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Connecticut Senate Bill SB00008

Connecticut 2023 Regular Session

Connecticut Senate Bill SB00008 Compare Versions

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77 General Assembly Substitute Bill No. 8
88 January Session, 2023
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1010
1111
1212 AN ACT CONCERNING HIGHER EDUCATION AFFORDABILITY AND
1313 GRADUATE RETENTION.
1414 Be it enacted by the Senate and House of Representatives in General
1515 Assembly convened:
1616
1717 Section 1. Section 10a-174 of the general statutes is repealed and the 1
1818 following is substituted in lieu thereof (Effective July 1, 2023): 2
1919 (a) As used in this section: 3
20-(1) "Award" means the greater of: (A) The unpaid portion, if any, of a 4
21-qualifying student's eligible institutional costs after subtracting his or 5
20+(1) "Award" means the greater of: (A) The unpaid portion, if any, of 4
21+a qualifying student's eligible institutional costs after subtracting his or 5
2222 her financial aid, or (B) a minimum award of [two hundred fifty] one 6
2323 thousand dollars for a full-time student or [one hundred fifty] six 7
2424 hundred dollars for a part-time student; 8
2525 (2) "Eligible institutional costs" means the tuition and required fees 9
26-incurred each semester by an individual student that are established by 10
27-the Board of Regents for Higher Education for the regional community-11
28-technical colleges; 12
26+incurred each semester by an individual student that are established 10
27+by the Board of Regents for Higher Education for the regional 11
28+community-technical colleges; 12
2929 (3) "Financial aid" means the sum of all scholarships, grants and 13
3030 federal, state and institutional aid received by a qualifying student. 14
3131 "Financial aid" does not include any federal, state or private student 15
3232 loans received by a qualifying student; 16
3333 (4) "Qualifying student" means any person who (A) graduated from 17 Substitute Bill No. 8
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4040 a public or nonpublic high school in the state, (B) enrolls as a full-time 18
4141 or part-time student for the fall semester of 2020, or any semester 19
4242 thereafter, [for the first time] at a regional community-technical college 20
4343 in a program leading to a degree or certificate, [and continues to be 21
4444 enrolled as a full-time or part-time student at a regional community-22
4545 technical college,] (C) is classified as an in-state student pursuant to 23
4646 section 10a-29, (D) is making satisfactory academic progress while 24
4747 enrolled at a regional community-technical college, (E) has completed 25
4848 the Free Application for Federal Student Aid, and (F) has accepted all 26
4949 available financial aid; 27
5050 (5) "Full-time student" means a student who is enrolled at a regional 28
5151 community-technical college and (A) is carrying twelve or more credit 29
5252 hours in a semester, or (B) has a learning disability documented with 30
5353 the regional community-technical college in which he or she is enrolled 31
5454 and is enrolled in the maximum number of credit hours that is feasible 32
5555 for such student to attempt in a semester, as determined by such 33
5656 student's academic advisor; 34
5757 (6) "Semester" means the fall or spring semester of an academic year. 35
5858 "Semester" does not include a summer semester or session; and 36
5959 (7) "Part-time student" means a student who is enrolled at a regional 37
6060 community-technical college and is carrying not less than six but fewer 38
6161 than twelve credit hours in a semester. 39
6262 (b) [Not later than January 1, 2020, the] The Board of Regents for 40
6363 Higher Education shall (1) establish a debt-free community college 41
64-program to make awards to qualifying students each semester, (2) adopt 42
65-rules, procedures and forms necessary to implement the debt-free 43
66-community college program, and (3) submit a report outlining such 44
67-rules, procedures and forms, in accordance with the provisions of 45
64+program to make awards to qualifying students each semester, (2) 42
65+adopt rules, procedures and forms necessary to implement the debt-43
66+free community college program, and (3) submit a report outlining 44
67+such rules, procedures and forms, in accordance with the provisions of 45
6868 section 11-4a, to the joint standing committee of the General Assembly 46
6969 having cognizance of matters relating to higher education. 47
7070 (c) For the fall semester of 2020, and each semester thereafter, the 48 Substitute Bill No. 8
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77-Board of Regents for Higher Education shall make awards to qualifying 49
78-students within available appropriations. An award shall be available 50
79-to a qualifying student for the first seventy-two credit hours earned by 51
80-the qualifying student [during the first forty-eight months that such 52
81-student is enrolled] at a regional community-technical college, provided 53
82-the qualifying student meets and continues to meet the requirements of 54
83-this section. The board shall not use an award to supplant any financial 55
84-aid, including, but not limited to, state or institutional aid, otherwise 56
85-available to a qualifying student. 57
77+Board of Regents for Higher Education shall make awards to 49
78+qualifying students within available appropriations. An award shall be 50
79+available to a qualifying student for the first seventy-two credit hours 51
80+earned by the qualifying student [during the first forty-eight months 52
81+that such student is enrolled] at a regional community-technical 53
82+college, provided the qualifying student meets and continues to meet 54
83+the requirements of this section. The board shall not use an award to 55
84+supplant any financial aid, including, but not limited to, state or 56
85+institutional aid, otherwise available to a qualifying student. 57
8686 [(d) (1) Any qualifying student who takes an administratively 58
8787 approved medical or personal leave of absence from a regional 59
8888 community-technical college may continue to qualify for the debt-free 60
8989 community college program upon resuming his or her enrollment as a 61
9090 student at a regional community-technical college, provided such 62
9191 student (A) continues to meet the requirements of this section upon 63
9292 reenrollment, and (B) the total amount of time of all approved leaves of 64
9393 absence does not exceed six months. 65
9494 (2) Any qualifying student who is a member of the armed forces 66
9595 called to active duty during any semester may continue to qualify for 67
9696 the debt-free community college program upon resuming his or her 68
9797 enrollment as a student at a regional community-technical college, 69
9898 provided such student (A) continues to meet the requirements of this 70
9999 section upon reenrollment, and (B) reenrolls not later than four years 71
100100 after the date on which such student is released from active duty.] 72
101101 [(e)] (d) Not later than March 1, 2021, and October 1, 2021, and each 73
102102 semester thereafter, the Board of Regents for Higher Education shall 74
103103 report, in accordance with the provisions of section 11-4a, to the joint 75
104104 standing committees of the General Assembly having cognizance of 76
105-matters relating to higher education and employment advancement and 77
106-appropriations and the budgets of the state agencies regarding the debt-78
107-free community college program, including, but not limited to, (1) the 79
108-number of qualifying students enrolled at the regional community-80
105+matters relating to higher education and employment advancement 77
106+and appropriations and the budgets of the state agencies regarding the 78
107+debt-free community college program, including, but not limited to, (1) 79
