Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1852

Introduced
2/16/23  

Caption

Establishing the Massachusetts student relief and retention tax credit

Impact

The proposed tax credit operates by allowing eligible individuals to claim a credit against their state income tax based on the monthly payments made on eligible education loans while being a resident of Massachusetts for over one year. The credit amount is determined by the highest of a set amount tied to the individual's degree level: $1,000 for an associate degree, $2,000 for a bachelor's, and $3,000 for a graduate degree. This structure aims to alleviate some of the financial pressures faced by graduates and make it more feasible for them to settle in Massachusetts post-graduation.

Summary

S1852, also known as the Act establishing the Massachusetts student relief and retention tax credit, aims to incentivize students to remain in Massachusetts after obtaining their degrees from accredited institutions within the state. The bill proposes a tax credit for qualified individuals based on their educational loan payments, intending to encourage long-term retention of talent in the state. This approach not only addresses the financial burden of student debt but also promotes the economic growth of Massachusetts by retaining graduates who have made significant investments in their education.

Contention

While S1852 is largely viewed as a positive initiative for enhancing student welfare and economic development, there are points of contention regarding its potential long-term fiscal implications. Critics argue whether the program can be sustained without significantly impacting the state budget. Furthermore, discussions surrounding the bill suggest differing opinions on how effectively it would attract and retain recent graduates compared to existing programs. Supporters assert that the incentive would help mitigate the rise in student debt, while detractors are concerned about the equity of such tax credits and whether they disproportionately benefit wealthier students who are more likely to afford loan repayments.

Companion Bills

MA H4142

Similar To Relative to mental health awareness in higher education

MA H4267

Similar To Requiring menstrual products in buildings on public higher education campuses

MA H4286

Similar To Relative to chapter 15A

MA H4736

Replaced by Commuter transit benefits, child tax credit, and other related matters

Previously Filed As

MA S2025

Establishing the Massachusetts student relief and retention tax credit

MA H2695

Relative to student loan debt relief tax credit

MA H2790

Establishing the Massachusetts Maritime Commercial Development tax credit

MA H3090

Establishing the Massachusetts Maritime Commercial Development tax credit

MA H942

Establishing a Massachusetts foreclosure prevention program

MA S653

Establishing a Massachusetts foreclosure prevention program

MA S830

Protecting students and increasing accountability at Massachusetts colleges and universities

MA S765

Establishing a Massachusetts foreclosure prevention program

MA S935

Protecting students and increasing accountability at Massachusetts colleges and universities

MA S744

Establishing medicare for all in Massachusetts

Similar Bills

MA S1532

Concerning the Massachusetts Probation Service

MA H2303

Concerning the Massachusetts probation service

MA H2583

Concerning the Massachusetts probation service

MA S1705

Concerning the Massachusetts Probation Service

MA H269

Further regulating thoroughbred breeding

MA S167

Further regulating thoroughbred breeding

MA S229

Further regulating thoroughbred breeding

MA S2410

Further regulating thoroughbred breeding