Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2784 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2372 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2784
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Peter J. Durant
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act promoting student loan repayment.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Peter J. Durant6th Worcester1/17/2023Joseph D. McKenna18th Worcester1/19/2023Patrick Joseph Kearney4th Plymouth2/16/2023 1 of 3
16	16	HOUSE DOCKET, NO. 2372 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2784
18	18	By Representative Durant of Spencer, a petition (accompanied by bill, House, No. 2784) of Peter
19	19	J. Durant, Joseph D. McKenna and Patrick Joseph Kearney relative to taxation of student loan
20	20	repayments. Revenue.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act promoting student loan repayment.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Paragraph (a) of Part B of section 3 of chapter 62 of the General Laws, as
30	30	2appearing in the 2020 Official Edition, is hereby amended by adding the following
31	31	3subparagraph:-
32	32	4 (19) An amount equal to the amount of student loan payment assistance received by an
33	33	5individual from their employer during the taxable year. For the purposes, of this subparagraph
34	34	6“student loan payment assistance” shall mean the payment of principal or interest on a qualified
35	35	7education loan, as defined in section 221 of the Code.
36	36	8 SECTION 2. Section 6 of said chapter 62, as so appearing, is hereby amended by adding
37	37	9the following subsection:-
38	38	10 (t)(1) As used in this subsection, the following words shall, unless the context clearly
39	39	11requires otherwise, have the following meanings:- 2 of 3
40	40	12 “Qualified education loan”, as defined in section 221 of the Code.
41	41	13 “Qualified employee”, with respect to a particular taxpayer, any individual who, under
42	42	14the usual common-law rules applicable in determining the employer-employee relationship, has
43	43	15the status of an employee of that taxpayer and who is domiciled in the commonwealth.
44	44	16 “Student loan payment assistance”, the payment of principal or interest on a qualified
45	45	17education loan.
46	46	18 (2) Any business that provides student loan payment assistance to a qualified employee
47	47	19or directly to the holder of the employee’s qualified education loan shall be allowed a credit
48	48	20against the tax liability imposed by this chapter in an amount equal to 100 per cent of the student
49	49	21loan assistance paid; provided however, that a credit under this section shall not exceed $4,500
50	50	22dollars per qualified employee in any tax year.
51	51	23 (3) Credits under this subsection shall be allowed for the taxable year in which the
52	52	24student loan payment assistance is provided; provided, however, that in no taxable year may the
53	53	25amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable
54	54	26year. A taxpayer allowed a credit pursuant to this subsection for a taxable year may carry over
55	55	27and apply against such taxpayer’s tax liability in any of the succeeding 5 taxable years, the
56	56	28portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.
57	57	29 SECTION 3. Chapter 63 of the General Laws is hereby amended by inserting after
58	58	30section 38FF the following section:-
59	59	31 Section 38GG. (a) As used in this section, the following words shall, unless the context
60	60	32clearly requires otherwise, have the following meanings:- 3 of 3
61	61	33 “Qualified education loan”, as defined in section 221 of the Code.
62	62	34 “Qualified employee”, with respect to a particular taxpayer, any individual who, under
63	63	35the usual common-law rules applicable in determining the employer-employee relationship, has
64	64	36the status of an employee of that taxpayer and who is domiciled in the commonwealth.
65	65	37 “Student loan payment assistance”, the payment of principal or interest on a qualified
66	66	38education loan.
67	67	39 (b) A business corporation who provides student loan payment assistance to a qualified
68	68	40employee or directly to the holder of the employee’s qualified education loan shall be allowed a
69	69	41credit against the tax liability imposed by this chapter in an amount equal to 100 per cent of the
70	70	42student loan assistance paid; provided, however, that a credit under this section shall not exceed
71	71	43$4,500 dollars per qualified employee in any tax year.
72	72	44 (c) The credit allowed in this section for any taxable year shall not reduce the excise to
73	73	45less than the amount due under subsection (b) of section 39, section 67 or any other applicable
74	74	46section.
75	75	47 (d) Credits under this subsection shall be allowed for the taxable year in which the
76	76	48student loan payment assistance is provided. A taxpayer allowed a credit under this subsection
77	77	49for a taxable year may carry over and apply against such taxpayer’s tax liability in any of the
78	78	50succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which
79	79	51exceed the tax for the taxable year.