Connecticut Seal

General Assembly

Amendment

 

February Session, 2018

LCO No. 4181

   
 

*SB0000404181HRO*

Offered by:

 

REP. CANDELORA, 86th Dist.

REP. FISHBEIN, 90th Dist.

REP. FRANCE, 42nd Dist.

 

To: Subst. Senate Bill No. 4

File No. 206

Cal. No. 405

"AN ACT ASSISTING STUDENTS WITHOUT LEGAL IMMIGRATION STATUS WITH THE COST OF COLLEGE."

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. (NEW) (Effective January 1, 2019, and applicable to income or taxable years commencing on or after January 1, 2019) (a) As used in this section:

(1) "Qualified employee" means an employee who is required to work at least thirty-five hours per week;

(2) "Qualified employer" means an employer that employs fifty or fewer employees in the state; and

(3) "Financial aid package" means financial aid obtained by a qualified employee as a student for attendance at an institution of higher education in this or another state.

(b) (1) Commencing January 1, 2019, and in each income or taxable year thereafter, as applicable, any qualified employer that employs a qualified employee and makes loan payments directly to a lender or lenders on a loan included in such qualified employee's financial aid package may claim a credit against the tax imposed under chapter 208 or 229 of the general statutes, as applicable. Such credit shall be equal to fifty per cent of the amount of the actual monthly loan payment made by such employer on the loan, multiplied by the number of months during the income or taxable year, as applicable, such employer made loan payments on behalf of the qualified employee during the term of employment.

(2) A qualified employer may claim a credit under this subsection for loan payments actually made to a relevant lender or lenders only with respect to (A) loans that are part of a qualified employee's financial aid package, and (B) loan payment amounts paid by the qualified employer during that part of the income or taxable year, as applicable, that the qualified employee worked in the state, provided a qualified employee who worked in the state for any part of a month shall be deemed to have worked in the state for the entire month. Any payment of loan amounts in excess of the amounts due during the income or taxable year, as applicable, shall not qualify for the credit.

(3) Refinanced or consolidated loans that are part of the qualified employee's financial aid package are eligible for the credit under this subsection if the refinanced or consolidated loan remains separate from other debt, except for debt incurred in an educational program, but only in proportion to the portion of the loan payments that are otherwise eligible under this section.

(4) A qualified employer may not claim the credit under this subsection (A) with respect to months of the income or taxable year, as applicable, during which the employee was not a qualified employee, or (B) for more than three years with respect to any specific qualified employee.

(c) A qualified employer that claims the credit under subsection (b) of this section shall provide any documentation required by the Commissioner of Revenue Services in a form and manner prescribed by said commissioner."

This act shall take effect as follows and shall amend the following sections:

Section 1

January 1, 2019, and applicable to income or taxable years commencing on or after January 1, 2019

New section