108+the number of qualifying students enrolled at the regional community-80
109109 technical colleges during each semester, (2) the number of qualifying 81 Substitute Bill No. 8
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116116 students receiving minimum awards and the number of qualifying 82
117-students receiving awards for the unpaid portion of eligible institutional 83
118-costs, (3) the average number of credit hours the qualifying students 84
119-enrolled in each semester and the average number of credit hours the 85
120-qualifying students completed each semester, (4) the average amount of 86
121-the award made to qualifying students under this section for the unpaid 87
122-portion of eligible institutional costs, and (5) the completion rates of 88
123-qualifying students receiving awards under this section by degree or 89
124-certificate program. 90
117+students receiving awards for the unpaid portion of eligible 83
118+institutional costs, (3) the average number of credit hours the 84
119+qualifying students enrolled in each semester and the average number 85
120+of credit hours the qualifying students completed each semester, (4) 86
121+the average amount of the award made to qualifying students under 87
122+this section for the unpaid portion of eligible institutional costs, and (5) 88
123+the completion rates of qualifying students receiving awards under 89
124+this section by degree or certificate program. 90
125125 Sec. 2. (Effective July 1, 2023) For the fiscal year ending June 30, 2024, 91
126126 any amount allocated to the regional community-technical college 92
127127 system under the Roberta B. Willis Scholarship program, established 93
128128 pursuant to section 10a-173 of the general statutes, from the federal 94
129129 funds designated for the state pursuant to the provisions of Section 602 95
130130 of Subtitle M of Title IX of the American Rescue Plan Act of 2021, P.L. 96
131131 117-2, as amended from time to time, for the fiscal year ending June 30, 97
132132 2023, shall be reallocated to the Connecticut State University System to 98
133-be expended, in accordance with section 10a-173 of the general statutes, 99
134-as grants under the Roberta B. Willis Scholarship program. 100
133+be expended, in accordance with section 10a-173 of the general 99
134+statutes, as grants under the Roberta B. Willis Scholarship program. 100
135135 Sec. 3. (NEW) (Effective July 1, 2023) (a) The Connecticut Higher 101
136136 Education Supplemental Loan Authority shall establish, subject to 102
137137 available funding pursuant to section 4 of this act, the Student Loan 103
138138 Subsidy Program for the purpose of subsidizing interest rates on 104
139139 authority loans, as defined in subdivision (3) of section 10a-223 of the 105
140140 general statutes, to individuals employed in certain high-demand 106
141141 professions, as specified by the Chief Workforce Officer, and who meet 107
142142 the eligibility criteria established by the authority and the Chief 108
143143 Workforce Officer pursuant to subsection (b) of this section. 109
144144 (b) The authority and the Office of Workforce Strategy shall jointly 110
145145 establish the eligibility criteria and administrative guidelines for the 111
146146 Student Loan Subsidy Program. Such eligibility criteria and guidelines 112
147147 shall include, but need not be limited to, (1) applicant eligibility, (2) 113
148148 interest rate subsidies and principal limits on authority loans subject to 114 Substitute Bill No. 8
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155155 the Student Loan Subsidy Program, (3) the process for verifying the 115
156156 employment of the applicants, and (4) the requirement that an interest 116
157-rate subsidy through the Student Loan Subsidy Program shall terminate 117
158-for any subsidy recipient who ceases to meet the employment 118
159-requirements of said program during the term of such recipient's loan 119
160-from the authority. 120
161-(c) Not later than September 1, 2023, the Chief Workforce Officer shall 121
162-identify, and annually update, professions that are in high demand by 122
163-employers in the state for the purpose of qualifying individuals 123
164-employed in such professions for the Student Loan Subsidy Program. 124
165-Sec. 4. (NEW) (Effective July 1, 2023) The Connecticut Higher 125
166-Education Supplemental Loan Authority shall maintain a separate, 126
167-nonlapsing account to hold funds for the Student Loan Subsidy 127
168-Program established pursuant to section 3 of this act. The account shall 128
169-contain any moneys required by law to be deposited in the account, 129
170-including, but not limited to, state appropriations or proceeds from the 130
171-sale of bonds authorized under section 5 of this act. Moneys in the 131
172-account shall be expended by the authority for the purposes of the 132
173-Student Loan Subsidy Program and for reasonable and necessary 133
174-expenses for the administration of said program. 134
175-Sec. 5. (NEW) (Effective July 1, 2023) (a) For the purposes described in 135
176-subsection (b) of this section and section 3 of this act, the State Bond 136
177-Commission shall have the power from time to time to authorize the 137
178-issuance of bonds of the state in one or more series and in principal 138
179-amounts not exceeding seven million dollars annually. 139
180-(b) The proceeds of the sale of such bonds, to the extent of the amount 140
181-stated in subsection (a) of this section, shall be used by the Connecticut 141
182-Higher Education Supplemental Loan Authority for the purpose of the 142
183-Student Loan Subsidy Program established under section 3 of this act. 143
184-(c) All provisions of section 3-20 of the general statutes, or the exercise 144
185-of any right or power granted thereby, that are not inconsistent with the 145 Substitute Bill No. 8
157+rate subsidy through the Student Loan Subsidy Program shall 117
158+terminate for any subsidy recipient who ceases to meet the 118
159+employment requirements of said program during the term of such 119
160+recipient's loan from the authority. 120
161+(c) Not later than September 1, 2023, the Chief Workforce Officer 121
162+shall identify, and annually update, professions that are in high 122
163+demand by employers in the state for the purpose of qualifying 123
164+individuals employed in such professions for the Student Loan 124
165+Subsidy Program. 125
166+Sec. 4. (NEW) (Effective July 1, 2023) The Connecticut Higher 126
167+Education Supplemental Loan Authority shall maintain a separate, 127
168+nonlapsing account to hold funds for the Student Loan Subsidy 128
169+Program established pursuant to section 3 of this act. The account shall 129
170+contain any moneys required by law to be deposited in the account, 130
171+including, but not limited to, state appropriations or proceeds from the 131
172+sale of bonds authorized under section 5 of this act. Moneys in the 132
173+account shall be expended by the authority for the purposes of the 133
174+Student Loan Subsidy Program and for reasonable and necessary 134
175+expenses for the administration of said program. 135
176+Sec. 5. (NEW) (Effective July 1, 2023) (a) For the purposes described 136
177+in subsection (b) of this section and section 3 of this act, the State Bond 137
178+Commission shall have the power from time to time to authorize the 138
179+issuance of bonds of the state in one or more series and in principal 139
180+amounts not exceeding seven million dollars annually. 140
181+(b) The proceeds of the sale of such bonds, to the extent of the 141
182+amount stated in subsection (a) of this section, shall be used by the 142
183+Connecticut Higher Education Supplemental Loan Authority for the 143
184+purpose of the Student Loan Subsidy Program established under 144
185+section 3 of this act. 145 Substitute Bill No. 8
