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Substitute Senate Bill No. 511

PUBLIC ACT NO. 96-139

AN ACT CONCERNING VARIOUS CHANGES AND CORRECTIONS TO THE GENERAL STATUTES RELATING TO TAXES AND TO PUBLIC ACT 95-2.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 30 of public act 95-2 is repealed and the following is substituted in lieu thereof:

Notwithstanding section 1-19 of the general statutes, AS AMENDED the secretary, his authorized agent or any other officer or employee of the state shall not disclose any information contained in any claim for compensation form, notice of individual condemnation and assessment of special damages and special benefits, statement of acceptance or any other related documents in any manner which would disclose the owner's identity except when distributing such information in the discharge of their duties pursuant to sections 4 to 11, inclusive, of [this act] PUBLIC ACT 95-2, PROVIDED THE SECRETARY, HIS AUTHORIZED AGENT OR ANY OTHER OFFICER OR EMPLOYEE OF THE STATE MAY DISCLOSE SUCH INFORMATION TO THE COMMISSIONER OF REVENUE SERVICES OR HIS AUTHORIZED AGENT, UPON WRITTEN REQUEST BY SAID COMMISSIONER OR HIS AUTHORIZED AGENT, WHEN REQUIRED BY SAID COMMISSIONER IN THE COURSE OF DUTY OR WHEN THERE IS REASONABLE CAUSE TO BELIEVE THAT ANY STATE LAW IS BEING VIOLATED. All court records containing such information shall be sealed unless the owner files a condemnation appeal pursuant to section 8 of [this act] PUBLIC ACT 95-2 or files any other motion, application or complaint with the court concerning the taking of rights pursuant to section 4 of [this act] PUBLIC ACT 95-2.

Sec. 2. Section 12-213 of the general statutes, as amended by section 3 of public act 95-2, is repealed and the following is substituted in lieu thereof:

