List of Tax Cuts Approved by Governor Lamont Since Taking Office

Summary of Major Tax Relief Under the Lamont Administration(in millions)

Tax Relief Enacted From 2019-2022

Policy

FY 2022

FY 2023

FY 2024

FY 2025

Gas Tax Holiday From 4/1/2022 Thru 6/30/2022

$(90.0)

$ –

$ –

$ –

Extend Gas Tax Holiday From 7/1/2022 Thru 11/30/2022

–

(150.0)

–

–

Extend and Phase-Out Gas Tax Holiday From 12/1/2022 Thru 4/30/2023

–

(90.0)

–

–

Child Tax Credit of $250 (Funded from FY22 Surplus Transferred to FY23)

–

(125.0)

–

–

Car Tax – Reduce Max Mill Rate from 45 to 32.46 Mills

–

(100.0)

(100.0)

(100.0)

Property Tax Credit – Increase from $200 to $300

–

(60.0)

(60.0)

(60.0)

Property Tax Credit – Restore Full Eligibility

–

(53.0)

–

–

Pensions & Annuities – Accelerate Exemption Schedule

–

(42.9)

(29.3)

(15.6)

Earned Income Tax Credit – Increase From 23% to 30.5%

(34.1)

(34.1)

(34.1)

(34.1)

Payments to Households Eligible for Earned Income Tax Credit

(75.0)

(42.6)

–

–

Unemployment Insurance Tax Reduction in 2023 ($40M from ARPA)

–

(40.0)

–

–

Business Entity Tax – Repeal

(11.0)

(44.0)

(11.0)

(44.0)

JobsCT Tax Rebate Program

–

–

–

(40.0)

Phase-Out of Capital Base Tax by 1/1/2028

–

–

(5.7)

(15.2)

Phase-In R&D Tax Credit from 50.01% to 70% by IY 2023

(6.5)

(17.2)

(21.5)

(21.5)

Repeal Ambulatory Surgical Centers Tax

–

(18.0)

(9.4)

(9.9)

Expand Employer Student Loan Tax Credit

–

(9.4)

(9.9)

(10.4)

Repeal Movie Theater Admissions Tax

–

(2.5)

(5.0)

(5.0)

Total Enacted Tax Relief

$(216.6)

$(828.7)

$(285.9)

$(355.7)

Tax Relief Enacted in FY 2024 – FY 2025 Biennial Budget (2023 Legislative Session)

Policy

FY 2022

FY 2023

FY 2024

FY 2025

Personal Income Tax Rates – Reduce 5% to 4.5% & 3% to 2%

$ –

$ –

$(166.8)

$(370.4)

Retirement Income – Establish Phase-Out for P&A and IRA Exemption

–

–

(21.1)

(45.3)

Earned Income Tax Credit – Increase From 30.5% to 40%

–

–

(44.6)

(44.6)

Freeze the Diesel Tax Rate for One Fiscal Year at $0.492 per gallon

–

–

(37.2)

–

Cannabis Firms – Allow Expense Deductions Beyond Costs of Goods Sold

–

–

(4.7)

(6.2)

Pass-through Entity Tax – Make Filing Optional

–

–

(2.7)

(6.0)

Exempt Aviation Fuel From Petroleum Gross Receipts Tax

–

–

(3.2)

(3.1)

Film Production Tax Credit – Inc. Applicability to Sales Tax from 78% to 92%

–

–

(2.2)

(4.3)

Human Capital Tax Credit – Increase From 5% to 10%; 25% for Child Care

–

–

(2.1)

(3.5)

Establish 30% Pre- & Post-Broadway Theater Production Tax Credit

–

–

(2.5)

(2.5)

Total FY 2024 – FY 2025 Tax Relief

$ –

$ –

$(287.1)

$(485.9)

Grand Total Tax Relief

$(216.6)

$(828.7)

$(573.0)

$(841.6)