Making permanent the tax exclusion for employer student loan repayments.
This bill permanently excludes from federal taxation the money employers contribute toward their employees' student loan repayments. This means employees receiving this financial aid will not pay income tax on those amounts, effectively increasing their take-home pay and easing the burden of educational debt. The change removes the previous expiration date, making this tax benefit a permanent feature of the tax code.
Key points
Financial benefit for employees: Money received from an employer for student loan repayment will not be counted as taxable income.
Permanent change: The tax exclusion, previously set to expire in January 2026, is made indefinite.
Incentive for employers: Encourages companies to offer this type of benefit as an attractive part of their compensation packages.
Expired
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