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192-provisions of this section are hereby adopted and shall apply to all 146
193-bonds authorized by the State Bond Commission pursuant to this 147
194-section. Temporary notes in anticipation of the money to be derived 148
195-from the sale of any such bonds so authorized may be issued in 149
196-accordance with section 3-20 of the general statutes and from time to 150
197-time renewed. Such bonds shall mature at such time or times not 151
198-exceeding twenty years from their respective dates as may be provided 152
199-in or pursuant to the resolution or resolutions of the State Bond 153
200-Commission authorizing such bonds. None of such bonds shall be 154
201-authorized except upon a finding by the State Bond Commission that 155
202-there has been filed with it a request for such authorization that is signed 156
203-by or on behalf of the Secretary of the Office of Policy and Management 157
204-and states such terms and conditions as said commission, in its 158
205-discretion, may require. Such bonds issued pursuant to this section shall 159
206-be general obligations of the state and the full faith and credit of the state 160
207-of Connecticut are pledged for the payment of the principal of and 161
208-interest on such bonds as the same become due, and accordingly and as 162
209-part of the contract of the state with the holders of such bonds, 163
210-appropriation of all amounts necessary for punctual payment of such 164
211-principal and interest is hereby made, and the State Treasurer shall pay 165
212-such principal and interest as the same become due. 166
213-Sec. 6. Subparagraph (B) of subdivision (20) of subsection (a) of 167
214-section 12-701 of the general statutes is repealed and the following is 168
215-substituted in lieu thereof (Effective January 1, 2024): 169
216-(B) There shall be subtracted therefrom: 170
217-(i) To the extent properly includable in gross income for federal 171
218-income tax purposes, any income with respect to which taxation by any 172
219-state is prohibited by federal law; 173
220-(ii) To the extent allowable under section 12-718, exempt dividends 174
221-paid by a regulated investment company; 175
222-(iii) To the extent properly includable in gross income for federal 176 Substitute Bill No. 8
192+(c) All provisions of section 3-20 of the general statutes, or the 146
193+exercise of any right or power granted thereby, that are not 147
194+inconsistent with the provisions of this section are hereby adopted and 148
195+shall apply to all bonds authorized by the State Bond Commission 149
196+pursuant to this section. Temporary notes in anticipation of the money 150
197+to be derived from the sale of any such bonds so authorized may be 151
198+issued in accordance with section 3-20 of the general statutes and from 152
199+time to time renewed. Such bonds shall mature at such time or times 153
200+not exceeding twenty years from their respective dates as may be 154
201+provided in or pursuant to the resolution or resolutions of the State 155
202+Bond Commission authorizing such bonds. None of such bonds shall 156
203+be authorized except upon a finding by the State Bond Commission 157
204+that there has been filed with it a request for such authorization that is 158
205+signed by or on behalf of the Secretary of the Office of Policy and 159
206+Management and states such terms and conditions as said commission, 160
207+in its discretion, may require. Such bonds issued pursuant to this 161
208+section shall be general obligations of the state and the full faith and 162
209+credit of the state of Connecticut are pledged for the payment of the 163
210+principal of and interest on such bonds as the same become due, and 164
211+accordingly and as part of the contract of the state with the holders of 165
212+such bonds, appropriation of all amounts necessary for punctual 166
213+payment of such principal and interest is hereby made, and the State 167
214+Treasurer shall pay such principal and interest as the same become 168
215+due. 169
216+Sec. 6. Subparagraph (B) of subdivision (20) of subsection (a) of 170
217+section 12-701 of the general statutes is repealed and the following is 171
218+substituted in lieu thereof (Effective January 1, 2024): 172
219+(B) There shall be subtracted therefrom: 173
220+(i) To the extent properly includable in gross income for federal 174
221+income tax purposes, any income with respect to which taxation by 175
222+any state is prohibited by federal law; 176
223+(ii) To the extent allowable under section 12-718, exempt dividends 177 Substitute Bill No. 8
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229-income tax purposes, the amount of any refund or credit for 177
230-overpayment of income taxes imposed by this state, or any other state 178
231-of the United States or a political subdivision thereof, or the District of 179
232-Columbia; 180
233-(iv) To the extent properly includable in gross income for federal 181
234-income tax purposes and not otherwise subtracted from federal 182
235-adjusted gross income pursuant to clause (x) of this subparagraph in 183
236-computing Connecticut adjusted gross income, any tier 1 railroad 184
237-retirement benefits; 185
238-(v) To the extent any additional allowance for depreciation under 186
239-Section 168(k) of the Internal Revenue Code for property placed in 187
240-service after September 27, 2017, was added to federal adjusted gross 188
241-income pursuant to subparagraph (A)(ix) of this subdivision in 189
242-computing Connecticut adjusted gross income, twenty-five per cent of 190
243-such additional allowance for depreciation in each of the four 191
244-succeeding taxable years; 192
245-(vi) To the extent properly includable in gross income for federal 193
246-income tax purposes, any interest income from obligations issued by or 194
247-on behalf of the state of Connecticut, any political subdivision thereof, 195
248-or public instrumentality, state or local authority, district or similar 196
249-public entity created under the laws of the state of Connecticut; 197
250-(vii) To the extent properly includable in determining the net gain or 198
251-loss from the sale or other disposition of capital assets for federal income 199
252-tax purposes, any gain from the sale or exchange of obligations issued 200
253-by or on behalf of the state of Connecticut, any political subdivision 201
254-thereof, or public instrumentality, state or local authority, district or 202
255-similar public entity created under the laws of the state of Connecticut, 203
256-in the income year such gain was recognized; 204
257-(viii) Any interest on indebtedness incurred or continued to purchase 205
258-or carry obligations or securities the interest on which is subject to tax 206
259-under this chapter but exempt from federal income tax, to the extent that 207 Substitute Bill No. 8
230+paid by a regulated investment company; 178
231+(iii) To the extent properly includable in gross income for federal 179
232+income tax purposes, the amount of any refund or credit for 180
233+overpayment of income taxes imposed by this state, or any other state 181
234+of the United States or a political subdivision thereof, or the District of 182
235+Columbia; 183
236+(iv) To the extent properly includable in gross income for federal 184
237+income tax purposes and not otherwise subtracted from federal 185
238+adjusted gross income pursuant to clause (x) of this subparagraph in 186
239+computing Connecticut adjusted gross income, any tier 1 railroad 187
240+retirement benefits; 188
241+(v) To the extent any additional allowance for depreciation under 189
242+Section 168(k) of the Internal Revenue Code for property placed in 190
243+service after September 27, 2017, was added to federal adjusted gross 191
244+income pursuant to subparagraph (A)(ix) of this subdivision in 192
