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General Assembly Committee Bill No. 5029
February Session, 2020
LCO No. 2130
Referred to Committee on HIGHER EDUCATION AND
EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT ESTABLISHING A TAX CREDIT FOR GRADUATES OF
INSTITUTIONS OF HIGHER EDUCATION AND PRIVAT E
OCCUPATIONAL SCHOOLS IN THE STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective January 1, 2021, and applicable to taxable 1
years commencing on or after January 1, 2021) (a) For the taxable years 2
commencing on or after January 1, 2021, there shall be allowed a credit 3
against the personal income tax imposed under chapter 229 of the 4
general statutes, for any individual who (1) on or after January 1, 2021, 5
receives a bachelor's degree, associate degree or advanced 6
manufacturing certificate from a public or independent institution of 7
higher education or private occupational school in the state, and (2) has 8
a Connecticut adjusted gross income of not more than seventy-five 9
thousand dollars during each taxable year in which the credit is claimed. 10
The credit allowed under this subsection may be claimed for the two 11
successive taxable years after the date of graduation and shall be equal 12
to the individual's qualified education loan expenses during the taxable 13
year, but shall not exceed (A) five hundred dollars annually for an 14
individual with an associate degree or advanced manufacturing 15
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certificate, (B) one thousand dollars annually for an individual with a 16
bachelor's degree, or (C) one thousand five hundred dollars annually for 17
an individual (i) with a bachelor's degree, and (ii) employed in certain 18
high-demand fields, as identified by the Office of Higher Education, or 19
in a science, technology, engineering or math-related field. For the 20
purposes of this section, "qualified education loan expenses" means 21
payments that an individual is legally obligated to make on a loan from 22
a private or governmental lender to finance attendance at a public or 23
independent institution of higher education or private occupational 24
school in the state and in an amount that is not offset by any other 25
federal, state or private education loan reimbursement program. 26
(b) The credit allowed pursuant to subsection (a) of this section may 27
only be used to reduce a resident's tax liability under chapter 229 of the 28
general statutes for the year for which such credit is applicable and shall 29
not be used to reduce such tax liability to less than zero. 30
(c) Any individual claiming a credit under subsection (a) of this 31
section shall provide any documentation required by the Commissioner 32
of Revenue Services in a form and manner prescribed by said 33
commissioner. 34
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2021, and
applicable to taxable years
commencing on or after
January 1, 2021
New section
Statement of Purpose:
To establish a personal income tax credit for in-state graduates with a
bachelor's degree, associate degree or an advanced manufacturing
certificate.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
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Co-Sponsors: REP. TURCO, 27th Dist.
H.B. 5029