AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR PRINCIPAL AND INTEREST PAID ON POSTSECONDARY EDUCATION LOANS.

HB 5131 would create a personal income tax deduction of up to $10,000 annually for taxpayers who pay principal and interest on postsecondary education loans. This deduction directly affects individuals with student loan debt who file state income taxes. The bill establishes this as a specific line-item deduction in the state tax code, reducing taxable income by the amount paid toward qualifying loans. It applies to both the principal and interest portions of the loan payments made during a taxable year. The policy change aims to provide tax relief for borrowers without specifying income thresholds or other eligibility conditions.