When used in this part, unless the context otherwise requires, "taxpayer" and "company" mean any corporation, foreign municipal electric utility, as defined in section 12-59, joint stock company or association or any fiduciary thereof but not a municipal utility as defined in chapter 212 and chapter 212a, and any dissolved corporation which continues to conduct business; "dissolved corporation" means any company which has terminated its corporate existence by resolution, expiration, decree or forfeiture; "Commissioner of Revenue Services" or "commissioner" means the Commissioner of Revenue Services; "tax year" means the calendar year in which the tax is payable; "income year" means the calendar year upon the basis of which net income is computed under this part, unless a fiscal year other than the calendar year has been established for [the purpose of the] federal [corporation net] income tax PURPOSES, in which case it means the fiscal year so established or a period of less than twelve months ending as of the date on which liability under this chapter ceases to accrue by reason of dissolution, forfeiture, withdrawal, merger or consolidation; "fiscal year" means the income year ending on the last day of any month other than December or an annual period which varies from fifty-two to fifty-three weeks elected by the taxpayer in accordance with the provisions of the Internal Revenue Code; "paid" means "paid or accrued" or "paid or incurred", construed according to the method of accounting upon the basis of which net income is computed under this part; "received" means "received" or "accrued", construed according to the method of accounting upon the basis of which net income is computed under this part; "gross income" means gross income as defined in the [federal corporation net income tax law in force on the last day of the income year] INTERNAL REVENUE CODE and, in addition, means any interest or exempt interest dividends as defined in Section 852(b)(5) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, received [or interest paid] by the taxpayer or losses of other calendar or fiscal years, retroactive to include all calendar or fiscal years beginning after January 1, 1935, incurred by the taxpayer which are excluded from gross income for purposes of assessing the federal corporation net income tax, and in addition, notwithstanding any other provision of law, means interest or exempt interest dividends as defined in said Section 852(b)(5) of the Internal Revenue Code of 1986, accrued on or after the application date, AS DEFINED IN SECTION 2 OF PUBLIC ACT 95-2, with respect to any obligation issued by or on behalf of the state, its agencies, authorities, commissions and other instrumentalities, or by or on behalf of its political subdivisions and their agencies, authorities, commissions and other instrumentalities; but "gross income" shall not include (1) the amount which for federal income tax purposes is treated as a dividend received by a domestic United States corporation from a foreign corporation on account of foreign taxes deemed paid by such domestic corporation, when such domestic corporation elects the foreign tax credit for federal income tax purposes and (2) the amount of net gain to any taxpayer, engaged in the business of farming in Connecticut, from the sale or exchange of any cattle raised from birth on a farm in this state operated by such taxpayer, provided not less than seventy-five per cent of such taxpayer's gross income is derived from farming; "net income" means net earnings received during the income year and available for contributors of capital, whether they are creditors or stockholders, computed by subtracting from gross income the deductions allowed by the terms of section 12-217, except that in the case of a domestic insurance company which is a life insurance company "net income" means life insurance company taxable income (a) increased by any amount or amounts which have been deducted in the computation of gain or loss from operations in respect of (1) the life insurance company's share of tax-exempt interest, (2) operations loss carry-backs and capital loss carry-backs and (3) operations loss carry-overs and capital loss carry-overs arising in any taxable year commencing prior to January 1, 1973, and (b) reduced by any amount or amounts which have been deducted as operations loss carry-backs or capital loss carry-backs in the computation of gain or loss from operations for any taxable year commencing on or after January 1, 1973, but only to the extent that such amount or amounts, would, for federal tax purposes, have been deductible in the taxable year as operations loss carry-overs or capital loss carry-overs if they had not been deducted in a previous taxable year as carry-backs AND PROVIDED NO EXPENSE RELATED TO INCOME, THE TAXATION OF WHICH BY THE STATE OF CONNECTICUT IS PROHIBITED BY THE LAW OR CONSTITUTION OF THE UNITED STATES, AS APPLIED, OR BY THE LAW OR CONSTITUTION OF THIS STATE, AS APPLIED, SHALL BE DEDUCTED UNDER THIS CHAPTER AND PROVIDED FURTHER NO ITEM MAY, DIRECTLY OR INDIRECTLY BE EXCLUDED OR DEDUCTED MORE THAN ONCE; for purposes of the preceding exception the terms "life insurance company", "life insurance company taxable income", "life insurance company's share", "operations loss carry-back", "capital loss carry-back", "operations loss carry-over", "capital loss carry-over" and "gain or loss from operations" have the same meaning as they have in the federal corporation income tax law effective and in force on the last day of the income year; "fiduciary" means any receiver, liquidator, referee, trustee, assignee or other fiduciary or officer or agent appointed by any court or by any other authority, except the Commissioner of Banking acting as receiver or liquidator under the authority of the provisions of sections 36a-210, AS AMENDED, and 36a-218 to 36a-239, inclusive, AS AMENDED; "carrying on or doing business" means and includes each and every act, power or privilege exercised or enjoyed in this state, as an incident to, or by virtue of, the powers and privileges acquired by the nature of any organization whether the form of existence is corporate, associate, joint stock company or fiduciary; ["interest paid" means and includes, in the case of state banks and trust companies, national banks, mutual savings banks, cooperative banks, savings and loan associations, amounts paid to, or credited to the accounts of, depositors or holders of accounts as dividends on their deposits or withdrawable accounts, if such amounts paid or credited are withdrawable on demand subject only to customary notice of intention to withdraw;] "alternative energy system" means design systems, equipment or materials which utilize as their energy source: (1) Solar, (2) wind, (3) water or (4) biomass energy in providing space heating or cooling, water heating or generation of electricity, but shall not include wood-burning stoves; "S corporation" means any corporation which is an S corporation for federal income tax purposes.

Sec. 3. Subsection (b) of section 12-225 of the general statutes, as amended by section 36 of public act 95-2, is repealed and the following is substituted in lieu thereof:

(b) Any company which fails to include in its return items of deductions or includes items of nontaxable income or makes any other error in such return may, within three years from the due date of the return, file with the commissioner an amended return, together with a claim for refund of taxes overpaid as shown by such amended return. The commissioner shall, within one hundred eighty days of the receipt of such claim, either refund to the company the amount of tax overpaid or notify the company that its claim has been denied. For the purposes of computing any refund due OR ADJUSTING NET INCOME as a result of the inclusion of income, the taxation of which by the state of Connecticut is prohibited by federal law, including the Constitution of the United States, as applied, no expenses related to such income shall be deducted in computing net income under this chapter. If a claim is denied, appeal may be made in accordance with section 12-237, AS AMENDED.

