Student Loan Repayment Act of 2017

“(K) a qualified student loan repayer.”

“(16) Qualified student loan repayer—The term qualified student loan repayer means any individual who is certified by the designated local agency as—

“(A) having at least an associate’s degree; and

“(B) having outstanding qualified education loans (as defined in section 221) of not less than $10,000.”

“45S. Student loan program startup costs credit

“(a) In general—For purposes of section 38, in the case of an eligible employer, the student loan program startup costs credit determined under this section for any taxable year is an amount equal to 50 percent of the qualified startup costs paid or incurred by the taxpayer during the taxable year.

“(b) Dollar limitation—The amount of the credit determined under this section for any taxable year for a qualified employer shall not exceed—

“(1) for the first credit year and each of the 2 taxable years immediately following the first credit year, the product of—

“(A) $500, multiplied by

“(B) the number of employees participating during such taxable year in an eligible employer plan for which the employer is eligible for a credit under this section, and

“(2) for any other taxable year, zero.

“(c) Eligible employer—For purposes of this section, the term eligible employer means an employer if such employer, or any member of any controlled group including the employer (or any predecessor of either), during the 3-taxable-year period immediately preceding the first taxable year for which the credit under this section is otherwise allowable for a qualified employer plan of the employer, has not established or maintained a qualified employer plan with respect to which contributions were made, or benefits were accrued, for substantially the same employees as are in the qualified employer plan.

“(d) Other definitions—For purposes of this section—

“(1) Qualified startup costs

“(A) In general—The term qualified startup costs means any ordinary and necessary expenses of an eligible employer which are paid or incurred in connection with the establishment or administration of an eligible employer plan. Such term shall not include any payment made to, or on behalf of, any employee pursuant to such plan.

“(B) Plan must have at least one participant—Such term shall not include any expense in connection with a plan that does not have at least one employee eligible to participate who is not a highly compensated employee.

“(2) Eligible employer plan—The term eligible employer plan means a student loan repayment plan administered by an employer through which the employer provides, for each employee for each year, qualified matching contributions.

“(3) Qualified matching contribution—The term qualified matching contribution means an employer contribution made to an eligible employer plan on behalf of an employee on account of an employee contribution made by such employee if such employer contribution is at least the lesser of—

“(A) the amount of such employee contribution, and

“(B) $2,000.

“(4) First credit year—The term first credit year means—

“(A) the taxable year which includes the date that the eligible employer plan to which such costs relate becomes effective, or

“(B) at the election of the eligible employer, the taxable year preceding the taxable year referred to in subparagraph (A).

“(e) Special rules—For purposes of this section—

“(1) Aggregation rules—All persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as one person. All eligible employer plans shall be treated as one eligible employer plan.

“(2) Disallowance of deduction—No deduction shall be allowed for that portion of the qualified startup costs paid or incurred for the taxable year which is equal to the credit determined under subsection (a).

“(3) Deduction for matching contribution—For deductions for qualified matching contributions, see section 162.

“(4) Election not to claim credit—This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.”