Connecticut Tax Changes - January 2025

Connecticut Insurance Companies Taxes—Assessments refunded by Connecticut Insurance Guaranty Association.

The Connecticut Department of Revenue Services (DRS) has issued an announcement to notify specific insurers that are members (member insurers) of the Connecticut Insurance Guaranty Association (CIGA) that on or before February 20, 2025, the member insurer must pay a portion of their recently refunded assessments to the DRS. For Connecticut insurance premiums tax purposes, a CIGA assessment paid by a member insurer during a calendar year is permitted to be offset against the member insurer's Connecticut insurance premiums tax liability for the five calendar years following the calendar year during which the CIGA assessment was paid (with 20% of the assessment permitted to be offset in each of those five calendar years) provided that, if a CIGA assessment paid during a calendar year is refunded to a member insurer, the member insurer is required to pay the amount of the refunded assessment to DRS. The announcement describes how much each member insurer is required to pay, explains the requirements for member insurers that did not offset any portion of an original assessment, and establishes payment due dates. (Connecticut Announcement No. 2025(5), 01/17/2025.)

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