House Republican Press Release

February 6, 2008

Press Office: 860-240-8700

REPRESENTATIVE CHAPIN BACKS PLAN TO PROVIDE HEALTH CARE, ENERGY RELIEF TO MIDDLE CLASS TAXPAYERS

Hartford—State Rep. Clark Chapin, R-New Milford, has joined with fellow House Republican leaders in introducing a plan to ward off the effects of an economic downturn through  immediate, targeted middle class tax relief. The proposal would help those struggling with the costs of heating their homes and health care coverage. It also includes a long term component to bolster the state’s economy through investments in the fuel cell industry.

The proposal outlines a specific timetable of public hearings and various committee reviews that could produce a bipartisan comprehensive relief package, using some of the state’s $160 million surplus by March 26.

“Many New Milford residents are finding it difficult to pay their medical and heating bills,” said Rep. Chapin. “This proposal would help to provide some relief for those who may not now qualify for state or federal assistance.  We are fortunate to have a surplus once again this year and it seems fitting to use those funds to provide relief to middle class taxpayers.”

Under the plan’s health care relief component:

• Anyone who has out of pocket non-reimbursable medical expenses exceeding 4% of their adjusted gross income would be eligible for a tax credit against their state income tax up to the lesser of your tax liability or $500.

• Eligibility will be limited to certain income levels – up to $75,000 for an individual and up to $150,000 for a family.

• Similar subsidies would be provided to dislocated workers who suddenly lack any coverage or who are forced to pay higher COBRA payments for up to 18 months.

The proposal’s energy relief component would:

• Provide a tax credit to help residents cover rising home energy costs. Energy includes — gas, oil, and electricity.

• Anyone who has home energy costs exceeding 4% of their adjusted gross income would be eligible for a tax credit against their state income tax up to the lesser of your tax liability or $500.

• Eligibility will be limited to families of certain income levels – from $20,000 up to $75,000 for individuals and from $50,000 up to $150,000 for families.

Both benefits would be based on income eligibility requirements. Approximately 91% of all individuals and 84% of all families can take advantage of these tax credits.

Finally, the plan would:

• Dedicate bond funds during the next four years to create a Fuel Cell program which promotes economic, energy and environmental freedom.

• Under this program the state would: 1) contract with a Connecticut business to mass produce transit buses powered by fuel cells, 2) begin to transition over to using fuel cells at Bradley International Airport to make Bradley the first “Green” International Airport in the world and 3) establish 2 or 3 hydrogen refueling hubs in the state.