245+computing Connecticut adjusted gross income, twenty-five per cent of 193
246+such additional allowance for depreciation in each of the four 194
247+succeeding taxable years; 195
248+(vi) To the extent properly includable in gross income for federal 196
249+income tax purposes, any interest income from obligations issued by or 197
250+on behalf of the state of Connecticut, any political subdivision thereof, 198
251+or public instrumentality, state or local authority, district or similar 199
252+public entity created under the laws of the state of Connecticut; 200
253+(vii) To the extent properly includable in determining the net gain 201
254+or loss from the sale or other disposition of capital assets for federal 202
255+income tax purposes, any gain from the sale or exchange of obligations 203
256+issued by or on behalf of the state of Connecticut, any political 204
257+subdivision thereof, or public instrumentality, state or local authority, 205
258+district or similar public entity created under the laws of the state of 206
259+Connecticut, in the income year such gain was recognized; 207
260+(viii) Any interest on indebtedness incurred or continued to 208 Substitute Bill No. 8
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266-such interest on indebtedness is not deductible in determining federal 208
267-adjusted gross income and is attributable to a trade or business carried 209
268-on by such individual; 210
269-(ix) Ordinary and necessary expenses paid or incurred during the 211
270-taxable year for the production or collection of income which is subject 212
271-to taxation under this chapter but exempt from federal income tax, or 213
272-the management, conservation or maintenance of property held for the 214
273-production of such income, and the amortizable bond premium for the 215
274-taxable year on any bond the interest on which is subject to tax under 216
275-this chapter but exempt from federal income tax, to the extent that such 217
276-expenses and premiums are not deductible in determining federal 218
277-adjusted gross income and are attributable to a trade or business carried 219
278-on by such individual; 220
279-(x) (I) For taxable years commencing prior to January 1, 2019, for a 221
280-person who files a return under the federal income tax as an unmarried 222
281-individual whose federal adjusted gross income for such taxable year is 223
282-less than fifty thousand dollars, or as a married individual filing 224
283-separately whose federal adjusted gross income for such taxable year is 225
284-less than fifty thousand dollars, or for a husband and wife who file a 226
285-return under the federal income tax as married individuals filing jointly 227
286-whose federal adjusted gross income for such taxable year is less than 228
287-sixty thousand dollars or a person who files a return under the federal 229
288-income tax as a head of household whose federal adjusted gross income 230
289-for such taxable year is less than sixty thousand dollars, an amount 231
290-equal to the Social Security benefits includable for federal income tax 232
291-purposes; 233
292-(II) For taxable years commencing prior to January 1, 2019, for a 234
293-person who files a return under the federal income tax as an unmarried 235
294-individual whose federal adjusted gross income for such taxable year is 236
295-fifty thousand dollars or more, or as a married individual filing 237
296-separately whose federal adjusted gross income for such taxable year is 238
297-fifty thousand dollars or more, or for a husband and wife who file a 239
298-return under the federal income tax as married individuals filing jointly 240 Substitute Bill No. 8
267+purchase or carry obligations or securities the interest on which is 209
268+subject to tax under this chapter but exempt from federal income tax, 210
269+to the extent that such interest on indebtedness is not deductible in 211
270+determining federal adjusted gross income and is attributable to a 212
271+trade or business carried on by such individual; 213
272+(ix) Ordinary and necessary expenses paid or incurred during the 214
273+taxable year for the production or collection of income which is subject 215
274+to taxation under this chapter but exempt from federal income tax, or 216
275+the management, conservation or maintenance of property held for the 217
276+production of such income, and the amortizable bond premium for the 218
277+taxable year on any bond the interest on which is subject to tax under 219
278+this chapter but exempt from federal income tax, to the extent that 220
279+such expenses and premiums are not deductible in determining federal 221
280+adjusted gross income and are attributable to a trade or business 222
281+carried on by such individual; 223
282+(x) (I) For taxable years commencing prior to January 1, 2019, for a 224
283+person who files a return under the federal income tax as an 225
284+unmarried individual whose federal adjusted gross income for such 226
285+taxable year is less than fifty thousand dollars, or as a married 227
286+individual filing separately whose federal adjusted gross income for 228
287+such taxable year is less than fifty thousand dollars, or for a husband 229
288+and wife who file a return under the federal income tax as married 230
289+individuals filing jointly whose federal adjusted gross income for such 231
290+taxable year is less than sixty thousand dollars or a person who files a 232
291+return under the federal income tax as a head of household whose 233
292+federal adjusted gross income for such taxable year is less than sixty 234
293+thousand dollars, an amount equal to the Social Security benefits 235
294+includable for federal income tax purposes; 236
295+(II) For taxable years commencing prior to January 1, 2019, for a 237
296+person who files a return under the federal income tax as an 238
297+unmarried individual whose federal adjusted gross income for such 239
298+taxable year is fifty thousand dollars or more, or as a married 240
299+individual filing separately whose federal adjusted gross income for 241 Substitute Bill No. 8
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305-whose federal adjusted gross income from such taxable year is sixty 241
306-thousand dollars or more or for a person who files a return under the 242
307-federal income tax as a head of household whose federal adjusted gross 243
308-income for such taxable year is sixty thousand dollars or more, an 244
309-amount equal to the difference between the amount of Social Security 245
310-benefits includable for federal income tax purposes and the lesser of 246
311-twenty-five per cent of the Social Security benefits received during the 247
312-taxable year, or twenty-five per cent of the excess described in Section 248
313-86(b)(1) of the Internal Revenue Code; 249
314-(III) For the taxable year commencing January 1, 2019, and each 250
315-taxable year thereafter, for a person who files a return under the federal 251
316-income tax as an unmarried individual whose federal adjusted gross 252
317-income for such taxable year is less than seventy-five thousand dollars, 253
318-or as a married individual filing separately whose federal adjusted gross 254
319-income for such taxable year is less than seventy-five thousand dollars, 255
320-or for a husband and wife who file a return under the federal income tax 256
321-as married individuals filing jointly whose federal adjusted gross 257
322-income for such taxable year is less than one hundred thousand dollars 258
323-or a person who files a return under the federal income tax as a head of 259
324-household whose federal adjusted gross income for such taxable year is 260
325-less than one hundred thousand dollars, an amount equal to the Social 261
326-Security benefits includable for federal income tax purposes; and 262
327-(IV) For the taxable year commencing January 1, 2019, and each 263
