Connecticut Enacts Budget Legislation, Includes Tax Related Provisions

The Connecticut Governor signed legislation concerning the state budget for the biennium ending June 30, 2027. The law includes: 1) eliminating an alternative net operating loss (NOL) rule that currently applies to certain combined groups that had more than $6 billion in NOLs from pre-2013 tax years, which subjects them to the standard NOL carry forward limitation applicable to other corporations, effective upon passage, and applicable to income years beginning on or after Jan. 1, 2025; 2) eliminating the $2.5 million cap on the amount a combined group’s tax, calculated on a combined unitary basis, can exceed the tax it ...