Bill > S1983

This bill introduces tax incentives to encourage employers to help employees repay student loans by creating two new tax credits in Massachusetts. First, for individual taxpayers, the bill allows an income tax deduction for student loan payment assistance received from an employer, which means employees won't have to pay taxes on money their employer contributes toward their student loan principal or interest. Second, for businesses, the bill creates a tax credit that allows companies to receive a 100% credit for student loan payments made on behalf of their employees, up to $4,500 per qualified employee per tax year. A "qualified employee" is defined as a Massachusetts-domiciled worker who meets common-law employee classification standards, and a "qualified education loan" follows the federal tax code definition. If a business's tax credit in a given year exceeds its total tax liability, it can carry forward the excess credit for up to five subsequent tax years. These provisions aim to provide financial relief for both employees struggling with student loan debt and employers who want to support their workforce's financial well-being.

Budget and Finance

https://malegislature.gov/Bills/194/S1983