328-taxable year thereafter, for a person who files a return under the federal 264
329-income tax as an unmarried individual whose federal adjusted gross 265
330-income for such taxable year is seventy-five thousand dollars or more, 266
331-or as a married individual filing separately whose federal adjusted gross 267
332-income for such taxable year is seventy-five thousand dollars or more, 268
333-or for a husband and wife who file a return under the federal income tax 269
334-as married individuals filing jointly whose federal adjusted gross 270
335-income from such taxable year is one hundred thousand dollars or more 271
336-or for a person who files a return under the federal income tax as a head 272
337-of household whose federal adjusted gross income for such taxable year 273 Substitute Bill No. 8
306+such taxable year is fifty thousand dollars or more, or for a husband 242
307+and wife who file a return under the federal income tax as married 243
308+individuals filing jointly whose federal adjusted gross income from 244
309+such taxable year is sixty thousand dollars or more or for a person who 245
310+files a return under the federal income tax as a head of household 246
311+whose federal adjusted gross income for such taxable year is sixty 247
312+thousand dollars or more, an amount equal to the difference between 248
313+the amount of Social Security benefits includable for federal income tax 249
314+purposes and the lesser of twenty-five per cent of the Social Security 250
315+benefits received during the taxable year, or twenty-five per cent of the 251
316+excess described in Section 86(b)(1) of the Internal Revenue Code; 252
317+(III) For the taxable year commencing January 1, 2019, and each 253
318+taxable year thereafter, for a person who files a return under the 254
319+federal income tax as an unmarried individual whose federal adjusted 255
320+gross income for such taxable year is less than seventy-five thousand 256
321+dollars, or as a married individual filing separately whose federal 257
322+adjusted gross income for such taxable year is less than seventy-five 258
323+thousand dollars, or for a husband and wife who file a return under 259
324+the federal income tax as married individuals filing jointly whose 260
325+federal adjusted gross income for such taxable year is less than one 261
326+hundred thousand dollars or a person who files a return under the 262
327+federal income tax as a head of household whose federal adjusted 263
328+gross income for such taxable year is less than one hundred thousand 264
329+dollars, an amount equal to the Social Security benefits includable for 265
330+federal income tax purposes; and 266
331+(IV) For the taxable year commencing January 1, 2019, and each 267
332+taxable year thereafter, for a person who files a return under the 268
333+federal income tax as an unmarried individual whose federal adjusted 269
334+gross income for such taxable year is seventy-five thousand dollars or 270
335+more, or as a married individual filing separately whose federal 271
336+adjusted gross income for such taxable year is seventy-five thousand 272
337+dollars or more, or for a husband and wife who file a return under the 273
338+federal income tax as married individuals filing jointly whose federal 274 Substitute Bill No. 8
338339
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344-is one hundred thousand dollars or more, an amount equal to the 274
345-difference between the amount of Social Security benefits includable for 275
346-federal income tax purposes and the lesser of twenty-five per cent of the 276
347-Social Security benefits received during the taxable year, or twenty-five 277
348-per cent of the excess described in Section 86(b)(1) of the Internal 278
349-Revenue Code; 279
350-(xi) To the extent properly includable in gross income for federal 280
351-income tax purposes, any amount rebated to a taxpayer pursuant to 281
352-section 12-746; 282
353-(xii) To the extent properly includable in the gross income for federal 283
354-income tax purposes of a designated beneficiary, any distribution to 284
355-such beneficiary from any qualified state tuition program, as defined in 285
356-Section 529(b) of the Internal Revenue Code, established and 286
357-maintained by this state or any official, agency or instrumentality of the 287
358-state; 288
359-(xiii) To the extent allowable under section 12-701a, contributions to 289
360-accounts established pursuant to any qualified state tuition program, as 290
361-defined in Section 529(b) of the Internal Revenue Code, established and 291
362-maintained by this state or any official, agency or instrumentality of the 292
363-state; 293
364-(xiv) To the extent properly includable in gross income for federal 294
365-income tax purposes, the amount of any Holocaust victims' settlement 295
366-payment received in the taxable year by a Holocaust victim; 296
367-(xv) To the extent properly includable in gross income for federal 297
368-income tax purposes of an account holder, as defined in section 31-298
369-51ww, interest earned on funds deposited in the individual 299
370-development account, as defined in section 31-51ww, of such account 300
371-holder; 301
372-(xvi) To the extent properly includable in the gross income for federal 302
373-income tax purposes of a designated beneficiary, as defined in section 303
374-3-123aa, interest, dividends or capital gains earned on contributions to 304 Substitute Bill No. 8
345+adjusted gross income from such taxable year is one hundred 275
346+thousand dollars or more or for a person who files a return under the 276
347+federal income tax as a head of household whose federal adjusted 277
348+gross income for such taxable year is one hundred thousand dollars or 278
349+more, an amount equal to the difference between the amount of Social 279
350+Security benefits includable for federal income tax purposes and the 280
351+lesser of twenty-five per cent of the Social Security benefits received 281
352+during the taxable year, or twenty-five per cent of the excess described 282
353+in Section 86(b)(1) of the Internal Revenue Code; 283
354+(xi) To the extent properly includable in gross income for federal 284
355+income tax purposes, any amount rebated to a taxpayer pursuant to 285
356+section 12-746; 286
357+(xii) To the extent properly includable in the gross income for 287
358+federal income tax purposes of a designated beneficiary, any 288
359+distribution to such beneficiary from any qualified state tuition 289
360+program, as defined in Section 529(b) of the Internal Revenue Code, 290
361+established and maintained by this state or any official, agency or 291
362+instrumentality of the state; 292
363+(xiii) To the extent allowable under section 12-701a, contributions to 293
364+accounts established pursuant to any qualified state tuition program, 294
365+as defined in Section 529(b) of the Internal Revenue Code, established 295
366+and maintained by this state or any official, agency or instrumentality 296
367+of the state; 297
368+(xiv) To the extent properly includable in gross income for federal 298
369+income tax purposes, the amount of any Holocaust victims' settlement 299
370+payment received in the taxable year by a Holocaust victim; 300
371+(xv) To the extent properly includable in gross income for federal 301
372+income tax purposes of an account holder, as defined in section 31-302
373+51ww, interest earned on funds deposited in the individual 303
374+development account, as defined in section 31-51ww, of such account 304
375+holder; 305 Substitute Bill No. 8
375376
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381-accounts established for the designated beneficiary pursuant to the 305
382-Connecticut Homecare Option Program for the Elderly established by 306
383-sections 3-123aa to 3-123ff, inclusive; 307
384-(xvii) To the extent properly includable in gross income for federal 308
