Bill > HR1801

This bill aims to make permanent a tax provision that allows employers to provide student loan repayment assistance to employees without those payments being counted as taxable income. Specifically, the bill amends Section 127 of the Internal Revenue Code by removing the current expiration date of January 1, 2026, which means employers can continue to offer up to $5,250 per year in tax-free student loan repayment benefits to their employees indefinitely. Under this provision, when an employer makes student loan payments on behalf of an employee as part of an educational assistance program, those payments will not be considered taxable income for the employee, providing a financial benefit to workers struggling with student debt and incentivizing employers to help their staff manage educational loans. The amendment will apply to payments made after the bill's enactment, making this tax exclusion a permanent feature of the tax code.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1801/all-info