HB4736 Summary

• Creates a new tax deduction for qualified workers who receive student loan repayment assistance from qualified community foundations, effective for taxable years beginning on or after January 1, 2025.

• Defines "qualified worker" as a full-time employee of specific business types (qualified new business ventures, targeted growth industries, minority/women/disability-owned businesses, or non-profits) working in designated areas (Enterprise Zones, Opportunity Zones, underserved areas, or low bachelor's degree attainment areas).

• Requires qualified workers to be U.S. citizens or eligible non-citizens with either a bachelor's degree and outstanding student loans, or educational debt from skilled trades training, and cannot receive other student loan forgiveness.

• Defines "student loan repayment assistance" as grants or post-graduation scholarships made directly to student loan servicers on behalf of qualified workers by qualified community foundations.

• Provides the deduction is exempt from Section 250 limitations and establishes definitions for targeted growth industries (advanced manufacturing, agribusiness, transportation/logistics, life sciences, business services, and energy).