Connecticut 2021 Regular Session Status: In Committee 3 D cosponsors

SB 652 — AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS TO THE ROBERTA B. WILLIS SCHOLARSHIP PROGRAM.

Last action — REF. BY SEN. TO COMM. ON Finance, Revenue and Bonding

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

223 added · 104 removed

223 line(s) added, 104 removed.

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General Assembly Committee Bill No.
Senate General Assembly File No.
652 January Session, 2021 LCO No.
278 January Session, 2021 Substitute Senate Bill No.
5043 Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT Introduced by:
652 Senate, April 6, 2021 The Committee on Higher Education and Employment Advancement reported through SEN.
(HED) AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS TO THE ROBERTA B.
SLAP of the 5th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS TO THE ROBERTA B.
Willis Scholarship program shall be allowed, pursuant to the provisions of subsection (d) of this section, to claim a credit against the tax imposed under chapter 208 or 229 of the general statutes, other than the liability imposed by section 12-707 of the general statutes.
Willis Scholarship program, established pursuant to section 10a-173 of the general statutes, as amended by this act, shall be allowed, pursuant to the provisions of subsection (d) of this section, to claim a credit against the tax imposed under chapter 208 or 229 of the general statutes, other than the liability imposed by section 12-707 of the general statutes.
Such credit shall be equal to forty per cent of the total cash amount donated to such scholarshipprogram during theincomeortaxableyear,provided (1)the amount of credit allowed any taxpayer under the provisions of this section for any income or taxable year may not exceed sixty thousand dollars, and (2) no tax credit shall be granted to any taxpayer for a donation of less than five hundred dollars.
Such credit shall be equal to forty per cent of the total cash amount donated to such scholarship program during the income or taxable year, provided (1) the amount of credit allowed any taxpayer under the provisions of this section for any income or taxable year may not exceed sixty thousand dollars, and (2) no tax credit shall be granted to any sSB652 / File No.
(b) If the taxpayer is an S corporation or an entity treated as a LCO No.
278 1 sSB652 File No.
5043 1 of 4 Committee Bill No.652 partnership for federal income tax purposes, the shareholders or partners of such taxpayer may be allowed to claim the credit.
278 taxpayer for a donation of less than five hundred dollars.
(b) If the taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the shareholders or partners of such taxpayer may be allowed to claim the credit.
(c) The total amount of credits allowed under this section shall not exceed sixteen million dollars in the first fiscal year and thirty-two million dollars in the second fiscal year and each fiscal year thereafter.
(c) The total amount of credits allowed under this section shall not exceed sixteen million dollars in the first income and taxable year and thirty-two million dollars in the second income and taxable year and each income and taxable year thereafter.
(d) (1) To be eligible to claim the credit pursuant to subsection (a) of this section for an income or taxable year, a taxpayer shall apply to the Office of Higher Education in a form and manner prescribed by the executive director of said office.
(d) (1) To be eligible to claim the credit pursuant to subsection (a) of this section for an income or taxable year, a taxpayer shall apply to the Office of Higher Education in a form and manner prescribed by the executive director of the Office of Higher Education.
The executive director shall issue a certification letter to the taxpayer indicating that the credit will be available to be claimed by the taxpayer if the executive director finds that (A) the taxpayer donated the intended amount, (B) the donation meets the requirements of this section, and (C) the total amount of credits claimed in any year have not exceeded the limit set forth in subsection (c) of this section.
The executive director shall issue a certification letter to the taxpayer indicating that the credit will be available to be claimed by the taxpayer if the executive director finds that (A) the donation meets the requirements of this section, and (B) the total amount of credits claimed in any year have not exceeded the limit set forth in subsection (c) of this section.
The Office of Higher Education shall deposit into the account any donations receivedpursuant to section1ofthisact.Moneys in the account shall be expended by said office for the purposes of the LCO No.
The Office of Higher Education shall deposit into the sSB652 / File No.
5043 2 of 4 Committee Bill No.652 Roberta B.
278 2 sSB652 File No.
278 account any donations receivedpursuant to section1ofthisact.Moneys in the account shall be expended by said office for the purposes of the Roberta B.
