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S 772119th 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 a tax exclusion allowing employers to contribute up to $5,250 annually toward employees' student loans without those payments being treated as taxable income, which was originally set to expire on January 1, 2026, under previous temporary provisions.
Key Points
- 1The bill amends Section 127(c)(1)(B) of the Internal Revenue Code to eliminate the January 1, 2026 sunset date for employer student loan repayment tax exclusions.
- 2Employers can continue providing tax-free student loan assistance up to $5,250 per employee annually without triggering income tax liability for workers.
- 3The provision applies retroactively to payments made after the bill's enactment date, ensuring immediate and permanent continuity for existing employer repayment programs.
Impact Areas
Employers offering student loan repayment benefitsEmployees with outstanding student debt obligationsFederal tax revenue collection mechanismsCorporate human resources and benefits administration
Generated by legislative-analysis-v3 on Nov 1, 2025