Connecticut 2024 Regular Session

Connecticut Senate Bill SB00013 Compare Versions

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Version 2 (New)

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4		-	Substitute Senate Bill No. 13
	5	+	General Assembly Substitute Bill No. 13
	6	+	February Session, 2024
5	7
6		-	~~Public Act No. 24-52~~
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7	9
8	10
9	11		AN ACT INCENTIVIZING STUDENT LOAN REPAYMENT
10	12		ASSISTANCE.
11	13		Be it enacted by the Senate and House of Representatives in General
12	14		Assembly convened:
13	15
14		-	Section 1. Section 12-217qq of the general statutes is repealed and the
15		-	following is substituted in lieu thereof (Effective January 1, 2025, and
16		-	applicable to calendar and income years commencing on or after January 1,
17		-	2025):
18		-	(a) As used in this section:
19		-	[(1) "Authority" means the Connecticut Higher Education
20		-	Supplemental Loan Authority;]
21		-	[(2)] (1) "Commissioner" means the Commissioner of Revenue
22		-	Services;
23		-	[(3) "Eligible education loan" means an authority loan, as defined in
24		-	section 10a-223, that is in repayment;]
25		-	[(4)] (2) "Full-time" means required to work at least thirty-five hours
26		-	per week;
27		-	[(5)] (3) "Qualified employee" means an individual who (A) is a
28		-	resident of the state, (B) has earned his or her first bachelor's degree from Substitute Senate Bill No. 13
	16	+	Section 1. Section 12-217qq of the general statutes is repealed and the 1
	17	+	following is substituted in lieu thereof (Effective January 1, 2025, and 2
	18	+	applicable to calendar and income years commencing on or after January 1, 3
	19	+	2025): 4
	20	+	(a) As used in this section: 5
	21	+	[(1) "Authority" means the Connecticut Higher Education 6
	22	+	Supplemental Loan Authority;] 7
	23	+	[(2)] (1) "Commissioner" means the Commissioner of Revenue 8
	24	+	Services; 9
	25	+	[(3) "Eligible education loan" means an authority loan, as defined in 10
	26	+	section 10a-223, that is in repayment;] 11
	27	+	[(4)] (2) "Full-time" means required to work at least thirty-five hours 12
	28	+	per week; 13
	29	+	[(5)] (3) "Qualified employee" means an individual who (A) is a 14
	30	+	resident of the state, (B) has earned his or her first bachelor's degree from 15
	31	+	an institution of higher education in the immediately preceding five-16 Substitute Bill No. 13
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30		-	Public Act No. 24-52 2 of 5
31	33
32		-	an institution of higher education in the immediately preceding five-
33		-	year period, (C) is employed full-time in the state by a qualified
34		-	employer, (D) is not an owner, member or partner of such qualified
35		-	employer or a family member of an owner, member or partner of such
36		-	qualified employer, and (E) has received [an eligible] a student
37		-	education loan;
38		-	[(6)] (4) "Qualified employer" means a corporation licensed to operate
39		-	a business in the state that is subject to tax under this chapter or chapter
40		-	207; [and]
41		-	[(7)] (5) "Qualified small business" means a qualified employer that
42		-	has gross receipts of not more than five million dollars for the calendar
43		-	or income year, as applicable, for which a credit under this section is
44		-	allowed;
45		-	(6) "Student education loan" has the same meaning as provided in
46		-	section 36a-846; and
47		-	(7) "Student loan servicer" has the same meaning as provided in
48		-	section 36a-846.