(c) For the fiscal year commencing July 1, 2022, and for each fiscal year thereafter, the amount appropriated to the Office of Higher Education for the Roberta B.
(c) For the fiscal year ending June 30, 2022, and for each fiscal year thereafter,theOfficeofHigherEducationshalllapse,inaccordancewith subsection (f) of section 4-89 of the general statutes, from the appropriationsfortheRobertaB.WillisScholarshipprogramanamount equal the amount of donations received in the Roberta B.
Willis Scholarship program in a state budget act or any even-numbered year adjustments or revisions made to such act shall be reduced by the amount of donations received in the Roberta B.
There shall be an administrative allowance based on one-quarter of one per cent of the available appropriations, but not less than one hundred thousand dollars.
There shall be an administrative allowance based on one-quarter of one per cent of the available sSB652 / File No.
In LCO No.
278 3 sSB652 File No.
5043 3 of 4 Committee Bill No.
278 appropriations, but not less than one hundred thousand dollars.
652 addition to the amount of the annual appropriation allocated to the regional community-technical colleges under subsection (e) of this section, and to regional community-technical college students under subsection (d) of this section, not less than two and one-half per cent of the annual appropriation shall be allocated to the regional community- technical colleges to be used for financial aid purposes.
In addition to the amount of the annual appropriation allocated to the regional community-technical colleges under subsection (e) of this section, and to regional community-technical college students under subsection (d) of this section, not less than two and one-half per cent of the annual appropriation shall be allocated to the regional community- technical colleges to be used for financial aid purposes.
Section 1 from passage and New section applicable to income and taxable years commencing on or after January 1, 2021 from passage Sec.
Section 1 from passage and New section applicable to income and taxable years commencing on or after January 1, 2021 Sec.
2 New section Sec.
2 from passage New section Sec.
3 from passage 10a-173(c) Statement of Purpose:
3 from passage 10a-173(c) Statement of Legislative Commissioners:
To establish a tax credit for corporations, affected business entities and individuals that donate to the Roberta B.
In Section 1(a), "established pursuant to section 10a-173 of the general statutes, as amended by this act," was inserted;
Willis Scholarship program.
in Section (1)(d)(1), "said office" was changed to "the Office of Higher Education" for clarity;
[Proposed deletions are enclosed in brackets.
and in Section 1(d)(2), Subpara.
Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors:
(A) was removed and the remaining Subparas.
SEN.
were redesignated for accuracy.
MARONEY, 14th Dist.;
HED Joint Favorable Subst.
REP.
sSB652 / File No.
TURCO, 27th Dist.
278 4 sSB652 File No.
S.B.
278 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
652 LCO No.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
5043 4 of 4
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Department of Revenue Services GF - Potential Up to 16 Up to 32 Revenue Loss million million Higher Ed., Off.;
Constituent GF - See Below See Below See Below Units of Higher Education Note:
GF=General Fund Municipal Impact:
Show all 89 changed rows (49 more)
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None Explanation The bill, which establishes a tax credit against the corporation business and personal income taxes for certain donations, results in a potential General Fund revenue loss of up to $16 million in FY 22 and up to $32 million in FY 23 and annually thereafter.
It also results in a potential revenue gain to the Roberta B.
Willis Scholarship program donation account as early as FY 21;
beginning as early as FY 22 the potential revenue gain will be offset by a forced lapse in the account in a commensurate amount, making the net impact to the scholarship account zero at that time.
The bill establishes a tax credit equal to 40% of eligible amounts donated (up to $60,000 per taxpayer) to the Roberta B.
Willis Scholarship program The bill caps the total annual credits for the first income and taxable year at $16 million and $32 million for subsequent years.
It is assumed that this equates to a $16 million cap for the 2021 income and taxable year and a $32 million cap for all subsequent income and taxable years.
Beginning in FY 22, the Office of Higher Education must lapse an amount equal to the amount of donations received during the previous calendar year.
sSB652 / File No.
278 5 sSB652 File No.
278 donation account.
To the extent such eligible donations are made, there is a General Fund revenue loss of up to $16 million in FY 22 and up to $32 million in FY 23 and annually thereafter.
The actual amount and timing of any revenue loss is dependent upon the amount and timing of any credit- eligible donations and subsequent credit claims.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the $32 million cap on total tax credits allowed annually under the bill.
