Section 1: (a) An employer shall be permitted a deduction against the taxes imposed pursuant to chapter 63 of the General Laws for student loan payment assistance made to employees. The deduction allowed under this section applies only to student loans incurred by a qualified employee while attending an accredited institution of higher education, for principal or interest on a qualified education loan, as defined by sec. 221 of the Code.
(b) The employer is permitted a tax deduction not to exceed $3,600.00 per qualified employee in any tax year for which the employer makes student loan payment assistance directly to the employee or to the qualified loan holder on behalf of the employee.
(c) Monies received by the employee from the employer for student loan payment assistance shall not be considered taxable income under Ch. 62, Sec 3 of the General Laws.
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