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Did Not Advance

Connecticut establishes voluntary payroll tax program and electric bill reduction fund starting in 2027

Original title: AN ACT CONCERNING A PAYROLL TAX AND STRUCTURAL EFFICIENCY IN THE COLLECTION OF SUCH TAX AND ESTABLISHING AN ADMINISTRATIVE EFFICIENCY ACCOUNT FOR THE REDUCTION OF CERTAIN CONSUMER CHARGES.

Last action · April 20, 2026: File Number 698Sponsors: Travis Simms and 1 other

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Starting January 1, 2027, this bill establishes a voluntary payroll tax program in Connecticut allowing covered employees earning over $50,000 to opt into a reduction paired with employer-paid payroll taxes and retirement contributions, while directing resulting tax efficiencies into a dedicated fund to lower residential electric bills.

Why it matters

Participating workers receive a and employer-funded retirement deposits while changing their wage withholding structure, and residential utility customers eventually see reduced electric bill s once the efficiency fund balance is certified.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

covered employees

Eligible workers may elect to participate in a payroll expense reduction program, receive a refundable state income tax credit, and obtain employer-funded retirement contributions.

Directly affected

employers

Covered employers must pay payroll taxes for participating staff, make retirement plan deposits, inform employees about the program, and alter withholding procedures.

Directly affected

residential electric customers

Directly affected

electric distribution companies

Utilities must receive transferred funds from the Treasurer and apply them sequentially to satisfy and retire residential public benefits charges.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who is eligible to participate in the payroll tax program?
Employees employed in Connecticut whose annual gross income from wages and compensation exceeds $50,000 (or $80,000 for heads of household) are eligible to elect participation.
What happens to the revenue generated by the payroll tax program?
A amount is calculated annually and deposited into the administrative efficiency account to be used by the Treasurer to reduce the on residential electric bills.
Are employers required to make retirement contributions for participating employees?
Yes, employers must deposit a pro rata amount into a qualifying retirement plan selected by the electing employee, such as an IRA or employer-sponsored plan.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · on the Senate floor.

Procedural history

9 actions
  1. Apr 20, 2026Connecticut General Assembly
    File Number 698
  2. Apr 20, 2026Senate
    Senate Calendar Number 429
  3. Apr 20, 2026Senate
    Favorable Report, Tabled for the Calendar, Senate
  4. Apr 20, 2026Connecticut General Assembly
    Reported Out of Legislative Commissioners' Office
  5. Apr 13, 2026Connecticut General Assembly
    Referred to Office of Legislative Research and Office of Fiscal Analysis 04/20/26 12:00 PM
  6. Apr 1, 2026Connecticut General Assembly
    Filed with Legislative Commissioners' Office
Show 3 earlier actions
  1. Mar 30, 2026Connecticut General Assembly
    Joint Favorable
  2. Mar 23, 2026Connecticut General Assembly
    Public Hearing 03/27
  3. Mar 20, 2026Connecticut General AssemblyCommittee
    Referred to Joint Committee on Finance, Revenue and Bonding

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

financial connection95% confidence

Payroll Tax Revenue Linked to Utility Bill Relief

The legislation establishes a direct structural link where net revenue differences from a voluntary payroll tax are funneled into an account specifically dedicated to reducing residential electric utility public benefits charges.

Connected Entities

Comptroller, Treasurer, Finance, Revenue and Bonding Committee and 2 more
PersonComptroller“Develops educational materials and certifies administrative efficiency account b”Map →
PersonTreasurer“Expends moneys from the administrative efficiency account to reduce public benef”Map →
OrganizationFinance, Revenue and Bonding Committee“Reported substitute bill sSB 513”Map →
OrganizationConnecticut Retirement Security Program“Provider of retirement accounts for employee deposits”Map →
OrganizationDepartment of Revenue Services“Receives payroll tax payments and calculates structural efficiency dividend”Map →

Sources

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy50
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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