NFIB strongly supports HB-5549, legislation that would provide for a restoration of the credit against the state’s Pass-through Entity Tax (PET) back to the “full” value of 93.01%, as it was originally designed and established upon passage of Public Act 18-49, rather than the current 87.5% credit.

State Director Andy Markowski testified that when the PET was originally proposed, it was intended to be a rather novel tax policy at the time. It was ultimately deemed permissible by the Department of Treasury and the IRS and subsequently emulated by many states, as tax policy that assisted a majority of small business owners who are set up as pass-through entities with the problems resulting from the $10,000 deduction limit for state and local taxes (the “SALT” cap) imposed under federal tax reform passed by Congress (the 2017 “TCJA”).

>>>>> You can read his entire testimony HERE. <<<<<

You can find additional helpful explainers on the issue from these other testimonies below:

https://www.cga.ct.gov/2025/findata/TMY/2025HB-05549-R000226-Republicans,%20House-Supports-TMY.PDF

https://www.cga.ct.gov/2025/findata/TMY/2025HB-05549-R000226-DiPentima,%20Chris,%20President%20-%20CEO-CBIA-Supports-TMY.PDF