49		-	(b) (1) For calendar or income years commencing on and after January
50		-	1, [2022] 2025, each qualified employer that employs a qualified
51		-	employee and makes a payment directly to [the authority] a student
52		-	loan servicer on behalf of such qualified employee on [an eligible] a
53		-	student education loan that was used to finance the qualified
54		-	employee's attendance at an institution of higher education [may claim]
55		-	shall be eligible for a credit against the tax imposed under this chapter
56		-	or chapter 207. Such credit shall be [granted in an amount] equal to fifty
57		-	per cent of the amount of payments made to the outstanding principal
58		-	balance of such loans by the qualified employer during the calendar or
59		-	income year, provided (A) the credit shall not be allowed against the tax
60		-	imposed under this chapter and chapter 207 for the same loan payment, Substitute Senate Bill No. 13
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62		-	Public Act No. 24-52 3 of 5
	36	+	year period, (C) is employed full-time in the state by a qualified 17
	37	+	employer, (D) is not an owner, member or partner of such qualified 18
	38	+	employer or a family member of an owner, member or partner of such 19
	39	+	qualified employer, and (E) has received [an eligible] a student 20
	40	+	education loan; 21
	41	+	[(6)] (4) "Qualified employer" means a corporation licensed to operate 22
	42	+	a business in the state that is subject to tax under this chapter or chapter 23
	43	+	207; [and] 24
	44	+	[(7)] (5) "Qualified small business" means a qualified employer that 25
	45	+	has gross receipts of not more than five million dollars for the calendar 26
	46	+	or income year, as applicable, for which a credit under this section is 27
	47	+	allowed; 28
	48	+	(6) "Student education loan" has the same meaning as provided in 29
	49	+	section 36a-846; and 30
	50	+	(7) "Student loan servicer" has the same meaning as provided in 31
	51	+	section 36a-846. 32
	52	+	(b) (1) For calendar or income years commencing on and after January 33
	53	+	1, [2022] 2025, each qualified employer that employs a qualified 34
	54	+	employee and makes a payment directly to [the authority] a student 35
	55	+	loan servicer on behalf of such qualified employee on [an eligible] a 36
	56	+	student education loan that was used to finance the qualified 37
	57	+	employee's attendance at an institution of higher education [may claim] 38
	58	+	shall be eligible for a credit against the tax imposed under this chapter 39
	59	+	or chapter 207. Such credit shall be [granted in an amount] equal to fifty 40
	60	+	per cent of the amount of payments made to the outstanding principal 41
	61	+	balance of such loans by the qualified employer during the calendar or 42
	62	+	income year, provided (A) the credit shall not be allowed against the tax 43
	63	+	imposed under this chapter and chapter 207 for the same loan payment, 44
	64	+	and (B) the amount of credit allowed for any calendar or income year 45
	65	+	with respect to a specific qualified employee shall not exceed two 46
	66	+	thousand six hundred twenty-five dollars. 47 Substitute Bill No. 13
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64		-	and (B) the amount of credit allowed for any calendar or income year
65		-	with respect to a specific qualified employee shall not exceed two
66		-	thousand six hundred twenty-five dollars.
67		-	(2) A qualified employer may claim the credit under subdivision (1)
68		-	of this subsection for a payment made during the part of the calendar or
69		-	income year the qualified employee worked and resided in the state,
70		-	provided a qualified employee who worked and resided in the state for
71		-	any part of a month shall be deemed to have worked and resided in the
72		-	state for the entire month for purposes of this section.
73		-	(c) (1) To claim a credit under subsection (b) of this section, an eligible
74		-	qualified employer shall file an application with the commissioner in a
75		-	form and manner prescribed by the commissioner. Such qualified
76		-	employer shall include a list of qualified employees for whom the
77		-	qualified employer will be making a payment pursuant to subsection (b)
78		-	of this section, the total amount the qualified employer will pay toward
79		-	such qualified employees' student education loans in the calendar or
80		-	income year, the student loan servicer for each such student education
81		-	loan and such other information as the commissioner may require for
82		-	purposes of this section. Upon receipt of an application, the
83		-	commissioner shall determine and reserve the amount of the credit the
84		-	qualified employer will be entitled to claim and shall issue a voucher for
85		-	such amount to the qualified employer. A qualified employer may not
86		-	claim for any calendar or income year more than the amount set forth in
87		-	such voucher.
88		-	(2) The aggregate amount of tax credits that may be reserved by the
89		-	commissioner under this section shall not exceed ten million dollars in
90		-	any one calendar or income year and credits shall be reserved in the
91		-	order of applications received by the commissioner.
92		-	[(c)] (3) A qualified employer that claims the credit under subsection
93		-	(b) of this section shall provide any documentation required by the Substitute Senate Bill No. 13
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95		-	~~Public Act No. 24-52~~ 4 of 5
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97		-	commissioner in a form and manner prescribed by the commissioner.
98		-	(d) (1) A qualified small business may apply to the commissioner in
99		-	accordance with the provisions of subdivision (2) of this subsection to
100		-	exchange any credit allowed under subsection (b) of this section for a
101		-	credit refund equal to the value of the credit. Any amount of credit
102		-	refunded under this subsection shall be refunded to the qualified small
103		-	business in accordance with the provisions of this chapter or chapter
104		-	207, as applicable. No interest shall be allowed or paid on any amount
105		-	of credit refunded under this subsection. Any amount of credit refunded
106		-	under this subsection shall be subject to the provisions of section 12-39h.
107		-	(2) Each application for a credit refund under this subsection shall be
108		-	filed, on such forms and containing such information as prescribed by
109		-	the commissioner, on or before the original due date of the return
110		-	prescribed under section 12-205 or 12-222, as applicable, for the calendar
111		-	or income year for which such credit was earned or, if applicable, the
112		-	extended due date of such year's return. No application for a credit
113		-	refund under this subsection may be filed after the due date or extended
114		-	due date, as the case may be, of such return.
