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General Assembly Substitute Bill No. 8
January Session, 2023
AN ACT CONCERNING HIGHER EDUCATION AFFORDABILITY AND
GRADUATE RETENTION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 10a-174 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2023): 2
(a) As used in this section: 3
(1) "Award" means the greater of: (A) The unpaid portion, if any, of 4
a qualifying student's eligible institutional costs after subtracting his or 5
her financial aid, or (B) a minimum award of [two hundred fifty] one 6
thousand dollars for a full-time student or [one hundred fifty] six 7
hundred dollars for a part-time student; 8
(2) "Eligible institutional costs" means the tuition and required fees 9
incurred each semester by an individual student that are established 10
by the Board of Regents for Higher Education for the regional 11
community-technical colleges; 12
(3) "Financial aid" means the sum of all scholarships, grants and 13
federal, state and institutional aid received by a qualifying student. 14
"Financial aid" does not include any federal, state or private student 15
loans received by a qualifying student; 16
(4) "Qualifying student" means any person who (A) graduated from 17 Substitute Bill No. 8
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a public or nonpublic high school in the state, (B) enrolls as a full-time 18
or part-time student for the fall semester of 2020, or any semester 19
thereafter, [for the first time] at a regional community-technical college 20
in a program leading to a degree or certificate, [and continues to be 21
enrolled as a full-time or part-time student at a regional community-22
technical college,] (C) is classified as an in-state student pursuant to 23
section 10a-29, (D) is making satisfactory academic progress while 24
enrolled at a regional community-technical college, (E) has completed 25
the Free Application for Federal Student Aid, and (F) has accepted all 26
available financial aid; 27
(5) "Full-time student" means a student who is enrolled at a regional 28
community-technical college and (A) is carrying twelve or more credit 29
hours in a semester, or (B) has a learning disability documented with 30
the regional community-technical college in which he or she is enrolled 31
and is enrolled in the maximum number of credit hours that is feasible 32
for such student to attempt in a semester, as determined by such 33
student's academic advisor; 34
(6) "Semester" means the fall or spring semester of an academic year. 35
"Semester" does not include a summer semester or session; and 36
(7) "Part-time student" means a student who is enrolled at a regional 37
community-technical college and is carrying not less than six but fewer 38
than twelve credit hours in a semester. 39
(b) [Not later than January 1, 2020, the] The Board of Regents for 40
Higher Education shall (1) establish a debt-free community college 41
program to make awards to qualifying students each semester, (2) 42
adopt rules, procedures and forms necessary to implement the debt-43
free community college program, and (3) submit a report outlining 44
such rules, procedures and forms, in accordance with the provisions of 45
section 11-4a, to the joint standing committee of the General Assembly 46
having cognizance of matters relating to higher education. 47
(c) For the fall semester of 2020, and each semester thereafter, the 48 Substitute Bill No. 8
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Board of Regents for Higher Education shall make awards to 49
qualifying students within available appropriations. An award shall be 50
available to a qualifying student for the first seventy-two credit hours 51
earned by the qualifying student [during the first forty-eight months 52
that such student is enrolled] at a regional community-technical 53
college, provided the qualifying student meets and continues to meet 54
the requirements of this section. The board shall not use an award to 55
supplant any financial aid, including, but not limited to, state or 56
institutional aid, otherwise available to a qualifying student. 57
[(d) (1) Any qualifying student who takes an administratively 58
approved medical or personal leave of absence from a regional 59
community-technical college may continue to qualify for the debt-free 60
community college program upon resuming his or her enrollment as a 61
student at a regional community-technical college, provided such 62
student (A) continues to meet the requirements of this section upon 63
reenrollment, and (B) the total amount of time of all approved leaves of 64
absence does not exceed six months. 65
(2) Any qualifying student who is a member of the armed forces 66
called to active duty during any semester may continue to qualify for 67
