Lamont's first legislative proposal of 2023 includes tax credit for Connecticut businesses
Connecticut Governor Ned Lamont wants to enhance the state’s pass-through entity tax credit in his upcoming budget.
It would help small business owners save money, the governor said.
Connecticut is one of several states that enacted a pass-through entity tax credit in response to the $10,000 limit on state personal income tax deductions imposed during former President Donald Trump’s administration.
The tax credit allows business owners to avoid the limit because business income that passes through to them can be fully deducted, without limitation on their federal income tax returns.
Lamont said increasing the credit would allow small business owners to save more money by claiming a larger income tax credit on their personal returns.
It’s the first proposal Lamont has announced from the budget he’ll present to lawmakers next month.