SB 622

This bill creates an individual income tax subtract modification, or deduction,

for interest paid by a claimant on certain qualified education loans, to the extent that

the claimant has not already deducted such interest from his federal taxes. Under

federal law, a deduction for qualified education loan interest exists but the deduction

is capped at $2,500 per year, and the maximum deduction amount is phased down

to zero as the claimant's income rises to the annual income limit that is set under

federal law.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.