Substitute Senate Bill No. 13 - Summary

• Establishes a tax credit for qualified employers that make direct payments toward student education loans of qualified employees, equal to 50% of payments made to the outstanding principal balance, effective January 1, 2025.

• Caps the annual tax credit per employee at $2,625 and limits total aggregate tax credits reserved statewide to $10 million per calendar or income year, with credits reserved on a first-come, first-served basis.

• Allows qualified small businesses (gross receipts not exceeding $5 million) to exchange tax credits for refunds equal to the credit value, subject to applicable filing deadlines.

• Requires qualified employers to file applications with the Commissioner of Revenue Services that include employee lists, payment amounts, and student loan servicer information to receive credit vouchers.

• Creates a High Priority Occupation Loan Subsidy Program administered by the Connecticut Higher Education Supplemental Loan Authority to subsidize interest rates on authority loans for individuals employed in high-demand occupations, effective July 1, 2024.