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Bill

S 2024

Authorizes the independent budget office of the city of New York to obtain certain tax data for purposes of evaluation

2025 Regular Session Introduced by Andrew Gounardes and 1 co-sponsor

Massachusetts would exclude up to $2,000 of employer-paid student loan principal per employee from state income tax and allow a $2,000 per-employee corporate deduction.

COMMITTED TO RULES
0
WeVote Research Nonpartisan
Bill Summary · S 2024

Summary — Senate Bill No. 2024 (Commonwealth of Massachusetts)

Title: An Act encouraging employer student loan repayment (Sen. Edward J. Kennedy)

Purpose

The bill creates state tax incentives to encourage employers to make payments toward employees’ student loan (education debt) principal. Its intent is to expand employer-provided student loan repayment benefits by making such payments tax-favored at the Massachusetts state level for both employees and business taxpayers.

Key provisions

  • Employee treatment (Chapter 62 amendment)

    • Adds a new subclause to subsection (d) of Section 2 of Chapter 62 to allow exclusion from Massachusetts taxable income of principal payments on education debts that an employer pays on behalf of an employee who is a resident of the Commonwealth.
    • The exclusion is capped at $2,000 per employee (per year, implied by the tax-year context).
    • “Education debt” is incorporated by reference to the definition in paragraph (12) of subsection (a) of Part B of Section 3 of Chapter 62.

  • Employer (business) treatment (Chapter 63 addition)

    • Inserts a new Section 38GG in Chapter 63 allowing a business corporation to deduct, in calculating net income subject to Massachusetts corporate tax, an amount equal to principal payments on education debts the corporation pays for an employee who is a Commonwealth resident.
    • The corporate deduction is likewise limited to $2,000 per employee.

Who is affected

  • Employees who are Massachusetts residents receiving employer-paid student loan principal repayments: such payments (up to $2,000) would be excluded from their Massachusetts taxable income.
  • Employers (including corporations): may deduct up to $2,000 per participating employee for employer-paid principal payments when computing Massachusetts corporate taxable income.
  • State revenue: the measure would reduce taxable income bases and is likely to reduce state tax receipts to an extent dependent on take-up and total payments.

Definitions and limits

  • Payments covered are principal payments on “education debt” as defined elsewhere in Massachusetts tax law (see referenced provision in Chapter 62).
  • Per-employee cap of $2,000 applies to both the employee exclusion and the employer deduction.

Legislative status and timeline (as provided)

  • Filed: January 13, 2025 (Senate docket no. 505).
  • Sponsor: Senator Edward J. Kennedy.
  • Reported/committee actions and scheduling appear in the record (referred to relevant committees; hearing scheduled for Oct 3, 2025; status listed as COMMITTED TO RULES as of June 13, 2025). (Note: the legislative action list supplied contains multiple duplicated and overlapping entries; the core text above reflects the bill language.)

Potential impacts and considerations

  • Policy goal: encourage employers to offer student loan repayment benefits as a recruitment/retention tool.
  • Fiscal effect: likely a revenue cost to the Commonwealth; the scale depends on employer participation and aggregate payments (capped at $2,000 per employee).
  • Administrative/implementation: state tax forms and guidance would need to clarify documentation, timing, and interaction with any federal tax treatment of employer student loan repayments.

If you want, I can:
- Estimate potential fiscal impact given assumptions about take-up and average payments, or
- Pull and quote the exact statutory definition of “education debt” referenced in the bill.

Compiled from official sources — confirm details with the bill’s official record.

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