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HB 6884 Connecticut House · 2025 Regular Session

AN ACT EXPANDING TAX CREDITS FOR STUDENT LOAN PAYMENTS TO INCLUDE EMPLOYERS SUBJECT TO TAX UNDER CHAPTER 229.

HB 6884 expands Connecticut's tax credit program for student loan payments to include employers. It allows qualified employers (businesses subject to tax under Chapter 229) to claim a 50% credit against their state tax for payments made directly to student loan servicers on behalf of eligible employees. The credit is capped at $2,625 per employee annually, with a total annual limit of $10 million across all employers. This policy directly affects Connecticut employers and employees who meet specific criteria, such as having earned a bachelor's degree from an in-state institution within the past five years and working full-time in the state.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExpands state tax credits for employers, providing direct tax relief under Connecticut's budget framework while capping total spending at $10M annually.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands employer tax credits for student loan payments, directly increasing employee financial benefits and reducing debt burden through employer support.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 6, 2025 Last action May 12, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → HED Joint Favorable Substitute Change of Reference · 5 edits
MODERATE
The bill was converted from a 'Raised Bill' to a 'Substitute Bill' with favorable changes from the House Education Committee. Key substantive changes include adding new eligibility requirements for the student loan repayment credit, modifying the definition of a qualified employer, and changing the tax chapter references for credit applicability.
Scope change
The bill's scope expanded to include additional eligibility criteria for employees and modified which tax chapters the credit applies to.
ELIGIBILITY

Added requirement that qualified employees must not be owners, members, or partners of the employer, nor family members of such owners, to prevent employer self-dealing.

Added requirement that qualified employees must have received a student education loan to be eligible for the credit.

DEFINITION

Changed the definition of 'qualified employer' from a corporation taxpayer to any taxpayer licensed to operate a business in the state subject to tax under the chapter, chapter 207, or chapter 229.

FISCAL

Modified the tax chapter references from chapter 207 or 229 to chapter 12-707 for the credit applicability, changing which tax liabilities the credit can offset.

TECHNICAL

Changed the bill designation from 'Raised Bill No. 6884' to 'Substitute Bill No. 6884' with updated page counts in the legislative committee office (LCO) numbering.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
14
Key actions
2
Committee
3
Apr 24, 2025
Lower · Passed
Joint Favorable
lower
Feb 27, 2025
Lower · Passed
Joint Favorable Substitute Change of Reference FIN
lower
Feb 6, 2025
Committee
REF. TO JOINT COMM. ON Higher Education and Employment Advancement
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.