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General Assembly Substitute Bill No. 252
February Session, 2022
AN ACT ESTABLISHING TAX CREDITS FOR EMPLOYERS WHO
MAKE PAYMENTS TOWARD TUITION COSTS OF EMPLOYEES AND
FOR TAXPAYERS WHO DONATE TO ENDOWED PROFESSORSHIPS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2022, and applicable to income years 1
commencing on or after January 1, 2023) (a) As used in this section: 2
(1) "Eligible tuition cost" means the expense incurred by a qualified 3
employee for tuition at a public or independent institution of higher 4
education; 5
(2) "Qualified employee" means any individual who works and 6
resides in the state; and 7
(3) "Qualified employer" means a corporation licensed to operate a 8
business in the state that employs a qualified employee and is subject to 9
tax under chapter 207 or 208 of the general statutes. 10
(b) (1) For income years commencing on or after January 1, 2023, an 11
employer that makes a payment to or on behalf of a qualified employee 12
for an eligible tuition cost of such qualified employee may claim a credit 13
against the tax imposed under chapter 207 or 208 of the general statutes. 14
Such credit shall be equal to fifty per cent of the amount of the payment 15 Substitute Bill No. 252
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made during the income year by such employer for an eligible tuition 16
cost and shall not exceed two thousand five hundred dollars for each 17
qualified employee for whom such employer makes such payment. An 18
employer claiming a credit under this section shall not claim any other 19
credit against the employer's tax liability under any provision of the 20
general statutes for the same payment of an eligible tuition cost. 21
(2) An employer may claim the credit under subdivision (1) of this 22
subsection for a payment made during the part of the income year that 23
the qualified employee worked and resided in the state, provided a 24
qualified employee who worked and resided in the state for any part of 25
a month shall be deemed to have worked and resided in the state for the 26
entire month. 27
(c) An employer that claims the credit under subsection (b) of this 28
section shall provide any documentation required by the Commissioner 29
of Revenue Services in a form and manner prescribed by the 30
commissioner. 31
Sec. 2. (NEW) (Effective July 1, 2022, and applicable to income years and 32
taxable years commencing on or after January 1, 2023) (a) As used in this 33
section: 34
(1) "Taxpayer" means an individual or business entity subject to tax 35
under chapter 207, 208, 212 or 229 of the general statutes; and 36
(2) "Endowed professorship" means a faculty position at a public 37
institution of higher education that is permanently paid for with the 38
revenue from an endowment fund that was specifically established for 39
that purpose. 40
(b) (1) There is established an endowed professorship tax credit 41
program whereby a taxpayer may be allowed a credit against the tax 42
imposed under chapter 207, 208, 212 or 229 of the general statutes, other 43
than the liability imposed by section 12-707 of the general statutes. 44
(2) The tax credit shall be in an amount equal to one hundred per cent 45 Substitute Bill No. 252
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of the amount donated by such taxpayer to an endowed professorship 46
at a public institution of higher education in this state, provided (A) the 47
credit shall not exceed fifty thousand dollars for any taxpayer, and (B) 48
the total amount of credits granted to all taxpayers under this section 49
shall not exceed two million dollars in any one fiscal year. 50
(3) The taxpayer shall claim the credit in the income year or taxable 51
year in which it is earned. Any credit not claimed by the taxpayer in 52
such income year or taxable year shall expire and shall not be 53
refundable. 54
(c) If the taxpayer is an S corporation or an entity treated as a 55
partnership for federal income tax purposes, the tax credit may be 56
claimed by the shareholders or partners of such taxpayer. If the taxpayer 57
is a single member limited liability company that is disregarded as an 58
entity separate from its owner, the tax credit may be claimed by the 59
limited liability company's owner. 60
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2022, and
applicable to income years
commencing on or after
January 1, 2023
New section
Sec. 2 July 1, 2022, and
applicable to income years
and taxable years
commencing on or after
January 1, 2023
New section
HED Joint Favorable Subst.