Corporate Surtax, SALT Workaround Change Feature in Connecticut

The $51.1 billion biennial budget that Connecticut is on the verge of enacting would keep a corporate tax surcharge, tweak the state’s pass-through entity tax, and give a tax break to cannabis businesses, in addition to making historic cuts to individual tax rates.

The measure (AB 6941), which Gov. Ned Lamont (D) has endorsed as the biggest ever in the state, would lower the bottom two marginal income tax rates to 2% from 3% and to 4.5% from 5% starting in the 2024 tax year. It gradually eliminates the benefit of the marginal rates for ...