AB 386
Personal Income Tax Law: Corporation Tax Law: credits: student loan payments.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Sign in to take action- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a state tax credit for businesses to help offset student loan payments made on behalf of their full-time employees. Employers can claim a credit of up to $3,000 per employee annually, with a total annual cap of $25 million. The credit is available for taxable years beginning in 2026 and before 2032, and it also provides an exclusion from gross income for student loan payments made by employers. The bill includes provisions for allocating the credit and prioritizing certain businesses, such as veteran-owned, women-owned, and small businesses.
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