Relates to modifications reducing federal adjusted gross income

This bill allows taxpayers to subtract interest paid on qualified education loans and specific "education debt" from their taxable income. It creates two deduction options: (A) interest on loans already deductible under federal tax rules (26 U.S.C. §221), and (B) interest on state or federal student loans used solely for undergraduate tuition/expenses at college. Taxpayers cannot claim both deductions for the same expenses. The policy directly affects individuals with education-related debt who file state tax returns in this jurisdiction.