AN ACT ESTABLISHING A REFUNDABLE CREDIT AGAINST THE PERSONAL INCOME TAX FOR THE AMOUNT OF MOTOR VEHICLE PROPERTY TAX PAID.

Plain English Breakdown

The official source material does not provide information on what happens to taxpayers with incomes above the set limits or if the existing residential property tax credit can cover motor vehicle property taxes.

Act Creating a Tax Credit for Vehicle Property Taxes

This act creates a refundable tax credit that allows individuals with lower incomes to get money back from their personal income taxes equal to the amount they pay in motor vehicle property taxes.

What This Bill Does

• Creates a new refundable tax credit for individuals who pay motor vehicle property taxes and have an adjusted gross income below certain limits.

Who It Names or Affects

• Taxpayers who pay motor vehicle property taxes and have an adjusted gross income below certain limits.
• The state's revenue system, as it will reduce income tax collections for eligible taxpayers.

Terms To Know

refundable credit

A type of tax benefit that allows a taxpayer to receive money back from the government if their tax liability is less than the amount of the credit.

adjusted gross income (AGI)

The total income earned by an individual or business before taxes, minus certain deductions allowed by law.

Limits and Unknowns

• It does not specify what happens to taxpayers with incomes above the set limits.
• The bill has passed both chambers but its final approval and implementation details are still pending.

Official Summary Text

To (1) establish a refundable credit against the personal income tax for the amount of motor vehicle property tax paid for a taxable year by taxpayers with adjusted gross income of less than one hundred thousand dollars for single filers and less than two hundred thousand dollars for married individuals filing jointly, and (2) limit the credit under section 12-704c of the general statutes to property tax paid on primary residences.

Current Bill Text

LCO No. 361 1 of 2

General Assembly Proposed Bill No. 99
February Session, 2026 LCO No. 361

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. HARDING, 30th Dist.
SEN. MARTIN, 31st Dist.
SEN. SAMPSON, 16th Dist.
SEN. CICARELLA, 34th Dist.
SEN. SOMERS, 18th Dist.
SEN. HWANG, 28th Dist.
SEN. BERTHEL, 32nd Dist.
SEN. FAZIO, 36th Dist.
SEN. GORDON, 35th Dist.
SEN. KISSEL, 7th Dist.
SEN. PERILLO J., 21st Dist.

AN ACT ESTABLISHING A REFUNDABLE CREDIT AGAINST THE
PERSONAL INCOME TAX FOR THE AMOUNT OF MOTOR VEHICLE
PROPERTY TAX PAID.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 229 of the general statutes be amended to (1) establish a 1
refundable credit against the personal income tax for the amount of 2
motor vehicle property tax paid for a taxable year by taxpayers with 3
adjusted gross income of less than one hundred thousand dollars for 4
single filers and less than two hundred thousand dollars for married 5
individuals filing jointly, and (2) limit the credit under section 12 -704c 6
of the general statutes to property tax paid on primary residences. 7
Statement of Purpose:
To (1) establish a refundable credit against the personal income tax for
the amount of motor vehicle property tax paid for a taxable year by
Proposed Bill No. 99

LCO No. 361 2 of 2

taxpayers with adjusted gross income of less than one hundred
thousand dollars for single filers and less than two hundred thousand
dollars for married individuals filing jointly, and (2) limit the credit
under section 12 -704c of the general statutes to pr operty tax paid on
primary residences.