Income/Franchise:
Connecticut: New Law Extends Corporation Business Tax Surcharge and Revises PTE Tax
H.B. 6941, signed by gov. 6/12/23. New law implementing Connecticut’s budget for Fiscal Year 2024 and Fiscal Year 2025 includes provisions that extend Connecticut’s 10% corporation business tax surcharge for three additional years to the 2023, 2024, and 2025 income years. The legislation also implements several changes to Connecticut’s pass-through entity tax, including making the tax optional beginning in 2024, changing the method for calculating the tax base, eliminating the corporation tax credit for pass-through entity taxes paid, and eliminating the option for pass-through entities to file a state combined return with one or more commonly owned pass-through entities. The new law also reimposes a requirement that pass-through entities file an income tax return and pay the tax on behalf of any nonresident member for whom the business is the only source of Connecticut income.
See forthcoming Multistate Tax Alert for more details on these new provisions, and please contact us with any questions in the meantime.
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