Sec. 4. Subsection (d) of section 12-204c of the general statutes, as amended by section 5 of public act 95-327, is repealed and the following is substituted in lieu thereof:

(d) (1) The amount of the first required installment shall be thirty per cent of the required annual payment, as defined in SUBDIVISION (2) OF THIS subsection. [(e) of this section.] The amount of the second required installment shall be thirty per cent of the required annual payment, as defined in SUBDIVISION (2) OF THIS subsection.m [(e) of this section.] The amount of the third required installment shall be twenty per cent of the required annual payment, as defined in SUBDIVISION (2) OF THIS subsection. [(e) of this section.] The amount of the fourth required installment shall be twenty per cent of the required annual payment, as defined in SUBDIVISION (2) OF THIS subsection.[(e) of this section.] (2) The required annual payment means the lesser of: (A) Ninety per cent of the tax shown on the return for the calendar year or, if no return is filed, [one hundred] NINETY per cent of the tax for such year, or (B) one hundred per cent of the tax shown on the return for the preceding calendar year. Subparagraph (B) of this subdivision shall not apply [if the preceding calendar year was not a calendar year of twelve months or] if the company did not file a return for such preceding calendar year showing a liability for tax.

Sec. 5. Subsection (2) of section 12-414 of the general statutes is repealed and the following is substituted in lieu thereof:

(2) On or before the last day of the month following each monthly or quarterly period, as the case may be, a return for the preceding period shall be filed with the commissioner in such form as the commissioner may prescribe. For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in the state and by every person purchasing services or tangible personal property, the storage, acceptance, consumption or other use of which is subject to the use tax, who has not paid the use tax due a retailer required to collect the tax, except that every person making such purchases for personal use or consumption in this state, and not for use or consumption in carrying on a trade, occupation, business or profession, need file only one use tax return covering purchases during a calendar year. Such return shall be filed and the tax due thereon paid on or before the [last] FIFTEENTH day of the FOURTH month succeeding the end of the calendar year for which such return is filed. Returns shall be signed by the person required to file the return or by his authorized agent but need not be verified by oath, provided a return required to be filed by a corporation shall be signed by an officer of such corporation.

Sec. 6. Section 12-634 of the general statutes, as amended by sections 12 and 21 of public act 95-257 and section 5 of public act 95-268, is repealed and the following is substituted in lieu thereof:

The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211 or 212 in an amount not to exceed forty per cent of the total cash amount invested during the taxable year by the business firm in programs operated or created pursuant to proposals approved pursuant to section 12-632 AS AMENDED for planning, site preparation, construction, renovation or acquisition of facilities for purposes of establishing a child day care facility to be used primarily by the children of such business firm's employees and equipment installed for such facility, including kitchen appliances, to the extent that such equipment or appliances are necessary in the use of such facility for purposes of child day care, provided: (1) Such facility is operated under the authority of a license issued by the Commissioner of Public Health in accordance with sections 19a-77 to 19a-87, inclusive, AS AMENDED (2) such facility is operated without profit by such business firm related to any charges imposed for the use of such facility for purposes of child day care, and (3) the amount of tax credit allowed any business firm under the provisions of this section for any income year may not exceed ten thousand dollars. If two or more business firms share in the cost of establishing such a facility for the children of their employees, each such taxpayer shall be allowed such credit in relation to the respective share, paid or incurred by such taxpayer, of the total expenditures for the facility in such income year. The commissioner shall not grant a credit pursuant to this section to any taxpayer claiming a credit for the same year pursuant to subsection (c) of section [17b-743] 17b-740, AS AMENDED.

Sec. 7. Subsection (a) of section 31 of public act 95-160 is repealed and the following is substituted in lieu thereof:

(a) Any resident of this state, as defined in subdivision (1) of subsection (a) of section 12-701 of the general statutes, subject to the tax under chapter 229 of the general statutes for any taxable year shall be entitled to a credit in determining the amount of tax liability under this chapter for a portion of the amount of property tax, as defined in this section, actually paid by that person on that person's primary residence or motor vehicles. The credit allowed under the provisions of this section shall be no more than one hundred dollars of the property tax paid during the taxpayer's taxable year PROVIDED, IN THE CASE OF ANY HUSBAND AND WIFE WHO FILE A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS MARRIED INDIVIDUALS FILING A JOINT RETURN, THE CREDIT ALLOWED SHALL BE NO MORE THAN ONE HUNDRED DOLLARS, IN THE AGGREGATE, OF THE PROPERTY TAX PAID DURING THE TAXABLE YEAR OF SUCH HUSBAND AND WIFE. No credit shall be allowable for property taxes paid with respect to an assessment year beginning prior to October 1, 1995.

