Connecticut 2025 Regular Session

Connecticut House Bill HB06884 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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3		-	LCO 1 of 4
	3	+	LCO No. 3890 1 of 5
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5		-	General Assembly ~~Substitute~~ Bill No. 6884
	5	+	General Assembly Raised Bill No. 6884
6	6		January Session, 2025
	7	+	LCO No. 3890
7	8
	9	+
	10	+	Referred to Committee on HIGHER EDUCATION AND
	11	+	EMPLOYMENT ADVANCEMENT
	12	+
	13	+
	14	+	Introduced by:
	15	+	(HED)
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12	20		AN ACT EXPANDING TAX CREDITS FOR STUDENT LOAN
13	21		PAYMENTS TO INCLUDE PASS-THROUGH ENTITIES.
14	22		Be it enacted by the Senate and House of Representatives in General
15	23		Assembly convened:
16	24
17	25		Section 1. Section 12-217qq of the general statutes is repealed and the 1
18	26		following is substituted in lieu thereof (Effective January 1, 2026, and 2
19	27		applicable to taxable years commencing on or after January 1, 2026): 3
20	28		(a) As used in this section: 4
21	29		(1) "Commissioner" means the Commissioner of Revenue Services; 5
22	30		(2) "Full-time" means required to work at least thirty-five hours per 6
23	31		week; 7
24	32		(3) "Qualified employee" means an individual who (A) is a resident 8
25	33		of the state, (B) has earned [his or her] such individual's first bachelor's 9
26	34		degree from an institution of higher education in the immediately 10
27	35		preceding five-year period, (C) is employed full-time in the state by a 11
28	36		qualified employer, (D) is not an owner, member or partner of such 12
	37	+	Raised Bill No. 6884
	38	+
	39	+
	40	+
	41	+	LCO No. 3890 2 of 5
	42	+
29	43		qualified employer or a family member of an owner, member or partner 13
30	44		of such qualified employer, and (E) has received a student education 14
31	45		loan; 15
32		-	(4) "Qualified employer" means a [corporation] taxpayer licensed to 16 Substitute Bill No. 6884
33		-
34		-
35		-	LCO 2 of 4
36		-
	46	+	(4) "Qualified employer" means a [corporation] taxpayer licensed to 16
37	47		operate a business in the state that is subject to tax under this chapter, 17
38	48		[or] chapter 207 or chapter 229; 18
39	49		(5) "Qualified small business" means a qualified employer that has 19
40	50		gross receipts of not more than five million dollars for the calendar, [or] 20
41	51		income or taxable year, as applicable, for which a credit under this 21
42	52		section is allowed; 22
43	53		(6) "Student education loan" has the same meaning as provided in 23
44	54		section 36a-846; and 24
45	55		(7) "Student loan servicer" has the same meaning as provided in 25
46	56		section 36a-846. 26
47	57		(b) (1) For calendar or income years commencing on and after January 27
48	58		1, 2025, and for taxable years commencing on and after January 1, 2026, 28
49	59		each qualified employer that employs a qualified employee and makes 29
50	60		a payment directly to a student loan servicer on behalf of such qualified 30
51	61		employee on a student education loan that was used to finance the 31
52	62		qualified employee's attendance at an institution of higher education 32
53	63		shall be eligible for a credit against the tax imposed under this chapter, 33
54	64		[or] chapter 207 or chapter 229, other than the liability imposed by 34
55		-	section 12-~~707~~. Such credit shall be equal to fifty per cent of the amount 35
	65	+	section 12-207. Such credit shall be equal to fifty per cent of the amount 35
56	66		of payments made to the outstanding principal balance of such loans by 36
57	67		the qualified employer during the calendar, [or] income or taxable year, 37
58	68		provided (A) the credit shall not be allowed against the tax imposed 38
59	69		under this chapter, [and] chapter 207 and chapter 229 for the same loan 39
60	70		payment, and (B) the amount of credit allowed for any calendar, [or] 40
61	71		income or taxable year with respect to a specific qualified employee 41
62	72		shall not exceed two thousand six hundred twenty-five dollars. 42
	73	+	Raised Bill No. 6884
	74	+
	75	+
	76	+
	77	+	LCO No. 3890 3 of 5
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63	79		(2) A qualified employer may claim the credit under subdivision (1) 43
64	80		of this subsection for a payment made during the part of the calendar, 44
65	81		[or] income or taxable year, as applicable, the qualified employee 45
66	82		worked and resided in the state, provided a qualified employee who 46
67	83		worked and resided in the state for any part of a month shall be deemed 47
68		-	to have worked and resided in the state for the entire month for 48 Substitute Bill No. 6884
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70		-
71		-	LCO 3 of 4
72		-
	84	+	to have worked and resided in the state for the entire month for 48
73	85		purposes of this section. 49