the debt-free community college program upon resuming his or her 68
enrollment as a student at a regional community-technical college, 69
provided such student (A) continues to meet the requirements of this 70
section upon reenrollment, and (B) reenrolls not later than four years 71
after the date on which such student is released from active duty.] 72
[(e)] (d) Not later than March 1, 2021, and October 1, 2021, and each 73
semester thereafter, the Board of Regents for Higher Education shall 74
report, in accordance with the provisions of section 11-4a, to the joint 75
standing committees of the General Assembly having cognizance of 76
matters relating to higher education and employment advancement 77
and appropriations and the budgets of the state agencies regarding the 78
debt-free community college program, including, but not limited to, (1) 79
the number of qualifying students enrolled at the regional community-80
technical colleges during each semester, (2) the number of qualifying 81 Substitute Bill No. 8
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students receiving minimum awards and the number of qualifying 82
students receiving awards for the unpaid portion of eligible 83
institutional costs, (3) the average number of credit hours the 84
qualifying students enrolled in each semester and the average number 85
of credit hours the qualifying students completed each semester, (4) 86
the average amount of the award made to qualifying students under 87
this section for the unpaid portion of eligible institutional costs, and (5) 88
the completion rates of qualifying students receiving awards under 89
this section by degree or certificate program. 90
Sec. 2. (Effective July 1, 2023) For the fiscal year ending June 30, 2024, 91
any amount allocated to the regional community-technical college 92
system under the Roberta B. Willis Scholarship program, established 93
pursuant to section 10a-173 of the general statutes, from the federal 94
funds designated for the state pursuant to the provisions of Section 602 95
of Subtitle M of Title IX of the American Rescue Plan Act of 2021, P.L. 96
117-2, as amended from time to time, for the fiscal year ending June 30, 97
2023, shall be reallocated to the Connecticut State University System to 98
be expended, in accordance with section 10a-173 of the general 99
statutes, as grants under the Roberta B. Willis Scholarship program. 100
Sec. 3. (NEW) (Effective July 1, 2023) (a) The Connecticut Higher 101
Education Supplemental Loan Authority shall establish, subject to 102
available funding pursuant to section 4 of this act, the Student Loan 103
Subsidy Program for the purpose of subsidizing interest rates on 104
authority loans, as defined in subdivision (3) of section 10a-223 of the 105
general statutes, to individuals employed in certain high-demand 106
professions, as specified by the Chief Workforce Officer, and who meet 107
the eligibility criteria established by the authority and the Chief 108
Workforce Officer pursuant to subsection (b) of this section. 109
(b) The authority and the Office of Workforce Strategy shall jointly 110
establish the eligibility criteria and administrative guidelines for the 111
Student Loan Subsidy Program. Such eligibility criteria and guidelines 112
shall include, but need not be limited to, (1) applicant eligibility, (2) 113
interest rate subsidies and principal limits on authority loans subject to 114 Substitute Bill No. 8
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the Student Loan Subsidy Program, (3) the process for verifying the 115
employment of the applicants, and (4) the requirement that an interest 116
rate subsidy through the Student Loan Subsidy Program shall 117
terminate for any subsidy recipient who ceases to meet the 118
employment requirements of said program during the term of such 119
recipient's loan from the authority. 120
(c) Not later than September 1, 2023, the Chief Workforce Officer 121
shall identify, and annually update, professions that are in high 122
demand by employers in the state for the purpose of qualifying 123
individuals employed in such professions for the Student Loan 124
Subsidy Program. 125
Sec. 4. (NEW) (Effective July 1, 2023) The Connecticut Higher 126
Education Supplemental Loan Authority shall maintain a separate, 127
nonlapsing account to hold funds for the Student Loan Subsidy 128
Program established pursuant to section 3 of this act. The account shall 129
contain any moneys required by law to be deposited in the account, 130
including, but not limited to, state appropriations or proceeds from the 131
sale of bonds authorized under section 5 of this act. Moneys in the 132
account shall be expended by the authority for the purposes of the 133