Sec. 8. Subsection (a) of section 12-700 of the general statutes, as amended by section 30 of public act 95-160, is repealed and the following is substituted in lieu thereof:

(a) There is hereby imposed on the Connecticut taxable income of each resident of this state a tax (1) at the rate of four and one-half per cent of such Connecticut taxable income for taxable years commencing on or after January 1, 1992, and prior to January 1, 1996. (2) For taxable years commencing on or after January 1, 1996, but prior to January 1, 1997, in accordance with the following schedule: (A) For any person [filing] WHO FILES A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR as an unmarried individual or as a married individual filing separately:

Connecticut Taxable Income Rate of Tax

Not over $2,250 3.0%

Over $2,250 $67.50, plus 4.5%

of the excess over

$2,250

(B) For [persons filing as heads of

households] ANY PERSON WHO FILES A RETURN UNDER

THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS A

HEAD OF HOUSEHOLD, AS DEFINED IN SECTION 2(b) OF THE INTERNAL REVENUE CODE:

Connecticut Taxable Income Rate of Tax

Not over $3,500 3.0%

Over $3,500 $105.00, plus 4.5%

of the excess over

$3,500

(C) For [persons filing] ANY HUSBAND AND WIFE WHO FILE A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR as married individuals FILING JOINTLY OR A PERSON WHO FILES A RETURN UNDER THE FEDERAL INCOME TAX AS A SURVIVING SPOUSE, AS DEFINED IN SECTION 2(a) OF THE INTERNAL REVENUE CODE:

Connecticut Taxable Income Rate of Tax

Not over $4,500 3.0%

Over $4,500 $135.00, plus 4.5%

of the excess over

$4,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income. (3) For taxable years commencing on or after January 1, 1997, and thereafter in accordance with the following schedule: (A) For any person [filing] WHO FILES A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR as an unmarried individual or as a married individual filing separately:

Connecticut Taxable Income Rate of Tax

Not over $4,500 3.0%

Over $4,500 $135.00, plus 4.5%

of the excess over

$4,500

(B) For [persons filing as heads of households] ANY PERSON WHO FILES A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS A HEAD OF HOUSEHOLD, AS DEFINED IN SECTION [4m2(b) [0m OF THE INTERNAL REVENUE CODE:

Connecticut Taxable Income Rate of Tax

Not over $7,000 3.0%

Over $7,000 $210.00, plus 4.5%

of the excess over

$7,000

(C) For [persons filing] ANY HUSBAND AND WIFE WHO FILE A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR as married individuals FILING JOINTLY OR ANY PERSON WHO FILES A RETURN UNDER THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS A SURVIVING SPOUSE, AS DEFINED IN SECTION 2(a) OF THE INTERNAL REVENUE CODE:

Connecticut Taxable Income Rate of Tax

Not over $9,000 3.0%

Over $9,000 [$180.00] $270.00,

plus 4.5% of

the excess over

$9,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income. The provisions of this subsection shall apply to resident trusts and estates and, wherever reference is made in this subsection to residents of this state, such reference shall be construed to include resident trusts and estates, provided any reference to a resident's Connecticut adjusted gross income derived from sources without this state or to a resident's Connecticut adjusted gross income shall be construed, in the case of a resident trust or estate, to mean the resident trust or estate's Connecticut taxable income derived from sources without this state and the resident trust or estate's Connecticut taxable income, respectively.

