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.

Introduced: January 8, 2026

Last action: January 15, 2026

To Appropriations & Revenue (H)

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This bill would create a new tax credit for Kentucky employers who help their workers pay off student loans. Starting in 2026 and running through 2029, employers could claim a credit worth 50% of what they pay toward an eligible employee's student loan. The Department of Revenue would be authorized to report on how the credit is being used. Who it may affect: employers who offer student loan repayment benefits, and employees carrying student loan debt.

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