Bill > HB361

This bill creates a new employer student loan repayment tax credit in Kentucky for businesses that help their employees pay off student loans. The credit will be available for taxable years from January 1, 2025, to January 1, 2029, and will allow qualified employers to claim a credit equal to 50% of the student loan repayments they make on behalf of eligible employees. To qualify, employees must be Kentucky residents working at least 35 hours per week, have earned their first bachelor's degree within the past five years, and have an eligible student loan from specific lenders like the Kentucky Higher Education Assistance Authority. The credit is nonrefundable and cannot be carried forward to future tax years, and employers must provide detailed documentation about the employee and loan when claiming the credit. The Department of Revenue will be required to report annually to the legislature about the credit's usage, including the number of returns claiming the credit and the total amount claimed, broken down by income ranges for individual taxpayers and corporations. The bill also amends existing tax law to specify the order in which this new credit can be applied against state tax liability.