How SB 13 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends existing law to repeal and replace the provisions related to student loan repayment assistance for qualified employers and establishes a new High Priority Occupation Loan Subsidy Program.

• Section 12-217qq

  Authority means the Connecticut Higher Education Supplemental Loan Authority;

  The definition of 'Authority' is removed.

• Section 12-217qq

  Eligible education loan means an authority loan, as defined in section 10a-223, that is in repayment; → Student education loan has the same meaning as provided in section 36a-846;

  The term 'Eligible education loan' is replaced with 'Student education loan' with updated reference.

• Section 12-217qq

  Eligible means an individual who (A) is a resident of the state,(B) has earned his or her first bachelor's degree from an institution of higher education in the immediately preceding five-year period, (C) is employed full-time in the state by a qualified employer, (D) is not an owner, member or partner of such qualified employer or a family member of an owner, member or partner of such qualified employer, and (E) has received an eligible student education loan; → Qualified employee means an individual who (A) is a resident of the state,(B) has earned his or her first bachelor's degree from an institution of higher education in the immediately preceding five-year period, (C) is employed full-time in the state by a qualified employer, (D) is not an owner, member or partner of such qualified employer or a family member of an owner, member or partner of such qualified employer, and (E) has received a student education loan;

  The term 'Qualified employee' is defined, detailing residency and employment requirements.

• Section 12-217qq

  Qualified employer means a corporation licensed to operate a business in the state that is subject to tax under this chapter or chapter 207; → [and]

  The definition of 'Qualified employer' includes the same basic description but does not explicitly refer to the structure of Chapter 207.

• Section 12-217qq

  For calendar or income years commencing on and after January 1,[2022] → January 1,[2025]

  The start date for the program is pushed to 2025.

• Section 12-217qq

  A qualified employer that employs a qualified employee and makes a payment directly to the authority on behalf of such qualified employee on an eligible student education loan that was used to finance the qualified employee's attendance at an institution of higher education may claim → each qualified employer that employs a qualified employee and makes a payment directly to a student loan servicer on behalf of such qualified employee on a student education loan that was used to finance the qualified employee's attendance at an institution of higher education shall be eligible for a credit against the tax imposed under this chapter or chapter 207.

  Employers can claim a tax credit for payments made to student loan servicers rather than the authority, expanding eligibility.

• Section 12-217qq

  the amount of credit allowed for any calendar or income year with respect to a specific qualified employee shall not exceed two thousand six hundred twenty-five dollars.

  Establishes a cap for the tax credit claimable by a qualified employer.

• Section 12-217qq

  The aggregate amount of tax credits that may be reserved by the commissioner under this section shall not exceed ten million dollars in any one calendar or income year and credits shall be reserved in the order of applications received by the commissioner.

  Imposes a cap on the total amount of tax credits that can be reserved.

• The Connecticut Higher Education Supplemental Loan Authority shall, subject to available funding... establish a High Priority Occupation Loan Subsidy Program.

  Introduces a new program to subsidize interest rates on loans for individuals employed in high-priority occupations.

• The authority shall maintain a separate, nonlapsing account to hold funds for the High Priority Occupation Loan Subsidy Program.

  Creates a dedicated fund for the new loan subsidy program.