CT HB05396

Establishes Young Professionals Urban Housing Incentive program allowing recent college graduates to deduct up to 10% of annual rental or mortgage payments from personal income tax liability, capped at $1,200 annually.

Eligibility requires graduation on or after January 1, 2017, from a public institution of higher education, private university/college, or regional community-technical college with at least $20,000 in student loan debt.

Participants may claim benefits for the taxable year of graduation plus nine subsequent taxable years, provided they reapply to the Commissioner of Housing every two years and maintain residence in a designated urban area.

Benefits cease immediately if participant stops paying rent or mortgage on a primary residence in a Commissioner-designated urban area.

Adds rental and mortgage payment deductions to Connecticut's list of income tax subtractions, effective July 1, 2016 for taxable years beginning January 1, 2016.