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