Student Loan Subsidy Program and for reasonable and necessary 134
expenses for the administration of said program. 135
Sec. 5. (NEW) (Effective July 1, 2023) (a) For the purposes described 136
in subsection (b) of this section and section 3 of this act, the State Bond 137
Commission shall have the power from time to time to authorize the 138
issuance of bonds of the state in one or more series and in principal 139
amounts not exceeding seven million dollars annually. 140
(b) The proceeds of the sale of such bonds, to the extent of the 141
amount stated in subsection (a) of this section, shall be used by the 142
Connecticut Higher Education Supplemental Loan Authority for the 143
purpose of the Student Loan Subsidy Program established under 144
section 3 of this act. 145 Substitute Bill No. 8
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(c) All provisions of section 3-20 of the general statutes, or the 146
exercise of any right or power granted thereby, that are not 147
inconsistent with the provisions of this section are hereby adopted and 148
shall apply to all bonds authorized by the State Bond Commission 149
pursuant to this section. Temporary notes in anticipation of the money 150
to be derived from the sale of any such bonds so authorized may be 151
issued in accordance with section 3-20 of the general statutes and from 152
time to time renewed. Such bonds shall mature at such time or times 153
not exceeding twenty years from their respective dates as may be 154
provided in or pursuant to the resolution or resolutions of the State 155
Bond Commission authorizing such bonds. None of such bonds shall 156
be authorized except upon a finding by the State Bond Commission 157
that there has been filed with it a request for such authorization that is 158
signed by or on behalf of the Secretary of the Office of Policy and 159
Management and states such terms and conditions as said commission, 160
in its discretion, may require. Such bonds issued pursuant to this 161
section shall be general obligations of the state and the full faith and 162
credit of the state of Connecticut are pledged for the payment of the 163
principal of and interest on such bonds as the same become due, and 164
accordingly and as part of the contract of the state with the holders of 165
such bonds, appropriation of all amounts necessary for punctual 166
payment of such principal and interest is hereby made, and the State 167
Treasurer shall pay such principal and interest as the same become 168
due. 169
Sec. 6. Subparagraph (B) of subdivision (20) of subsection (a) of 170
section 12-701 of the general statutes is repealed and the following is 171
substituted in lieu thereof (Effective January 1, 2024): 172
(B) There shall be subtracted therefrom: 173
(i) To the extent properly includable in gross income for federal 174
income tax purposes, any income with respect to which taxation by 175
any state is prohibited by federal law; 176
(ii) To the extent allowable under section 12-718, exempt dividends 177 Substitute Bill No. 8
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paid by a regulated investment company; 178
(iii) To the extent properly includable in gross income for federal 179
income tax purposes, the amount of any refund or credit for 180
overpayment of income taxes imposed by this state, or any other state 181
of the United States or a political subdivision thereof, or the District of 182
Columbia; 183
(iv) To the extent properly includable in gross income for federal 184
income tax purposes and not otherwise subtracted from federal 185
adjusted gross income pursuant to clause (x) of this subparagraph in 186
computing Connecticut adjusted gross income, any tier 1 railroad 187
retirement benefits; 188
(v) To the extent any additional allowance for depreciation under 189
Section 168(k) of the Internal Revenue Code for property placed in 190
service after September 27, 2017, was added to federal adjusted gross 191
income pursuant to subparagraph (A)(ix) of this subdivision in 192
computing Connecticut adjusted gross income, twenty-five per cent of 193
such additional allowance for depreciation in each of the four 194
succeeding taxable years; 195
(vi) To the extent properly includable in gross income for federal 196
income tax purposes, any interest income from obligations issued by or 197
on behalf of the state of Connecticut, any political subdivision thereof, 198
or public instrumentality, state or local authority, district or similar 199
public entity created under the laws of the state of Connecticut; 200
(vii) To the extent properly includable in determining the net gain 201
or loss from the sale or other disposition of capital assets for federal 202