385-income tax purposes, any income received from the United States 309
386-government as retirement pay for a retired member of (I) the Armed 310
387-Forces of the United States, as defined in Section 101 of Title 10 of the 311
388-United States Code, or (II) the National Guard, as defined in Section 101 312
389-of Title 10 of the United States Code; 313
390-(xviii) To the extent properly includable in gross income for federal 314
391-income tax purposes for the taxable year, any income from the discharge 315
392-of indebtedness in connection with any reacquisition, after December 316
393-31, 2008, and before January 1, 2011, of an applicable debt instrument or 317
394-instruments, as those terms are defined in Section 108 of the Internal 318
395-Revenue Code, as amended by Section 1231 of the American Recovery 319
396-and Reinvestment Act of 2009, to the extent any such income was added 320
397-to federal adjusted gross income pursuant to subparagraph (A)(xi) of 321
398-this subdivision in computing Connecticut adjusted gross income for a 322
399-preceding taxable year; 323
400-(xix) To the extent not deductible in determining federal adjusted 324
401-gross income, the amount of any contribution to a manufacturing 325
402-reinvestment account established pursuant to section 32-9zz in the 326
403-taxable year that such contribution is made; 327
404-(xx) To the extent properly includable in gross income for federal 328
405-income tax purposes, (I) for the taxable year commencing January 1, 329
406-2015, ten per cent of the income received from the state teachers' 330
407-retirement system, (II) for the taxable years commencing January 1, 331
408-2016, to January 1, 2020, inclusive, twenty-five per cent of the income 332
409-received from the state teachers' retirement system, and (III) for the 333
410-taxable year commencing January 1, 2021, and each taxable year 334
411-thereafter, fifty per cent of the income received from the state teachers' 335
412-retirement system or, for a taxpayer whose federal adjusted gross 336 Substitute Bill No. 8
382+(xvi) To the extent properly includable in the gross income for 306
383+federal income tax purposes of a designated beneficiary, as defined in 307
384+section 3-123aa, interest, dividends or capital gains earned on 308
385+contributions to accounts established for the designated beneficiary 309
386+pursuant to the Connecticut Homecare Option Program for the Elderly 310
387+established by sections 3-123aa to 3-123ff, inclusive; 311
388+(xvii) To the extent properly includable in gross income for federal 312
389+income tax purposes, any income received from the United States 313
390+government as retirement pay for a retired member of (I) the Armed 314
391+Forces of the United States, as defined in Section 101 of Title 10 of the 315
392+United States Code, or (II) the National Guard, as defined in Section 316
393+101 of Title 10 of the United States Code; 317
394+(xviii) To the extent properly includable in gross income for federal 318
395+income tax purposes for the taxable year, any income from the 319
396+discharge of indebtedness in connection with any reacquisition, after 320
397+December 31, 2008, and before January 1, 2011, of an applicable debt 321
398+instrument or instruments, as those terms are defined in Section 108 of 322
399+the Internal Revenue Code, as amended by Section 1231 of the 323
400+American Recovery and Reinvestment Act of 2009, to the extent any 324
401+such income was added to federal adjusted gross income pursuant to 325
402+subparagraph (A)(xi) of this subdivision in computing Connecticut 326
403+adjusted gross income for a preceding taxable year; 327
404+(xix) To the extent not deductible in determining federal adjusted 328
405+gross income, the amount of any contribution to a manufacturing 329
406+reinvestment account established pursuant to section 32-9zz in the 330
407+taxable year that such contribution is made; 331
408+(xx) To the extent properly includable in gross income for federal 332
409+income tax purposes, (I) for the taxable year commencing January 1, 333
410+2015, ten per cent of the income received from the state teachers' 334
411+retirement system, (II) for the taxable years commencing January 1, 335
412+2016, to January 1, 2020, inclusive, twenty-five per cent of the income 336
413+received from the state teachers' retirement system, and (III) for the 337 Substitute Bill No. 8
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419-income does not exceed the applicable threshold under clause (xxi) of 337
420-this subparagraph, the percentage pursuant to said clause of the income 338
421-received from the state teachers' retirement system, whichever 339
422-deduction is greater; 340
423-(xxi) To the extent properly includable in gross income for federal 341
424-income tax purposes, except for retirement benefits under clause (iv) of 342
425-this subparagraph and retirement pay under clause (xvii) of this 343
426-subparagraph, for a person who files a return under the federal income 344
427-tax as an unmarried individual whose federal adjusted gross income for 345
428-such taxable year is less than seventy-five thousand dollars, or as a 346
429-married individual filing separately whose federal adjusted gross 347
430-income for such taxable year is less than seventy-five thousand dollars, 348
431-or as a head of household whose federal adjusted gross income for such 349
432-taxable year is less than seventy-five thousand dollars, or for a husband 350
433-and wife who file a return under the federal income tax as married 351
434-individuals filing jointly whose federal adjusted gross income for such 352
435-taxable year is less than one hundred thousand dollars, (I) for the taxable 353
436-year commencing January 1, 2019, fourteen per cent of any pension or 354
437-annuity income, (II) for the taxable year commencing January 1, 2020, 355
438-twenty-eight per cent of any pension or annuity income, (III) for the 356
439-taxable year commencing January 1, 2021, forty-two per cent of any 357
440-pension or annuity income, and (IV) for the taxable year commencing 358
441-January 1, 2022, and each taxable year thereafter, one hundred per cent 359
442-of any pension or annuity income; 360
443-(xxii) The amount of lost wages and medical, travel and housing 361
444-expenses, not to exceed ten thousand dollars in the aggregate, incurred 362
445-by a taxpayer during the taxable year in connection with the donation 363
446-to another person of an organ for organ transplantation occurring on or 364
447-after January 1, 2017; 365
448-(xxiii) To the extent properly includable in gross income for federal 366
449-income tax purposes, the amount of any financial assistance received 367
450-from the Crumbling Foundations Assistance Fund or paid to or on 368
451-behalf of the owner of a residential building pursuant to sections 8-442 369 Substitute Bill No. 8
420+taxable year commencing January 1, 2021, and each taxable year 338
421+thereafter, fifty per cent of the income received from the state teachers' 339
422+retirement system or, for a taxpayer whose federal adjusted gross 340
423+income does not exceed the applicable threshold under clause (xxi) of 341
424+this subparagraph, the percentage pursuant to said clause of the 342
425+income received from the state teachers' retirement system, whichever 343
426+deduction is greater; 344
427+(xxi) To the extent properly includable in gross income for federal 345
428+income tax purposes, except for retirement benefits under clause (iv) of 346
429+this subparagraph and retirement pay under clause (xvii) of this 347
430+subparagraph, for a person who files a return under the federal income 348
431+tax as an unmarried individual whose federal adjusted gross income 349
432+for such taxable year is less than seventy-five thousand dollars, or as a 350
433+married individual filing separately whose federal adjusted gross 351
