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General Assembly Substitute Bill No. 6901
January Session, 2023
AN ACT CONCERNING A STUDENT LOAN REIMBURSEMENT
PROGRAM FOR CERTAIN PROFESSIONALS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2023) (a) On or before October 1, 1
2023, the executive director of the Office of Higher Education shall 2
establish a pilot program to reimburse certain professionals for student 3
loan payments. The Office of Higher Education shall approve the 4
participation of any person in the student loan reimbursement pilot 5
program who (1) attended a state college or university and graduated 6
with a bachelor's degree or left such college or university in good 7
standing before graduation; (2) is currently a resident of the state, and 8
has been a resident of the state for not less than five consecutive years 9
after graduation from a state college or university, as shown on the 10
person's Connecticut income tax return; (3) earns the majority of such 11
person's income through employment in the state, as evidenced on 12
such person's Connecticut income tax return, for two years prior to 13
participation in the program; (4) is employed full-time as a nurse, 14
teacher or in the field of child care, mental health or social services; (5) 15
has (A) a Connecticut adjusted gross income of not more than one 16
hundred thousand dollars and files a return under the federal income 17
tax as an unmarried individual or a married individual filing 18
separately, or (B) a Connecticut adjusted gross income of not more 19
than one hundred twenty-five thousand dollars and files a return 20 Substitute Bill No. 6901
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under the federal income tax as a head of household, a married 21
individual filing jointly or a surviving spouse, as defined in Section 22
2(a) of the Internal Revenue Code of 1986, or any subsequent 23
corresponding internal revenue code of the United States, as amended 24
from time to time; and (6) has a student loan. For the purposes of this 25
section "state college or university" means any public or private college 26
or university in the state. 27
(b) Persons who qualify under subsection (a) of this section may 28
apply to the Office of Higher Education to participate in the student 29
loan reimbursement pilot program at such time and in such manner as 30
the executive director of said office prescribes. 31
(c) Each person approved to participate in the student loan 32
reimbursement pilot program shall annually submit receipts of 33
payment on student loans to the Office of Higher Education in the 34
manner prescribed by the executive director. The Office of Higher 35
Education shall (1) reimburse such person for such student loan 36
payments an amount of not more than five thousand dollars, annually, 37
provided no person shall participate in the student loan 38
reimbursement pilot program for more than four years or receive more 39
than twenty thousand dollars in aggregate reimbursement for student 40
loan payments, and (2) require such person to volunteer for an 41
approved nonprofit organization in the state for not less than fifty 42
unpaid hours for each year of participation in the student loan 43
reimbursement program. For purposes of this section, volunteer hours 44
may include service on the board of directors for a nonprofit 45
organization or military service. 46
(d) The Office of Higher Education may use up to two and one-half 47
per cent of the funds appropriated for purposes of this section, 48
annually, for program administration, promotion and recruitment 49
activities. 50
(e) Not later than January 1, 2025, and annually thereafter, the 51
executive director of the Office of Higher Education shall report, in 52 Substitute Bill No. 6901
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accordance with the provisions of section 11-4a of the general statutes, 53
to the joint standing committees of the General Assembly having 54
cognizance of matters relating to higher education and employment 55
advancement and appropriations and the budgets of state agencies on 56
the operation and effectiveness of the pilot program and any 57
recommendations to expand the pilot program. 58
Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 59
section 12-701 of the general statutes is repealed and the following is 60
substituted in lieu thereof (Effective January 1, 2024, and applicable to 61
taxable years commencing on or after January 1, 2024): 62
(B) There shall be subtracted therefrom: 63
(i) To the extent properly includable in gross income for federal 64
income tax purposes, any income with respect to which taxation by 65
any state is prohibited by federal law; 66
(ii) To the extent allowable under section 12-718, exempt dividends 67
paid by a regulated investment company; 68
(iii) To the extent properly includable in gross income for federal 69
income tax purposes, the amount of any refund or credit for 70
overpayment of income taxes imposed by this state, or any other state 71
of the United States or a political subdivision thereof, or the District of 72
Columbia; 73
(iv) To the extent properly includable in gross income for federal 74
income tax purposes and not otherwise subtracted from federal 75
adjusted gross income pursuant to clause (x) of this subparagraph in 76
computing Connecticut adjusted gross income, any tier 1 railroad 77
retirement benefits; 78
(v) To the extent any additional allowance for depreciation under 79
Section 168(k) of the Internal Revenue Code for property placed in 80
