○ Live performances at Candlewood Playhouse and Ocean Beach Park.

○ Movie charges under $ 4. 50.

○ Movie charges under $ 5.

○ Events at Stafford Motor Speedway, Lime Rock Park, Thompson Speedway, Waterford Speed Bowl, Bridgeport Harbor Yard Stadium, and New Haven Ravens and Waterbury Spirits games.

● Exempt:

○ Events at Connecticut Expo Center.

○ Establishments formerly subject to cabaret tax.

● Reduce tax on movie tickets over $ 5 from 10% to 8% as of 7/1/00 and to 6% as of 7/1/01.

○ Nature's Art, near Waterford, effective 4/1/06.

○ Arena at Harbor Yard, Bridgeport, effective 11/1/06.

○ Dodd Stadium, Norwich, effective 11/1/06.

○ Places offering karaoke without paid entertainer.

○ Restaurants serving only beer or only beer and wine.

● Rates reduced as of 1/1/91:

○ Capital gains from 7% to 4. 75%.

○ Dividends and interest from a range of 1% -14% to a range of 0. 75% - 9. 5%.

● Tax repealed effective 1/1/92. Income is subject to personal income tax (see below).

○ $ 0. 45 to $ 0. 47 per pack as of 7/1/93.

○ $ 0. 47 to $ 0. 50 per pack as of 7/1/94.

● New tax on marijuana and other illegal controlled substances imported into the state.

● Rates:

○ Marijuana - $ 3. 50/gram

○ Other illegal drugs - $ 200/gram

○ Illegal drugs not sold by weight - $ 2,000 per 50-dose unit

● Cap tax liability of regulated investment companies and real estate investment trusts under capital base method of calculating tax at $ 50,000 annually starting on and after 1/1/91.

● Limit tax liability due from such companies under the capital base method at $ 500,000 per year for income years 1/1/86 to 1/1/91.

● Reduce tax surcharge from 20% to 10% as of 1/1/92 and eliminate surcharge as of 1/1/93.

● Provide up to 10% credit for natural gas vehicle operating costs for 1991 and 1992 income years.

● Extend tax to nonprofit corporations' unrelated business income.

● Credits:

○ 20% research and development (R&D) credit – phased in 10% per year over two years starting 1/1/93 – full credit starting 1/1/94.

○ 25% job training credit phased in 5% per year starting in 1995 – full credit starting 1/1/99.

○ 25% credit for technology-related R&D grants to Connecticut colleges and universities.

○ Maximum 25% credit for up to seven years for new manufacturing or economic base industries, depending on facility size and number of new workers hired.

● Eliminate deduction from gross income for non-life insurance company unpaid loss reserve adjustment.

● Exempt mutual funds and real estate investment trusts.

● Establish multi-year tax rate reduction (Schedule modified in 1995 – see below):

○ 11. 5% to 11. 25% as of 1/1/95

○ 11% as of 1/1/96

○ 10. 5% as of 1/1/97

○ 10% as of 1/1/98

● Credits:

○ 5% credit for small and 10% credit for medium-sized companies for increased machinery and equipment spending.

○ 1% to 6% credit for R&D spending.

● Exempt cooperative housing corporations retroactive to 1990.

● Credits:

○ Increase credit for apprenticeship wages from $ 2. 40 to $ 4 per hour and maximum annual credit per apprenticeship from $ 3,000 to $ 4,800 per year.

○ 50% credit for expenses of traffic reduction program related to federal Clean Air Act.

○ Expand 5% credit for small companies' machinery and equipment spending to companies with up to 800 employees.

○ 100% credit for property taxes on electronic data processing equipment starting with taxes on 10/1/94 grand list.

○ 50% credit for certain alternative fuel vehicle expenses for 1994-98 income years.

○ 10%-20% credit for investments in Connecticut insurance companies through qualified insurance reinvestment funds (applies against corporation, insurance premium, and personal income taxes).

● Establish new tax rate reduction schedule:

○ 11. 25% to 10. 75% as of 1/1/96

○ 10. 5% as of 1/1/97

○ 9. 5% as of 1/1/98

○ 8. 5% as of 1/1/99

○ 7. 5% as of 1/1/00

● Credits:

○ Delay start of Clean Air Act credit from 1/1/95 to 1/1/96 but make expenses during 1995 and 1996 eligible for a credit in 1997.

○ Defer start of small- and medium-sized company credit for machinery and equipment spending from 1/1/95 to 1/1/97.

○ Delay start of credit against insurance premium tax for electronic data processing equipment property taxes from 10/1/94 grand list to 10/1/96 grand list.

○ Modify 50% tax credit for firm moving to state that builds building of at least 900,000 square feet and locates at least 2,000 jobs in state to provide 40% credit for 1,600 jobs and 30% credit for 1,200 jobs.

