Connecticut House Bill HB05092

Connecticut 2018 Regular Session

• Introduced: 2/14/18
• Refer: 2/14/18

Caption

An Act Establishing A Credit Against The Personal Income Tax For Interest Paid On Student Loans.

Impact

If passed, HB05092 would have a notable impact on state laws regarding taxation, specifically concerning personal income tax. The introduction of this credit could lead to decreased tax revenues for the state; however, supporters assert that it would stimulate economic growth by increasing disposable income for borrowers. This influx of disposable income could enhance consumer spending and help improve local economies, while also potentially making education more accessible in the long term.

Summary

House Bill 05092 is aimed at establishing a tax credit for individuals who have paid interest on their student loans. The proposed legislation seeks to amend chapter 229 of the general statutes to provide financial relief to borrowers by allowing them to receive a credit against their personal income tax based on the amount of interest paid on their student loans. This initiative is seen as a significant step to ease the financial burden on those who are striving to pay off their educational debt, particularly amid rising tuition costs.

Contention

While supporters argue that the bill is a critical move toward making higher education more affordable, there are concerns over the implications of this tax credit. Opponents may argue that available state funds could be better allocated towards broader educational reforms or initiatives that benefit a larger demographic beyond just student loan holders. Additionally, the fiscal impact and sustainability of such a tax break could be points of contention in future discussions, especially in light of maintaining budgetary balance.