Bill > HB237

This bill establishes an "employer student loan repayment credit" for qualified employers in Kentucky, effective for taxable years beginning January 1, 2026, through December 31, 2029. A qualified employer is a business subject to state income tax that makes payments towards an "eligible student loan" for a "qualified employee." An eligible student loan is defined as money used for education expenses, borrowed by an eligible borrower under federal law, and issued by specific Kentucky or private/governmental lenders. A qualified employee must reside and work in Kentucky, have earned their first bachelor's degree within the last five years, work at least 35 hours per week, and not be an owner, partner, or their family member in the employer company. The credit will be equal to 50% of the amount the employer pays towards the outstanding principal balance of the employee's eligible student loan during the taxable year. This credit is nonrefundable, nontransferable, and cannot be carried forward. The bill also amends existing law to specify the order in which this new credit can be applied against other tax credits and allows the Department of Revenue to report on the credit's usage to the General Assembly to evaluate its effectiveness.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb237.html