CT HB5114: Refundable Renters Tax Credit | PolicyEngineConnecticut HB5114 creates a refundable renters tax credit equal to 20% of annual rent paid minus 4% of federal AGI, with a maximum credit of $2,500. Eligible renters must have federal AGI below $75,000 (single/MFS/HoH) or $150,000 (MFJ), rent a primary residence for the full year, and not be claimed as a dependent. Effective for tax years beginning January 1, 2027.Key Provisions

Renters credit active: Activates the refundable renters tax credit for eligible Connecticut renters. (No → Yes)

Rent percentage: Credit is calculated as 20% of annual rent paid. (0% → 20%)

AGI reduction rate: Credit is reduced by 4% of federal AGI. (0% → 4%)

Maximum credit: Maximum credit amount for all filing statuses. ($0 → $2,500)

Income limit (single): AGI eligibility limit for single, MFS, and HoH filers. (N/A → $75,000)

Income limit (joint): AGI eligibility limit for married filing jointly. (N/A → $150,000)

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