434+income for such taxable year is less than seventy-five thousand dollars, 352
435+or as a head of household whose federal adjusted gross income for 353
436+such taxable year is less than seventy-five thousand dollars, or for a 354
437+husband and wife who file a return under the federal income tax as 355
438+married individuals filing jointly whose federal adjusted gross income 356
439+for such taxable year is less than one hundred thousand dollars, (I) for 357
440+the taxable year commencing January 1, 2019, fourteen per cent of any 358
441+pension or annuity income, (II) for the taxable year commencing 359
442+January 1, 2020, twenty-eight per cent of any pension or annuity 360
443+income, (III) for the taxable year commencing January 1, 2021, forty-361
444+two per cent of any pension or annuity income, and (IV) for the taxable 362
445+year commencing January 1, 2022, and each taxable year thereafter, 363
446+one hundred per cent of any pension or annuity income; 364
447+(xxii) The amount of lost wages and medical, travel and housing 365
448+expenses, not to exceed ten thousand dollars in the aggregate, incurred 366
449+by a taxpayer during the taxable year in connection with the donation 367
450+to another person of an organ for organ transplantation occurring on 368
451+or after January 1, 2017; 369
452+(xxiii) To the extent properly includable in gross income for federal 370 Substitute Bill No. 8
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458-and 8-443; 370
459-(xxiv) To the extent properly includable in gross income for federal 371
460-income tax purposes, the amount calculated pursuant to subsection (b) 372
461-of section 12-704g for income received by a general partner of a venture 373
462-capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 374
463-time; 375
464-(xxv) To the extent any portion of a deduction under Section 179 of 376
465-the Internal Revenue Code was added to federal adjusted gross income 377
466-pursuant to subparagraph (A)(xiv) of this subdivision in computing 378
467-Connecticut adjusted gross income, twenty-five per cent of such 379
468-disallowed portion of the deduction in each of the four succeeding 380
469-taxable years; 381
470-(xxvi) To the extent properly includable in gross income for federal 382
471-income tax purposes, for a person who files a return under the federal 383
472-income tax as an unmarried individual whose federal adjusted gross 384
473-income for such taxable year is less than seventy-five thousand dollars, 385
474-or as a married individual filing separately whose federal adjusted gross 386
475-income for such taxable year is less than seventy-five thousand dollars, 387
476-or as a head of household whose federal adjusted gross income for such 388
477-taxable year is less than seventy-five thousand dollars, or for a husband 389
478-and wife who file a return under the federal income tax as married 390
479-individuals filing jointly whose federal adjusted gross income for such 391
480-taxable year is less than one hundred thousand dollars, (I) for the taxable 392
481-year commencing January 1, 2023, twenty-five per cent of any 393
482-distribution from an individual retirement account other than a Roth 394
483-individual retirement account, (II) for the taxable year commencing 395
484-January 1, 2024, fifty per cent of any distribution from an individual 396
485-retirement account other than a Roth individual retirement account, (III) 397
486-for the taxable year commencing January 1, 2025, seventy-five per cent 398
487-of any distribution from an individual retirement account other than a 399
488-Roth individual retirement account, and (IV) for the taxable year 400
489-commencing January 1, 2026, and each taxable year thereafter, any 401
490-distribution from an individual retirement account other than a Roth 402 Substitute Bill No. 8
459+income tax purposes, the amount of any financial assistance received 371
460+from the Crumbling Foundations Assistance Fund or paid to or on 372
461+behalf of the owner of a residential building pursuant to sections 8-442 373
462+and 8-443; 374
463+(xxiv) To the extent properly includable in gross income for federal 375
464+income tax purposes, the amount calculated pursuant to subsection (b) 376
465+of section 12-704g for income received by a general partner of a 377
466+venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 378
467+from time to time; 379
468+(xxv) To the extent any portion of a deduction under Section 179 of 380
469+the Internal Revenue Code was added to federal adjusted gross income 381
470+pursuant to subparagraph (A)(xiv) of this subdivision in computing 382
471+Connecticut adjusted gross income, twenty-five per cent of such 383
472+disallowed portion of the deduction in each of the four succeeding 384
473+taxable years; 385
474+(xxvi) To the extent properly includable in gross income for federal 386
475+income tax purposes, for a person who files a return under the federal 387
476+income tax as an unmarried individual whose federal adjusted gross 388
477+income for such taxable year is less than seventy-five thousand dollars, 389
478+or as a married individual filing separately whose federal adjusted 390
479+gross income for such taxable year is less than seventy-five thousand 391
480+dollars, or as a head of household whose federal adjusted gross income 392
481+for such taxable year is less than seventy-five thousand dollars, or for a 393
482+husband and wife who file a return under the federal income tax as 394
483+married individuals filing jointly whose federal adjusted gross income 395
484+for such taxable year is less than one hundred thousand dollars, (I) for 396
485+the taxable year commencing January 1, 2023, twenty-five per cent of 397
486+any distribution from an individual retirement account other than a 398
487+Roth individual retirement account, (II) for the taxable year 399
488+commencing January 1, 2024, fifty per cent of any distribution from an 400
489+individual retirement account other than a Roth individual retirement 401
490+account, (III) for the taxable year commencing January 1, 2025, 402
491+seventy-five per cent of any distribution from an individual retirement 403 Substitute Bill No. 8
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497-individual retirement account; [and] 403
498-(xxvii) To the extent properly includable in gross income for federal 404
499-income tax purposes, for the taxable year commencing January 1, 2022, 405
500-the amount or amounts paid or otherwise credited to any eligible 406
501-resident of this state under (I) the 2020 Earned Income Tax Credit 407
502-enhancement program from funding allocated to the state through the 408
503-Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 409
504-and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 410
505-Income Tax Credit enhancement program from funding allocated to the 411
506-state pursuant to Section 9901 of Subtitle M of Title IX of the American 412
507-Rescue Plan Act of 2021, P.L. 117-2; and 413
508-(xxviii) To the extent not deductible in determining federal adjusted 414
509-gross income, and to the extent allowable under section 7 of this act, the 415
510-amount of interest paid during the taxable year on a student loan. 416
511-Sec. 7. (NEW) (Effective January 1, 2024, and applicable to taxable years 417
512-commencing on or after January 1, 2024) (a) For the purposes of this section: 418
513-(1) "Qualified student loan" means a loan taken out solely to pay 419
514-qualified education expenses (A) for the taxpayer, the taxpayer's spouse 420
515-or a person who was a dependent of the taxpayer at the time when the 421
516-taxpayer took out the loan, (B) paid or incurred within a reasonable 422
517-period of time before or after the taxpayer took out the loan, (C) from a 423
518-private or governmental lender, and (D) for education provided during 424
