Bill > H5759

This bill amends Rhode Island's personal income tax law to allow taxpayers to deduct interest payments made on outstanding student loans from their federal adjusted gross income (AGI). Specifically, the bill adds a new provision (Section 14) to the existing tax code that permits taxpayers to subtract the total amount of student loan interest payments from their federal AGI when calculating their Rhode Island state income tax. This means that individuals who are paying off student loans can reduce their taxable income by the amount of interest they pay each year, potentially lowering their overall state tax liability. The modification will take effect for tax years beginning on or after January 1, 2025, providing a potential financial benefit for Rhode Island residents with student loan debt. The bill is a straightforward attempt to provide some tax relief to individuals managing student loan repayments by allowing them to exclude loan interest payments from their state taxable income.

Budget and Finance

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