AN ACT ESTABLISHING A REFUNDABLE CHILD TAX CREDIT.

Plain English Breakdown

The exact dollar amounts and years for each step of the increase between $150 and $600 are not detailed in the provided excerpt.

A New Refundable Child Tax Credit

This law creates a new state income tax credit for parents with up to three children, starting at $150 per child in 2026 and increasing over the next three years.

What This Bill Does

• Creates a refundable tax credit against personal income tax for up to three children.
• Sets the credit amount at $150 per child for the taxable year starting January 1, 2026.
• Increases the credit gradually until it reaches six hundred dollars per child over the next three years.
• Reduces the credit by five percent for every one thousand dollars or fraction thereof of federal adjusted gross income above specific limits based on filing status.

Who It Names or Affects

• Unmarried individuals or married people filing separately with children and a federal adjusted gross income under $100,000.
• Heads of household with children and a federal adjusted gross income under $160,000.
• Married couples filing jointly with children and a federal adjusted gross income under $200,000.

Terms To Know

Refundable tax credit

A reduction in taxes owed that can result in money being sent back to the taxpayer if the credit is larger than their total tax bill.

Federal adjusted gross income

The total amount of taxable income a person or family reports on their federal tax return before certain deductions are taken out.

Limits and Unknowns

• The credit only applies to the first three children in a household.
• Families with higher incomes receive less money because the amount drops by five percent for every $1,000 or fraction thereof over their income limit.

Official Summary Text

To establish a refundable child tax credit.

Current Bill Text

LCO No. 503 1 of 1

General Assembly Proposed Bill No. 103
February Session, 2026 LCO No. 503

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. LOONEY, 11th Dist.

AN ACT ESTABLISHING A REFUNDABLE CHILD TAX CREDIT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 229 of the general statutes be amended to establish a 1
refundable child tax credit against the personal income tax for up to 2
three children, in the amount of one hundred fifty dollars per child for 3
the taxable year commencing January 1, 2026, and phasing up to six 4
hundred dollars per child over the three taxable years next succeeding, 5
provided such amount be reduced five per cent for every one thousand 6
dollars or fraction thereof of federal adjusted gross income over (1) one 7
hundred thousand dollars for an unmarried individual or a married 8
individual filing separately, (2) one hundred sixty thousand dollars for 9
a head of household, and (3) two hundred thousand dollars for married 10
individuals filing jointly. 11
Statement of Purpose:
To establish a refundable child tax credit.