Substitute Bill No. 5478 aims to improve internship opportunities for students in Connecticut by establishing a "Learn and Earn" program, effective July 1, 2026. This program will be created by the Board of Trustees of The University of Connecticut and the Board of Regents for Higher Education to support small businesses with fifty or fewer employees in offering paid internships that meet specific career readiness competencies. The bill also introduces a stipend program for students receiving federal Pell grants to help cover internship-related costs and establishes a state quality seal for high-standard internship programs. Additionally, it repeals and replaces Section 12-217x of the general statutes, redefining "human capital investment" to encompass various job training and education forms, including contributions to childcare facilities. The legislation further amends tax laws related to human capital investments and internship programs by allowing corporations to claim tax credits for salaries paid to interns in state-approved programs, marked as (8). It modifies the existing tax credit structure to increase allowable credits for human capital investments, with a notable increase to ten percent starting in 2024. The bill also establishes a grant program through the Office of Workforce Strategy to offset intern salary costs, providing grants equal to twenty-five percent of salaries paid. Additionally, it mandates a survey of state agencies regarding their internship programs, with findings to be reported to the General Assembly by January 1, 2027. The provisions of the bill will take effect on July 1, 2026, for new sections and January 1, 2027, for amendments to existing statutes.

Statutes affected:
Raised Bill: 12-217x, 12-217aaa
HED Joint Favorable Substitute: 12-217x, 12-217aaa
File No. 391: 12-217x, 12-217aaa
APP Joint Favorable: 12-217x, 12-217aaa