AN ACT CONCERNING PERSONAL INCOME TAX REFUNDS.

Plain English Breakdown

The bill has passed both chambers but is currently referred to a committee; the official text does not include an effective date or signature by the governor.

Personal Income Tax Refunds Act

This bill moves $330,811,954 from the Budget Reserve Fund into the General Fund to pay personal income tax refunds for taxpayers who filed federal returns starting in 2025.

What This Bill Does

• Transfers $330,811,954 from the Budget Reserve Fund to the General Fund.
• Requires that this money be used only for personal income tax refunds.
• Directs the Department of Revenue Services to calculate how much each taxpayer gets back based on taxes actually paid.

Who It Names or Affects

• Taxpayers who filed a federal income tax return for years starting on or after January 1, 2025.
• The Department of Revenue Services, which must calculate the refund amounts.
• State budget accounts, specifically the Budget Reserve Fund and General Fund.

Limits and Unknowns

• No effective date is listed in this text, so it is unclear exactly when these rules start.
• The bill does not say how refunds will be delivered or if there are limits on the number of people who can receive them.

Official Summary Text

To require moneys to be transferred from the Budget Reserve Fund to the General Fund and used to provide personal income tax refunds to taxpayers.

Current Bill Text

LCO No. 918 1 of 1

General Assembly Proposed Bill No. 181
February Session, 2026 LCO No. 918

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 CONCERNING PERSONAL INCOME TAX REFUNDS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That $330,811,954 be transferred from the Budget Reserve Fund to the 1
General Fund and said amount be used to provide refunds, as calculated 2
by the Department of Revenue Services, of personal income tax actually 3
paid by taxpayers who filed a federal income tax return for the taxable 4
year commencing on or after January 1, 2025. 5
Statement of Purpose:
To require moneys to be transferred from the Budget Reserve Fund to
the General Fund and used to provide personal income tax refunds to
taxpayers.