Senate Bill No. 576 establishes the Learn Here, Live Here program, which is to be implemented by the Commissioner of Economic and Community Development in collaboration with the Commissioner of Revenue Services and the chancellor of the Connecticut State Colleges and Universities by October 1, 2025. The program is designed to encourage graduates from various educational institutions in Connecticut to purchase their first home in the state. Eligible participants, defined as those graduating on or after January 1, 2026, with an annual federal adjusted gross income not exceeding $75,000, can segregate up to $2,500 of their income tax liability annually into a first-time homebuyers account, with a total cap of $5 million for all participants in any calendar year. The bill also increases the annual cap on segregated income tax payments from $1 million to $5 million and adjusts the eligibility date for graduates from January 1, 2014, to January 1, 2026.

Furthermore, the bill outlines repayment obligations for participants who relocate out of state after receiving funds, with a decreasing percentage of repayment required based on the length of residency following the payment. It mandates the development of a public education program to inform recent graduates about the available home-buying incentives, which must be implemented by January 1, 2026. The bill also includes provisions for tracking income eligibility and enforcing clawback measures if participants move out of Connecticut within five years of receiving funds. Overall, SB576 aims to provide enhanced support for graduates in purchasing homes while ensuring compliance and oversight of the program's requirements, with projected revenue losses of up to $5 million annually starting in FY 27.

Statutes affected:
Committee Bill: 32-4i, 32-4k
CE Joint Favorable: 32-4i, 32-4k
File No. 422: 32-4i, 32-4k