Bill > S580

This bill allows individuals with a gross income of $85,000 or less to deduct up to $2,500 in interest payments made on a "qualified education loan" from their gross income for tax purposes. A qualified education loan is defined as any debt taken out solely to pay for higher education expenses for the taxpayer, their spouse, or a dependent at the time the debt was incurred. This deduction is intended to provide tax relief for those paying off student loan interest, with the exception of interest on loans specifically under the New Jersey College Loans to Assist State Students Program, for which a separate deduction already exists. The bill takes effect immediately and applies to tax years beginning on or after January 1st following its enactment.