HB 6901 — AN ACT CONCERNING A STUDENT LOAN REIMBURSEMENT PROGRAM.

GeneralHouse Assemblyof SubstituteRepresentatives BillFile No.

6901857 General Assembly January Session, 20232023(Reprint ANof ACTFile CONCERNINGNo. A STUDENT LOAN REIMBURSEMENT PROGRAM FOR CERTAIN PROFESSIONALS.

744) Substitute House Bill No.

6901 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner June 2, 2023 AN ACT CONCERNING A STUDENT LOAN REIMBURSEMENT PROGRAM.

(NEW) (Effective July 1, 2023) (a) On or before OctoberJanuary 1, 2023,2024, the executive director of the Office of Higher Education shall establishestablish, awithin pilotavailable appropriations, a program to reimburse certain professionalspersons for student loan payments.

The Office of Higher Education shallmay approve the participation of any person in the student loan reimbursement pilot program who (1) (A) attended a state college or university and graduated with a bachelor's degreedegree, or(B) left such college or university in good academic standing before graduation;graduation, or (C) holds an occupational or professional license or certification issued pursuant to title 20 of the general statutes;

(2) is currently a resident of the state, andas hasdefined beenin asection resident12-701 of the stategeneral forstatutes, notas lessamended thanby fivethis consecutiveact, yearsand afterhas graduationbeen from a stateresident collegeof orthe university,state asfor shownnot onless thethan person'sfive Connecticutyears; income tax return;

(3) earnshas the(A) majoritya ofConnecticut suchadjusted person'sgross income throughof employmentnot inmore thethan state,one ashundred evidencedtwenty-five onthousanddollarsandfilesareturnunder suchthefederalincome person'ssHB6901 Connecticut/ incomeFile taxNo. return, for two years prior to participation in the program;

(4)857 issHB6901 employedFile full-timeNo. as a nurse, teacher or in the field of child care, mental health or social services;

(5)857 hastax (A)asanunmarriedindividualor amarriedindividualfiling separately, or (B) a Connecticut adjusted gross income of not more than one hundred seventy-five thousand dollars and files a return under the federal income tax asanunmarriedindividualoras amarriedindividualfilinga separately,head orof (B)household, a Connecticutmarried adjustedindividual grossfiling incomejointly or a surviving spouse, as defined in Section 2(a) of notthe moreInternal thanRevenue oneCode LCOof \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06901-R011986, or any subsequent corresponding internal revenue code of 11the HB.docxUnited SubstituteStates, Billas No.amended from time to time;

6901 hundred twenty-five thousand dollars and files(4) ahas return under the federal income tax as a headstudent ofloan. household, a married individual filing jointly or a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time;

and (6) has a student loan.

(b) Persons who qualify under subsection (a) of this section may apply totheOffice ofHigher Educationtoparticipate inthestudentloan reimbursement pilot program at such time and in such manner as the executive director of said office prescribes.

(c) Each(1) personThe approvedexecutive todirector participateof in the studentOffice loanof reimbursementHigher pilotEducation program shall annuallyaward submitgrants receiptsto ofpersons paymentapproved onto participate in the student loansloan toreimbursement theprogram Officeon ofa Higherfirst-come, Educationfirst-served inbasis, theprovided mannersuch prescribedperson bymeets the executiverequirements director.of this subsection.

The(2) OfficeEach ofparticipant Higher Education shall (1) reimburse such person for such student loan payments an amount of not more than five thousand dollars, annually, provided no person shall participate in the student loan reimbursement pilot program forshall more than four years or receive more than twenty thousand dollars in aggregate reimbursement for student loan payments, and (2) require such person to volunteer for ana approved nonprofit organization in the state for not less than fifty unpaid hours for each year of participation in the student loan reimbursement program.

For purposes of this section, volunteer"volunteer hourshours" mayshall includeinclude, but need not be limited to, service on the board of directors for a nonprofit organization orand military service.

(d)(3) TheEach Officeparticipant ofin Higherthe Educationprogram mayshall useannually upsubmit toreceipts twoof payment on student loans and one-halfevidence perof centhaving ofthefundsappropriatedforcompleted purposesofthissection,annually,such forvolunteer programhours administration,to promotionthe andOffice recruitmentof activities.Higher Education in the manner prescribed by the executive director.

(e)(4) NotThe laterOffice thanof JanuaryHigher 1,Education 2025,shall andreimburse annuallyeach thereafter,program theparticipant executivewho directormeets the requirements of thethis Officesection for student loan payments an amount of Highernot Educationmore shallthan report,five inthousand accordancedollars, withannually, theprovided provisionsno ofperson sectionshall 11-4aparticipate ofin the generalstudent statutes,loan LCOreimbursement {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06902programfor ofmorethanfour 11yearsorreceive R02-HB.docxmorethantwenty }thousand SubstitutesHB6901 Bill/ File No.

