AN ACT SUPPORTING "LEARN AND EARN" INTERNSHIP OPPORTUNITIES.

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General Assembly Substitute Bill No. 5478
February Session, 2026

AN ACT SUPPORTING "LEARN AND EARN" INTERNSHIP
OPPORTUNITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) ( Effective July 1, 2026 ) (a) As used in this section, 1
"small business" means a business entity in the state that has fifty or 2
fewer employees. 3
(b) The Board of Trustees of The University of Connecticut and the 4
Board of Regents for Higher Education shall each, within the availability 5
of funds appropriated specifically for such purpose, establish a program 6
to provide training and support to small businesses to enable such 7
businesses to offer a paid quality internship program. An internship 8
program shall be considered a quality internship program if such 9
program addresses not fewer than six of the eight career readiness 10
competencies established by the National Association of Colleges and 11
Employers, as determined by said boards. Each board shall post in a 12
conspicuous location on its Internet web site (1) information about such 13
program to provide training and support to small businesses, (2) any 14
eligibility requirements for a small business to participate in such 15
program, and (3) the application form for such program. Each board 16
shall offer specialized support to each small business accepted to such 17
program that is unique to such small business's industry and location. 18
The supports offered by such program shall include, but need not be 19
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limited to, the following: (A) Training in internship management, (B) 20
development of a job description, (C) assistance with establishing 21
specific skills an intern would learn and learning opportunities available 22
to an intern, and (D) guidance on assessments to use to assess internship 23
performance. 24
(c) Not later than January 1, 2027, and annually thereafter, the 25
president of The University of Connecticut and the chancellor of the 26
Connecticut State Colleges and Universities shall each submit a report, 27
in accordance with the provisions of section 11-4a of the general statutes, 28
to the joint standing committee of the General Assembly having 29
cognizance of matters relating to higher education and employment 30
advancement. Such report shall include, but need not be limited to, each 31
small business supported through the program established pursuant to 32
subsection (b) of this section, the types of supports provided and the 33
number of internships offered by such small business. 34
Sec. 2. (NEW) (Effective July 1, 2026) (a) The Board of Trustees of The 35
University of Connecticut and the Board of Regents for Higher 36
Education shall each, within the availability of funds appropriated 37
specifically for such purpose, establish a program to provide stipends to 38
any student enrolled at an institution of higher education governed by 39
such board who receives the federal Pell grant and is pursuing an 40
internship opportunity. Such stipend shall be in an amount prescribed 41
by each board and shall be used to offset the costs related to 42
participation in an internship program, including, but not limited to, 43
transportation and clothing costs. Each board shall post in a 44
conspicuous location on its Internet web site information concerning the 45
stipend program, including, but not limited to, eligibility guidelines, 46
application forms and the amount of stipend available to each applicant. 47
(b) Not later than July 1, 2027, and annually thereafter, the president 48
of The University of Connecticut and the chancellor of the Connecticut 49
State Colleges and Universities shall each report, in accordance with the 50
provisions of section 11 -4a of the general statutes, to the joint standing 51
committee of the General Assembly having cognizance of matters 52
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relating to higher education regarding the number of students who 53
received a stipend through the program established pursuant to 54
subsection (a) of this section. 55
Sec. 3. ( Effective July 1, 2026 ) Not later than January 1, 2027, each 56
institution of higher education in the state shall submit a report, in 57
accordance with the provisions of section 11 -4a of the general statutes, 58
to the joint standing committee of the General Assembly having 59
cognizance of matters relating to higher education. Such report shall 60
include a description of each paid internship opportunity available to 61
students enrolled at such institution through such institution's career 62
services that shall include, but need not be limited to, the type of 63
employer that offers the internship, the quality measures the institution 64
utilizes to ensure that each internship provides a valuable experience to 65
students and any other relevant information. 66
Sec. 4. (NEW) (Effective July 1, 2026) (a) Not later than January 1, 2027, 67
the Board of Regents for Higher Education and the Board of Trustees of 68
The University of Connecticut shall jointly establish a state quality seal 69
for internship programs offered in the state. Such boards shall identify 70
