Connecticut Senate Bill SB00072

Connecticut 2019 Regular Session

• Introduced: 1/17/19
• Refer: 1/17/19
• Refer: 3/11/19
• Report Pass: 3/12/19
• Refer: 3/25/19
• Report Pass: 4/1/19
• Refer: 5/9/19
• Report Pass: 5/14/19
• Engrossed: 5/28/19
• Report Pass: 5/30/19
• Chaptered: 6/19/19
• Enrolled: 6/24/19
• Passed: 6/28/19

Caption

An Act Establishing A Tax Credit For Employers That Make Payments On Certain Loans Issued To Employees By The Connecticut Higher Education Supplemental Loan Authority.

Impact

This legislation is poised to have a considerable impact on the state’s workforce and its approach to higher education financing. By providing tax credits to employers, the bill encourages businesses to assist employees in managing their student loan debts. Such support could enhance employee retention and satisfaction, leading to a more skilled and committed workforce. The requirement that eligible employees must have earned their first bachelor's degree in the previous five years aims to specifically target younger individuals who are in the early stages of their careers but burdened by education debt.

Summary

Senate Bill No. 72, also known as the Act Establishing a Tax Credit for Employers Making Payments on Certain Loans, introduces a tax incentive aimed at supporting employees who are repaying educational loans. The bill stipulates that qualified employers making direct payments to the Connecticut Higher Education Supplemental Loan Authority for their employees' eligible education loans can claim a tax credit. This credit is set at fifty percent of the payments made, allowing employers to potentially reduce their tax liability significantly. The implementation date for this measure is scheduled for January 1, 2022, making it applicable to income years starting on that date or later.

Sentiment

The general sentiment surrounding SB00072 appears to be positive, particularly among employers and economic development advocates. Supporters argue that this initiative not only helps employees recover financially but also positions Connecticut as a progressive state in terms of workplace benefits. However, there may be concerns regarding the long-term fiscal implications of the tax credits, particularly how it would affect state revenues. Overall, stakeholders recognize the importance of supporting education and leveraging such incentives to cultivate a more educated workforce.

Contention

Despite the positive reception, some debate may arise concerning the sustainability of the tax credit model. Critics may argue that while the immediate financial relief for qualified employees is beneficial, the state must ensure that this does not lead to budget deficits that could impact other essential services and programs. Furthermore, questions could be raised about the equitable distribution of these benefits, ensuring that small employers can also partake in this program without disproportionate financial strain. These areas of contention may necessitate ongoing discussion as the bill is implemented and evaluated.