CT
Connecticut Senate Bill SB00435

Connecticut 2019 Regular Session

Connecticut Senate Bill SB00435 Compare Versions

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7-General Assembly Substitute Bill No. 435
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5+LCO No. 4548 1 of 3
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7+General Assembly Committee Bill No. 435
88 January Session, 2019
9+LCO No. 4548
910
11+
12+Referred to Committee on HIGHER EDUCATION AND
13+EMPLOYMENT ADVANCEMENT
14+
15+
16+Introduced by:
17+(HED)
1018
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1220
1321 AN ACT ESTABLISHING A TAX CREDIT FOR EMPLOYERS MAKING
1422 EDUCATION LOAN PAYME NTS FOR EMPLOYEES.
1523 Be it enacted by the Senate and House of Representatives in General
1624 Assembly convened:
1725
1826 Section 1. (NEW) (Effective January 1, 2020, and applicable to taxable 1
1927 years commencing on or after January 1, 2020) (a) As used in this section: 2
2028 (1) "Qualified employee" means an employee who (A) is required to 3
2129 work at least thirty-five hours per week, (B) is a resident of the state, 4
2230 and (C) is not an owner, member or partner of a qualified employer or 5
2331 a family member of an owner, member or partner of a qualified 6
2432 employer; 7
2533 (2) "Qualified employer" means a corporation licensed to operate a 8
2634 business in the state that employs a qualified employee and is subject 9
2735 to tax under chapter 207 or 208 of the general statutes; and 10
2836 (3) "Eligible education loan" means a loan made by the Connecticut 11
2937 Higher Education Supplemental Loan Authority or by any other 12
3038 private or governmental lender to a qualified employee to finance 13
31-attendance at a private occupational school or a public or independent 14
32-institution of higher education in the state. "Eligible education loan" 15
33-does not include a refinanced or consolidated loan, unless the 16
34-refinanced or consolidated loan is made by the Connecticut Higher 17
35-Education Supplemental Loan Authority. 18 Substitute Bill No. 435
39+attendance at a private occupational school or an institution of higher 14
40+Committee Bill No. 435
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45+education in the state. "Eligible education loan" does not include a 15
46+refinanced or consolidated loan, unless the refinanced or consolidated 16
47+loan is made by the Connecticut Higher Education Supplemental Loan 17
48+Authority. 18
4249 (b) (1) Commencing January 1, 2020, and in each taxable year 19
43-thereafter, any qualified employer that employs a qualified employee 20
44-and makes loan payments directly to a lender on an eligible education 21
45-loan on behalf of the qualified employee may claim a credit against the 22
46-tax imposed under chapter 207 or 208 of the general statutes. Such 23
47-credit shall be equal to fifty per cent of the amount of the monthly loan 24
48-payment made by such employer on the eligible education loan, 25
49-multiplied by the number of months during the taxable year (A) such 26
50-employer made such loan payments, and (B) the qualified employee 27
51-was employed by such employer. No qualified employer may claim a 28
52-credit against the tax imposed under both chapters 207 and 208 of the 29
53-general statutes for the same loan payment amount. 30
50+thereafter any qualified employer that employs a qualified employee 20
51+and makes loan payments directly to a lender or lenders on an eligible 21
52+education loan may claim a credit against the tax imposed under 22
53+chapter 207 or 208 of the general statutes. Such credit shall be equal to 23
54+fifty per cent of the amount of the actual monthly loan payment made 24
55+by such employer on the eligible education loan, multiplied by the 25
56+number of months during the taxable year such employer made loan 26
57+payments on behalf of the qualified employee during the term of 27
58+employment. No qualified employer may claim a credit against the tax 28
59+imposed under chapters 207 and 208 of the general statutes for the 29
60+same loan payment amount. 30
5461 (2) A qualified employer may claim a credit under this subsection 31
55-for a loan payment made to a lender on an eligible education loan, 32
56-during the part of the taxable year that the qualified employee worked 33
57-and resided in the state, provided a qualified employee who worked 34
58-and resided in the state for any part of a month shall be deemed to 35
59-have worked and resided in the state for the entire month for the 36
60-purposes of this section. 37
61-(3) A qualified employer may not claim a credit under this 38
62-subsection (A) for a loan payment made during any month of the 39
63-taxable year during which the employee was not a qualified employee, 40
64-(B) for loan payments in excess of the amounts due on the eligible 41
65-education loan during the taxable year, or (C) for more than thirty-six 42
66-months of loan payments made on behalf of any qualified employee. 43
62+for loan payments actually made to a relevant lender or lenders only 32
63+with respect to (A) eligible education loans, and (B) loan payment 33
64+amounts paid by the qualified employer during that part of the taxable 34
65+year that the qualified employee worked and resided in the state, 35
66+provided a qualified employee who worked and resided in the state 36
67+for any part of a month shall be deemed to have worked in the state for 37
68+the entire month. 38
69+(3) A qualified employer may not claim the credit under this 39
70+subsection (A) with respect to months of the taxable year during which 40
71+the employee was not a qualified employee, (B) for any loan payments 41
72+in excess of the amounts due during the taxable year, or (C) for more 42
73+than three years with respect to any specific qualified employee. 43
6774 (c) A qualified employer that claims the credit under subsection (b) 44
6875 of this section shall provide any documentation required by the 45
6976 Commissioner of Revenue Services in a form and manner prescribed 46
77+Committee Bill No. 435
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7082 by the commissioner. 47
7183 This act shall take effect as follows and shall amend the following
7284 sections:
73- Substitute Bill No. 435
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8086 Section 1 January 1, 2020, and
8187 applicable to taxable years
8288 commencing on or after
8389 January 1, 2020
8490 New section
8591
86-Statement of Legislative Commissioners:
87-In Subsec. (b)(1), "or lenders" was deleted for conciseness, "on behalf of
88-the qualified employee", "both" and Subpara. designators were added
89-for clarity; in Subsec. (b)(2), "loan payments", "loans" and "loan
90-payment amounts" were made singular for consistency with the style
91-of the general statutes, "actually", "relevant", "or lenders only with
92-respect to" and the Subpara. designators were deleted for conciseness,
93-"and resided" was added for accuracy and "for the purposes of this
94-section" was added for clarity; in Subsec. (b)(3), "with respect to
95-months" was changed to "for a loan payment made during any month"
96-for clarity, "on the eligible education loan" was added for clarity and
97-"with respect to any specific" was changed to "of loan payments made
98-on behalf of any" for clarity.
92+Statement of Purpose:
93+To provide a tax credit for employers that make education loan
94+payments for employees.
95+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
96+except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
97+not underlined.]
9998
100-HED Joint Favorable Subst.
99+Co-Sponsors: SEN. LOONEY, 11th Dist.; SEN. DUFF, 25th Dist.
100+SEN. CASSANO, 4th Dist.; SEN. COHEN, 12th Dist.
101+SEN. ABRAMS, 13th Dist.; SEN. MARONEY, 14th Dist.
102+SEN. OSTEN, 19th Dist.; SEN. MOORE, 22nd Dist.
103+SEN. BRADLEY, 23rd Dist.; SEN. KUSHNER, 24th Dist.
104+SEN. HASKELL, 26th Dist.; SEN. LEONE, 27th Dist.
105+SEN. FLEXER, 29th Dist.; SEN. NEEDLEMAN, 33rd Dist.
106+SEN. BERGSTEIN, 36th Dist.; REP. ELLIOTT, 88th Dist.
107+REP. MICHEL, 146th Dist.
108+
109+S.B. 435
110+
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