New Law Makes Key Changes In CT: Here's What To Know

CONNECTICUT — Gov. Ned Lamont signed a bill into law that will extend the gas tax cut and free bus service. The act also adds funding to low-income heating assistance and makes changes to the state’s essential worker premium pay program.

Changes were also made to the state’s bottle deposit bill.

“I thank the legislature for their prompt support on a bipartisan basis for this bill that is focused on helping to make Connecticut more affordable for our residents,” Lamont said in a statement released after the signing on Tuesday.

The bill passed as one comprehensive package. Here are the important changes:

Gas tax cut extended, but will be phased back

The suspension of the 25-cent excise gas tax will be extended through the end of the year. Beginning Jan. 1, the tax will be phased back in over a period of five months at five cents per month.

Connecticut is only one of three states that still has a gas tax suspension in effect.

Free bus service will be extended through March 31, which is the latest possible date under federal regulations.

Increased home heating assistance

Another $30 million will go into the federal Low-Income Household Energy Assistance program. The funds are being transferred to from the state’s share of the American Rescue Plan Act. There is currently $98.5 million in the fund.

The additional funding coupled with other changes announced by Lamont will help with high utility costs.

Related: New CT Electricity And Heating Relief Announced: 5 Things To Know

Increased funding, changes for Premium Pay program

Another $105 million will be added to the bonus program for essential workers.

The bill changed payment amount brackets to favor lower-paid essential workers who were on the front lines during the worst of the COVID-19 pandemic.

Workers who made under $50,000 would get the full $1,000 payment. Payments gradually diminish to $100 for workers who made between $100,000 and $150,000.

Related: CT Hero Pay Program Changes Made, See New Benefit Levels

Bottle bill updates

Legislators decided to push back the effective date for changes made to the state’s bottle deposit program.

The legislature added drinks that are subject to the state’s 5-cent bottle deposit rule, including sports drinks, juices and seltzer.

Changes were set to go into effect Jan. 1, but many retailers, especially small stores, would have had non-compliant bottles on shelves. The new law gives a six-month grace period for retailers who already has inventory.

Retailers would still have to charge the 5-cent tax starting Jan. 1, Comptroller-elect and current state Rep. Sean Scanlon said during a news conference.