service after September 27, 2017, was added to federal adjusted gross 81
income pursuant to subparagraph (A)(ix) of this subdivision in 82 Substitute Bill No. 6901
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computing Connecticut adjusted gross income, twenty-five per cent of 83
such additional allowance for depreciation in each of the four 84
succeeding taxable years; 85
(vi) To the extent properly includable in gross income for federal 86
income tax purposes, any interest income from obligations issued by or 87
on behalf of the state of Connecticut, any political subdivision thereof, 88
or public instrumentality, state or local authority, district or similar 89
public entity created under the laws of the state of Connecticut; 90
(vii) To the extent properly includable in determining the net gain 91
or loss from the sale or other disposition of capital assets for federal 92
income tax purposes, any gain from the sale or exchange of obligations 93
issued by or on behalf of the state of Connecticut, any political 94
subdivision thereof, or public instrumentality, state or local authority, 95
district or similar public entity created under the laws of the state of 96
Connecticut, in the income year such gain was recognized; 97
(viii) Any interest on indebtedness incurred or continued to 98
purchase or carry obligations or securities the interest on which is 99
subject to tax under this chapter but exempt from federal income tax, 100
to the extent that such interest on indebtedness is not deductible in 101
determining federal adjusted gross income and is attributable to a 102
trade or business carried on by such individual; 103
(ix) Ordinary and necessary expenses paid or incurred during the 104
taxable year for the production or collection of income which is subject 105
to taxation under this chapter but exempt from federal income tax, or 106
the management, conservation or maintenance of property held for the 107
production of such income, and the amortizable bond premium for the 108
taxable year on any bond the interest on which is subject to tax under 109
this chapter but exempt from federal income tax, to the extent that 110
such expenses and premiums are not deductible in determining federal 111
adjusted gross income and are attributable to a trade or business 112
carried on by such individual; 113 Substitute Bill No. 6901
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(x) (I) For taxable years commencing prior to January 1, 2019, for a 114
person who files a return under the federal income tax as an 115
unmarried individual whose federal adjusted gross income for such 116
taxable year is less than fifty thousand dollars, or as a married 117
individual filing separately whose federal adjusted gross income for 118
such taxable year is less than fifty thousand dollars, or for a husband 119
and wife who file a return under the federal income tax as married 120
individuals filing jointly whose federal adjusted gross income for such 121
taxable year is less than sixty thousand dollars or a person who files a 122
return under the federal income tax as a head of household whose 123
federal adjusted gross income for such taxable year is less than sixty 124
thousand dollars, an amount equal to the Social Security benefits 125
includable for federal income tax purposes; 126
(II) For taxable years commencing prior to January 1, 2019, for a 127
person who files a return under the federal income tax as an 128
unmarried individual whose federal adjusted gross income for such 129
taxable year is fifty thousand dollars or more, or as a married 130
individual filing separately whose federal adjusted gross income for 131
such taxable year is fifty thousand dollars or more, or for a husband 132
and wife who file a return under the federal income tax as married 133
individuals filing jointly whose federal adjusted gross income from 134
such taxable year is sixty thousand dollars or more or for a person who 135
files a return under the federal income tax as a head of household 136
whose federal adjusted gross income for such taxable year is sixty 137
thousand dollars or more, an amount equal to the difference between 138
the amount of Social Security benefits includable for federal income tax 139
purposes and the lesser of twenty-five per cent of the Social Security 140
benefits received during the taxable year, or twenty-five per cent of the 141
excess described in Section 86(b)(1) of the Internal Revenue Code; 142
(III) For the taxable year commencing January 1, 2019, and each 143
taxable year thereafter, for a person who files a return under the 144
federal income tax as an unmarried individual whose federal adjusted 145
gross income for such taxable year is less than seventy-five thousand 146 Substitute Bill No. 6901
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dollars, or as a married individual filing separately whose federal 147
adjusted gross income for such taxable year is less than seventy-five 148
thousand dollars, or for a husband and wife who file a return under 149
the federal income tax as married individuals filing jointly whose 150
federal adjusted gross income for such taxable year is less than one 151
hundred thousand dollars or a person who files a return under the 152
federal income tax as a head of household whose federal adjusted 153
gross income for such taxable year is less than one hundred thousand 154
dollars, an amount equal to the Social Security benefits includable for 155
federal income tax purposes; and 156
(IV) For the taxable year commencing January 1, 2019, and each 157