qualities of an internship program that would qualify such program for 71
a state quality seal, including, but not limited to, the following: (1) 72
Assignment of a mentor, (2) opportunity to learn through observation, 73
and (3) clear communication in which expectations and skills learned 74
through such internship are specified. 75
(b) On and after January 1, 2027, the Board of Regents for Higher 76
Education and the Board of Trustees of The University of Connecticut 77
shall jointly identify businesses in the state with internship programs 78
that meet the qualities established pursuant to subsection (a) of this 79
section and award such business with the state quality seal for 80
internship programs. 81
(c) Not later than January 1, 2028, and annually thereafter, the Board 82
of Regents for Higher Education and the Board of Trustees of The 83
University of Connecticut shall jointly submit a report, in accordance 84
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with the provisions of section 11 -4a of the general statutes, to the joint 85
standing committee of the General Assembly having cognizance of 86
matters relating to higher education and employment advancement. 87
Such report shall include the list of businesses that received the state 88
quality seal for internship programs during the prior calendar year. 89
Sec. 5. Section 12 -217x of the general statutes is repealed and the 90
following is substituted in lieu thereof ( Effective January 1, 2027, and 91
applicable to income years commencing on and after January 1, 2027): 92
(a) For purposes of this section, "human capital investment" means 93
the amount paid or incurred by a corporation on: 94
(1) Job training that occurs in this state for persons who are employed 95
in this state; 96
(2) Work education programs in this state, including, but not limited 97
to, programs in public high schools and work education -diversified 98
occupations programs in this state; 99
(3) Worker training and education for persons who are employed in 100
this state provided by institutions of higher education in this state; 101
(4) Donations or capital contributions to institutions of higher 102
education in this state for improvements or advancements of 103
technology, including physical plant improvements; 104
(5) Planning, site preparation, construction, renovation or acquisition 105
of facilities in this state for the purpose of establishing a child care 106
center, as described in section 19a -77, in this state to be used primarily 107
by the children of employees who are employed in this state; 108
(6) Donations or capital contributions to an organization exempt from 109
taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 110
1986, or any subsequent corresponding internal revenue code of the 111
United States, as amended from time to time, for the planning, site 112
preparation, construction, renovation or acquisition of facilities in this 113
state for the purpose of establishing a child care center in this state to be 114
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used by children residing in the community, including the children of 115
employees who are employed in this state; [and] 116
(7) Subsidies to employees who are employed in this state for child 117
care to be provided in this state; and 118
(8) Salaries paid to interns participating in an internship program in 119
the state that was awarded the state quality seal for internship programs 120
pursuant to the provisions of subsection (b) of section 4 of this act. 121
(b) There shall be allowed a credit for any corporation against the tax 122
imposed under this chapter in an amount spent by such corporation, as 123
a human capital investment as follows: (1) For any income year 124
commencing on or after January 1, 1998, and prior to January 1, 1999, 125
equal to three per cent of such amount paid or incurred by the 126
corporation during such income year; (2) for any income year 127
commencing on or after January 1, 1999, and prior to January 1, 2000, 128
equal to four per cent of such amount paid or incurred by the 129
corporation during such income year; (3) for any income year 130
commencing on or after January 1, 2000, equal to five per cent of such 131
amount paid or incurred by the corporation during such income year; 132
and (4) for any income year commencing on or after January 1, 2024, (A) 133
equal to ten per cent of the amount paid or incurred by the corporation 134
during such income year for the purposes set forth in subdivisions (1) 135
to (4), inclusive, [and subdivision (8) ] of subsection (a) of this section, 136
and (B) equal to twenty-five per cent of the amount paid or incurred by 137
the corporation during such income year for the purposes set forth in 138
subdivisions (5) to [(7)] (8), inclusive, of subsection (a) of this section. 139
(c) The amount of credit allowed to any corporation under this 140
section shall not exceed the amount of tax due from such corporation 141
under this chapter with respect to such income year. 142
(d) No corporation claiming the credit under this section with respect 143
to a human capital investment [as defined in subsection (a) of this 144
section] shall claim a credit against any tax under any other provision of 145
