Sec. 12-704c. Credits for taxes paid on primary residence or motor vehicle.
Sec. 12-704c. Credits for taxes paid on primary residence or motor vehicle.
(a) Any resident of this state, as defined in subdivision (1) of subsection (a) of section
12-701, subject to the tax under this chapter for any taxable year shall be entitled to a
credit in determining the amount of tax liability under this chapter, for all or a portion,
as permitted by this section, of the amount of property tax, as defined in this section,
first becoming due and actually paid during such taxable year by such person on such
person's primary residence or motor vehicle in accordance with this section, provided
in the case of a person who files a return under the federal income tax for such taxable
year as an unmarried individual, a married individual filing separately or a head of
household, one motor vehicle shall be eligible for such credit and in the case of a husband
and wife who file a return under federal income tax for such taxable year as married
individuals filing jointly, no more than two motor vehicles shall be eligible for a credit
under the provisions of this section.
(b) The credit allowed under this section shall not exceed two hundred fifteen dollars
for the taxable year commencing on or after January 1, 1997, and prior to January 1,
1998; for taxable years commencing on or after January 1, 1998, but prior to January
1, 1999, three hundred fifty dollars; for taxable years commencing on or after January
1, 1999, but prior to January 1, 2000, four hundred twenty-five dollars; for taxable years
commencing on or after January 1, 2000, but prior to January 1, 2003, five hundred
dollars; for taxable years commencing on or after January 1, 2003, three hundred fifty
dollars; for taxable years commencing on or after January 1, 2005, but prior to January
1, 2006, three hundred fifty dollars; and for taxable years commencing on or after January
1, 2006, five hundred dollars. In the case of any husband and wife who file a return
under the federal income tax for such taxable year as married individuals filing a joint
return, the credit allowed, in the aggregate, shall not exceed such amounts for each such
taxable year.
(c) (1) (A) For taxable years commencing prior to January 1, 2000, in the case of
any such taxpayer who files under the federal income tax for such taxable year as an
unmarried individual whose Connecticut adjusted gross income exceeds fifty-two thousand five hundred dollars, the amount of the credit that exceeds one hundred dollars
shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by
which the taxpayer's Connecticut adjusted gross income exceeds said amount.
(B) For taxable years commencing on or after January 1, 2000, but prior to January
1, 2001, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds fifty-three thousand five hundred dollars, the amount of the credit that exceeds
one hundred dollars shall be reduced by ten per cent for each ten thousand dollars, or
fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds
said amount.
(C) For taxable years commencing on or after January 1, 2001, but prior to January
1, 2004, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds fifty-four thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the
taxpayer's Connecticut adjusted gross income exceeds said amount.
(D) For taxable years commencing on or after January 1, 2004, but prior to January
1, 2007, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds fifty-five thousand dollars, the amount of the credit shall be reduced by ten
per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's
Connecticut adjusted gross income exceeds said amount.
(E) For taxable years commencing on or after January 1, 2007, but prior to January
1, 2008, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds fifty-five thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the
taxpayer's Connecticut adjusted gross income exceeds said amount.
(F) For taxable years commencing on or after January 1, 2008, but prior to January
1, 2009, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds fifty-six thousand five hundred dollars, the amount of the credit shall be reduced
by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's
Connecticut adjusted gross income exceeds said amount.
(G) For taxable years commencing on or after January 1, 2009, but prior to January
1, 2010, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds fifty-eight thousand five hundred dollars, the amount of the credit shall be
reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the
taxpayer's Connecticut adjusted gross income exceeds said amount.
(H) For taxable years commencing on or after January 1, 2010, but prior to January
1, 2011, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds sixty thousand five hundred dollars, the amount of the credit shall be reduced
by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's
Connecticut adjusted gross income exceeds said amount.
(I) For taxable years commencing on or after January 1, 2011, but prior to January
1, 2012, in the case of any such taxpayer who files under the federal income tax for
such taxable year as an unmarried individual whose Connecticut adjusted gross income
exceeds sixty-two thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the
taxpayer's Connecticut adjusted gross income exceeds said amount.
(J) For taxable years commencing on or after January 1, 2012, in the case of any such
taxpayer who files under the federal income tax for such taxable year as an unmarried
individual whose Connecticut adjusted gross income exceeds sixty-four thousand five
hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten
thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross
income exceeds said amount.
(2) In the case of any such taxpayer who files under the federal income tax for such
taxable year as a married individual filing separately whose Connecticut adjusted gross
income exceeds fifty thousand two hundred fifty dollars, the amount of the credit shall
be reduced by ten per cent for each five thousand dollars, or fraction thereof, by which
the taxpayer's Connecticut adjusted gross income exceeds said amount.
(3) In the case of a taxpayer who files under the federal income tax for such taxable
year as a head of household whose Connecticut adjusted gross income exceeds seventy-eight thousand five hundred dollars, the amount of the credit shall be reduced by ten
per cent for each ten thousand dollars or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.
(4) In the case of a taxpayer who files under federal income tax for such taxable
year as married individuals filing jointly whose Connecticut adjusted gross income
exceeds one hundred thousand five hundred dollars, the amount of the credit shall be
reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the
taxpayer's Connecticut adjusted gross income exceeds said amount.
