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HOUSE DOCKET, NO. 2372 FILED ON: 1/19/2023
HOUSE . . . . . . . . . . . . . . . No. 2784
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Peter J. Durant
_________________
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 promoting student loan repayment.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Peter J. Durant6th Worcester1/17/2023Joseph D. McKenna18th Worcester1/19/2023Patrick Joseph Kearney4th Plymouth2/16/2023 1 of 3
HOUSE DOCKET, NO. 2372 FILED ON: 1/19/2023
HOUSE . . . . . . . . . . . . . . . No. 2784
By Representative Durant of Spencer, a petition (accompanied by bill, House, No. 2784) of Peter
J. Durant, Joseph D. McKenna and Patrick Joseph Kearney relative to taxation of student loan
repayments. Revenue.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act promoting 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. Paragraph (a) of Part B of section 3 of chapter 62 of the General Laws, as
2appearing in the 2020 Official Edition, is hereby amended by adding the following
3subparagraph:-
4 (19) An amount equal to the amount of student loan payment assistance received by an
5individual from their employer during the taxable year. For the purposes, of this subparagraph
6“student loan payment assistance” shall mean the payment of principal or interest on a qualified
7education loan, as defined in section 221 of the Code.
8 SECTION 2. Section 6 of said chapter 62, as so appearing, is hereby amended by adding
9the following subsection:-
10 (t)(1) As used in this subsection, the following words shall, unless the context clearly
11requires otherwise, have the following meanings:- 2 of 3
12 “Qualified education loan”, as defined in section 221 of the Code.
13 “Qualified employee”, with respect to a particular taxpayer, any individual who, under
14the usual common-law rules applicable in determining the employer-employee relationship, has
15the status of an employee of that taxpayer and who is domiciled in the commonwealth.
16 “Student loan payment assistance”, the payment of principal or interest on a qualified
17education loan.
18 (2) Any business that provides student loan payment assistance to a qualified employee
19or directly to the holder of the employee’s qualified education loan shall be allowed a credit
20against the tax liability imposed by this chapter in an amount equal to 100 per cent of the student
21loan assistance paid; provided however, that a credit under this section shall not exceed $4,500
22dollars per qualified employee in any tax year.
23 (3) Credits under this subsection shall be allowed for the taxable year in which the
24student loan payment assistance is provided; provided, however, that in no taxable year may the
25amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable
26year. A taxpayer allowed a credit pursuant to this subsection for a taxable year may carry over
27and apply against such taxpayer’s tax liability in any of the succeeding 5 taxable years, the
28portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.
29 SECTION 3. Chapter 63 of the General Laws is hereby amended by inserting after
30section 38FF the following section:-
31 Section 38GG. (a) As used in this section, the following words shall, unless the context
32clearly requires otherwise, have the following meanings:- 3 of 3
33 “Qualified education loan”, as defined in section 221 of the Code.
34 “Qualified employee”, with respect to a particular taxpayer, any individual who, under
35the usual common-law rules applicable in determining the employer-employee relationship, has
36the status of an employee of that taxpayer and who is domiciled in the commonwealth.
37 “Student loan payment assistance”, the payment of principal or interest on a qualified
38education loan.
39 (b) A business corporation who provides student loan payment assistance to a qualified
40employee or directly to the holder of the employee’s qualified education loan shall be allowed a
41credit against the tax liability imposed by this chapter in an amount equal to 100 per cent of the
42student loan assistance paid; provided, however, that a credit under this section shall not exceed
43$4,500 dollars per qualified employee in any tax year.
44 (c) The credit allowed in this section for any taxable year shall not reduce the excise to
45less than the amount due under subsection (b) of section 39, section 67 or any other applicable
46section.
47 (d) Credits under this subsection shall be allowed for the taxable year in which the
48student loan payment assistance is provided. A taxpayer allowed a credit under this subsection
49for a taxable year may carry over and apply against such taxpayer’s tax liability in any of the
50succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which
51exceed the tax for the taxable year.