CT HB05584

Employers with 50 or fewer employees in Connecticut that provide paid family and medical leave benefits may claim a tax credit equal to 50% of wages paid for approved leave under federal FMLA or Connecticut law, effective January 1, 2019.

Annual aggregate tax credits are capped at $2.5 million, with individual employer credits not exceeding their state tax liability, and employers must apply to the Commissioner of Revenue Services to reserve credits.

Establishes the Connecticut Family and Medical Benefit Trust administered by the Treasurer, allowing individuals to deposit funds into Family and Medical Leave Accounts (FMLA accounts) to cover expenses during approved job-protected leave.

FMLA account deposits and distributions for qualified leave expenses are disregarded for eligibility determinations under welfare programs, medical assistance, and need-based educational aid at public institutions.

Trust assets are exempt from state taxation, cannot be commingled with state funds, and the Treasurer must report annually on account operations, number of accounts, contributions, disbursements, and any account abuse issues.