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HR 1801119th CongressIntroduced
Employer Participation in Repayment Act
Introduced: Oct 29, 2025
Economy & TaxesEducationLabor & Employment
Standard Summary
Comprehensive overview in 1-2 paragraphs
This legislation permanently extends the tax exclusion allowing employers to contribute up to $5,250 annually toward employees' student loans without the amount being considered taxable income, which was previously scheduled to expire on December 31, 2025, under the Internal Revenue Code.
Key Points
- 1The bill amends Section 127(c)(1)(B) of the Internal Revenue Code to remove the 2025 expiration date for employer student loan repayment tax exclusions.
- 2Employers currently provide tax-free student debt assistance up to $5,250 per employee annually under a temporary provision set to lapse in 2026.
- 3Permanent exclusion would incentivize broader employer adoption of student loan repayment benefits as a competitive workplace offering without increasing employee tax burdens.
Impact Areas
Employers implementing student loan repayment assistance programsEmployees with outstanding higher education debt seeking employer benefitsFederal tax revenue from employee compensation and benefits
Generated by legislative-analysis-ai-v3 on Nov 3, 2025