income tax purposes, any gain from the sale or exchange of obligations 203
issued by or on behalf of the state of Connecticut, any political 204
subdivision thereof, or public instrumentality, state or local authority, 205
district or similar public entity created under the laws of the state of 206
Connecticut, in the income year such gain was recognized; 207
(viii) Any interest on indebtedness incurred or continued to 208 Substitute Bill No. 8
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purchase or carry obligations or securities the interest on which is 209
subject to tax under this chapter but exempt from federal income tax, 210
to the extent that such interest on indebtedness is not deductible in 211
determining federal adjusted gross income and is attributable to a 212
trade or business carried on by such individual; 213
(ix) Ordinary and necessary expenses paid or incurred during the 214
taxable year for the production or collection of income which is subject 215
to taxation under this chapter but exempt from federal income tax, or 216
the management, conservation or maintenance of property held for the 217
production of such income, and the amortizable bond premium for the 218
taxable year on any bond the interest on which is subject to tax under 219
this chapter but exempt from federal income tax, to the extent that 220
such expenses and premiums are not deductible in determining federal 221
adjusted gross income and are attributable to a trade or business 222
carried on by such individual; 223
(x) (I) For taxable years commencing prior to January 1, 2019, for a 224
person who files a return under the federal income tax as an 225
unmarried individual whose federal adjusted gross income for such 226
taxable year is less than fifty thousand dollars, or as a married 227
individual filing separately whose federal adjusted gross income for 228
such taxable year is less than fifty thousand dollars, or for a husband 229
and wife who file a return under the federal income tax as married 230
individuals filing jointly whose federal adjusted gross income for such 231
taxable year is less than sixty thousand dollars or a person who files a 232
return under the federal income tax as a head of household whose 233
federal adjusted gross income for such taxable year is less than sixty 234
thousand dollars, an amount equal to the Social Security benefits 235
includable for federal income tax purposes; 236
(II) For taxable years commencing prior to January 1, 2019, for a 237
person who files a return under the federal income tax as an 238
unmarried individual whose federal adjusted gross income for such 239
taxable year is fifty thousand dollars or more, or as a married 240
individual filing separately whose federal adjusted gross income for 241 Substitute Bill No. 8
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such taxable year is fifty thousand dollars or more, or for a husband 242
and wife who file a return under the federal income tax as married 243
individuals filing jointly whose federal adjusted gross income from 244
such taxable year is sixty thousand dollars or more or for a person who 245
files a return under the federal income tax as a head of household 246
whose federal adjusted gross income for such taxable year is sixty 247
thousand dollars or more, an amount equal to the difference between 248
the amount of Social Security benefits includable for federal income tax 249
purposes and the lesser of twenty-five per cent of the Social Security 250
benefits received during the taxable year, or twenty-five per cent of the 251
excess described in Section 86(b)(1) of the Internal Revenue Code; 252
(III) For the taxable year commencing January 1, 2019, and each 253
taxable year thereafter, for a person who files a return under the 254
federal income tax as an unmarried individual whose federal adjusted 255
gross income for such taxable year is less than seventy-five thousand 256
dollars, or as a married individual filing separately whose federal 257
adjusted gross income for such taxable year is less than seventy-five 258
thousand dollars, or for a husband and wife who file a return under 259
the federal income tax as married individuals filing jointly whose 260
federal adjusted gross income for such taxable year is less than one 261
hundred thousand dollars or a person who files a return under the 262
federal income tax as a head of household whose federal adjusted 263
gross income for such taxable year is less than one hundred thousand 264
dollars, an amount equal to the Social Security benefits includable for 265
federal income tax purposes; and 266
(IV) For the taxable year commencing January 1, 2019, and each 267
taxable year thereafter, for a person who files a return under the 268
