Employer Participation in Repayment Act

This legislation seeks to make permanent the existing tax exclusion for certain employer payments of student loans. Currently, the Internal Revenue Code allows employers to contribute up to $5,250 annually towards an employee's student loans on a tax-free basis, but this provision is set to expire on January 1, 2026 . The bill achieves this by striking the sunset clause from Section 127(c)(1)(B) of the Internal Revenue Code of 1986. By removing this expiration date, the measure ensures that employer-provided student loan repayment assistance remains a tax-exempt benefit for employees indefinitely. This change would apply to all payments made after the date of the bill's enactment, providing long-term stability for this employee benefit.