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OLR Bill Analysis
SB 576
AN ACT REQUIRING THE ESTABLISHMENT OF THE LEARN HERE,
LIVE HERE PROGRAM, INCREASING THE ANNUAL EXPENDITURE
ON SUCH PROGRAM AND MAKING SUCH PROGRAM AVAILABLE
TO CERTAIN INDIVIDUALS.
SUMMARY
This bill requires the Department of Economic and Community
Development (DECD) commissioner, in consultation with the
Department of Revenue Services (DRS) commissioner and Connecticut
State Colleges and Universities chancellor, to establish the Learn Here,
Live Here program by October 1, 2025. Current law allows these officials
to establish the program, but they have not done so to date.
Under current law, the Learn Here, Live Here program, if established,
allows eligible graduates to segregate a portion of their income tax
payments and use them later for a down payment on the purchase of
their first home in Connecticut. In mandating the program’s
establishment, the bill generally retains the program parameters in
current law, except that it:
1. increases, from $1 million to $5 million, the cap on the aggregate
amount of income tax payments that may be segregated annually
under the program;
2. extends eligibility to in-state high school graduates (current law
generally limits eligibility to graduates of in-state postsecondary
institutions, see BACKGROUND); and
3. limits eligibility to people whose annual federal adjusted gross
income is $75,000 or less (current law does not set an income
limit).
The bill also makes conforming changes to the program’s 2025SB-00576-R000422-BA.DOCX
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implementation deadlines. Under current law, the program must be
open to eligible students who graduate on or after January 1, 2014, from
eligible institutions. The bill instead opens it to eligible students who
graduate on or after January 1, 2026. It similarly delays, from January 1,
2014, to January 1, 2026, the date by which the DRS commissioner must
begin segregating participating graduates’ income tax payments. The
bill also requires the DECD commissioner to market the program by (1)
developing a comprehensive public education program for recent
graduates by December 1, 2025, and (2) implementing it by January 1,
2026. Lastly, the bill makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2025
BACKGROUND
Learn Here, Live Here Program Requirements
Once activated, the law allows participating graduates to segregate
up to $2,500 per year from their income tax payments for up to 10 years
after graduation into the Connecticut first-time homebuyers account. A
participant may apply to the DECD commissioner to withdraw some or
all of the funds for a down payment any time within 10 years after
graduation, and any balance remaining after 10 years must be deposited
in the General Fund. If the participant does not withdraw any funds
after 10 years, the entire amount must be deposited in the General Fund.
If the participant moves out of Connecticut within five years after
receiving funds for a down payment, he or she must repay the amount
received on a prorated basis (e.g., 40% of the amount received for
departures within four years after the payment).
Eligibility
The Learn Here, Live Here program is designed to help students
graduating from specific educational institutions save money toward
the purchase of their first home in Connecticut. Under current law, the
program, once activated, is open to students graduating from regional
technical schools, public or private universities and colleges, and health
care training schools located here. The latter includes medical or dental
schools, chiropractic colleges, optometry schools or colleges, chiropody
or podiatry schools or colleges, occupational therapy schools, hospital- 2025SB-00576-R000422-BA.DOCX
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based occupational schools, naturopathy schools or colleges, dental
hygiene schools, physical therapy schools, and any other healing arts
school or institution.
COMMITTEE ACTION
Commerce Committee
Joint Favorable
Yea 20 Nay 0 (03/18/2025)