federal income tax as an unmarried individual whose federal adjusted 269
gross income for such taxable year is seventy-five thousand dollars or 270
more, or as a married individual filing separately whose federal 271
adjusted gross income for such taxable year is seventy-five thousand 272
dollars or more, or for a husband and wife who file a return under the 273
federal income tax as married individuals filing jointly whose federal 274 Substitute Bill No. 8
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adjusted gross income from such taxable year is one hundred 275
thousand dollars or more or for a person who files a return under the 276
federal income tax as a head of household whose federal adjusted 277
gross income for such taxable year is one hundred thousand dollars or 278
more, an amount equal to the difference between the amount of Social 279
Security benefits includable for federal income tax purposes and the 280
lesser of twenty-five per cent of the Social Security benefits received 281
during the taxable year, or twenty-five per cent of the excess described 282
in Section 86(b)(1) of the Internal Revenue Code; 283
(xi) To the extent properly includable in gross income for federal 284
income tax purposes, any amount rebated to a taxpayer pursuant to 285
section 12-746; 286
(xii) To the extent properly includable in the gross income for 287
federal income tax purposes of a designated beneficiary, any 288
distribution to such beneficiary from any qualified state tuition 289
program, as defined in Section 529(b) of the Internal Revenue Code, 290
established and maintained by this state or any official, agency or 291
instrumentality of the state; 292
(xiii) To the extent allowable under section 12-701a, contributions to 293
accounts established pursuant to any qualified state tuition program, 294
as defined in Section 529(b) of the Internal Revenue Code, established 295
and maintained by this state or any official, agency or instrumentality 296
of the state; 297
(xiv) To the extent properly includable in gross income for federal 298
income tax purposes, the amount of any Holocaust victims' settlement 299
payment received in the taxable year by a Holocaust victim; 300
(xv) To the extent properly includable in gross income for federal 301
income tax purposes of an account holder, as defined in section 31-302
51ww, interest earned on funds deposited in the individual 303
development account, as defined in section 31-51ww, of such account 304
holder; 305 Substitute Bill No. 8
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(xvi) To the extent properly includable in the gross income for 306
federal income tax purposes of a designated beneficiary, as defined in 307
section 3-123aa, interest, dividends or capital gains earned on 308
contributions to accounts established for the designated beneficiary 309
pursuant to the Connecticut Homecare Option Program for the Elderly 310
established by sections 3-123aa to 3-123ff, inclusive; 311
(xvii) To the extent properly includable in gross income for federal 312
income tax purposes, any income received from the United States 313
government as retirement pay for a retired member of (I) the Armed 314
Forces of the United States, as defined in Section 101 of Title 10 of the 315
United States Code, or (II) the National Guard, as defined in Section 316
101 of Title 10 of the United States Code; 317
(xviii) To the extent properly includable in gross income for federal 318
income tax purposes for the taxable year, any income from the 319
discharge of indebtedness in connection with any reacquisition, after 320
December 31, 2008, and before January 1, 2011, of an applicable debt 321
instrument or instruments, as those terms are defined in Section 108 of 322
the Internal Revenue Code, as amended by Section 1231 of the 323
American Recovery and Reinvestment Act of 2009, to the extent any 324
such income was added to federal adjusted gross income pursuant to 325
subparagraph (A)(xi) of this subdivision in computing Connecticut 326
adjusted gross income for a preceding taxable year; 327
(xix) To the extent not deductible in determining federal adjusted 328
gross income, the amount of any contribution to a manufacturing 329
reinvestment account established pursuant to section 32-9zz in the 330
taxable year that such contribution is made; 331
(xx) To the extent properly includable in gross income for federal 332
income tax purposes, (I) for the taxable year commencing January 1, 333
2015, ten per cent of the income received from the state teachers' 334
retirement system, (II) for the taxable years commencing January 1, 335
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 336
received from the state teachers' retirement system, and (III) for the 337 Substitute Bill No. 8
