CT SB00072

Establishes a tax credit for qualified employers in Connecticut that make direct payments toward eligible education loans on behalf of qualified employees, effective for income years beginning January 1, 2022.

Tax credit equals 50 percent of loan payments made to the outstanding principal balance, with a maximum annual credit of $2,625 per qualified employee.

Qualified employees must be state residents who earned their first bachelor's degree within the preceding five years, work full-time (35+ hours per week) for a qualified employer, and hold an eligible education loan from the Connecticut Higher Education Supplemental Loan Authority.

Qualified employers must be corporations licensed to operate in Connecticut and subject to state corporate tax under chapters 207 or 208 of the general statutes.

Credit cannot be claimed for the same loan payment under both chapters 207 and 208, and employers must provide documentation as required by the Commissioner of Revenue Services.