CT HB06884

Expands eligibility for the employer student loan payment tax credit to include businesses subject to tax under Chapter 229 (unincorporated business tax), in addition to corporations already covered under Chapters 207 and 217qq

Tax credit equals 50% of payments made by employers toward qualified employees' student loan principal, capped at $2,625 per employee per year

Qualified employees must be Connecticut residents, employed full-time (35+ hours/week), have earned their first bachelor's degree within the past five years, and not be owners or family members of owners

Aggregate tax credits are capped at $10 million per fiscal year, with credits reserved in the order applications are received by the Commissioner of Revenue Services

Qualified small businesses (gross receipts of $5 million or less) may exchange the credit for a direct refund; effective January 1, 2026 for taxable years beginning on or after that date