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taxable year commencing January 1, 2021, and each taxable year 338
thereafter, fifty per cent of the income received from the state teachers' 339
retirement system or, for a taxpayer whose federal adjusted gross 340
income does not exceed the applicable threshold under clause (xxi) of 341
this subparagraph, the percentage pursuant to said clause of the 342
income received from the state teachers' retirement system, whichever 343
deduction is greater; 344
(xxi) To the extent properly includable in gross income for federal 345
income tax purposes, except for retirement benefits under clause (iv) of 346
this subparagraph and retirement pay under clause (xvii) of this 347
subparagraph, for a person who files a return under the federal income 348
tax as an unmarried individual whose federal adjusted gross income 349
for such taxable year is less than seventy-five thousand dollars, or as a 350
married individual filing separately whose federal adjusted gross 351
income for such taxable year is less than seventy-five thousand dollars, 352
or as a head of household whose federal adjusted gross income for 353
such taxable year is less than seventy-five thousand dollars, or for a 354
husband and wife who file a return under the federal income tax as 355
married individuals filing jointly whose federal adjusted gross income 356
for such taxable year is less than one hundred thousand dollars, (I) for 357
the taxable year commencing January 1, 2019, fourteen per cent of any 358
pension or annuity income, (II) for the taxable year commencing 359
January 1, 2020, twenty-eight per cent of any pension or annuity 360
income, (III) for the taxable year commencing January 1, 2021, forty-361
two per cent of any pension or annuity income, and (IV) for the taxable 362
year commencing January 1, 2022, and each taxable year thereafter, 363
one hundred per cent of any pension or annuity income; 364
(xxii) The amount of lost wages and medical, travel and housing 365
expenses, not to exceed ten thousand dollars in the aggregate, incurred 366
by a taxpayer during the taxable year in connection with the donation 367
to another person of an organ for organ transplantation occurring on 368
or after January 1, 2017; 369
(xxiii) To the extent properly includable in gross income for federal 370 Substitute Bill No. 8
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income tax purposes, the amount of any financial assistance received 371
from the Crumbling Foundations Assistance Fund or paid to or on 372
behalf of the owner of a residential building pursuant to sections 8-442 373
and 8-443; 374
(xxiv) To the extent properly includable in gross income for federal 375
income tax purposes, the amount calculated pursuant to subsection (b) 376
of section 12-704g for income received by a general partner of a 377
venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 378
from time to time; 379
(xxv) To the extent any portion of a deduction under Section 179 of 380
the Internal Revenue Code was added to federal adjusted gross income 381
pursuant to subparagraph (A)(xiv) of this subdivision in computing 382
Connecticut adjusted gross income, twenty-five per cent of such 383
disallowed portion of the deduction in each of the four succeeding 384
taxable years; 385
(xxvi) To the extent properly includable in gross income for federal 386
income tax purposes, for a person who files a return under the federal 387
income tax as an unmarried individual whose federal adjusted gross 388
income for such taxable year is less than seventy-five thousand dollars, 389
or as a married individual filing separately whose federal adjusted 390
gross income for such taxable year is less than seventy-five thousand 391
dollars, or as a head of household whose federal adjusted gross income 392
for such taxable year is less than seventy-five thousand dollars, or for a 393
husband and wife who file a return under the federal income tax as 394
married individuals filing jointly whose federal adjusted gross income 395
for such taxable year is less than one hundred thousand dollars, (I) for 396
the taxable year commencing January 1, 2023, twenty-five per cent of 397
any distribution from an individual retirement account other than a 398
Roth individual retirement account, (II) for the taxable year 399
commencing January 1, 2024, fifty per cent of any distribution from an 400
individual retirement account other than a Roth individual retirement 401
account, (III) for the taxable year commencing January 1, 2025, 402
seventy-five per cent of any distribution from an individual retirement 403 Substitute Bill No. 8
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account other than a Roth individual retirement account, and (IV) for 404
