S.B. 873, introduced by the Senate Finance, Revenue and Bonding Committee on Wednesday, aims to mitigate negative tax consequences due to employees working remotely in 2020 due to the novel coronavirus pandemic, according to a bill description.
Residents who paid income tax to other states that use the "convenience of the employer" rule, which is used in New York, would be allowed to claim a credit against their Connecticut income tax on taxes paid to that other state while they worked remotely from Connecticut, according to the bill. That would include work done if they were "obligated by necessity" to work remotely in Connecticut, the bill said.
In addition, the bill would require the state Department of Revenue Services to not consider the activities of employees who worked remotely from Connecticut during a taxable year solely due to the pandemic when deciding whether employers have nexus with Connecticut for any Connecticut tax.
The measure if enacted would go into effect on July 1, 2021. A public hearing has been scheduled for Feb. 16.
--Additional reporting by Maria Koklanaris. Editing by Neil Cohen.
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