Relating to: an income tax subtraction for payments on education loans. (FE)

AB 594 creates a state income tax subtraction for Wisconsin taxpayers who pay principal or interest on qualified education loans (defined by federal tax code). It allows a deduction of up to $5,130 for 2026, adjusted annually based on the previous year's August CPI inflation rate (rounded to the nearest $10). The subtraction excludes amounts withdrawn from college savings accounts and payments already deducted for federal income tax purposes. This policy directly affects Wisconsin residents with qualifying education loans by reducing their state taxable income.