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SB 1462 Connecticut Senate · 2025 Regular Session

AN ACT ESTABLISHING A TAX CREDIT FOR EMPLOYER CONTRIBUTIONS TO EMPLOYEES' CHET ACCOUNTS AND CONCERNING THE CONNECTICUT HIGHER EDUCATION TRUST AND CONNECTICUT BABY SCHOLARS FUND.

SB 1462 creates a 25% tax credit for Connecticut employers who contribute to employees' CHET accounts (education savings accounts for higher education costs), capped at $500 per employee annually. It directly affects Connecticut employers and their non-owner, non-family-member employees who use CHET accounts for qualified college expenses like tuition and books. The credit applies to contributions made after January 1, 2025, and allows S corporations, partnerships, or single-member LLCs to claim the credit through shareholders or owners. The bill also updates definitions for the Connecticut Higher Education Trust and Baby Scholars Fund to align with federal 529 plan rules.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates 25% tax credit for employer CHET contributions, reducing tax burden on businesses and supporting education savings via tax relief.95% confidence ✓ EducationSupports EducationCreates 25% tax credit for employer contributions to CHET accounts (higher education savings), directly expanding access to college funding for employees.90% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 6, 2025 Last action May 12, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → FIN Joint Favorable Substitute · 5 edits
MODERATE
The bill was amended to change the tax credit eligibility from employees to employers, expanded the list of applicable tax chapters, added restrictions preventing owners and family members from claiming credits, and updated the numbering of tax chapters to include chapter 207. These changes broaden who can claim the credit while adding eligibility restrictions to prevent abuse.
Scope change
The bill now applies to employers rather than employees, and the list of applicable tax chapters was expanded to include chapter 207 in addition to chapters 208 and 229.
ELIGIBILITY

Changed the tax credit eligibility from contributions made by a taxpayer for an employee to contributions made by an employer for an employee.

Added restrictions preventing the credit from being claimed if the employee is an owner, member, partner, or family member of an owner, member, or partner of the employer.

Expanded the list of applicable tax chapters from chapters 208 and 229 to include chapter 207.

DEFINITION

Updated terminology to refer to 'employer' instead of 'taxpayer' throughout the credit provisions.

TECHNICAL

Changed the bill type from 'Raised Bill' to 'Substitute Bill' and updated the Legislative Committee Office (LCO) number reference.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
9
Key actions
1
Committee
2
Apr 24, 2025
Upper · Passed
Joint Favorable Substitute
upper
Mar 6, 2025
Committee
REF. TO JOINT COMM. ON Finance, Revenue and Bonding
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.