Connecticut Senate Bill SB00116

Connecticut 2019 Regular Session

• Introduced: 1/18/19
• Refer: 1/18/19

Caption

An Act Establishing A Tax Credit For Employers That Make Payments Towards Employees' Student Loans.

Impact

If enacted, SB00116 would amend the state tax statutes to provide financial incentives for employers, encouraging them to participate in their employees' student loan repayments. This would not only benefit employees directly by reducing their overall student loan burden but could also enhance employer attractiveness in a competitive job market. The tax credit could serve as a strategic tool for businesses aiming to improve their benefits packages while simultaneously contributing to the reduction of student debt at a broader scale.

Summary

Senate Bill 00116 proposes the establishment of a tax credit for employers who contribute to their employees' student loan repayments. Under this bill, employers would receive a tax credit amounting to 25% of the total of their payments towards an employee's student loans, with a capped limit of $500 per employee annually. The primary goal of this legislation is to alleviate the financial burden of student loan debt on employees, thereby supporting workforce retention and attraction by making employment more financially viable for individuals with student debt.

Contention

While the proposed tax credit is largely viewed as a supportive measure for both employees and employers, there may be concerns regarding its fiscal impact on state revenues. Critics might argue that the loss of tax revenue due to the credits could necessitate cuts in other vital public services or that the bill does not go far enough to address the root issues of increasing student debt. Furthermore, there might be discussions around the equity of this approach—whether it truly benefits all employees uniformly or predominantly assists those already employed by larger companies that can afford to offer such programs.