Summary of Bill S 1963: Excluding the Segal AmeriCorps Educational Award from Taxable Income

Purpose and Intent

Bill S 1963 aims to amend the Massachusetts General Laws to exclude the Segal AmeriCorps Educational Award from taxable income. This legislative change is intended to provide financial relief to individuals who have completed a term of service in the AmeriCorps program, allowing them to utilize their educational awards without the burden of taxation.

Key Provisions

• Amendment to Tax Law: The bill proposes an amendment to Section 3 of Chapter 62 of the Massachusetts General Laws. Specifically, it adds a new subparagraph (20) to paragraph (a) of Subsection B, which states:

  • The Segal AmeriCorps Educational Award will not be considered taxable income.

• Eligibility: The Segal AmeriCorps Educational Award is available to individuals who successfully complete a term of service in the AmeriCorps program. The award can be used for:

  • Paying education costs at eligible institutions of higher learning, including technical schools.
  • Educational training.
  • Repaying qualified student loans, as determined by federal eligibility criteria.

Impact

• Beneficiaries: This bill primarily affects AmeriCorps participants who receive the Segal Educational Award. By excluding this award from taxable income, the bill aims to enhance the financial viability of educational pursuits for these individuals.

• Financial Relief: The exclusion from taxable income could lead to significant savings for recipients, enabling them to allocate more funds toward their education or loan repayments.

Procedural Aspects

• Introduced: The bill was introduced on February 27, 2025, by Senator William J. Driscoll, Jr., with co-sponsorship from Dylan A. Fernandes.

• Committee Referral: Upon introduction, the bill was referred to the Committee on Revenue.

• Hearing Scheduled: A public hearing is scheduled for November 18, 2025, from 10:00 AM to 1:00 PM in room A-1, providing an opportunity for stakeholders to discuss the bill's implications.

• Effective Date: If passed, the law will take effect 180 days after its passage.

Related Legislation

• This bill is related to Senate Docket No. 1874, which addresses similar matters concerning the Segal AmeriCorps Educational Award.

In summary, Bill S 1963 seeks to alleviate the financial burden on AmeriCorps participants by ensuring that their educational awards are not subject to state income tax, thereby supporting their educational and professional development.