AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR STUDENT LOAN PAYMENTS.

Plain English Breakdown

Checked against official source text during the last sync.

Student Loan Tax Deduction Act

This act allows people who pay back their student loans to deduct up to $1,000 from their income tax.

What This Bill Does

• Creates a new deduction for personal income taxes.
• Limits the deduction amount to $1,000 per year.
• Applies only to payments made towards student loans.

Who It Names or Affects

• People who pay back their student loans and file state income tax returns.

Terms To Know

Tax Deduction

An amount that can be subtracted from your total income to lower the taxes you owe.

Student Loan

Money borrowed to pay for education costs like tuition, books, and living expenses.

Limits and Unknowns

• The bill does not specify how long this deduction will be available.
• It is unclear if there are any other requirements besides making student loan payments.

Official Summary Text

To establish a personal income tax deduction of up to one thousand dollars for student loan payments made by a taxpayer for a taxable year.

Current Bill Text

LCO No. 420 1 of 1

General Assembly Proposed Bill No. 5054
February Session, 2026 LCO No. 420

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. CARNEY, 23rd Dist.

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
FOR STUDENT LOAN PAYMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 229 of the general statutes be amended to establish a 1
personal income tax deduction of up to one thousand dollars for student 2
loan payments made by a taxpayer for a taxable year. 3
Statement of Purpose:
To establish a personal income tax deduction of up to one thousand
dollars for student loan payments made by a taxpayer for a taxable year.