Parents would see up to a $450 tax credit under a tax package advanced by Connecticut Democrats on Wednesday.

The proposal also includes new tax breaks for owners of home day care centers and businesses that enter into marketing deals with student-athletes.

But the wealthy could actually pay more.

The child tax credit would take effect with the 2026 filing year. Families could claim $150 per child for up to three children. It would phase out for couples making more than $160,000 per year or single parents earning $100,000.

Similar proposals have failed in previous years due to cost concerns.

Under the Democrats’ proposal, home day care owners could claim up to $500 in refundable income tax credits. And $5 million would be set aside for businesses that enter into Name, Image and Likeness (NIL) agreements with student-athletes.

Not everyone would see state tax relief.

Democrats proposed raising the state’s top two income tax brackets from 6.9% and 6.99% to 7.5% and 7.99%, respectively – but only if Congress lowers the top rate nationally. That rate is currently 37%.

“In the wake of yet another federal tax cut that overwhelmingly benefits the wealthiest Americans, Connecticut cannot afford to fail to take action at a time of crisis,” said Senate President Martin Looney said in a recent statement. “Under the last Trump administration, Connecticut’s top 1% saved $1.2 billion in federal taxes, while working families saw crumbs. If Washington insists on handing billionaires another tax break, we will ensure some of that windfall comes back to the people of Connecticut to help deal with the massive federal cuts we anticipate.”

The package also adds a new 1.75% capital gains surcharge on single filers earning more than $1 million a year, and couples making more than $2 million, until 2029. Taxpayers would get a one-time exemption if they sell their home.

On Wednesday, Gov. Ned Lamont said that he opposes any tax increase.

“We don’t need that. I don’t support that,” he told News 12 Connecticut. “We’ve eliminated taxes for our essential workers, working families. I’ve given a significant tax cut to middle-class families. We’ve done a lot to make our tax system more progressive.”

They are also backing Lamont’s controversial plan to loosen the state’s “Volatility Cap,” which limits how much “volatile” capital gains tax revenue that lawmakers can spend. That could free up $1 billion dollars – about 2/3 of which would be used in a new off-budget fund to counteract potential federal cuts from the Trump administration.

Democrats are also canning a tax on sodas and sugary drinks that led to strong pushback from restaurants and amusement parks.

The Legislature’s Finance, Revenue and Bonding Committee is expected to approve the tax package late Wednesday evening.

The final budget, including a $55.7 billion spending plan that advanced on Tuesday, will now be negotiated with Lamont over the next six weeks.