CT SB01462

Employers may claim a tax credit equal to 25% of contributions made to employees' CHET (Connecticut Higher Education Trust) 529 college savings accounts, capped at $500 per employee per year, effective for tax years beginning January 1, 2025

Owners, members, partners, and their family members are excluded from the employer contribution tax credit; S corporations and partnerships may pass the credit through to shareholders or partners

CHET account contributions, qualified distributions, and other tax-free distributions under IRC Section 529 are excluded from asset calculations for all state and local means-tested public assistance programs

CHET account funds are excluded from asset calculations when determining eligibility for need-based institutional financial aid at Connecticut public colleges and universities

Repeals the CHET Baby Scholars fund (Section 3-22u) and updates statutory references to the Connecticut Baby Bond Trust; modernizes CHET definitions to align with federal IRC Section 529 terminology