Bill > S04436

This bill establishes a personal income tax deduction for the interest paid on student loans by individual taxpayers having a federal adjusted income between $65,000 and $125,000, and married taxpayers filing jointly having a federal adjusted income between $130,000 and $250,000. The deduction is capped at $2,500 and applies to the difference between the interest paid on student loans and the amount deducted on the taxpayer's federal adjusted gross income. The term "student loan" is defined as in the existing law. The bill takes effect immediately and applies to the current and all subsequent taxable years.