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Connecticut establishes a refundable income tax credit of up to $2,500 for eligible renters starting in 2027

Original title: AN ACT ESTABLISHING A REFUNDABLE CREDIT AGAINST THE PERSONAL INCOME TAX FOR A PORTION OF ANNUAL RENT PAYMENTS MADE BY A TAXPAYER FOR A PRIMARY RESIDENCE IN THE STATE.

Last action · April 16, 2026: File Number 663Sponsors: Jason Rojas and 13 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Starting with the 2027 tax year, this bill creates a refundable personal income tax credit of up to $2,500 for eligible renters with s of up to $75,000 for single filers and $150,000 for joint filers. Landlords and managing agents are required to issue a certificate of rent paid to renters by February 1 of the following year, which renters must file with their state tax returns.

Why it matters

Qualifying state residents can receive a direct tax refund for up to 20% of their annual rent payments minus 4% of their adjusted gross income, while the state General Fund anticipates an annual revenue loss of approximately $575 million beginning in 2028.

Background
  • The Connecticut General Assembly operates on a biennial budget cycle, considering major tax and revenue measures during regular legislative sessions. context

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

eligible renters

Eligible renters may claim a refundable personal income tax credit of up to $2,500 based on their annual rent payments and income.

Directly affected

owners and managing agents of rental properties

Property owners and managers are required to furnish certificates of rent paid to renters by February 1 and retain records of them for four years.

Directly affected

Department of Revenue Services

The department must process tax credits, issue refunds, develop affidavit forms, adopt implementing regulations, and submit annual legislative reports.

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 qualifies for the new rental tax credit?
An eligible renter must have lived in a Connecticut dwelling unit as their primary residence for the entire taxable year, not be claimed as a dependent on someone else's tax return, and have a of $75,000 or less (for single filers, separate married filers, or heads of household) or $150,000 or less (for joint filers).
How is the tax credit amount calculated?
The credit equals 20% of the annual rent actually paid by the eligible renter, minus 4% of their for that tax year, up to a maximum cap of $2,500.
What happens if a landlord does not provide a certificate of rent paid?
If an eligible renter does not receive a certificate, they may submit an affidavit containing the required rent information using a form developed and posted online by the Department of Revenue Services.

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 House floor.

Procedural history

12 actions
  1. Apr 16, 2026Connecticut General Assembly
    File Number 663
  2. Apr 16, 2026House
    House Calendar Number 438
  3. Apr 16, 2026House
    Favorable Report, Tabled for the Calendar, House
  4. Apr 16, 2026Connecticut General Assembly
    Reported Out of Legislative Commissioners' Office
  5. Apr 10, 2026Connecticut General Assembly
    Referred to Office of Legislative Research and Office of Fiscal Analysis 04/15/26 5:00 PM
  6. Apr 1, 2026Connecticut General Assembly
    Filed with Legislative Commissioners' Office
Show 6 earlier actions
  1. Mar 30, 2026Connecticut General Assembly
    Joint Favorable Substitute
  2. Mar 12, 2026Connecticut General Assembly
    Public Hearing 03/16
  3. Mar 11, 2026Connecticut General AssemblyCommittee
    Referred to Joint Committee on Finance, Revenue and Bonding
  4. Mar 10, 2026Connecticut General Assembly
    Drafted by Committee
  5. Feb 13, 2026Connecticut General Assembly
    Vote to Draft
  6. Feb 10, 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

Significant General Fund Revenue Impact

The bill creates an ongoing General Fund revenue loss of approximately $575 million annually starting in FY 28 due to the refundable renter tax credit.

Connected Entities

Finance, Revenue and Bonding Committee, Rep. Horn, Department of Revenue Services and 3 more
OrganizationFinance, Revenue and Bonding Committee“Legislative committee that reported the substitute bill”Map →
PersonRep. Horn“Chairperson of the Finance, Revenue and Bonding Committee”Map →
OrganizationDepartment of Revenue Services“State department responsible for administering the tax credit, prescribing certi”Map →
OrganizationState Comptroller“State office administering central fringe benefit accounts”Map →
OrganizationGeneral Assembly“Legislative body receiving annual reports from the Commissioner of Revenue Servi”Map →
OrganizationDepartment of Housing“State agency authorized to coordinate with DRS to promote public awareness of th”Map →

Sources

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz65
    Current news / social attention level

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