HB4659 Summary

• Creates income tax deductions for educational assistance program payments starting January 1, 2023, limited to $5,250 per individual annually.

• Allows employers to deduct amounts paid on behalf of employees for educational assistance programs under Section 127 of the Internal Revenue Code.

• Allows employees/self-employed individuals to deduct amounts paid on behalf of their employees for educational assistance programs, capped at $5,250 per individual.

• Both deductions are exempt from the provisions of Section 250 and apply regardless of whether amounts are included in federal adjusted gross income.

• Effective immediately upon becoming law.