SB 529

This bill creates a refundable individual income tax credit for student loan

payments made by certain graduates of regionally accredited, nonprofit,

post-secondary institutions.

Under the bill, an individual who graduates with a degree in a high-demand

field, as determined by the Department of Workforce Development, and works

full-time in this state may claim a credit. The allowable credit amount is equal to

25 percent of the student loan payments the claimant makes to a lender in the year

to which the claim relates. If the claimant owns a home in this state, the claimant

may claim a credit amount that is equal to 35 percent of such student loan payments.

A claimant may claim the credit for no more than five years, which need not be

consecutive, and the credit is not available to nonresidents or part-year residents of

this state. The maximum credit that may be claimed by a claimant is $2,000 each

taxable year. Because the credit is refundable, if the allowable amount of credit

exceeds the claimant's tax liability, the difference is refunded to the claimant by

check.