sSB652 / File No.
278 6 sSB652 File No.
278 OLR Bill Analysis sSB 652 AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS TO THE ROBERTA B.
WILLIS SCHOLARSHIP PROGRAM.
SUMMARY This bill allows any taxpayer that makes a minimum $500 donation to the Office of Higher Education (OHE) for the Roberta B.
Willis Scholarship program (hereafter “Willis Scholarship”) to claim a corporation business tax credit or income tax credit, beginning in the income or tax year respectively.
The donation yields a credit equal to 40% of the total cash amount donated, up to a $60,000 credit per taxpayer.
The bill caps the total annual credits for the first income and taxable year at $16 million and $32 million for subsequent years.
Additionally,thebillestablishes(1)taxpayereligibilitycriteriaforthe credit;
(2) an application process for taxpayers that wish to claim it;
and (3) a non-lapsing, General Fund account into which OHE must deposit scholarship donations.
It requires OHE to annually report on the amount of donations received.
The bill also incorporates the donations received into the funding formula for determining scholarship grant amounts available to award.
It provides that the total base for grant funds includes any amount in the donation account plus available state appropriations, rather than just the latter as under current law.
EFFECTIVE DATE:
Upon passage, and the tax credit provisions apply to income and taxable years beginning January 1, 2021, or later.
TAX CREDIT ELIGIBILITY Eligible Taxpayers The bill allows eligible taxpayers to claim the credit against the sSB652 / File No.
278 7 sSB652 File No.
278 corporation business tax or income tax (but not the withholding tax).
In addition to taxpayers who are not business entities, the bill also allows S corporation shareholders and partners in partnerships that donate to claim the credit.
If the entity is structured as a limited liability company, has only one owner, and does not file a separate federal tax return (“disregarded entity”),theownermay claimthecreditagainst thepersonalincometax.
APPLICATION PROCESS The bill establishes an application process for taxpayers that wish to claim the credit.
The OHE executive director determines the application form, which must contain information that includes the intended donation amount along with any other information the office requires.
Under the bill, within 30 days after the executive director receives the application, he must issue a written decision.
He must issue a certification letter to the taxpayer indicating that the tax credit will be available to be claimed if he finds that the (1) donation meets the bill’s requirementsand(2)totalamountofcreditsclaimedinthetaxyearhave not exceeded the bill’s yearly cap.
SCHOLARSHIP PROGRAM DONATION ACCOUNT The bill establishes the “Roberta B.
Willis Scholarship program donation account” as a separate, non-lapsing account in the General Fund.
OHE must deposit scholarship donations received into this account and spend the account funds for the scholarship program’s purposes.
Additionally, the office must report to the Appropriations and Higher Education and Employment Advancement committees by January 1, 2022, and annually thereafter, about the amount of donations in the account received during the previous calendar year.
Beginning in FY 22, OHE must lapse from the state appropriations for the Willis Scholarship an amount equal to the amount of donations received during the previous calendar year.
By law, appropriations for the Willis Scholarship do not lapse until the end of the fiscal year after sSB652 / File No.
278 8 sSB652 File No.
278 the one for which it was made.
COMMITTEE ACTION Higher Education and Employment Advancement Committee Joint Favorable Substitute Yea 17 Nay 5 (03/18/2021) sSB652 / File No.
278 9
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Action History

  1. REF. BY SEN. TO COMM. ON Finance, Revenue and Bonding

  2. FILE NO. 278

  3. SENATE CALENDAR NUMBER 187

  4. FAV. RPT., TAB. FOR CAL., SEN.

  5. RPTD. OUT OF LCO

  6. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/06/21

  7. FILED WITH LCO

  8. Joint Favorable Substitute

  9. REF. TO JOINT COMM. ON Higher Education and Employment Advancement

  10. DRAFTED BY COMMITTEE

  11. Vote to Draft

  12. PUBLIC HEARING 0218

  13. Reserved for Subject Matter Public Hearing

  14. REF. TO JOINT COMM. ON Higher Education and Employment Advancement

Sponsors

Sponsorship breakdown

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3 sponsors · 0 co-sponsors · 184 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (184)

184 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 652?
SB 652 is sponsored by Gary A. Turco (Democratic), Anthony L. Nolan (Democratic), and James J. Maroney (Democratic).
What is the current status of SB 652?
This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 652?
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