○ Extend apprenticeship credit to qualified plastics trade apprenticeships

○ Credit for firms investing in the Critical Industries Development Account.

● Four-year phase-out of tax on subchapter S corporations by gradually reducing the percentage of their net taxable income as follows:

○ 90% as of 1/1/97

○ 75% as of 1/1/98

○ 55% as of 1/1/99

○ 30% as of 1/1/00

● Exempt:

○ S corporations exempt as of 1/1/01.

○ Out-of-state corporations if their only state contact is as a limited partner in an investment partnership.

○ Banks, insurers, and investment companies if (1) 100% of their business is conducted outside the US and (2) their headquarters are located in a special Hartford export zone.

○ Out-of-state companies whose only contact with state is a contract with Connecticut commercial printers.

● Allow regulated investment companies to use an alternative apportionment formula.

● Credits:

○ Job creation tax credit

○ 10-year credit for new business locating in an enterprise zone that hires zone residents – credit is 100% for three years and 50% for seven years

○ Expand alternative fuel vehicle credit

○ Credit for parent education and child care programs

● Allow certain companies to use single-factor apportionment for credit card income.

● Credits:

○ Establishes credits for fixed and human capital investments and phases credits in over three years as follows:

Ø 3% for 1998

Ø 4% for 1999

Ø 5% for 2000 and after

○ Up to $ 1,000 per year credit for each construction trade apprenticeship

○ Extend alternative fuel credit for two additional years.

○ Increase overall limit on Neighborhood Assistance Act credits from $ 3 million to $ 4 million.

○ Increase maximum Neighborhood Assistance Act tax credit a business can receive for certain employee child daycare facilities to $ 50,000.

● Exempt:

○ Passive investment companies.

○ Domestic insurers.

○ Capital gains from sale of open space or of land to the state, municipality, nonprofit conservation organization, or water company if it is permanently preserved as open space or class I or II watershed land.

● Allow single-factor apportionment for financial services companies and exclude such companies from the capital base alternative.

● Eliminate minimum tax for foreign corporations whose sole Connecticut activity is trading stocks and securities for their own accounts.

● Credits:

○ Extend R&D credit carry-forward to 15 years starting in 2000.

○ Extend 6% R&D credit to qualifying business with less than $ 100 million in gross income starting in 2000.

○ Give electric suppliers a one-time, $ 1,500 tax credit for each dislocated worker they employ for more than six months.

● Extend the maximum length of net operating and capital loss carryovers from five to 20 years.

● Credits:

○ Increase limit on overall Neighborhood Assistance Act credits from $ 4 million to $ 5 million.

○ Extend alternative fuel credits to 1/1/02.

○ Credit for guarantee fees paid when obtaining financing from the Small Business Administration.

○ Historic home rehabilitation credit – maximum $ 30,000 per home/ $ 3 million per year.

○ Permit companies with less than $ 70 million in gross sales to sell unused R&D tax credits to the state for 65% of their value.

○ Increase annual overall limit on low- and moderate-income housing program and Rental Housing Assistance Trust Fund credits from $ 1 million to $ 5 million.

○ 50% credit for land donated to state, municipality, or nonprofit land conservation organization for open space.

○ Allow S corporations to claim 100% of Neighborhood Assistance Act credits for the 1999 and 2000 income years, instead of 55% and 30% respectively.

○ Eliminate credit for investments in insurance reinvestment funds created after 7/1/00.

○ Credit for donating new or used computers to schools.

○ Allow S corporations to claim 100% of low- and moderate-income housing program credits for the 1999 and 2000 income years, instead of 55% and 30% respectively.

○ Establish credit for urban site remediation.

○ Apply human capital credit to contributions to individual development accounts.

● Allow manufacturers and broadcasters to use single-factor apportionment starting 1/1/01 for manufacturers and 10/1/01 for broadcasters.

● Credits:

○ Eliminate credit for investments in insurance reinvestment funds as of 12/31/15.

○ Make investments in eligible environmental remediation and urban site reinvestment projects through community economic entities eligible for Urban & Industrial Site Remediation Fund credit.

● Bar use of special federal bonus depreciation deductions in state corporation tax.

● Require companies to pay the $ 250 annual minimum tax regardless of credits.

● Limit annual credits to 70% of tax liability without credits.

● Limit annual R & D credit refunds to $ 1. 5 million per company for 2002 and after. Stretch out payment of unpaid 2000 and 2001 refunds greater than $ 1 million per company over up to three years.

● Extend alternative fuel credit to 7/1/04.

● Impose 20% surcharge for 2003.

● Impose 25% surcharge for 2004 for companies paying more than the $ 250 minimum.

