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Read. Follow. Verify.Kentucky House Bill 237 creates employer tax credit for student loan repayments
Last action · January 15, 2026: to Appropriations & Revenue (H)Sponsor: Nima Kulkarni
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What This Bill Proposed
Kentucky HB 237 establishes a nonrefundable, nontransferable tax credit for qualified employers equal to 50% of payments made toward outstanding student loan principal balances for eligible employees, effective for taxable years beginning between January 1, 2026, and January 1, 2030.
Local businesses face new tax incentives to help employees pay off qualifying education debt, potentially altering recruitment strategies and staff retention timelines for recent graduates across the state.
- Kentucky's tax laws are codified under Kentucky Revised Statutes (KRS) Chapter 141, which governs corporate and individual income taxes as well as tax credits. context
- The Interim Joint Committee on Appropriations and Revenue is a statutory committee of the Kentucky General Assembly responsible for reviewing state budget and revenue matters. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Qualified employers
Businesses doing business in Kentucky that choose to make student loan repayments on behalf of qualified employees can claim a 50% nonrefundable tax credit against specific state taxes.
Qualified employees
Recent college graduates working at least 35 hours a week in Kentucky may receive employer-paid contributions toward their eligible student loan principal balances.
Kentucky Department of Revenue
The department must process tax credit claims, specify reporting formats, and compile annual data reports for the Interim Joint Committee on Appropriations and Revenue.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Which employees qualify for the student loan repayment tax credit?
How much is the tax credit worth to employers?
Can employers carry forward unused tax credits to future years?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Jan 15, 2026HouseCommitteeto Appropriations & Revenue (H)
- Jan 8, 2026HouseIntroducedintroduced in House to Committee on Committees (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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