(d) The credit allowed under the provisions of this section shall be available for any
person leasing a motor vehicle pursuant to a written agreement for a term of more than
one year. Such lessee shall be entitled to the credit in accordance with the provisions
of this section for the taxes actually paid by the lessor or lessee on such leased vehicle,
provided the lessee was lawfully in possession of the motor vehicle at such time when
the taxes first became due. The lessor shall provide the lessee with documentation establishing, to the satisfaction of the Commissioner of Revenue Services, the amount of
property tax paid during the time period in which the lessee was lawfully in possession
of the motor vehicle. The lessor of the motor vehicle shall not be entitled to a credit
under the provisions of this section.
(e) The credit may only be used to reduce such qualifying taxpayer's tax liability
for the year for which such credit is applicable and shall not be used to reduce such tax
liability to less than zero.
(f) The amount of tax due pursuant to sections 12-705 and 12-722 shall be calculated
without regard to this credit.
(g) For the purposes of this section: (1) "Property tax" means the amount of property
tax exclusive of any interest, fees or charges thereon for which a taxpayer is liable, or
in the case of any husband and wife who file a return under the federal income tax for
such taxable year as married individuals filing a joint return, for which the husband or
wife or both are liable, to a Connecticut political subdivision on the taxpayer's primary
residence or motor vehicles; (2) "motor vehicle" means a motor vehicle, as defined in
section 14-1, which is privately owned or leased; and (3) property tax first becomes
due, if due and payable in a single installment, on the date designated by the legislative
body of the municipality as the date on which such installment shall be due and payable
and, if due and payable in two or more installments, on the date designated by the
legislative body of the municipality as the date on which such installment shall be due
and payable or, at the election of the taxpayer, on the date designated by the legislative
body of the municipality as the date on which any earlier installment of such tax shall
be due and payable.
(P.A. 97-309, S. 7, 23; 97-322, S. 4, 7, 9; P.A. 98-110, S. 1, 27; 98-262, S. 15, 22; P.A. 99-173, S. 2, 7, 65; May 9 Sp.
Sess. P.A. 02-1, S. 80; June 30 Sp. Sess. P.A. 03-1, S. 101; P.A. 04-216, S. 52; P.A. 05-251, S. 76, 77; P.A. 06-186, S. 79.)
History: P.A. 97-309 effective July 1, 1997, and applicable to income years commencing on or after January 1, 1997;
P.A. 97-322 amended Subsec. (b) to increase amount of credit for taxable years commencing on or after January 1, 1998,
from $275 to $285, effective July 1, 1997, and changed effective date of P.A. 97-309 but without affecting this section;
P.A. 98-110 amended Subsec. (b) to increase amount of credit from $285 to $350, effective May 19, 1998, and applicable
to taxable years commencing on or after January 1, 1998; P.A. 98-262 allowed credit for installment in January 1998, and
amended definition of property tax to clarify that interest, fees and charges are excluded, effective June 8, 1998, and
applicable to taxable years commencing on or after January 1, 1998; P.A. 99-173 amended Subsec. (b) to increase credit
from $350 to $425 for tax years commencing on or after January 1, 1999, and from $425 to $500 for tax years commencing
on or after January 1, 2000, effective June 23, 1999, and applicable to taxable years commencing on or after January 1,
1999, and divided Subsec. (c) into Subdivs., adding new Subparas. (B) to (I) inclusive, re income limits for unmarried
single filers in Subdiv. (1), effective June 23, 1999, and applicable to tax years commencing on or after January 1, 2000;
May 9 Sp. Sess. P.A. 02-1 amended Subsec. (c)(1) to defer by two years the increase in the credit for single filers, effective
July 1, 2002, and applicable to taxable years commencing on or after January 1, 2002; June 30 Sp. Sess. P.A. 03-1 amended
Subsec. (b) to lower the maximum credit to $350 and amended Subsec. (c) to eliminate minimum credit of $100, to add
new Subdiv. (2)(D) re credit amount for unmarried filers for taxable year 2004, to redesignate existing Subparas. (D) to
(I) as Subparas. (E) to (J) in Subdiv. (2) and to amend said Subparas. to delay change in credit amounts for unmarried filers
by one year, effective August 16, 2003, and applicable to taxable years commencing on or after January 1, 2003; P.A. 04-216 amended Subsec. (b) to increase the maximum credit to $500 for taxable years commencing January 1, 2005, effective
July 1, 2005, and applicable to taxable years commencing on or after January 1, 2005; P.A. 05-251 amended Subsec. (b)
to decrease the maximum credit amount to $350 prior to January 1, 2006, and $400 thereafter, effective July 1, 2005, and
applicable to taxable years commencing on or after January 1, 2005, and amended Subsec. (c)(1)(D) to (J) to delay for two
years the change in credit amounts for single filers, effective June 30, 2005, and applicable to taxable years commencing
on or after January 1, 2005; P.A. 06-186 amended Subsec. (b) to increase credit from $400 to $500, effective July 1, 2006,
and applicable to taxable years commencing on or after January 1, 2006.