In our May 20 blog post, we noted we were following two bills – HB 7071 and SB 563 – pending in the Connecticut legislature that would have provided some welcome tax savings for Connecticut taxpayers facing substantial expenses for the home health care of their loved ones, and/or who may be purchasing long-term care insurance to address their own needs. Unfortunately, neither bill ever made it to a full vote by the legislature before it adjourned on June 5. Accordingly, neither bill became law in Connecticut.
Their demise more than likely is a reflection of Connecticut’s fiscal challenges that put state revenue generation at a premium and make the passage of new laws that create tax law savings (which lead to state revenue reductions) an uphill battle. Even if the Connecticut legislature returns for a special session this summer, we doubt that either bill will be the focus of the legislature’s attention. It seems more likely that individual taxpayers in Connecticut will need to wait until the financial pressures on state revenue start to abate before they might see new laws passed that add the types of tax deductions onto their individual tax returns that were being proposed in HB 7071 and SB 563.