AB 303

This bill creates a nonrefundable individual income tax credit for interest

payments paid by a claimant on a loan that is used for the claimant's educational

expenses. Under the bill, the credit may be claimed for any amount of 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 at a regionally accredited, nonprofit, postsecondary

educational institution.

The maximum amount of credits that may be claimed each year is $15,000,000.

The bill requires the department of revenue to create a procedure to ensure that this

limit is not exceeded.

Because the credit is nonrefundable, it may be claimed only up to the amount

of a claimant's income tax liability. The credit may not be claimed by nonresidents

or part-year residents of this state.