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General Assembly Substitute Bill No. 13
February Session, 2024
AN ACT INCENTIVIZING STUDENT LOAN REPAYMENT
ASSISTANCE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-217qq of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective January 1, 2025, and 2
applicable to calendar and income years commencing on or after January 1, 3
2025): 4
(a) As used in this section: 5
[(1) "Authority" means the Connecticut Higher Education 6
Supplemental Loan Authority;] 7
[(2)] (1) "Commissioner" means the Commissioner of Revenue 8
Services; 9
[(3) "Eligible education loan" means an authority loan, as defined in 10
section 10a-223, that is in repayment;] 11
[(4)] (2) "Full-time" means required to work at least thirty-five hours 12
per week; 13
[(5)] (3) "Qualified employee" means an individual who (A) is a 14
resident of the state, (B) has earned his or her first bachelor's degree from 15
an institution of higher education in the immediately preceding five-16 Substitute Bill No. 13
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year period, (C) is employed full-time in the state by a qualified 17
employer, (D) is not an owner, member or partner of such qualified 18
employer or a family member of an owner, member or partner of such 19
qualified employer, and (E) has received [an eligible] a student 20
education loan; 21
[(6)] (4) "Qualified employer" means a corporation licensed to operate 22
a business in the state that is subject to tax under this chapter or chapter 23
207; [and] 24
[(7)] (5) "Qualified small business" means a qualified employer that 25
has gross receipts of not more than five million dollars for the calendar 26
or income year, as applicable, for which a credit under this section is 27
allowed; 28
(6) "Student education loan" has the same meaning as provided in 29
section 36a-846; and 30
(7) "Student loan servicer" has the same meaning as provided in 31
section 36a-846. 32
(b) (1) For calendar or income years commencing on and after January 33
1, [2022] 2025, each qualified employer that employs a qualified 34
employee and makes a payment directly to [the authority] a student 35
loan servicer on behalf of such qualified employee on [an eligible] a 36
student education loan that was used to finance the qualified 37
employee's attendance at an institution of higher education [may claim] 38
shall be eligible for a credit against the tax imposed under this chapter 39
or chapter 207. Such credit shall be [granted in an amount] equal to fifty 40
per cent of the amount of payments made to the outstanding principal 41
balance of such loans by the qualified employer during the calendar or 42
income year, provided (A) the credit shall not be allowed against the tax 43
imposed under this chapter and chapter 207 for the same loan payment, 44
and (B) the amount of credit allowed for any calendar or income year 45
with respect to a specific qualified employee shall not exceed two 46
thousand six hundred twenty-five dollars. 47 Substitute Bill No. 13
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(2) A qualified employer may claim the credit under subdivision (1) 48
of this subsection for a payment made during the part of the calendar or 49
income year the qualified employee worked and resided in the state, 50
provided a qualified employee who worked and resided in the state for 51
any part of a month shall be deemed to have worked and resided in the 52
state for the entire month for purposes of this section. 53
(c) (1) To claim a credit under subsection (b) of this section, an eligible 54
qualified employer shall file an application with the commissioner in a 55
form and manner prescribed by the commissioner. Such qualified 56
employer shall include a list of qualified employees for whom the 57
qualified employer will be making a payment pursuant to subsection (b) 58
of this section, the total amount the qualified employer will pay toward 59
such qualified employees' student education loans in the calendar or 60
income year, the student loan servicer for each such student education 61
loan and such other information as the commissioner may require for 62
purposes of this section. Upon receipt of an application, the 63
commissioner shall determine and reserve the amount of the credit the 64
qualified employer will be entitled to claim and shall issue a voucher for 65
such amount to the qualified employer. A qualified employer may not 66
claim for any calendar or income year more than the amount set forth in 67
such voucher. 68
(2) The aggregate amount of tax credits that may be reserved by the 69
commissioner under this section shall not exceed ten million dollars in 70
any one calendar or income year and credits shall be reserved in the 71
