Massachusetts H 2873: An Act encouraging employer student loan repayment

Bill Text

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HOUSE DOCKET, NO. 3394 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 2873

The Commonwealth of Massachusetts
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PRESENTED BY:
Kate Lipper-Garabedian
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act encouraging employer student loan repayment.
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PETITION OF:

NAME: DISTRICT/ADDRESS: DATE ADDED:
Kate Lipper-Garabedian 32nd Middlesex 1/20/2023

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HOUSE DOCKET, NO. 3394 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 2873
By Representative Lipper-Garabedian of Melrose, a petition (accompanied by bill, House, No.
2873) of Kate Lipper-Garabedian for legislation to establish an employer student loan repayment
tax credit. Revenue.

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 2985 OF 2021-2022.]

The Commonwealth of Massachusetts

_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act encouraging employer student loan repayment.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:

1 SECTION 1. Subsection (d) of section 2 of chapter 62 of the General Laws, appearing in
2 the 2020 Official Edition, is hereby amended by inserting after subclause (I), the following
3 subclause:-
4 (J) An amount equal to the principal payments on education debts paid by an employer
5 on behalf of an employee who is a resident of the commonwealth; provided, however, that the
6 amount of the deduction shall not exceed $2,000. For purposes of this subclause, “education
7 debt” shall have the same meaning as defined in paragraph (12) of subsection (a) of Part B of
8 section 3.

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9 SECTION 2. Chapter 63 of the General Laws, as appearing the 2020 Official Edition,
10 shall hereby be amended by inserting after section 38JJ the following new section:-
11 Section 38KK. (a) For the purposes of this section, “education debt” shall have the same
12 meaning as defined in paragraph (12) of subsection (a) of Part B of section 3 of chapter 62.
13 (b) In determining the net income subject to tax under this chapter, a business corporation
14 shall be allowed a deduction of an amount equal to the principal payments on education debts
15 paid by the business corporation on behalf of an employee who is a resident of the
16 commonwealth; provided however, that the deduction taken for payments on education debts
17 paid on behalf of any individual employee shall not exceed $2,000.