ABLE Account Contributions
Conn. Gen. Stat. § 12-217tt
What’s New
New Tax Credit for contributions made by taxpayers into ABLE accounts
Legislation authorizes a new tax credit for contributions made by taxpayers into the ABLE accounts of employees who are employed by such taxpayers. The legislation specifies the taxes against which the credit can be applied and is effective January 1, 2024, and applicable to income years or taxable years commencing on or after January 1, 2024.
Description and Applicable Taxes
For income or taxable years commencing on or after January 1, 2024, a tax credit may be allowed, other than the liability imposed by Conn. Gen. Stat. § 12-707, for contributions made by taxpayers into the ABLE accounts of employees who are employed by such taxpayers. This tax credit is administered by the Office of the State Treasurer (OTT).
The tax credit may be applied against the taxes imposed under:
- Chapter 208 (Corporation Business Tax); and
- Chapter 229 (Income Tax).
Definitions
Achieving a better life experience account or ABLE account means an account established and maintained for the purposes of paying the qualified disability expenses related to the blindness or disability of a designated beneficiary.
Designated beneficiary means any eligible individual who is the owner of an ABLE account established under a qualified ABLE program.
Tax Credit Amount
The credit amount equals the amount of the contributions made by the taxpayer into the ABLE accounts of employees of such taxpayer during the income or taxable year.
The credit amount allowed with respect to a specific employee must not exceed $2,500 for any income or taxable year.
How to Apply
Visit OTT’s website at www.ct.gov/OTT for more information regarding the application process.
Where to Get Additional Information
Direct inquiries to:
Office of the State Treasurer
165 Capitol Avenue 2nd Floor
Hartford CT 06106
860-702-3000
Statutory and Regulatory References
Conn. Gen. Stat. § 12-217tt
Page Last Reviewed or Updated: April 4, 2024