● Increase maximum supplemental tax on corporate groups filing combined returns from $ 25,000 to $ 250,000.

● Increase credit from 40% to 60% of certain Neighborhood Assistance Act investments (applies to all business taxes).

● 20% surcharge for 2006 for companies paying more than the $ 250 minimum tax.

● 15% surcharge for 2007 for companies paying more than the $ 250 minimum tax (surcharge eliminated in 2006).

● Investment threshold for urban and industrial sites reinvestment credit reduced from $ 20 million to $ 5 million ($ 2 million for rehabilitating historic properties).

● Exempt corporations whose only activity in Connecticut is participating in trade shows at the Hartford convention center, if they meet certain conditions.

● Credits (applicable to all business taxes):

○ Increase maximum total credits for contributions to nonprofit housing developers from $ 5 million to $ 10 million per year.

○ 25% of state income tax withheld from new employees' wages by a company that relocates to Connecticut and creates at least 50 new full-time jobs here (Job Creation Credit).

○ $ 1,500 per worker credit for hiring Connecticut worker previously laid off because of a corporate restructuring in which at least 10 workers in the state lost jobs.

○ Eliminate tax credit of up to $ 100,000 for employer contributions to revolving loan fund for loans to low- and moderate-income employees.

● Corporation Tax only:

○ Eliminate 15% tax surcharge for the 2007 income year for all corporations other than those that owe the $ 250 minimum.

○ Establish a transferable credit equal to 30% of eligible film and digital media production expenses incurred in Connecticut over $ 50,000.

○ Establish a credit of 25% of qualified costs up to $ 2. 7 million for rehabilitating historical commercial and industrial properties for residential use.

○ Expand range of projects eligible for urban and industrial sites reinvestment credit.

○ Allow corporations to pass through corporate tax credits to non-corporate subsidiaries under certain conditions.

○ Extend credit for hiring construction trade apprentices to nonunion businesses.

● Corporation Tax Credits:

○ Transferable credit for capital investments in film industry infrastructure – credits are 10%, 15%, or 20% depending on size of investment.

○ Transferable credit equal to 30% of eligible digital animation production expenses incurred in Connecticut over $ 50,000.

● Business Tax Credits:

○ 25% of qualified expenses for rehabilitating historic property for mixed residential and commercial use (30% if a portion of the units are affordable housing).

○ Expand creation tax credit (see above) to cover any company that creates at least 10 new jobs and increase the credit amount from 25% to 60% of the state income taxes withheld from new employees' wages.

○ Increase Neighborhood Assistance Act credit for energy conservation projects in low-income housing developments or nonprofit properties from 60% to 100% of investment and extend the credit to properties these organizations own but do not occupy.

○ Private lawn bowling clubs.

○ Portion of dues paid by club members used to acquire open space.

● Provide credit for state gift tax paid.

○ Class A heirs – as of 1/1/01

○ Class B heirs – as of 1/1/02

○ Class C heirs – as of 1/1/05

● Delay succession tax phase out schedule for one year for Class B and C heirs still subject to the tax as of 1/1/01

● Freeze tax rates at 2001 levels for deaths occurring in 2002 instead reducing rates as previously scheduled on 1/1/02

● Delay remaining steps in succession tax phase-out by two years, postponing final phase-out from 1/1/04 to 1/1/06 for Class B, and from 1/1/06 to 1/1/08 for Class C, heirs.

● Rates vary from 5. 085% to 16. 0% depending on estate value.

● Repeal succession tax for remaining Class B and C heirs as of 1/1/05

● New tax applicable to federally taxable transfers of real and personal property (tangible and intangible) located in Connecticut.

● Rate: Variable, depending on value of gift.

○ Gifts of $ 25,000 or less - 1/1/01

○ Gifts $ 25,001 to $ 50,000 – 1/1/04

○ Gifts $ 50,001 to $ 75,000 – 1/105

○ Gifts $ 75,001 to $ 100,000 – 1/1/06

○ Gifts $ 100,001 to $ 950,000 – 1/1/07

○ Gifts $ 1 million or less – 1/1/08

● Repeal old gift tax.

● Establish new gift tax for gifts made on or after January 1, 2005 exceeding a lifetime exclusion of $ 2 million. Tax rates range from 5. 085% to 16. 0% depending on value of gift. The $ 2 million lifetime exclusion applies against both new gift and new estate tax (see above).

○ 11% to 9. 25% as of 10/1/96

○ 8. 25% as of 10/1/97

○ 7. 25% as of 10/1/98

○ 6. 25% as of 10/1/99

● Exempt John Dempsey Hospital.

● 6. 25% rate scheduled to take effect 10/1/99 reduced to 4. 5% (tax eliminated as of 4/1/00).

