CT HB05437

Establishes Young Professionals Urban Housing Incentive program allowing graduates from public institutions, private universities, and community-technical colleges to receive income tax deductions for rental or mortgage payments if they have at least $20,000 in student loan debt.

Eligible participants may deduct up to 10% of annual rental or mortgage payments from personal income tax liability, with a maximum annual deduction of $1,200.

Graduates must have completed their degrees on or after January 1, 2015, and must live in urban areas designated by the Commissioner of Housing.

Program benefits are available for the year of graduation plus nine subsequent taxable years, with biennial reapplication required; benefits cease immediately if participant stops paying rent or mortgage on a designated primary residence.

Effective October 1, 2014 for the program establishment; tax code amendments effective from passage and applicable to taxable years commencing January 1, 2014.