Sec. 9. Subdivision (10) of subsection (a) of section 12-701 of the general statutes is repealed and the following is substituted in lieu thereof: (10) "Connecticut fiduciary adjustment" means the net positive or negative total of the following items relating to income, gain, loss or deduction of a trust or estate: (A) There shall be added together [(A)] (i) any interest income from obligations issued by or on behalf of any state, political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity, exclusive of such income from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut and exclusive of any such income with respect to which taxation by any state is prohibited by federal law, [(B)] (ii) any exempt-interest dividends, as defined in Section 852(b)(5) of the Internal Revenue Code, exclusive of such exempt-interest dividends derived from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut and exclusive of such exempt-interest dividends derived from obligations, the income with respect to which taxation by any state is prohibited by federal law, [(C)] (iii) any interest or dividend income on obligations or securities of any authority, commission or instrumentality of the United States which federal law exempts from federal income tax but does not exempt from state income taxes, [(D)] (iv) to the extent properly includable in determining the net gain or loss from the sale or other disposition of capital assets for federal income tax purposes, any loss from the sale or exchange of obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, in the income year such loss was recognized, [(E)] (v) to the extent deductible in determining federal taxable income prior to deductions relating to distributions to beneficiaries, any income taxes imposed by this state, [(F)] (vi) to the extent deductible in determining federal taxable income prior to deductions relating to distributions to beneficiaries, any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is exempt from tax under this chapter, and [(G)] (vii) expenses paid or incurred during the taxable year for [(i)] the production or collection of income which is exempt from tax under this chapter, or [(ii)] the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is exempt from taxation under this chapter, to the extent that such expenses and premiums are deductible in determining federal taxable income prior to deductions relating to distributions to beneficiaries. (B) There shall be subtracted from the sum of such items [(a)] (i) to the extent properly includable in gross income for federal income tax purposes, any income with respect to which taxation by any state is prohibited by federal law, [(b)] (ii) to the extent allowable under section 12-718, exempt dividends paid by a regulated investment company, [(c)] (iii) with respect to any trust or estate which is a shareholder of an S corporation which is carrying on, or which has the right to carry on, business in this state, as said term is used in section 12-214, AS AMENDED the amount of such shareholder's pro rata share of such corporation's non-separately computed items, as defined in Section 1366 of the Internal Revenue Code, multiplied by such corporation's apportionment fraction, if any, as determined in accordance with section 12-218, [(d)] (iv) to the extent properly includable in gross income for federal income tax purposes, any interest income from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, [(e)] (v) to the extent properly includable in determining the net gain or loss from the sale or other disposition of capital assets for federal income tax purposes, any gain from the sale or exchange of obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, in the income year such gain was recognized, [(f)] (vi) any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is subject to tax under this chapter, but exempt from federal income tax, to the extent that such interest on indebtedness is not deductible in determining federal taxable income prior to deductions relating to distributions to beneficiaries and [(g)] (vii) ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject to taxation under this chapter, but exempt from federal income tax, or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is subject to tax under this chapter, but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal taxable income prior to deductions relating to distributions to beneficiaries.

Sec. 10. Subdivision (28) of subsection (a) of section 12-701 of the general statutes is repealed and the following is substituted in lieu thereof:

(28) "Adjusted federal tentative minimum tax" of a trust or estate means its federal tentative minimum tax or, in the case of a trust or estate whose Connecticut taxable income includes modifications described in subparagraph [(A), (B), (D), (E), (F) or (G)] (A)(i), (A)(ii),(A)(iv),m (A)(v), (A)(vi)OR (A)(vii) of subdivision (10) of subsection (a) of this section or subparagraph [(A), (B), (C), (D), (E), (F) or (G)] (B)(i), (B)(ii),(B)(iii),(B)(iv),(B)(v),(B)(vi) OR (B)(vii) of subdivision (10) of subsection (a) of this section, the amount that would have been the federal tentative minimum tax if such tax were calculated by including, to the extent not includable in federal alternative minimum taxable income, the modifications described in subparagraph [(A), (B), (D), (E), (F) or (G)] (A)(i),(A)(ii),(A)(iv),(A)(v),(A)(vi) OR (A)(vii) of subdivision (10) of subsection (a) of this section, by excluding, to the extent includable in federal alternative minimum taxable income, the modifications described in subparagraph [(A), (B), (C), (D), (E), (F) or (G)] (B)(i),(B)(ii),(B)(iii),(B)(iv),(B)(v), (B)(vi) OR (B)(vii) of subdivision (10) of subsection (a) of this section, and by excluding, to the extent includable in federal alternative minimum taxable income, the amount of any interest income or exempt-interest dividends, as defined in Section 852(b)(5) of the Internal Revenue Code, from obligations that are issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district, or similar public entity that is created under the laws of the state of Connecticut, or from obligations that are issued by or on behalf of any territory or possession of the United States, any political subdivision of such territory or possession, or public instrumentality, authority, district or similar public entity of such territory of possession, the income with respect to which taxation by any state is prohibited by federal law. If such trust or estate is itself a beneficiary of a trust or estate, then, for purposes of calculating its adjusted federal alternative minimum tax, its federal alternative minimum taxable income shall also be increased or decreased, as the case may be, by the net amount of such trust or estate's proportionate share of the Connecticut fiduciary adjustment relating to modifications that are described, to the extent not includable in federal alternative minimum taxable income, in subparagraph [(A), (B), (D), (E), (F) or (G)] (A)(i), (A)(ii),(A)(iv),(A)(v), (A)(vi) OR (A)(vii) of subdivision (10) of subsection (a) of this section or to the extent includable in federal alternative minimum taxable income, subparagraph [(A), (B), (C), (D), (E), (F) or (G)] (B)(i), (B)(ii), (B)(iii),(B)(iv), (B)(v),(B)(vi) OR B)(vii) of subdivision (10) of subsection (a) of this section.