115		-	(3) A qualified small business may not exchange for any calendar or
116		-	income year more than the amount of the credit set forth in the voucher
117		-	issued by the commissioner pursuant to subsection (c) of this section.
118		-	Sec. 2. (NEW) (Effective July 1, 2024) (a) As used in this section,
119		-	"authority loan" and "eligible loan" have the same meanings as provided
120		-	in section 10a-223 of the general statutes.
121		-	(b) The Connecticut Higher Education Supplemental Loan Authority
122		-	shall, subject to available funding pursuant to subsection (d) of this
123		-	section, establish a High Priority Occupation Loan Subsidy Program to
124		-	subsidize interest rates on authority loans issued to refinance eligible
125		-	loans to individuals who are employed in a high priority occupation and Substitute Senate Bill No. 13
	71	+	(2) A qualified employer may claim the credit under subdivision (1) 48
	72	+	of this subsection for a payment made during the part of the calendar or 49
	73	+	income year the qualified employee worked and resided in the state, 50
	74	+	provided a qualified employee who worked and resided in the state for 51
	75	+	any part of a month shall be deemed to have worked and resided in the 52
	76	+	state for the entire month for purposes of this section. 53
	77	+	(c) (1) To claim a credit under subsection (b) of this section, an eligible 54
	78	+	qualified employer shall file an application with the commissioner in a 55
	79	+	form and manner prescribed by the commissioner. Such qualified 56
	80	+	employer shall include a list of qualified employees for whom the 57
	81	+	qualified employer will be making a payment pursuant to subsection (b) 58
	82	+	of this section, the total amount the qualified employer will pay toward 59
	83	+	such qualified employees' student education loans in the calendar or 60
	84	+	income year, the student loan servicer for each such student education 61
	85	+	loan and such other information as the commissioner may require for 62
	86	+	purposes of this section. Upon receipt of an application, the 63
	87	+	commissioner shall determine and reserve the amount of the credit the 64
	88	+	qualified employer will be entitled to claim and shall issue a voucher for 65
	89	+	such amount to the qualified employer. A qualified employer may not 66
	90	+	claim for any calendar or income year more than the amount set forth in 67
	91	+	such voucher. 68
	92	+	(2) The aggregate amount of tax credits that may be reserved by the 69
	93	+	commissioner under this section shall not exceed ten million dollars in 70
	94	+	any one calendar or income year and credits shall be reserved in the 71
	95	+	order of applications received by the commissioner. 72
	96	+	[(c)] (3) A qualified employer that claims the credit under subsection 73
	97	+	(b) of this section shall provide any documentation required by the 74
	98	+	commissioner in a form and manner prescribed by the commissioner. 75
	99	+	(d) (1) A qualified small business may apply to the commissioner in 76
	100	+	accordance with the provisions of subdivision (2) of this subsection to 77
	101	+	exchange any credit allowed under subsection (b) of this section for a 78
	102	+	credit refund equal to the value of the credit. Any amount of credit 79 Substitute Bill No. 13
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129		-	meet eligibility criteria established pursuant to subsection (c) of this
130		-	section.
131		-	(c) The authority shall consult with the Office of Workforce Strategy
132		-	to: (1) Designate, as high priority occupations under the High Priority
133		-	Occupation Loan Subsidy Program, occupations that (A) promote the
134		-	health, welfare or education of residents of the state, (B) have a high
135		-	demand for their services, as determined by the authority and the office,
136		-	and (C) are experiencing or are projected to experience a workforce
137		-	shortage that may affect the level of services provided; (2) establish
138		-	administrative guidelines for the implementation and operation of the
139		-	program; and (3) establish eligibility criteria for the program, which
140		-	shall include, but need not be limited to, (A) applicant requirements,
141		-	including employment requirements, (B) interest rate subsidies and
142		-	principal limits on authority loans subject to the program, (C) the
143		-	process for verifying the employment of applicants, and (D) the
144		-	requirement that an interest rate subsidy through the program shall
145		-	terminate for any subsidy recipient who ceases to meet the employment
146		-	requirements of the program during the term of such recipient's
147		-	authority loan.
148		-	(d) The authority shall maintain a separate, nonlapsing account to
149		-	hold funds for the High Priority Occupation Loan Subsidy Program.
