CT-SLP: Student Loan Payment Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-SLP is used to claim Connecticut’s Student Loan Payment Tax Credit for certain student loan payments made by qualified employers. It lists qualifying employees and payments toward their loan principal balances and calculates a credit equal to 50% of qualified payments.
Who files this form
Use Form CT-SLP to claim the business tax credit for certain student loan payments made directly to the Connecticut Higher Education Supplemental Loan Authority (CHESLA) on behalf of qualified employees.
A qualified employer is a corporation licensed to operate a business in Connecticut and subject to the Insurance Companies and Health Care Centers Taxes or the Corporation Business Tax.
A qualified employee must:
- Be a Connecticut resident.
- Have earned their first bachelor’s degree from an institution of higher education within the immediately preceding five-year period.
- Work full-time in Connecticut for a qualified employer. Full-time means at least 35 required work hours per week.
- Not be an owner, member or partner of the employer, or a family member of an owner, member or partner.
- Have received an eligible CHESLA education loan that is in repayment.
What you'll need
The form requires these attachments:
- Proof of payment to CHESLA.
- A detailed schedule identifying each employee as a full-time, qualified employee for this credit.
You will also need your corporation name, Connecticut Tax Registration Number, income-year dates, and each qualifying employee’s name, student loan account number and payments made toward loan principal. Attach a worksheet if you need more lines in Part II.
How to file
To complete the 2024 form:
- Enter the corporation’s identifying information and income-year dates.
- In Part II, list each qualifying employee, loan account number and payments toward principal. Do not enter more than $5,250 for any employee.
- Total the qualified payments on Part II, Line 10, and carry the total to Part I, Line 1.
- Multiply Part I, Line 1, by 50% and enter the credit on Line 2.
- Enter the credit on Form CT-1120K, Part I-B, Column A, or Form CT-207K, Part 1B, Column B.
- Include the required attachments.
The supplied form does not give mailing, e-filing or submission-address instructions.
Common mistakes
- Using the wrong year’s form. Each form is year-specific, and the correct year’s form must be used.
- Exceeding the per-employee limits. Part II says not to enter more than $5,250 in principal payments for any employee. The credit cannot exceed $2,625 per qualified employee for an income year.
- Claiming the same payment twice. The same loan payment cannot receive the credit against both Chapter 207 and Chapter 208 taxes.
- Leaving out required attachments. Include proof of payment to CHESLA and the detailed employee qualification schedule.
Questions people ask
How much is the credit?
The credit equals 50% of eligible payments made by the employer toward outstanding loan principal during the income year, up to $2,625 per qualified employee.
Can a small business receive a refund instead?
Certain small businesses can elect to have the credit issued as a refund. The form defines a small business as a qualified employer with gross receipts of $5 million or less in the applicable calendar or income year.
What if an employee worked and lived in Connecticut for only part of the year?
The employer may claim the credit for a payment made during the part of the income year when the qualified employee worked and resided in Connecticut. An employee who worked and resided in the state for any part of a month is treated as doing so for the entire month.
Where can I find more information?
The form directs employers to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.