Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S1983 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 697 FILED ON: 1/14/2025
3	3	SENATE . . . . . . . . . . . . . . No. 1983
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Ryan C. Fattman
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 :Ryan C. FattmanWorcester and HampdenBruce E. TarrFirst Essex and Middlesex2/27/2025 1 of 3
16	16	SENATE DOCKET, NO. 697 FILED ON: 1/14/2025
17	17	SENATE . . . . . . . . . . . . . . No. 1983
18	18	By Mr. Fattman, a petition (accompanied by bill, Senate, No. 1983) of Ryan C. Fattman and
19	19	Bruce E. Tarr for legislation to promote student loan repayment. Revenue.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1810 OF 2023-2024.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Fourth General Court
25	25	(2025-2026)
26	26	_______________
27	27	An Act promoting student loan repayment.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Paragraph (a) of part B of section 3 of chapter 62 of the General Laws, as
31	31	2appearing in the 2022 Official Edition, is hereby amended by adding the following
32	32	3subparagraph:-
33	33	4 (20) An amount equal to the amount of student loan payment assistance received by an
34	34	5individual from their employer during the taxable year. For the purposes of this paragraph,
35	35	6“student loan payment assistance” shall mean the payment of principal or interest on a qualified
36	36	7education loan, as defined in section 221 of the Code.
37	37	8 SECTION 2. Section 6 of said chapter 62, as so appearing, is hereby amended by adding
38	38	9the following subsection:- 2 of 3
39	39	10 (dd)(1) As used in this subsection, the following words shall, unless the context clearly
40	40	11requires otherwise, have the following meanings:-
41	41	12 “Qualified education loan”, as defined in section 221 of the Code.
42	42	13 “Qualified employee”, with respect to a particular taxpayer, any individual who, under
43	43	14the usual common-law rules applicable in determining the employer-employee relationship, has
44	44	15the status of an employee of that taxpayer and who is domiciled in the commonwealth.
45	45	16 “Student loan payment assistance”, the payment of principal or interest on a qualified
46	46	17education loan.
47	47	18 (2) Any business that provides student loan payment assistance to a qualified employee
48	48	19or directly to the holder of the employee’s qualified education loan shall be allowed a credit
49	49	20against the tax liability imposed by this chapter in an amount equal to 100 per cent of the student
50	50	21loan assistance paid; provided, however, that a credit under this section shall not exceed $4,500
51	51	22per qualified employee in any tax year.
52	52	23 (3) Credits under this subsection shall be allowed for the taxable year in which the
53	53	24student loan payment assistance is provided; provided, however, that in no taxable year may the
54	54	25amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable
55	55	26year. A taxpayer allowed a credit pursuant to this subsection for a taxable year may carry over
56	56	27and apply against such taxpayer’s tax liability in any of the succeeding 5 taxable years, the
57	57	28portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.
58	58	29 SECTION 3. Chapter 63 of the General Laws, as so appearing, is hereby amended by
59	59	30inserting after section 38HH the following section:- 3 of 3
60	60	31 Section 38NN. (a) As used in this section, the following words shall, unless the context
61	61	32clearly requires otherwise, have the following meanings:-
62	62	33 “Qualified education loan”, as defined in section 221 of the Code.
63	63	34 “Qualified employee”, with respect to a particular taxpayer, any individual who, under
64	64	35the usual common-law rules applicable in determining the employer-employee relationship, has
65	65	36the status of an employee of that taxpayer and who is domiciled in the commonwealth.
66	66	37 “Student loan payment assistance”, the payment of principal or interest on a qualified
67	67	38education loan.
68	68	39 (b) A business corporation who provides student loan payment assistance to a qualified
69	69	40employee or directly to the holder of the employee’s qualified education loan shall be allowed a
70	70	41credit against the tax liability imposed by this chapter in an amount equal to 100 per cent of the
71	71	42student loan assistance paid; provided, however, that a credit under this section shall not exceed
72	72	43$4,500 per qualified employee in any tax year.
73	73	44 (c) The credit allowed in this section for any taxable year shall not reduce the excise to
74	74	45less than the amount due under subsection (b) of section 39, section 67, or any other applicable
75	75	46section.
76	76	47 (d) Credits under this subsection shall be allowed for the taxable year in which the
77	77	48student loan payment assistance is provided. A taxpayer allowed a credit under this subsection
78	78	49for a taxable year may carry over an apply against such taxpayer’s liability in any of the
79	79	50succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which
80	80	51exceed the tax for the taxable year.