Creating a nonrefundable individual income tax credit for interest paid on certain student loans

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under federal law, there is deduction for up to $2,500 in student loan interest paid in the year to which the claim relates for indebtedness incurred for educational expenses for a taxpayer, the taxpayer's spouse, or the taxpayer's dependent. This deduction applies for Wisconsin purposes as well.

This bill creates a nonrefundable individual income tax credit for interest payments paid by a claimant on a loan that is used for the educational expenses of the claimant, the claimant's spouse, or the claimant's dependent. Under the bill, the credit may be claimed for 50 percent of the interest paid by the claimant on a loan, the proceeds of which are used to pay for tuition, fees, books, room and board, and educational supplies that are directly related to the claimant's attendance, or the attendance of the claimant's spouse or dependent, at a regionally accredited, nonprofit, postsecondary educational institution.

Who's behind it

Kim Hixson, a Democrat, is its author⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DOR

Versions and amendments

Every text the Legislature printed for this bill, including proposed changes. Each opens on the Legislature's site.

• Amendment AA1-AB908