SECTION 1. Subsection (d) of section 2 of chapter 62 of the General Laws, appearing in the 2020 Official Edition, is hereby amended by inserting after subclause (I), the following subclause:-

(J) 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; provided, however, that the amount of the deduction shall not exceed $2,000. For purposes of this subclause, “education debt” shall have the same meaning as defined in paragraph (12) of subsection (a) of Part B of section 3.

SECTION 2. Chapter 63 of the General Laws, as appearing the 2020 Official Edition, shall hereby be amended by inserting after section 38JJ the following new section:-

Section 38KK. (a) For the purposes of this section, “education debt” shall have the same meaning as defined in paragraph (12) of subsection (a) of Part B of section 3 of chapter 62.

(b) In determining the net income subject to tax under this chapter, a business corporation shall be allowed a deduction of an amount equal to the principal payments on education debts paid by the business corporation on behalf of an employee who is a resident of the commonwealth; provided however, that the deduction taken for payments on education debts paid on behalf of any individual employee shall not exceed $2,000.