Connecticut Budget Bills Includes Tax Changes

By Jennifer J. Troyer, JD, Checkpoint News

On May 14, 2026, Connecticut Governor Ned Lamont signed the budget bill which includes some of the following tax changes: decoupling from certain IRC provisions, establishing new tax credits, expanding the back-to-school sales tax holiday, and making other changes. (L. 2026, S1 (Act 26-68), effective as noted.)

Income tax.  Changes affecting income taxes include:

Applicable to income tax years beginning after 2025, IRC § 168(n) does not apply.

For income tax years beginning on or after January 1, 2022, the deduction under P.L. 119-21 (formerly known as the One Big Beautiful Bill or OBBB) Sec. 70302(f) is disallowed.

To dig deeper, visit the original article on the Thomson Reuters blog.