Capitol Corner

We've got our eye on happenings at the Capitol! If state or federal legislation or accounting standards activity will affect you, your company, or your clients, we'll keep you updated here.

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State News

More Than $500 Million In Borrowing Approved For Projects On Schools, Roadways And More
Gov. Dannel P. Malloy and the State Bond Commission approved more than $500 million in borrowing Thursday, pushing the state toward its maximum bonding cap for the year. The money was allocated for a wide variety of programs, including constructing schools, fixing roadways and helping companies such as Aer Lingus, which flies out of Bradley International Airport to Dublin, Ireland.
Connecticut among most innovative states in U.S.
With the current advancement of technology, it's no surprise that states are in a race to outpace each other in the battle for technological dominance. In a report released this week by Kempler Industries, an Illinois machinery company, Connecticut was ranked the eighth most innovative state in the country in terms of patents per capita during the past five years. Connecticut falls behind Massachusetts (2), Vermont (5) and New Hampshire (7) in terms of innovative New England states....
A decade of delays, $23 million spent, as state makes fourth try for health information exchange
The idea of a single health information exchange across the state of Connecticut seems simple: Gather all health information in one place and make it available to every practitioner involved with a single patient to provide the best care possible. Unfortunately, in Connecticut this process has been anything but simple. Instead, it has been enormously expensive and time-consuming — costing the state $23 million and 11 years of work which, to this date, have yet to produce an exchange.
Nappier Says Drafting Error Will Constrain Bonding Capacity; Malloy Administration Calls Attorney
State Treasurer Denise Nappier informed legislative leaders Wednesday that they inadvertently reduced the state’s bonding capacity by failing to include certain exemptions in the budget adjustment it passed in the final hours of the legislative session. The proposed language adopted by the legislature on May 9 should have exempted refunding bonds and short-term revenue anticipation notes from the $1.9 billion annual cap. The language repeated and adopted as part of the...
State CPA society backs effort to help deduct foundation repairs
The Connecticut Society of Certified Public Accountants is supporting the efforts of U.S. Rep. John B. Larson, D-1st District, and U.S. Rep. Joseph D. Courtney, D-2nd District, to clarify how homeowners with crumbling foundations can receive federal tax relief through the casualty loss deduction.

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Accounting Standards and Regulations

State Boards Consider Technology Pathway
Attendees at NASBA’s Eastern and Western Regional Meetings are being asked to consider the concept of a Technology Pathway leading to the CPA license. Executive Vice President Colleen Conrad and Vice President – State Board Relations Dan Dustin...
View Louis Bucari's 'Hot Topics with the DRS' Slides
Connecticut Department of Revenue Services Legal Counsel Louis Bucari talked "Hot Topics with the DRS" to a packed house at the June 21 Easton CONNection - and was gracious enough to allow us to share his slides with our members. Louis addressed...
DRS Issues Guidance Regarding Treatment of Bonus Depreciation for Connecticut Income Tax Purposes
The Department of Revenue Services (DRS) recently issued guidance on treatment and decoupling of bonus depreciation for Connecticut income tax purposes, the result of new federal (Tax Cuts and Jobs Act of 2017) and state ( Public Act 18-49 )...
DRS Issues Implementation Guidance on 2018 Estimated Payments for the Newly Enacted Pass-Through Entity Tax
On May 31, 2018, Governor Malloy signed Public Act 18-49 , An Act Concerning an Affected Business Entity Tax, Various Provisions Related to Certain Business Deductions, the Estate and Gift Tax Imposition Thresholds, the Tax Treatment of Certain...
GASB Establishes New Implementation Guidance to Assist Stakeholders with Recent Pronouncements
The Governmental Accounting Standards Board (GASB) today issued implementation guidance containing questions and answers intended to clarify, explain, or elaborate on certain GASB Statements. Implementation Guide No. 2018-1, Implementation...

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Federal News

Trump Tracker! Surgent's Trump Tracker, inspired by The New York Times, tracks the status of all changes proposed by President Trump that could affect CPAs and their clients in a user-friendly format that makes it clear where a change currently stands.

State CPA society backs effort to help deduct foundation repairs
The Connecticut Society of Certified Public Accountants is supporting the efforts of U.S. Rep. John B. Larson, D-1st District, and U.S. Rep. Joseph D. Courtney, D-2nd District, to clarify how homeowners with crumbling foundations can receive federal tax relief through the casualty loss deduction.
Will Wayfair unleash state-by-state chaos?
The fallout from Wayfair continues – and the most recent development highlights the potential for the Supreme Court decision to unleash a patchwork of burdensome and confusing state sales tax rules. The Colorado Department of Revenue announced Sept. 11 that it will require out-of-state retailers who do business in Colorado to obtain a sales tax license.
Wall Street warns new federal tax rules could boost CT’s borrowing costs
The new federal cap on income tax deductions could translate into higher interest costs for Connecticut and other wealthy states when they borrow for school construction and other capital projects, a Wall Street credit rating agency warned Tuesday. Moody’s Investors Service said the new U.S. Treasury Department rules aimed at preventing high-income taxpayers from working around new limits on the deductibility of state and local taxes constitutes a “credit negative” for states like...
Accounting Today: Connecticut issues guidance on pass-through tax credit
The Connecticut Department of Revenue Services released guidance this week on the recently enacted Pass-Through Entity Tax Credit, which state lawmakers approved this spring as a way to get around limits in the new federal tax law on state and local tax deductions.
How TCJA Changes for Section 168(k) May Adjust
The IRS has published in the Federal Register proposed regulations that provide guidance concerning the additional first year depreciation deduction under Section 168(k) of the Internal Revenue Code. The proposal reflects changes made under the Tax Cuts and Jobs Act, and which affect taxpayers who deduct depreciation for qualified property acquired and placed into service after Sept. 27, 2017.

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