taxable year thereafter, for a person who files a return under the 158
federal income tax as an unmarried individual whose federal adjusted 159
gross income for such taxable year is seventy-five thousand dollars or 160
more, or as a married individual filing separately whose federal 161
adjusted gross income for such taxable year is seventy-five thousand 162
dollars or more, or for a husband and wife who file a return under the 163
federal income tax as married individuals filing jointly whose federal 164
adjusted gross income from such taxable year is one hundred 165
thousand dollars or more or for a person who files a return under the 166
federal income tax as a head of household whose federal adjusted 167
gross income for such taxable year is one hundred thousand dollars or 168
more, an amount equal to the difference between the amount of Social 169
Security benefits includable for federal income tax purposes and the 170
lesser of twenty-five per cent of the Social Security benefits received 171
during the taxable year, or twenty-five per cent of the excess described 172
in Section 86(b)(1) of the Internal Revenue Code; 173
(xi) To the extent properly includable in gross income for federal 174
income tax purposes, any amount rebated to a taxpayer pursuant to 175
section 12-746; 176
(xii) To the extent properly includable in the gross income for 177
federal income tax purposes of a designated beneficiary, any 178
distribution to such beneficiary from any qualified state tuition 179 Substitute Bill No. 6901
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program, as defined in Section 529(b) of the Internal Revenue Code, 180
established and maintained by this state or any official, agency or 181
instrumentality of the state; 182
(xiii) To the extent allowable under section 12-701a, contributions to 183
accounts established pursuant to any qualified state tuition program, 184
as defined in Section 529(b) of the Internal Revenue Code, established 185
and maintained by this state or any official, agency or instrumentality 186
of the state; 187
(xiv) To the extent properly includable in gross income for federal 188
income tax purposes, the amount of any Holocaust victims' settlement 189
payment received in the taxable year by a Holocaust victim; 190
(xv) To the extent properly includable in gross income for federal 191
income tax purposes of an account holder, as defined in section 31-192
51ww, interest earned on funds deposited in the individual 193
development account, as defined in section 31-51ww, of such account 194
holder; 195
(xvi) To the extent properly includable in the gross income for 196
federal income tax purposes of a designated beneficiary, as defined in 197
section 3-123aa, interest, dividends or capital gains earned on 198
contributions to accounts established for the designated beneficiary 199
pursuant to the Connecticut Homecare Option Program for the Elderly 200
established by sections 3-123aa to 3-123ff, inclusive; 201
(xvii) To the extent properly includable in gross income for federal 202
income tax purposes, any income received from the United States 203
government as retirement pay for a retired member of (I) the Armed 204
Forces of the United States, as defined in Section 101 of Title 10 of the 205
United States Code, or (II) the National Guard, as defined in Section 206
101 of Title 10 of the United States Code; 207
(xviii) To the extent properly includable in gross income for federal 208
income tax purposes for the taxable year, any income from the 209
discharge of indebtedness in connection with any reacquisition, after 210 Substitute Bill No. 6901
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December 31, 2008, and before January 1, 2011, of an applicable debt 211
instrument or instruments, as those terms are defined in Section 108 of 212
the Internal Revenue Code, as amended by Section 1231 of the 213
American Recovery and Reinvestment Act of 2009, to the extent any 214
such income was added to federal adjusted gross income pursuant to 215
subparagraph (A)(xi) of this subdivision in computing Connecticut 216
adjusted gross income for a preceding taxable year; 217
(xix) To the extent not deductible in determining federal adjusted 218
gross income, the amount of any contribution to a manufacturing 219
reinvestment account established pursuant to section 32-9zz in the 220
taxable year that such contribution is made; 221
(xx) To the extent properly includable in gross income for federal 222
income tax purposes, (I) for the taxable year commencing January 1, 223
2015, ten per cent of the income received from the state teachers' 224
retirement system, (II) for the taxable years commencing January 1, 225
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 226
received from the state teachers' retirement system, and (III) for the 227
taxable year commencing January 1, 2021, and each taxable year 228
thereafter, fifty per cent of the income received from the state teachers' 229
retirement system or, for a taxpayer whose federal adjusted gross 230
income does not exceed the applicable threshold under clause (xxi) of 231
this subparagraph, the percentage pursuant to said clause of the 232
income received from the state teachers' retirement system, whichever 233
deduction is greater; 234
(xxi) To the extent properly includable in gross income for federal 235
income tax purposes, except for retirement benefits under clause (iv) of 236
this subparagraph and retirement pay under clause (xvii) of this 237
subparagraph, for a person who files a return under the federal income 238
