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Sen. Edward J. Kennedy files bill to encourage employer student loan repayment
Summary
Senator Edward J. Kennedy filed a bill on Jan. 13, 2025, proposing tax deductions—capped at $2,000—for principal payments on employees' education debt made by employers and creating a corresponding corporate tax deduction.
Senator Edward J. Kennedy filed a bill with the Massachusetts General Court on Jan. 13, 2025, that would allow employers to claim deductions for principal payments they make on employees’ education debt, capped at $2,000 per employee. The filing appears as Senate No. 2024 and is titled “An Act encouraging employer student loan repayment.”
The bill would amend existing language in Chapter 62 and Chapter 63 of the Massachusetts General Laws. It would insert a new subclause (J) into subsection (d) of Section 2 of Chapter 62 to permit “an amount equal to the principal payments on education debts paid by an employer on behalf of an employee who is a resident of the commonwealth,” with a per-employee deduction limit of $2,000. The bill references the definition of “education debt” as set out in paragraph (12) of subsection (a) of Part B of Section 3.
Separately, the bill would add Section 38GG to Chapter 63 to allow business corporations to deduct from net income an amount equal to principal payments on education debts paid by the corporation on behalf of an employee who is a resident of the commonwealth, again with a $2,000 cap per employee.
The filing text notes similar matter was filed in the 2023–2024 session as Senate No. 1851. The bill language in the filing shows only the proposed statutory insertions and the $2,000 per-employee cap; it does not include implementation details, effective dates, or fiscal estimates in the submitted text.
No committee referral, legislative action, votes, or public testimony are recorded in the document submitted with the bill filing. Further legislative steps, including committee assignment or hearings, are not specified in the filing.
