An act relating to the deduction for student loan payments

This bill expands Vermont's personal income tax deduction for student loan payments to include both interest and principal amounts paid on qualifying education loans. It directly affects Vermont residents who pay student loans for eligible educational institutions and meet specific income limits, allowing them to deduct these payments from their taxable income. The bill applies to taxpayers with adjusted gross incomes of $120,000 or less for single filers and $200,000 or less for married couples filing jointly, using federal definitions for what counts as a qualified education loan and eligible institution. The changes take effect retroactively to January 1, 2023, and apply to all taxable years beginning on or after that date.