tax as an unmarried individual whose federal adjusted gross income 239
for such taxable year is less than seventy-five thousand dollars, or as a 240
married individual filing separately whose federal adjusted gross 241
income for such taxable year is less than seventy-five thousand dollars, 242
or as a head of household whose federal adjusted gross income for 243 Substitute Bill No. 6901
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such taxable year is less than seventy-five thousand dollars, or for a 244
husband and wife who file a return under the federal income tax as 245
married individuals filing jointly whose federal adjusted gross income 246
for such taxable year is less than one hundred thousand dollars, (I) for 247
the taxable year commencing January 1, 2019, fourteen per cent of any 248
pension or annuity income, (II) for the taxable year commencing 249
January 1, 2020, twenty-eight per cent of any pension or annuity 250
income, (III) for the taxable year commencing January 1, 2021, forty-251
two per cent of any pension or annuity income, and (IV) for the taxable 252
year commencing January 1, 2022, and each taxable year thereafter, 253
one hundred per cent of any pension or annuity income; 254
(xxii) The amount of lost wages and medical, travel and housing 255
expenses, not to exceed ten thousand dollars in the aggregate, incurred 256
by a taxpayer during the taxable year in connection with the donation 257
to another person of an organ for organ transplantation occurring on 258
or after January 1, 2017; 259
(xxiii) To the extent properly includable in gross income for federal 260
income tax purposes, the amount of any financial assistance received 261
from the Crumbling Foundations Assistance Fund or paid to or on 262
behalf of the owner of a residential building pursuant to sections 8-442 263
and 8-443; 264
(xxiv) To the extent properly includable in gross income for federal 265
income tax purposes, the amount calculated pursuant to subsection (b) 266
of section 12-704g for income received by a general partner of a 267
venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 268
from time to time; 269
(xxv) To the extent any portion of a deduction under Section 179 of 270
the Internal Revenue Code was added to federal adjusted gross income 271
pursuant to subparagraph (A)(xiv) of this subdivision in computing 272
Connecticut adjusted gross income, twenty-five per cent of such 273
disallowed portion of the deduction in each of the four succeeding 274
taxable years; 275 Substitute Bill No. 6901
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(xxvi) To the extent properly includable in gross income for federal 276
income tax purposes, for a person who files a return under the federal 277
income tax as an unmarried individual whose federal adjusted gross 278
income for such taxable year is less than seventy-five thousand dollars, 279
or as a married individual filing separately whose federal adjusted 280
gross income for such taxable year is less than seventy-five thousand 281
dollars, or as a head of household whose federal adjusted gross income 282
for such taxable year is less than seventy-five thousand dollars, or for a 283
husband and wife who file a return under the federal income tax as 284
married individuals filing jointly whose federal adjusted gross income 285
for such taxable year is less than one hundred thousand dollars, (I) for 286
the taxable year commencing January 1, 2023, twenty-five per cent of 287
any distribution from an individual retirement account other than a 288
Roth individual retirement account, (II) for the taxable year 289
commencing January 1, 2024, fifty per cent of any distribution from an 290
individual retirement account other than a Roth individual retirement 291
account, (III) for the taxable year commencing January 1, 2025, 292
seventy-five per cent of any distribution from an individual retirement 293
account other than a Roth individual retirement account, and (IV) for 294
the taxable year commencing January 1, 2026, and each taxable year 295
thereafter, any distribution from an individual retirement account 296
other than a Roth individual retirement account; [and] 297
(xxvii) To the extent properly includable in gross income for federal 298
income tax purposes, for the taxable year commencing January 1, 2022, 299
the amount or amounts paid or otherwise credited to any eligible 300
resident of this state under (I) the 2020 Earned Income Tax Credit 301
enhancement program from funding allocated to the state through the 302
Coronavirus Relief Fund established under the Coronavirus Aid, 303
Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 304
Earned Income Tax Credit enhancement program from funding 305
allocated to the state pursuant to Section 9901 of Subtitle M of Title IX 306
of the American Rescue Plan Act of 2021, P.L. 117-2; and 307
(xxviii) To the extent properly includable in gross income for federal 308 Substitute Bill No. 6901
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income tax purposes, the amount of any student loan reimbursement 309
payment received by a taxpayer pursuant to section 1 of this act. 310
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 New section
Sec. 2 January 1, 2024, and
applicable to taxable years
commencing on or after
January 1, 2024
12-701(a)(20)(B)
Statement of Legislative Commissioners:
Section 1(d) was deleted, the remaining subsections were relettered
accordingly and Section 2 was added for accuracy and clarity.
APP Joint Favorable Subst.