Sec. 11. Subdivision (31) of subsection (a) of section 12-701 of the general statutes is repealed and the following is substituted in lieu thereof:

(31) "Adjusted federal alternative minimum taxable income" of a trust or estate means its federal alternative minimum taxable income or, in the case of a trust or estate whose Connecticut taxable income includes modifications described in subparagraph [(A), (B), (D), (E), (F) or (G)] (A)(i),(A)(ii),(A)(iv),(A)(v),(A)(vi) OR (A)(vii) [0m of subdivision (10) of subsection (a) of this section or subparagraph [(A), (B), (C), (D), (E), (F) or (G)] (B)(i),(B)(ii),(B)(iii), (B)(iv),(B)(v),(B)(vi) OR (B)(vii) of subdivision (10) of subsection (a) of this section, the amount that would have been the federal alternative minimum taxable income if such amount were calculated by including, to the extent not includable in federal alternative minimum taxable income, the modifications described in subparagraph [(A), (B), (D), (E), (F) or (G)] (A)(i),(A)(ii),(A)(iv),(A)(v),(A)(vi) OR (A)(vii) of subdivision (10) of subsection (a) of this section, by excluding, to the extent includable in federal alternative minimum taxable income, the modifications described in subparagraph [(A), (B), (C), (D), (E), (F) or (G)] (B)(i)(B)(ii),(B)(iii),(B)(iv),(B)(v), (B)(vi) OR (B)(vii) of subdivision (10) of subsection (a) of this section, and by excluding, to the extent includable in federal alternative minimum taxable income, the amount of any interest income or exempt-interest dividends, as defined in Section 852(b)(5) of the Internal Revenue Code, from obligations that are issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district, or similar public entity that is created under the laws of the state of Connecticut, or from obligations that are issued by or on behalf of any territory or possession of the United States, any political subdivision of such territory or possession, or public instrumentality, authority, district or similar public entity of such territory of possession, the income with respect to which taxation by any state is prohibited by federal law. If such trust or estate is itself a beneficiary of a trust or estate, then, for purposes of calculating its adjusted federal alternative minimum taxable income, its federal alternative minimum taxable income shall also be increased or decreased, as the case may be, by the net amount of such trust or estate's proportionate share of the Connecticut fiduciary adjustment relating to modifications that are described, to the extent not includable in federal alternative minimum taxable income, in subparagraph [(A), (B), (D), (E), (F) or (G)] (A)(i),(A)(ii),(A)(iv), (A)(v),(A)(vi) OR (A)(vii) of subdivision (10) of subsection (a) of this section, or to the extent includable in federal alternative minimum taxable income, subparagraph [(A), (B), (C), (D), (E), (F) or (G)] (B)(i), (B)(ii),(B)(iii),(B)(iv), B)(v),(B)(vi) OR (B)(vii)of subdivision (10) of subsection (a) of this section.

Sec. 12. Section 69 of public act 95-160 is repealed and the following is substituted in lieu thereof:

This act shall take effect from its passage, except: Sections 30, [and] 31 AND 32 shall be applicable to income years commencing on or after January 1, 1996, [section 32 shall be applicable to income years commencing on or after January 1, 1998,] sections 33 to 35, inclusive, shall be applicable to income years commencing on or after January 1, 1995, and sections 1 to 28, inclusive, 36, 37 and 50 shall take effect July 1, 1995, section 40 and 45 shall take effect July 1, 1995, and shall be applicable to sales occurring on or after July 1, 1995, and July 1, 1996, sections 39, 44 and 48 shall take effect July 1, 1996, and shall be applicable to sales occurring on or after said date, sections [39,] 41 to 43, inclusive, 46, 47 and 49 shall take effect July 1, 1997, and shall be applicable to sales occurring on or after said date.

Sec. 13. This act shall take effect from its passage.

Approved May 29, 1996. Effective May 29, 1996.

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