Authorizes a tax credits for employers providing educational assistance to employees
If enacted, SB1136 will amend Chapter 135 of Missouri state law, adding a new section related to tax credits. Effective from January 1, 2023, employers will be eligible for a tax credit corresponding to the amounts paid in educational assistance for their employees. The tax credit will be capped at the limits set by federal law and is designed to be non-refundable, allowing the employers to carry forward any unused credits to future tax years. This could lead to increased workplace satisfaction and retention as employers invest in their employees' education.
Senate Bill 1136, introduced by Senator Roberts, proposes a tax credit for employers who provide educational assistance to their employees. This bill aims to promote workforce development by incentivizing employers to assist their staff in managing education loan payments. This is particularly relevant as costs of education continue to rise, which can impact employees' financial stability and job satisfaction.
One notable aspect of SB1136 is its sunset provision, which states that the tax credit will automatically terminate on December 31, 2028, unless reauthorized by the General Assembly. This introduces a potential point of contention regarding the longevity and stability of such educational assistance programs for employees. Some stakeholders may argue that frequent reauthorization could undermine the program's effectiveness and planning for long-term educational investments.