This bill amends the Tax Reform Code of 1971 by adding a new subsection to Section 303, which outlines specific classes of income that will not be subject to personal income tax. The new provisions include the discharge of eligible student loans under qualified loan forgiveness programs and amounts paid by employers for educational assistance that are excludable under the Internal Revenue Code. The bill defines "eligible student loan" and "qualified loan forgiveness program" to clarify the types of loans and programs that fall under these exemptions.

The changes introduced by this bill will take effect for taxable years beginning after December 31, 2025. This means that individuals and employers will not be taxed on the specified educational financial assistance starting in the 2026 tax year. The bill aims to provide financial relief to borrowers and promote educational support from employers.

Statutes/Laws affected:
Printer's No. 843 (Mar 05, 2025): P.L.6, No.2
Printer's No. 0843: P.L.6, No.2