519-an academic period for an eligible student; 425
520-(2) "Qualified education expenses" means the total costs of attending 426
521-an eligible institution of higher education, including graduate school, 427
522-and includes amounts paid for the following items: (A) Tuition and fees; 428
523-(B) room and board, provided the cost of room and board qualifies only 429
524-to the extent that it is not more than the greater of (i) the allowance for 430
525-room and board, as determined by the eligible institution of higher 431
526-education, that was included in the cost of attendance for a particular 432
527-academic period and living arrangement of the student, or (ii) the actual 433 Substitute Bill No. 8
498+account other than a Roth individual retirement account, and (IV) for 404
499+the taxable year commencing January 1, 2026, and each taxable year 405
500+thereafter, any distribution from an individual retirement account 406
501+other than a Roth individual retirement account; [and] 407
502+(xxvii) To the extent properly includable in gross income for federal 408
503+income tax purposes, for the taxable year commencing January 1, 2022, 409
504+the amount or amounts paid or otherwise credited to any eligible 410
505+resident of this state under (I) the 2020 Earned Income Tax Credit 411
506+enhancement program from funding allocated to the state through the 412
507+Coronavirus Relief Fund established under the Coronavirus Aid, 413
508+Relief, and Economic Security Act, P.L. 116-136, and (II) the 2021 414
509+Earned Income Tax Credit enhancement program from funding 415
510+allocated to the state pursuant to Section 9901 of Subtitle M of Title IX 416
511+of the American Rescue Plan Act of 2021, P.L. 117-2; and 417
512+(xxviii) To the extent not deductible in determining federal adjusted 418
513+gross income, and to the extent allowable under section 7 of this act, 419
514+the amount of interest paid during the taxable year on a student loan. 420
515+Sec. 7. (NEW) (Effective January 1, 2024, and applicable to taxable years 421
516+commencing on or after January 1, 2024) (a) For the purposes of this 422
517+section: 423
518+(1) "Qualified student loan" means a loan taken out solely to pay 424
519+qualified education expenses (A) for the taxpayer, the taxpayer's 425
520+spouse or a person who was a dependent of the taxpayer at the time 426
521+when the taxpayer took out the loan, (B) paid or incurred within a 427
522+reasonable period of time before or after the taxpayer took out the 428
523+loan, (C) from a private or governmental lender, and (D) for education 429
524+provided during an academic period for an eligible student; 430
525+(2) "Qualified education expenses" means the total costs of attending 431
526+an eligible institution of higher education, including graduate school, 432
527+and includes amounts paid for the following items: (A) Tuition and 433
528+fees; (B) room and board, provided the cost of room and board 434 Substitute Bill No. 8
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534-amount charged if the student is residing in housing owned or operated 434
535-by the eligible institution of higher education; (C) books, supplies and 435
536-equipment; and (D) other necessary expenses, including, but not limited 436
537-to, transportation; 437
538-(3) "Eligible institution of higher education" means any institution of 438
539-higher education that is eligible to participate in a student aid program 439
540-administered by the United States Department of Education; and 440
541-(4) "Eligible student" means a student who is or was enrolled at least 441
542-part time in a certificate or degree program at an eligible institution of 442
543-higher education. 443
544-(b) The maximum annual modificat ion under subparagraph 444
545-(B)(xxviii) of subdivision (20) of subsection (a) of section 12-701 of the 445
546-general statutes, as amended by this act, shall be equal to the amount of 446
547-interest paid on a qualified student loan, but shall not exceed two 447
548-thousand five hundred dollars for each taxpayer, provided (1) the 448
549-taxpayer's filing status is any filing status except married filing 449
550-separately, (2) the taxpayer's modified adjusted gross income is not 450
551-more than seventy-five thousand dollars for taxpayers whose filing 451
552-status is single, head of household or qualifying widow or widower or 452
553-not more than one hundred fifty thousand dollars for taxpayers whose 453
554-filing status is married filing jointly, (3) no other person is claiming an 454
555-exemption for the taxpayer on such other person's return, (4) the 455
556-taxpayer is legally obligated to pay interest on a qualified student loan, 456
557-and (5) the taxpayer paid interest on a qualified student loan. 457
535+qualifies only to the extent that it is not more than the greater of (i) the 435
536+allowance for room and board, as determined by the eligible 436
537+institution of higher education, that was included in the cost of 437
538+attendance for a particular academic period and living arrangement of 438
539+the student, or (ii) the actual amount charged if the student is residing 439
540+in housing owned or operated by the eligible institution of higher 440
541+education; (C) books, supplies and equipment; and (D) other necessary 441
542+expenses, including, but not limited to, transportation; 442
543+(3) "Eligible institution of higher education" means any institution of 443
544+higher education that is eligible to participate in a student aid program 444
545+administered by the United States Department of Education; and 445
546+(4) "Eligible student" means a student who is or was enrolled at least 446
547+part time in a certificate or degree program at an eligible institution of 447
548+higher education. 448
549+(b) The maximum annual modificat ion under subparagraph 449
550+(B)(xxviii) of subdivision (20) of subsection (a) of section 12-701 of the 450
551+general statutes, as amended by this act, shall be equal to the amount 451
552+of interest paid on a qualified student loan, but shall not exceed two 452
553+thousand five hundred dollars for each taxpayer, provided (1) the 453
554+taxpayer's filing status is any filing status except married filing 454
555+separately, (2) the taxpayer's modified adjusted gross income is not 455
556+more than seventy-five thousand dollars for taxpayers whose filing 456
557+status is single, head of household or qualifying widow or widower or 457
558+not more than one hundred fifty thousand dollars for taxpayers whose 458
559+filing status is married filing jointly, (3) no other person is claiming an 459
560+exemption for the taxpayer on such other person's return, (4) the 460
561+taxpayer is legally obligated to pay interest on a qualified student loan, 461
562+and (5) the taxpayer paid interest on a qualified student loan. 462
558563 This act shall take effect as follows and shall amend the following
559564 sections:
560565
561-Section 1 July 1, 2023 10a-174
566+Section 1 July 1, 2023 10a-174 Substitute Bill No. 8
567+
568+
569+LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00008-
570+R02-SB.docx }
571+16 of 16
572+
562573 Sec. 2 July 1, 2023 New section
563574 Sec. 3 July 1, 2023 New section
564575 Sec. 4 July 1, 2023 New section
565576 Sec. 5 July 1, 2023 New section
566-Sec. 6 January 1, 2024 12-701(a)(20)(B) Substitute Bill No. 8
567-
568-
569-LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00008-
570-R03-SB.docx }
571-16 of 16
572-
577+Sec. 6 January 1, 2024 12-701(a)(20)(B)
573578 Sec. 7 January 1, 2024, and
574579 applicable to taxable years
575580 commencing on or after
576581 January 1, 2024
577582 New section
578583
584+Statement of Legislative Commissioners:
585+In Section 7(b), "subparagraph (B)(xxiii)" was changed to
586+"subparagraph (B)(xxviii)" for accuracy.
579587
580588 HED Joint Favorable Subst. -LCO
581-APP Joint Favorable
582589