SB3273 Summary

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

• Defines "qualified worker" as a full-time employee of a business meeting specific criteria (qualified new business venture, targeted growth industry, minority/women-owned business, or non-profit) located in designated economically disadvantaged areas, who holds a bachelor's degree or skilled trade education with outstanding student loan debt.

• Requires the individual to be a U.S. citizen or eligible non-citizen and prohibits them from receiving any other form of student loan forgiveness to claim the deduction.

• Defines "qualified community foundation" as a community foundation or publicly supported organization that complies with national community foundation standards and is organized or operating in Illinois.

• Deduction amount equals the student loan repayment assistance (grants or post-graduation scholarships) paid directly to student loan servicers on behalf of qualified workers and is exempt from Section 250 provisions.