Connecticut 2022 Regular Session

Connecticut Senate Bill SB00252 Compare Versions

Version 1 (Old)

Version 2 (New)

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7		-	General Assembly Substitute Bill No. 252
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	5	+	LCO No. 2427 1 of 4
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	7	+	General Assembly Raised Bill No. 252
8	8		February Session, 2022
	9	+	LCO No. 2427
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	11	+
	12	+	Referred to Committee on HIGHER EDUCATION AND
	13	+	EMPLOYMENT ADVANCEMENT
	14	+
	15	+
	16	+	Introduced by:
	17	+	(HED)
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14	22		AN ACT ESTABLISHING TAX CREDITS FOR EMPLOYERS WHO
15	23		MAKE PAYMENTS TOWARD TUITION COSTS OF EMPLOYEES AND
16		-	~~FOR TAXPAYERS WHO~~ DONATE TO ENDOWED PROFESSORSHIPS.
	24	+	DONATE TO ENDOWED PROFESSORSHIPS.
17	25		Be it enacted by the Senate and House of Representatives in General
18	26		Assembly convened:
19	27
20	28		Section 1. (NEW) (Effective July 1, 2022, and applicable to income years 1
21	29		commencing on or after January 1, 2023) (a) As used in this section: 2
22	30		(1) "Eligible tuition cost" means the expense incurred by a qualified 3
23	31		employee for tuition at a public or independent institution of higher 4
24	32		education; 5
25	33		(2) "Qualified employee" means any individual who works and 6
26	34		resides in the state; and 7
27	35		(3) "Qualified employer" means a corporation licensed to operate a 8
28	36		business in the state that employs a qualified employee and is subject to 9
29	37		tax under chapter 207 or 208 of the general statutes. 10
30	38		(b) (1) For income years commencing on or after January 1, 2023, an 11
31	39		employer that makes a payment to or on behalf of a qualified employee 12
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32	42		for an eligible tuition cost of such qualified employee may claim a credit 13
33	43		against the tax imposed under chapter 207 or 208 of the general statutes. 14
34		-	Such credit shall be equal to fifty per cent of the amount of the payment 15 Substitute Bill No. 252
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	44	+	Such credit shall be equal to fifty per cent of the amount of the payment 15
41	45		made during the income year by such employer for an eligible tuition 16
42	46		cost and shall not exceed two thousand five hundred dollars for each 17
43	47		qualified employee for whom such employer makes such payment. An 18
44	48		employer claiming a credit under this section shall not claim any other 19
45	49		credit against the employer's tax liability under any provision of the 20
46	50		general statutes for the same payment of an eligible tuition cost. 21
47	51		(2) An employer may claim the credit under subdivision (1) of this 22
48	52		subsection for a payment made during the part of the income year that 23
49	53		the qualified employee worked and resided in the state, provided a 24
50	54		qualified employee who worked and resided in the state for any part of 25
51	55		a month shall be deemed to have worked and resided in the state for the 26
52	56		entire month. 27
53	57		(c) An employer that claims the credit under subsection (b) of this 28
54	58		section shall provide any documentation required by the Commissioner 29
55	59		of Revenue Services in a form and manner prescribed by the 30
56	60		commissioner. 31
57	61		Sec. 2. (NEW) (Effective July 1, 2022, and applicable to income years and 32
58	62		taxable years commencing on or after January 1, 2023) (a) As used in this 33
59	63		section: 34
60	64		(1) "Taxpayer" means an individual or business entity subject to tax 35
61	65		under chapter 207, 208, 212 or 229 of the general statutes; and 36
62		-	(2) "Endowed professorship" means a faculty position at ~~a public~~ 37
	66	+	(2) "Endowed professorship" means a faculty position at an 37
63	67		institution of higher education that is permanently paid for with the 38
64	68		revenue from an endowment fund that was specifically established for 39
65	69		that purpose. 40
66	70		(b) (1) There is established an endowed professorship tax credit 41
67	71		program whereby a taxpayer may be allowed a credit against the tax 42
68	72		imposed under chapter 207, 208, 212 or 229 of the general statutes, other 43
	73	+	LCO No. 2427 3 of 4
	74	+
69	75		than the liability imposed by section 12-707 of the general statutes. 44
70		-	(2) The tax credit shall be in an amount equal to one hundred per cent 45 Substitute Bill No. 252
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	76	+	(2) The tax credit shall be in an amount equal to one hundred per cent 45
77	77		of the amount donated by such taxpayer to an endowed professorship 46
78		-	at ~~a public~~ institution of higher education in this state, provided (A) the 47
79		-	~~credit~~ shall not exceed fifty thousand dollars for any taxpayer, and (B) 48
80		-	~~the total~~ amount of credits granted to all taxpayers under this section 49
81		-	~~shall not~~ exceed two million dollars in any one fiscal year. 50
	78	+	at an institution of higher education in this state, provided (A) the credit 47
	79	+	shall not exceed fifty thousand dollars for any taxpayer, and (B) the total 48
	80	+	amount of credits granted to all taxpayers under this section shall not 49
	81	+	exceed two million dollars in any one fiscal year. 50
82	82		(3) The taxpayer shall claim the credit in the income year or taxable 51
83	83		year in which it is earned. Any credit not claimed by the taxpayer in 52
84	84		such income year or taxable year shall expire and shall not be 53
85	85		refundable. 54
86	86		(c) If the taxpayer is an S corporation or an entity treated as a 55
87	87		partnership for federal income tax purposes, the tax credit may be 56
88	88		claimed by the shareholders or partners of such taxpayer. If the taxpayer 57
89	89		is a single member limited liability company that is disregarded as an 58
90	90		entity separate from its owner, the tax credit may be claimed by the 59
91	91		limited liability company's owner. 60
92	92		This act shall take effect as follows and shall amend the following
93	93		sections:
94	94
95	95		Section 1 July 1, 2022, and
96	96		applicable to income years
97	97		commencing on or after
98	98		January 1, 2023
99	99		New section
100	100		Sec. 2 July 1, 2022, and
101	101		applicable to income years
102	102		and taxable years
103	103		commencing on or after
104	104		January 1, 2023
105	105		New section
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107		-	HED Joint Favorable Subst.
	107	+	Statement of Purpose:
	108	+	To provide a tax credit to employers that (1) make payments for the
	109	+	tuition costs of employees who attend an institution of higher education,
	110	+	and (2) donate to an endowed professorship at an institution of higher
	111	+	education in the state.
	112	+	LCO No. 2427 4 of 4
	113	+
	114	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	115	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	116	+	underlined.]
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