● Personal income tax on Connecticut taxable income (federal adjusted gross income (AGI) with certain modifications) of resident and nonresident individuals, trusts, and estates.

● Rate: 1. 5% for 1991 income year; 4. 5% for income years 1992 and after.

● Restructure the personal credit to increase the maximum AGI that qualifies a person for the credit, phases out the credit for higher incomes, and generally creates a more graduated structure to reduce income tax “cliffs. ”

● Establish new AMT– lesser of 19% of adjusted federal tentative minimum tax or 5% of adjusted federal AMT.

● Limit taxation of Social Security benefits to the amounts subject to federal taxation before 1993.

● Establish credit for property tax paid on privately owned motor vehicle – phase-in starts 1/1/97.

● 10-20% credit for investments in qualified insurance reinvestment fund.

● Rates reduced from 4. 5% to 3% as of 1/1/96 on first:

○ $ 4,500 of taxable income for singles

○ $ 7,500 for heads of household

○ $ 9,000 for joint filers

● Property tax credit up to $ 100.

● Increase income that is subject to 3% tax rate over three years:

○ Joint Filers

Ø From $ 9,000 to $ 12,500 as of 1/1/97

Ø To $ 15,000 as of 1/1/98

Ø To $ 20,000 as of 1/1/99

○ Heads of Household

Ø From $ 7,000 to $ 10,000 as of 1/1/97

Ø To $ 12,000 as of 1/1/98

Ø To $ 16,000 as of 1/1/99

○ Singles

Ø From $ 4,500 to $ 6,250 as of 1/1/97

Ø To $ 7,500 as of 1/1/98

Ø To $ 10,000 as of 1/1/99

● Increase maximum property tax credit:

○ From $ 100 to $ 215 as of 1/1/97.

○ To $ 285 as of 1/1/98.

○ Reduce credit above $ 100 by 10% for every $ 10,000 in income above state thresholds.

○ Extend credit to vehicles leased for more than one year.

● Exempt 50% of Social Security benefits previously subject to income tax, starting with 1998 income year.

● Increase maximum property tax credit scheduled to take effect 1/1/98 from $ 285 to $ 350.

● Phase in increase in standard deduction for single filers from $ 12,250 to $ 15,000 over six years from 1/1/00 to 1/1/07.

● Increase personal credit phase-out threshold for single filers over seven years beginning in tax year 2000.

● Increase maximum property tax credit:

○ From $ 350 to $ 425 as of 1/1/99.

○ To $ 500 as of 1/1/00.

● Exempt federally taxable Social Security benefits from state income tax for the following:

○ Singles and married people filing separate with AGI under $ 50,000.

○ Joint filers and heads of household with AGIs under $ 60,000.

○ Holocaust settlement payments.

○ Interest earned on funds deposited in individual development accounts.

● Individuals receiving income from business not covered by the corporation tax cannot deduct federal bonus depreciation allowance.

● Delay each scheduled increase in standard deduction and tax credits for singles for two years – phase-in completed in 2009 instead of 2007.

● Provide income tax relief to terrorist victims of September 11, 2001 and anthrax attack occurring between September 11, 2001 and January 1, 2002.

● Increase rate on upper bracket from 4. 5% to 5%.

● Reduce maximum property tax credit from $ 500 to $ 350. (Credit increased to $ 500 again in 2004 to start in 2005, but see below. )

● Eliminate $ 100 minimum property tax credit.

● Reduce maximum property tax credit for 2005 from $ 500 to $ 350.

● Reduce maximum property tax credit for 2006 and after from $ 500 to $ 400 (later raised to $ 500 as of 1/1/06).

● Delay scheduled income tax reductions for single filers by two years

● Exempt 50% of military retirement income starting with income years on and after January 1, 2008.

● Increase the maximum property tax credit from $ 400 to $ 500 for tax years starting 1/1/06.

● Allow taxpayers to deduct contributions to the Connecticut Higher Education Trust of up to $ 5,000 for individuals and $ 10,000 for joint filers.

● Reduce rate from 2% to 1. 75%.

● Extend tax to HMOs.

○ Transferable credit for capital investments in film industry infrastructure – credits are 10%, 15%, or 20% depending on size of investment.

○ Transferable credit equal to 30% of eligible film and digital media production expenses incurred in Connecticut over $ 50,000.

○ Transferable credit equal to 30% of eligible digital animation production expenses incurred in Connecticut over $ 50,000.

● Gasoline tax (per gallon) increases scheduled:

○ $ . 23 to . 25 as of 9/1/91

○ $ . 25 to . 26 as of 1/1/92

○ $ . 26 to . 28 as of 1/1/93

○ $ . 28 to