Introduced

Passed House

Passed Senate

Became law

Adjourned sine die. The bill was pending when the session ended, so it did not pass.

Last action · January 15, 2026

To Appropriations & Revenue (H)

Introduced January 8, 2026

House

Adjourned Sine Die

2026 Regular Session

HB237

AN ACT relating to the employer student loan repayment credit.

Create a new section of KRS Chapter 141 to establish the employer student loan repayment credit, equal to 50% of the amount paid by an employer on an eligible student loan of a qualified employee effective for taxable years beginning January 1, 2026, but before January 1, 2030; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Education, Higher Reports Mandated Taxation Taxation, Income--Corporate Taxation, Income--Individual

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This bill would create a new tax credit for Kentucky employers who help pay down their employees' student loans. Employers could claim a credit worth 50% of what they pay toward a qualifying employee's student loan, available for tax years 2026 through 2029. The Department of Revenue would be required to report on how the credit is being used. Who it may affect: employers who choose to offer student loan repayment as a workplace benefit, and employees carrying student loan debt.

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