phasing down in steps from 5.5% in FFY 28 to 3.5% in FFY 32
and after).
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§ 44 — TAX ON NURSING HOMES AND INTERMEDIATE CARE
FACILITIES
Repeals the 6% tax on nursing home and ICF revenue scheduled to take effect on July 1,
2026, and instead retains the current user fee on these facilities
The bill repeals provisions in the FY 26-27 biennial budget act (§§ 359,
361, 363 & 364) that terminate the quarterly user fee on nursing homes
and intermediate care facilities for individuals with intellectual
disabilities (ICF) as of July 1, 2026, and in stead impose a quarterly 6%
tax on their revenue as of that date. In doing so, it retains the current
quarterly user fee on these facilities of (1) $16.13 for municipally owned
nursing homes and facilities with more than 230 beds , (2) $21.02 for all
other nursing homes, and (3) $27.76 for ICFs. The amount due from each
facility is determined by multiplying the user fee by the facility’s
resident days for the calendar quarter.
The bill similarly eliminates provisions in the budget act that require:
1. the DSS commissioner, before January 1, 2026, to seek approval
from CMS to exempt certain continuing care retirement
communities licensed on or before July 1, 2017, from the nursing
home tax;
2. the tax to cease and the user fees to be reimposed if CMS
determines that the tax is impermissible; and
3. these facilities to include the amount of their nursing facility and
ICF service revenue on their quarterly provider tax returns to
DRS.
EFFECTIVE DATE: Upon passage
§ 44 — HOSPITAL MEDICAID SUPPLEMENTAL PAYMENTS
Repeals the increases to Medicaid supplemental payments to hospitals for FY 27 and after,
and instead retains the requirement that DSS pay out the same amount paid in FY 26 for
these years
Existing law requires DSS to pay specified amounts in supplemental
Medicaid payments to hospitals in the state to the extent required by the
settlement agreement for The Connecticut Hospital Association et al. v.
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Connecticut Department of Social Services et al. (No. HHB-CV16-6035321-
S) approved by the General Assembly on December 18, 2019, and related
court orders. The law sets the total amount of these payments at $568.3
million for FY 26.
The bill repeals provisions in the FY 26-27 biennial budget act (§ 362)
that (1) increase these required payments for FY 27 by $140 million to
$708.3 million and (2) require the total payments for FY 28 and after to
be increased by an additional $25 million over the preceding year if the
total amount of hospital provider tax collected for that year, across all
hospitals subject to the tax, increased by at least $25 million over the
preceding year. Instead, the bill retains the current requirement that DSS
pay out the amount paid in FY 26 ($568.3 million) for FY 27 and after,
unless it is changed by state law.
The bill also repeals a provision in the budget act that explicitly
prohibits DSS from making these payments in a way that does not
comply with applicable federal requirements and required federal
approvals, including making payments that cause the total h ospital
payments in an applicable category to exceed the upper payment limit.
EFFECTIVE DATE: Upon passage
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea 35 Nay 17 (03/31/2026)