SB1313 Summary

• Creates income tax deductions for educational assistance programs under Section 127 of the Internal Revenue Code, effective for taxable years beginning January 1, 2023.

• Allows employees to deduct up to $5,250 annually in employer-provided educational assistance, regardless of whether included in federal adjusted gross income.

• Allows employers to deduct up to $5,250 annually in educational assistance payments made on behalf of employees.

• Both deductions are limited to the first $5,250 of educational assistance furnished to any individual per year.

• Takes effect January 1, 2024.