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 Section 10a-174 of the general statutes is repealed and the 1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