Bill Text: CT SB00532 | 2018 | General Assembly | Comm Sub
Bill Title: An Act Establishing A Tax Credit For Employers Making Education Loan Payments For Computer Programmer And Software Developer Employees.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-04-23 - File Number 630 [SB00532 Detail]
Download: Connecticut-2018-SB00532-Comm_Sub.html
General Assembly |
Substitute Bill No. 532 | |
February Session, 2018 |
*_____SB00532FIN___040618____* |
AN ACT ESTABLISHING A TAX CREDIT FOR EMPLOYERS MAKING EDUCATION LOAN PAYMENTS FOR COMPUTER PROGRAMMER AND SOFTWARE DEVELOPER EMPLOYEES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective January 1, 2019, and applicable to income or taxable years commencing on or after January 1, 2019) (a) As used in this section:
(1) "Qualified employee" means an employee who is employed at least part time in the state as a computer programmer or software developer;
(2) "Computer programmer" means an individual who creates, modifies and tests the code, forms and script that allow computer applications to run, including, but not limited to, the development and writing of computer programs to store, locate and retrieve specific documents, data and information;
(3) "Software developer" means an individual who researches, designs, develops and tests operating systems-level software, compilers and network distribution software for medical, industrial, military, communications, aerospace, business, scientific and general computing applications, including, but not limited to, the setting of operational specifications and formulation and analysis of software requirements;
(4) "Financial aid package" means financial aid obtained by a qualified employee as a student for attendance at an institution of higher education in this or another state; and
(5) "Part time" employment means employment with a normal workweek of less than thirty-two hours.
(b) (1) Commencing January 1, 2019, and in each income or taxable year thereafter, as applicable, any employer that employs a qualified employee and makes loan payments directly to a lender or lenders on a loan included in such qualified employee's financial aid package may claim a credit against the tax imposed under chapter 208 or 229 of the general statutes, as applicable. Such credit shall be equal to the amount of the actual monthly loan payment made by the employer on the loan, multiplied by the number of months during the income or taxable year, as applicable, the employer made loan payments on behalf of the qualified employee during the term of employment.
(2) An employer may claim a credit under this subsection for loan payments actually made to a relevant lender or lenders only with respect to (A) loans that are part of a qualified employee's financial aid package, and (B) loan payment amounts paid by the employer during that part of the income or taxable year, as applicable, that the qualified employee worked in the state, provided a qualified employee who worked in the state for any part of a month shall be deemed to have worked in the state for the entire month. Any payment of loan amounts in excess of the amounts due during the income or taxable year, as applicable, shall not qualify for the credit.
(3) Refinanced or consolidated loans that are part of the qualified employee's financial aid package are eligible for the credit under this subsection if the refinanced or consolidated loan remains separate from other debt, except for debt incurred in an educational program, but only in proportion to the portion of the loan payments that are otherwise eligible under this section.
(4) An employer may not claim the credit under this subsection with respect to months of the income or taxable year, as applicable, during which the employee was not a qualified employee. If the qualified employee is employed on a part-time basis during the income or taxable year, as applicable, the credit for such qualified employee shall be limited to fifty per cent of the credit otherwise determined under this subsection.
(5) An employer eligible for the credit under this subsection may carry over for any one or more of the next succeeding ten years the portion, as reduced from year to year, of any unused credits.
(c) An employer that claims the credit under subsection (b) of this section shall provide any documentation required by the Commissioner of Revenue Services in a form and manner prescribed by said commissioner.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
January 1, 2019, and applicable to income or taxable years commencing on or after January 1, 2019 |
New section |
Statement of Legislative Commissioners:
In Section 1, references to income year and "as applicable" were added for accuracy.
FIN |
Joint Favorable Subst. -LCO |