State Senator James Maroney (D-Milford) recently joined the state Senate in approving legislation that will provide tax relief to Connecticut businesses and student loan debt relief to the state’s workforce. On May 28, the state Senate voted 27-8 to approve a bill that creates a tax credit for employers that make student loan payments on loans their employees received in Connecticut.
Maroney has introduced similar legislation this session and said he is committed to make college more accessible by alleviating the burden of student loan debt. Maroney worked closely with state Senators Alex Bergstein (D-Greenwich) and Will Haskell (D-Westport) on this legislation.
“Student loan debt is crushing so many across the country, hindering their chances of owning a home and causing many to delay starting a family,” said Maroney. “I am pleased to vote for this legislation as it will provide student loan debt relief to our state’s college graduates and provide tax relief for the employers who employ them. We want to encourage our young people to go to college, and one of the ways we can accomplish that is by removing roadblocks like exorbitant amounts of student loan debt.”
Senate Bill No. 72, “An Act Establishing a Tax Credit for Employers That Make Payments on Loans Issued to Certain Employees by the Connecticut Higher Education Supplemental Loan Authority,” would provide a tax credit to employers making payments on their employees’ student loans. Students who attended the Connecticut State College University systems would be eligible and those who received loans through that body would be eligible for loan relief as well.
This program is designed for employees who are full-time workers who have lived in Connecticut and been employed full-time for at least five years after graduation. Starting in 2022, each employer who makes loan payments directly to state loan authorities can claim a credit equal to half of the payments they make during any given year. The program allows them to receive these tax credits for no more than five years. The maximum payment available in a given year is $5,200.
Connecticut student loan debt more than doubled from 2008 to 2017, increasing in size from $8 billion to $17 billion. Connecticut Realtors testified earlier this year that first-time home buyers are delayed up to seven years from making a purchase due to student loan debt. Sen. Maroney said earlier this year that this bill serves as an excellent recruiting tool for companies looking to attract new workers to the state of Connecticut.
“This legislation incentivizes staying in the state after graduating from college,” said Maroney. “I am confident this will lead to a stronger economy in our state and expanded job opportunities for Connecticut’s college graduates.”