the general statutes [against any tax ] with respect to the same 146
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investment. 147
(e) Any tax credit not used in the income year during which the 148
investment was made may be carried forward for the five immediately 149
succeeding income years until the full credit has been allowed. 150
Sec. 6. Section 12 -217aaa of the general statutes is repealed and the 151
following is substituted in lieu thereof ( Effective January 1, 2027, and 152
applicable to income years commencing on and after January 1, 2027): 153
(a) As used in this section, (1) "accumulated credits" means the 154
amount of credits allowed, in accordance with the provisions of section 155
12-217n, that have not been taken through an applicant's last income 156
year completed prior to the date of an application submitted as 157
provided in subsection (b) of this section, (2) "commissioner" means the 158
Commissioner of Economic and Community Development, and (3) 159
"human capital investment" means the amount paid or incurred by a 160
corporation on (A) job training which occurs in this state for persons 161
who are employed in this state; (B) work education programs in this 162
state, including, but not limited to, programs in public high schools and 163
work education -diversified occupations programs in this state; (C) 164
worker training and education for persons who are employed in this 165
state provided by institutions of higher education in this state; (D) 166
donations or capital contributions to institutions of higher education in 167
this state for improvements or advancements of technology, including 168
physical plant improvements; (E) planning, site preparation, 169
construction, renovation or acquisition of facilities in this state for the 170
purpose of establishing a child care center, as described in section 19a -171
77, in this state to be used primarily by the children of employees who 172
are employed in this state; [and] (F) subsidies to employees who are 173
employed in this state for child care to be provided in this state; and (G) 174
salaries paid to interns participating in an internship program in the 175
state that was awarded the state quality seal for internship programs 176
pursuant to the provisions of subsection (b) of section 4 of this act. 177
(b) The commissioner shall establish and administer a program to 178
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allow businesses in the state to utilize accumulated credits against the 179
tax imposed under this chapter and chapter 219 in exchange for (1) 180
capital projects, planned or underway, in the state that propose to (A) 181
expand the scale or scope of such business, (B) increase employment at 182
such business, or (C) generate a substantial return to the state economy, 183
or (2) human capital investment. A business seeking to utilize 184
accumulated credits under this section shall submit to the 185
commissioner, on forms provided by the commissioner, an application 186
that shall include, but not be limited to: (A) A detailed plan outlining 187
the capital project or human capital investment, (B) the term of such 188
project or investment, (C) the estimated costs of such project or 189
investment, and (D) the amount of accumulated credits the business 190
proposes it be allowed to utilize under this section. The commissioner 191
shall perform an econometric analysis of each application and shall only 192
approve an application if he or she determines that such project or 193
investment will generate revenues for the state that exceed the amount 194
of the accumulated credits proposed to be utilized. The amount of such 195
accumulated credits shall be subject to confirmation, in accordance with 196
the provisions of this title, by the Commissioner of Revenue Services in 197
consultation with the commissioner. 198
(c) The commissioner shall determine, in consultation with the 199
Commissioner of Revenue Services and the Secretary of the Office of 200
Policy and Management, when such accumulated credits may be 201
utilized by the business, provided the commissioner shall not approve 202
the utilization of the accumulated credits until the capital project or 203
human capital investment under subsection (b) of this section generates 204
revenues for the state that exceed the amount of the accumulated credits 205
proposed to be utilized. 206
(d) The total amount of accumulated credits used under this section, 207
at full value, and the investments made under section 12 -217bbb shall 208
not exceed fifty million dollars in the aggregate. 209
(e) The commissioner may adopt regulations, in accordance with the 210
provisions of chapter 54, to implement the provisions of this section. 211
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(f) Not later than February 1, 2019, and annually thereafter, the 212
commissioner shall include in the annual report required under section 213
32-1m: (1) Information on the number of applications received and the 214
number of applications approved under this section; (2) the status of the 215
capital projects or human capital investments associated with such 216
approved applications; (3) the amount of accumulated credits that are 217
proposed to be utilized under this section; and (4) (A) the amount and 218