order of applications received by the commissioner. 72
[(c)] (3) A qualified employer that claims the credit under subsection 73
(b) of this section shall provide any documentation required by the 74
commissioner in a form and manner prescribed by the commissioner. 75
(d) (1) A qualified small business may apply to the commissioner in 76
accordance with the provisions of subdivision (2) of this subsection to 77
exchange any credit allowed under subsection (b) of this section for a 78
credit refund equal to the value of the credit. Any amount of credit 79 Substitute Bill No. 13
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refunded under this subsection shall be refunded to the qualified small 80
business in accordance with the provisions of this chapter or chapter 81
207, as applicable. No interest shall be allowed or paid on any amount 82
of credit refunded under this subsection. Any amount of credit refunded 83
under this subsection shall be subject to the provisions of section 12-39h. 84
(2) Each application for a credit refund under this subsection shall be 85
filed, on such forms and containing such information as prescribed by 86
the commissioner, on or before the original due date of the return 87
prescribed under section 12-205 or 12-222, as applicable, for the calendar 88
or income year for which such credit was earned or, if applicable, the 89
extended due date of such year's return. No application for a credit 90
refund under this subsection may be filed after the due date or extended 91
due date, as the case may be, of such return. 92
(3) A qualified small business may not exchange for any calendar or 93
income year more than the amount of the credit set forth in the voucher 94
issued by the commissioner pursuant to subsection (c) of this section. 95
Sec. 2. (NEW) (Effective July 1, 2024) (a) As used in this section, 96
"authority loan" and "eligible loan" have the same meanings as provided 97
in section 10a-223 of the general statutes. 98
(b) The Connecticut Higher Education Supplemental Loan Authority 99
shall, subject to available funding pursuant to subsection (d) of this 100
section, establish a High Priority Occupation Loan Subsidy Program to 101
subsidize interest rates on authority loans issued to refinance eligible 102
loans to individuals who are employed in a high priority occupation and 103
meet eligibility criteria established pursuant to subsection (c) of this 104
section. 105
(c) The authority shall consult with the Office of Workforce Strategy 106
to: (1) Designate, as high priority occupations under the High Priority 107
Occupation Loan Subsidy Program, occupations that (A) promote the 108
health, welfare or education of residents of the state, (B) have a high 109
demand for their services, as determined by the authority and the office, 110
and (C) are experiencing or are projected to experience a workforce 111 Substitute Bill No. 13
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shortage that may affect the level of services provided; (2) establish 112
administrative guidelines for the implementation and operation of the 113
program; and (3) establish eligibility criteria for the program, which 114
shall include, but need not be limited to, (A) applicant requirements, 115
including employment requirements, (B) interest rate subsidies and 116
principal limits on authority loans subject to the program, (C) the 117
process for verifying the employment of applicants, and (D) the 118
requirement that an interest rate subsidy through the program shall 119
terminate for any subsidy recipient who ceases to meet the employment 120
requirements of the program during the term of such recipient's 121
authority loan. 122
(d) The authority shall maintain a separate, nonlapsing account to 123
hold funds for the High Priority Occupation Loan Subsidy Program. 124
The account shall contain any moneys required by law to be deposited 125
in the account, including, but not limited to, any state appropriation or 126
the proceeds from the sale of bonds issued for the purpose of the 127
program. Moneys in the account shall be used (1) for the purposes of the 128
program and for reasonable and necessary expenses for the 129
administration of such program, (2) for the issuance of authority loans 130
to refinance one or more eligible loans, and (3) to maintain a reserve held 131
by the authority to cover any losses incurred by the authority from the 132
issuance of such authority loans. 133
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2025, and
applicable to calendar and
income years commencing
on or after January 1, 2025
12-217qq
Sec. 2 July 1, 2024 New section
HED Joint Favorable Subst. C/R FIN
FIN Joint Favorable