6901857 tosHB6901 theFile jointNo. standing committees of the General Assembly having cognizance of matters relating to higher education and employment advancement and appropriations and the budgets of state agencies on the operation and effectiveness of the pilot program and any recommendations to expand the pilot program.

857 dollars in aggregate reimbursement for student loan payments.

(d) The Office of Higher Education may use up to two and one-half per cent ofthefundsappropriatedfor purposes ofthissection,annually, for program administration, promotion and recruitment activities.

(e) Not later than July 1, 2025, and each January and July thereafter, the executive director of the Office of Higher Education shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to higher education and employment advancement and appropriations and the budgets of state agencies on the operation and effectiveness of the program and any recommendations to expand the program.

(iv) To the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in computingsHB6901 Connecticut/ adjustedFile grossNo. income, any tier 1 railroad retirement benefits;

(v)857 TosHB6901 theFile extent any additional allowance for depreciation under Section 168(k) of the Internal Revenue Code for property placed in service after September 27, 2017, was added to federal adjusted gross income pursuant to subparagraph (A)(ix) of this subdivision in computing Connecticut adjusted gross income, twenty-five per cent of LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06903 of 11 R02-HB.docx } Substitute Bill No.

6901857 suchcomputing additionalConnecticut allowanceadjusted forgross depreciationincome, inany eachtier of1 therailroad fourretirement succeedingbenefits; taxable years;

(v) To the extent any additional allowance for depreciation under Section 168(k) of the Internal Revenue Code for property placed in service after September 27, 2017, was added to federal adjusted gross income pursuant to subparagraph (A)(ix) of this subdivision in computing Connecticut adjusted gross income, twenty-five per cent of such additional allowance for depreciation in each of the four succeeding taxable years;

(ix) Ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject to taxation under this chapter but exempt from federal income tax, or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxablesHB6901 year/ onFile anyNo. bond the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal adjusted gross income and are attributable to a trade or business carried on by such individual;

(x)857 (I)sHB6901 ForFile taxable years commencing prior to January 1, 2019, for a LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06904 of 11 R02-HB.docx } Substitute Bill No.

6901857 persontaxable whoyear fileson aany returnbond under the federalinterest incomeon taxwhich as an unmarried individual whose federal adjusted gross income for such taxable year is lesssubject thanto fiftytax thousandunder dollars,this orchapter asbut aexempt marriedfrom individual filing separately whose federal adjusted gross income fortax, suchto taxablethe yearextent isthat lesssuch thanexpenses fifty thousand dollars, or for a husband and wifepremiums whoare filenot adeductible returnin underdetermining the federal income tax as married individuals filing jointly whose federal adjusted gross income forand suchare taxableattributable yearto isa lesstrade than sixty thousand dollars or abusiness personcarried whoon filesby a return under the federal income tax as a head of household whose federal adjusted gross income for such taxableindividual; year is less than sixty thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes;

(x) (I) For taxable years commencing prior to January 1, 2019, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than sixty thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than sixty thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes;

(III)sHB6901 For/ theFile taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or asamarriedindividualfiling separately whosefederaladjustedgross LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06901-5 of 11 R02-HB.docx } Substitute Bill No.

6901857 incomesHB6901 forFile suchNo. taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes;

857 (III) For the taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes;

(xii)sHB6901 To/ theFile extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, any distribution to such beneficiary from any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06906 of 11 R02-HB.docx } Substitute Bill No.

6901857 state;sHB6901 File No.

857 (xii) To the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, any distribution to such beneficiary from any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state;

(xviii)sHB6901 To/ theFile extent properly includable in gross income for federal income tax purposesfor thetaxableyear,any income fromthedischarge of indebtedness in connection with any reacquisition, after December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06907 of 11 R02-HB.docx } Substitute Bill No.

6901857 RevenuesHB6901 Code,File asNo. amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any such income was added to federal adjusted gross income pursuant to subparagraph (A)(xi) of this subdivision in computing Connecticut adjusted gross income for a preceding taxable year;

857 (xviii) To the extent properly includable in gross income for federal income tax purposesfor thetaxableyear,any income fromthedischarge of indebtedness in connection with any reacquisition, after December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal Revenue Code, as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any such income was added to federal adjusted gross income pursuant to subparagraph (A)(xi) of this subdivision in computing Connecticut adjusted gross income for a preceding taxable year;

(xxi) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvii) of this subparagraph, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a marriedsHB6901 individual/ filingFile separately whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06908 of 11 R02-HB.docx } Substitute Bill No.