74	86		(c) (1) To claim a credit under subsection (b) of this section, an eligible 50
75	87		qualified employer shall file an application with the commissioner in a 51
76	88		form and manner prescribed by the commissioner. Such qualified 52
77	89		employer shall include a list of qualified employees for whom the 53
78	90		qualified employer will be making a payment pursuant to subsection (b) 54
79	91		of this section, the total amount the qualified employer will pay toward 55
80	92		such qualified employees' student education loans in the calendar, [or] 56
81	93		income or taxable year, as applicable, the student loan servicer for each 57
82	94		such student education loan and such other information as the 58
83	95		commissioner may require for purposes of this section. Upon receipt of 59
84	96		an application, the commissioner shall determine and reserve the 60
85	97		amount of the credit the qualified employer will be entitled to claim and 61
86	98		shall issue a voucher for such amount to the qualified employer. A 62
87	99		qualified employer may not claim for any calendar, [or] income or 63
88	100		taxable year more than the amount set forth in such voucher. 64
89	101		(2) The aggregate amount of tax credits that may be reserved by the 65
90	102		commissioner under this section shall not exceed ten million dollars in 66
91	103		any one [calendar or income] fiscal year and credits shall be reserved in 67
92	104		the order of applications received by the commissioner. 68
93	105		(3) A qualified employer that claims the credit under subsection (b) 69
94	106		of this section shall provide any documentation required by the 70
95	107		commissioner in a form and manner prescribed by the commissioner. 71
96	108		(4) If a qualified employer is an S corporation or an entity treated as 72
97	109		a partnership for federal income tax purposes, the shareholders or 73
	110	+	Raised Bill No. 6884
	111	+
	112	+
	113	+
	114	+	LCO No. 3890 4 of 5
	115	+
98	116		partners of such qualified employer may claim the credit. If the qualified 74
99	117		employer is a single member limited liability company that is 75
100	118		disregarded as an entity separate from its owner, the limited liability 76
101	119		company's owner may claim the credit. 77
102	120		(d) (1) A qualified small business may apply to the commissioner in 78
103	121		accordance with the provisions of subdivision (2) of this subsection to 79
104		-	exchange any credit allowed under subsection (b) of this section for a 80 Substitute Bill No. 6884
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106		-
107		-	LCO 4 of 4
108		-
	122	+	exchange any credit allowed under subsection (b) of this section for a 80
109	123		credit refund equal to the value of the credit. Any amount of credit 81
110	124		refunded under this subsection shall be refunded to the qualified small 82
111	125		business in accordance with the provisions of this chapter, [or] chapter 83
112	126		207 or chapter 229, as applicable. No interest shall be allowed or paid on 84
113	127		any amount of credit refunded under this subsection. Any amount of 85
114	128		credit refunded under this subsection shall be subject to the provisions 86
115	129		of section 12-39g. 87
116	130		(2) Each application for a credit refund under this subsection shall be 88
117	131		filed, on such forms and containing such information as prescribed by 89
118	132		the commissioner, on or before the original due date of the return 90
119	133		prescribed under section 12-205, [or] 12-222 or 12-719, as applicable, for 91
120	134		the calendar, [or] income or taxable year for which such credit was 92
121	135		earned or, if applicable, the extended due date of such year's return. No 93
122	136		application for a credit refund under this subsection may be filed after 94
123	137		the due date or extended due date, as the case may be, of such return. 95
124	138		(3) A qualified small business may not exchange for any calendar, [or] 96
125	139		income or taxable year more than the amount of the credit set forth in 97
126	140		the voucher issued by the commissioner pursuant to subsection (c) of 98
127	141		this section. 99
128	142		This act shall take effect as follows and shall amend the following
129	143		sections:
130	144
	145	+	Raised Bill No. 6884
	146	+
	147	+
	148	+
	149	+	LCO No. 3890 5 of 5
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131	151		Section 1 January 1, 2026, and
132	152		applicable to taxable years
133	153		commencing on or after
134	154		January 1, 2026
135	155		12-217qq
136	156
137		-	HED Joint Favorable Subst. C/R FIN
	157	+	Statement of Purpose:
	158	+	To expand the tax credit for employers making student loan payments
	159	+	on behalf of employees to pass-through entities.
	160	+
	161	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	162	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	163	+	underlined.]
138	164