Connecticut 2021 Regular Session

Connecticut Senate Bill SB00652 Compare Versions

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7		-	General Assembly Substitute Bill No. 652
8		-	January Session, 2021
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	9	+	General Assembly Committee Bill No. 652
	10	+	January Session, 2021
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	14	+	Referred to Committee on HIGHER EDUCATION AND
	15	+	EMPLOYMENT ADVANCEMENT
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	17	+
	18	+	Introduced by:
	19	+	(HED)
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14	23		AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS TO THE
15	24		ROBERTA B. WILLIS SCHOLARSHIP PROGRAM.
16	25		Be it enacted by the Senate and House of Representatives in General
17	26		Assembly convened:
18	27
19	28		Section 1. (NEW) (Effective from passage and applicable to income and 1
20	29		taxable years commencing on or after January 1, 2021) (a) For income and 2
21	30		taxable years commencing on or after January 1, 2021, any taxpayer that 3
22	31		donates to the Office of Higher Education for the Roberta B. Willis 4
23	32		Scholarship program shall be allowed, pursuant to the provisions of 5
24	33		subsection (d) of this section, to claim a credit against the tax imposed 6
25	34		under chapter 208 or 229 of the general statutes, other than the liability 7
26	35		imposed by section 12-707 of the general statutes. Such credit shall be 8
27	36		equal to forty per cent of the total cash amount donated to such 9
28	37		scholarship program during the income or taxable year, provided (1) the 10
29	38		amount of credit allowed any taxpayer under the provisions of this 11
30	39		section for any income or taxable year may not exceed sixty thousand 12
31	40		dollars, and (2) no tax credit shall be granted to any taxpayer for a 13
32	41		donation of less than five hundred dollars. 14
33	42		(b) If the taxpayer is an S corporation or an entity treated as a 15
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34	48		partnership for federal income tax purposes, the shareholders or 16
35	49		partners of such taxpayer may be allowed to claim the credit. If the 17
36		-	taxpayer is a single member limited liability company that is 18 Substitute Bill No. 652
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	50	+	taxpayer is a single member limited liability company that is 18
43	51		disregarded as an entity separate from its owner, the limited liability 19
44	52		company's owner may be allowed to claim the credit, provided such 20
45	53		owner is subject to the tax imposed under chapter 229 of the general 21
46	54		statutes. 22
47	55		(c) The total amount of credits allowed under this section shall not 23
48		-	exceed sixteen million dollars in the first ~~income and taxable~~ year and 24
49		-	~~thirty-two~~ million dollars in the second ~~income and taxable~~ year and 25
50		-	~~each income and taxable year thereafter.~~ 26
51		-	~~(d) (1)~~ To ~~be eligible to claim~~ the ~~credit pursuant to subsection (a) of~~ 27
52		-	~~this section for an income or taxable year,~~ a ~~taxpayer shall apply to~~ the 28
53		-	~~Office~~ of ~~Higher Education in a form and manner prescribed by the~~ 29
54		-	~~executive director of said~~ office~~. Such application shall contain sufficient~~ 30
55		-	~~information as required by~~ the ~~office, including,~~ ~~but not limited~~ to, 31
56		-	~~notice of the amount of the intended donation to the Roberta B~~. ~~Willis~~ 32
57		-	~~Scholarship program.~~ 33
58		-	~~(2) Upon receipt of an~~ application~~, the executive director shall render~~ 34
59		-	~~a decision,~~ ~~in writing,~~ ~~on each completed application not later than~~ 35
60		-	~~thirty days after~~ the ~~date of its receipt by the office. The executive~~ 36
61		-	~~director shall issue a certification letter~~ to the taxpayer ~~indicating that~~ 37
62		-	~~the credit will be available to be claimed by~~ the taxpayer if the ~~executive~~ 38
63		-	~~director finds that (A)~~ the donation meets the requirements of this 39
64		-	~~section, and (B) the total~~ amount of credits claimed in any year have not 40
65		-	~~exceeded the limit set~~ forth in subsection (c) of this section. 41
	56	+	exceed sixteen million dollars in the first fiscal year and thirty-two 24
	57	+	million dollars in the second fiscal year and each fiscal year thereafter. 25
	58	+	(d) (1) To be eligible to claim the credit pursuant to subsection (a) of 26
	59	+	this section for an income or taxable year, a taxpayer shall apply to the 27
	60	+	Office of Higher Education in a form and manner prescribed by the 28
	61	+	executive director of said office. Such application shall contain sufficient 29
	62	+	information as required by the office, including, but not limited to, 30
	63	+	notice of the amount of the intended donation to the Roberta B. Willis 31
	64	+	Scholarship program. 32
	65	+	(2) Upon receipt of an application, the executive director shall render 33
	66	+	a decision, in writing, on each completed application not later than 34
	67	+	thirty days after the date of its receipt by the office. The executive 35
	68	+	director shall issue a certification letter to the taxpayer indicating that 36
	69	+	the credit will be available to be claimed by the taxpayer if the executive 37
	70	+	director finds that (A) the taxpayer donated the intended amount, (B) 38
	71	+	the donation meets the requirements of this section, and (C) the total 39
	72	+	amount of credits claimed in any year have not exceeded the limit set 40
	73	+	forth in subsection (c) of this section. 41
66	74		Sec. 2. (NEW) (Effective from passage) (a) There is established an 42