150		-	The account shall contain any moneys required by law to be deposited
151		-	in the account, including, but not limited to, any state appropriation or
152		-	the proceeds from the sale of bonds issued for the purpose of the
153		-	program. Moneys in the account shall be used (1) for the purposes of the
154		-	program and for reasonable and necessary expenses for the
155		-	administration of such program, (2) for the issuance of authority loans
156		-	to refinance one or more eligible loans, and (3) to maintain a reserve held
157		-	by the authority to cover any losses incurred by the authority from the
158		-	issuance of such authority loans.
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	106	+
	107	+	refunded under this subsection shall be refunded to the qualified small 80
	108	+	business in accordance with the provisions of this chapter or chapter 81
	109	+	207, as applicable. No interest shall be allowed or paid on any amount 82
	110	+	of credit refunded under this subsection. Any amount of credit refunded 83
	111	+	under this subsection shall be subject to the provisions of section 12-39h. 84
	112	+	(2) Each application for a credit refund under this subsection shall be 85
	113	+	filed, on such forms and containing such information as prescribed by 86
	114	+	the commissioner, on or before the original due date of the return 87
	115	+	prescribed under section 12-205 or 12-222, as applicable, for the calendar 88
	116	+	or income year for which such credit was earned or, if applicable, the 89
	117	+	extended due date of such year's return. No application for a credit 90
	118	+	refund under this subsection may be filed after the due date or extended 91
	119	+	due date, as the case may be, of such return. 92
	120	+	(3) A qualified small business may not exchange for any calendar or 93
	121	+	income year more than the amount of the credit set forth in the voucher 94
	122	+	issued by the commissioner pursuant to subsection (c) of this section. 95
	123	+	Sec. 2. (NEW) (Effective July 1, 2024) (a) As used in this section, 96
	124	+	"authority loan" and "eligible loan" have the same meanings as provided 97
	125	+	in section 10a-223 of the general statutes. 98
	126	+	(b) The Connecticut Higher Education Supplemental Loan Authority 99
	127	+	shall, subject to available funding pursuant to subsection (d) of this 100
	128	+	section, establish a High Priority Occupation Loan Subsidy Program to 101
	129	+	subsidize interest rates on authority loans issued to refinance eligible 102
	130	+	loans to individuals who are employed in a high priority occupation and 103
	131	+	meet eligibility criteria established pursuant to subsection (c) of this 104
	132	+	section. 105
	133	+	(c) The authority shall consult with the Office of Workforce Strategy 106
	134	+	to: (1) Designate, as high priority occupations under the High Priority 107
	135	+	Occupation Loan Subsidy Program, occupations that (A) promote the 108
	136	+	health, welfare or education of residents of the state, (B) have a high 109
	137	+	demand for their services, as determined by the authority and the office, 110
	138	+	and (C) are experiencing or are projected to experience a workforce 111 Substitute Bill No. 13
	139	+
	140	+
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	142	+
	143	+	shortage that may affect the level of services provided; (2) establish 112
	144	+	administrative guidelines for the implementation and operation of the 113
	145	+	program; and (3) establish eligibility criteria for the program, which 114
	146	+	shall include, but need not be limited to, (A) applicant requirements, 115
	147	+	including employment requirements, (B) interest rate subsidies and 116
	148	+	principal limits on authority loans subject to the program, (C) the 117
	149	+	process for verifying the employment of applicants, and (D) the 118
	150	+	requirement that an interest rate subsidy through the program shall 119
	151	+	terminate for any subsidy recipient who ceases to meet the employment 120
	152	+	requirements of the program during the term of such recipient's 121
	153	+	authority loan. 122
	154	+	(d) The authority shall maintain a separate, nonlapsing account to 123
	155	+	hold funds for the High Priority Occupation Loan Subsidy Program. 124
	156	+	The account shall contain any moneys required by law to be deposited 125
	157	+	in the account, including, but not limited to, any state appropriation or 126
	158	+	the proceeds from the sale of bonds issued for the purpose of the 127
	159	+	program. Moneys in the account shall be used (1) for the purposes of the 128
	160	+	program and for reasonable and necessary expenses for the 129
	161	+	administration of such program, (2) for the issuance of authority loans 130
	162	+	to refinance one or more eligible loans, and (3) to maintain a reserve held 131
	163	+	by the authority to cover any losses incurred by the authority from the 132
	164	+	issuance of such authority loans. 133
	165	+	This act shall take effect as follows and shall amend the following
	166	+	sections:
	167	+
	168	+	Section 1 January 1, 2025, and
	169	+	applicable to calendar and
	170	+	income years commencing
	171	+	on or after January 1, 2025
	172	+	12-217qq
	173	+	Sec. 2 July 1, 2024 New section
	174	+
	175	+
	176	+	HED Joint Favorable Subst. C/R FIN
	177	+	FIN Joint Favorable
159	178