HB2568 Summary

• Creates income tax deductions for educational assistance programs under Section 127 of the Internal Revenue Code, effective for taxable years beginning January 1, 2024.

• Allows employers to deduct amounts paid on behalf of employees for educational assistance, limited to $5,250 per individual annually.

• Permits employees/business owners to deduct amounts they pay on behalf of employees for educational assistance, also limited to $5,250 per individual per year.

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

• Takes effect immediately upon becoming law.