the taxable year commencing January 1, 2026, and each taxable year 405
thereafter, any distribution from an individual retirement account 406
other than a Roth individual retirement account; [and] 407
(xxvii) To the extent properly includable in gross income for federal 408
income tax purposes, for the taxable year commencing January 1, 2022, 409
the amount or amounts paid or otherwise credited to any eligible 410
resident of this state under (I) the 2020 Earned Income Tax Credit 411
enhancement program from funding allocated to the state through the 412
Coronavirus Relief Fund established under the Coronavirus Aid, 413
Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 414
Earned Income Tax Credit enhancement program from funding 415
allocated to the state pursuant to Section 9901 of Subtitle M of Title IX 416
of the American Rescue Plan Act of 2021, P.L. 117-2; and 417
(xxviii) To the extent not deductible in determining federal adjusted 418
gross income, and to the extent allowable under section 7 of this act, 419
the amount of interest paid during the taxable year on a student loan. 420
Sec. 7. (NEW) (Effective January 1, 2024, and applicable to taxable years 421
commencing on or after January 1, 2024) (a) For the purposes of this 422
section: 423
(1) "Qualified student loan" means a loan taken out solely to pay 424
qualified education expenses (A) for the taxpayer, the taxpayer's 425
spouse or a person who was a dependent of the taxpayer at the time 426
when the taxpayer took out the loan, (B) paid or incurred within a 427
reasonable period of time before or after the taxpayer took out the 428
loan, (C) from a private or governmental lender, and (D) for education 429
provided during an academic period for an eligible student; 430
(2) "Qualified education expenses" means the total costs of attending 431
an eligible institution of higher education, including graduate school, 432
and includes amounts paid for the following items: (A) Tuition and 433
fees; (B) room and board, provided the cost of room and board 434 Substitute Bill No. 8
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qualifies only to the extent that it is not more than the greater of (i) the 435
allowance for room and board, as determined by the eligible 436
institution of higher education, that was included in the cost of 437
attendance for a particular academic period and living arrangement of 438
the student, or (ii) the actual amount charged if the student is residing 439
in housing owned or operated by the eligible institution of higher 440
education; (C) books, supplies and equipment; and (D) other necessary 441
expenses, including, but not limited to, transportation; 442
(3) "Eligible institution of higher education" means any institution of 443
higher education that is eligible to participate in a student aid program 444
administered by the United States Department of Education; and 445
(4) "Eligible student" means a student who is or was enrolled at least 446
part time in a certificate or degree program at an eligible institution of 447
higher education. 448
(b) The maximum annual modificat ion under subparagraph 449
(B)(xxviii) of subdivision (20) of subsection (a) of section 12-701 of the 450
general statutes, as amended by this act, shall be equal to the amount 451
of interest paid on a qualified student loan, but shall not exceed two 452
thousand five hundred dollars for each taxpayer, provided (1) the 453
taxpayer's filing status is any filing status except married filing 454
separately, (2) the taxpayer's modified adjusted gross income is not 455
more than seventy-five thousand dollars for taxpayers whose filing 456
status is single, head of household or qualifying widow or widower or 457
not more than one hundred fifty thousand dollars for taxpayers whose 458
filing status is married filing jointly, (3) no other person is claiming an 459
exemption for the taxpayer on such other person's return, (4) the 460
taxpayer is legally obligated to pay interest on a qualified student loan, 461
and (5) the taxpayer paid interest on a qualified student loan. 462
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 10a-174 Substitute Bill No. 8
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00008-
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16 of 16
Sec. 2 July 1, 2023 New section
Sec. 3 July 1, 2023 New section
Sec. 4 July 1, 2023 New section
Sec. 5 July 1, 2023 New section
Sec. 6 January 1, 2024 12-701(a)(20)(B)
Sec. 7 January 1, 2024, and
applicable to taxable years
commencing on or after
January 1, 2024
New section
Statement of Legislative Commissioners:
In Section 7(b), "subparagraph (B)(xxiii)" was changed to
"subparagraph (B)(xxviii)" for accuracy.
HED Joint Favorable Subst. -LCO