type of state revenue generated in connection with each such capital 219
project or human capital investment to date, and (B) the projected 220
amount and type of such revenue for the five succeeding fiscal years 221
after completion of such capital project or human capital investment. 222
Sec. 7. (NEW) (Effective January 1, 2027) (a) For the fiscal year ending 223
June 30, 2027, and each fiscal year thereafter, the Office of Workforce 224
Strategy shall, within available appropriations, establish a grant 225
program to award grants to eligible organizations exempt from taxation 226
pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or 227
any subsequent corresponding internal revenue code of the United 228
States, as amended from time to time, to offset the cost of salaries paid 229
to interns participating in an internship program at such organization. 230
Such grant shall be in an amount equal to twenty -five per cent of the 231
amount paid or incurred by such organization for the cost of salaries 232
paid to any intern during such fiscal year and shall be awarded on a 233
first-come, first -served basis. The office shall post, in a conspicuous 234
location on the office's Internet web site, the application form for such 235
grant program. 236
(b) Not later than January 1, 2028, and annually thereafter, the Office 237
of Workforce Strategy shall submit a report on such grant program, in 238
accordance with the provisions of section 11 -4a of the general statutes, 239
to the joint standing committee of the General Assembly having 240
cognizance of matters relating to higher education. 241
Sec. 8. (NEW) ( Effective January 1, 2027, and applicable to taxable years 242
commencing on or after January 1, 2027) (a) There shall be allowed a credit 243
for any affected business entity, as defined in section 12 -284b of the 244
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general statutes, against the tax imposed under chapter 229 of the 245
general statutes, other than the liability imposed by section 12-707 of the 246
general statutes, for salaries paid to interns participating in an 247
internship program in the state that was awarded the state quality seal 248
for internship programs pursuant to the provisions of subsection (b) of 249
section 4 of this act. The amount of such credit shall be equal to twenty-250
five per cent of the total amount of such salaries paid or incurred by 251
such affected business entity during such taxable year. 252
(b) If an affected business entity is an S corporation or an entity 253
treated as a partnership for federal income tax purposes, the credit may 254
be claimed by the shareholders or partners of the affected business 255
entity. If the affected business entity is a single member limited liability 256
company that is disregarded as an entity separate from its owner, the 257
credit may be claimed by such limited liability company's owner, 258
provided such owner is subject to the tax imposed under chapter 229 of 259
the general statutes. 260
(c) The amount of credit allowed to any affected business entity under 261
this section shall not exceed the amount of tax due from such affected 262
business entity under chapter 229 of the general statutes with respect to 263
such taxable year. 264
(d) No affected business entity claiming the credit under this section 265
shall claim a credit against any tax under any other provision of the 266
general statutes with respect to the same investment. 267
(e) Any tax credit not used in the taxable year during which the 268
investment was made may be carried forward for the five immediately 269
succeeding taxable years until the full credit has been allowed. 270
Sec. 9. ( Effective July 1, 2026 ) (a) The Department of Administrative 271
Services shall conduct a survey of each state agency concerning the 272
internship programs offered by such state agency. Such survey shall 273
include, but need not be limited to, whether each internship that is 274
available through each internship program offered by each state agency 275
(1) is paid, (2) has a specific job description, (3) requires reporting to a 276
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direct supervisor, and (4) includes a mentorship opportunity. 277
(b) Not later than January 1, 2027, the Department of Administrative 278
Services shall submit, in accordance with the provisions of section 11-4a 279
of the general statutes, to the joint standing committee of the General 280
Assembly having cognizance of matters relating to higher education 281
and employment advancement a report on the results of the survey 282
conducted pursuant to subsection (a) of this section. 283
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 New section
Sec. 2 July 1, 2026 New section
Sec. 3 July 1, 2026 New section
Sec. 4 July 1, 2026 New section
Sec. 5 January 1, 2027, and
applicable to income years
commencing on and after
January 1, 2027
12-217x
Sec. 6 January 1, 2027, and
applicable to income years
commencing on and after
January 1, 2027
12-217aaa
Sec. 7 January 1, 2027 New section
Sec. 8 January 1, 2027, and
applicable to taxable years
commencing on or after
January 1, 2027
New section
Sec. 9 July 1, 2026 New section

HED Joint Favorable Subst.
APP
Joint
Favorable