67	75		account to be known as the "Roberta B. Willis Scholarship program 43
68	76		donation account" which shall be a separate, nonlapsing account within 44
69	77		the General Fund. The Office of Higher Education shall deposit into the 45
70	78		account any donations received pursuant to section 1 of this act. Moneys 46
71	79		in the account shall be expended by said office for the purposes of the 47
72		-	Roberta B. Willis Scholarship program in accordance with section 10a-48
73		-	173 of the general statutes, as amended by this act. 49 Substitute Bill No. 652
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	85	+	Roberta B. Willis Scholarship program in accordance with section 10a-48
	86	+	173 of the general statutes, as amended by this act. 49
80	87		(b) Not later than January 1, 2022, and annually thereafter, the Office 50
81	88		of Higher Education shall report, in accordance with the provisions of 51
82	89		section 11-4a of the general statutes, to the joint standing committees of 52
83	90		the General Assembly having cognizance of matters relating to 53
84	91		appropriations and the budgets of state agencies and higher education 54
85	92		the amount of donations received in the Roberta B. Willis Scholarship 55
86	93		program donation account during the preceding calendar year. 56
87		-	(c) For the fiscal year ~~ending June 30~~, 2022, and for each fiscal ~~year~~ 57
88		-	thereafter, the Office of Higher ~~Education shall lapse, in accordance with~~ 58
89		-	~~subsection (f) of section 4-89 of~~ the ~~general statutes,~~ ~~from the~~ 59
90		-	~~appropriations for the Roberta B.~~ ~~Willis Scholarship program an amount~~ 60
91		-	~~equal~~ the amount of donations received in the ~~Roberta B. Willis~~ 61
92		-	Scholarship program donation account during the ~~preceding calendar~~ 62
93		-	year. 63
	94	+	(c) For the fiscal year commencing July 1, 2022, and for each fiscal 57
	95	+	year thereafter, the amount appropriated to the Office of Higher 58
	96	+	Education for the Roberta B. Willis Scholarship program in a state 59
	97	+	budget act or any even-numbered year adjustments or revisions made 60
	98	+	to such act shall be reduced by the amount of donations received in the 61
	99	+	Roberta B. Willis Scholarship program donation account during the 62
	100	+	preceding calendar year. 63
94	101		Sec. 3. Subsection (c) of section 10a-173 of the general statutes is 64
95	102		repealed and the following is substituted in lieu thereof (Effective from 65
96	103		passage): 66
97	104		(c) [Within available appropriations, the] The Roberta B. Willis 67
98	105		Scholarship program shall include a need and merit-based grant, a 68
99	106		need-based grant and a Charter Oak grant. The need and merit-based 69
100	107		grant shall be funded at not less than twenty per cent but not more than 70
101	108		thirty per cent of [available appropriations] the total amount of available 71
102	109		appropriations and any amount deposited into the Roberta B. Willis 72
103	110		Scholarship program donation account, established pursuant to section 73
104	111		2 of this act. The need-based grant shall be funded at up to eighty per 74
105	112		cent of [available appropriations] such total amount. The Charter Oak 75
106	113		grant shall be not less than one hundred thousand dollars of [available 76
107	114		appropriations] such total amount. There shall be an administrative 77
108	115		allowance based on one-quarter of one per cent of the available 78
109	116		appropriations, but not less than one hundred thousand dollars. In 79
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110	122		addition to the amount of the annual appropriation allocated to the 80
111	123		regional community-technical colleges under subsection (e) of this 81
112		-	section, and to regional community-technical college students under 82 Substitute Bill No. 652
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	124	+	section, and to regional community-technical college students under 82
119	125		subsection (d) of this section, not less than two and one-half per cent of 83
120	126		the annual appropriation shall be allocated to the regional community-84
121	127		technical colleges to be used for financial aid purposes. 85
122	128		This act shall take effect as follows and shall amend the following
123	129		sections:
124	130
125	131		Section 1 from passage and
126	132		applicable to income and
127	133		taxable years commencing
128	134		on or after January 1, 2021
129	135		New section
130	136		Sec. 2 from passage New section
131	137		Sec. 3 from passage 10a-173(c)
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133		-	Statement of ~~Legislative Commissioners~~:
134		-	~~In Section 1(~~a), ~~"established pursuant to Section 10a-173 of the general~~
135		-	~~statutes, as amended by this act," was inserted;~~ ~~in Section (1)(d)(1), "said~~
136		-	~~office" was changed to "the~~ ~~Office of Higher Education"~~ ~~for clarity;~~ ~~and~~
137		-	in Section ~~1(d)(2)~~, ~~Subpara. (A) was removed and the remaining~~
138		-	~~Subparas~~. ~~were redesignated for accuracy.~~
	139	+	Statement of Purpose:
	140	+	To establish a tax credit for corporations, affected business entities and
	141	+	individuals that donate to the Roberta B. Willis Scholarship program.
	142	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	143	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	144	+	underlined.]
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140		-	HED Joint Favorable Subst.
	146	+	Co-Sponsors: SEN. MARONEY, 14th Dist.; REP. TURCO, 27th Dist.
	147	+
	148	+	S.B. 652
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