AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR PRINCIPAL AND INTEREST PAID ON POSTSECONDARY EDUCATION LOANS.

Plain English Breakdown

The bill has passed both chambers but no effective date is listed, so it may take effect at a later time or require further action.

Tax Deduction for College Loan Payments

This bill creates a new tax deduction that lets taxpayers subtract up to $10,000 of their college loan payments from their taxable income.

What This Bill Does

• Creates a personal income tax deduction for money paid on postsecondary education loans.
• Allows the deduction to cover both principal and interest amounts paid during the year.
• Sets a maximum limit of $10,000 for the total amount that can be deducted in one taxable year.

Who It Names or Affects

• Taxpayers who pay principal or interest on postsecondary education loans

Limits and Unknowns

• The official text does not specify if the deduction applies only to loans used by the taxpayer themselves.
• No effective date is provided in the official status information.

Official Summary Text

To establish a personal income tax deduction of up to ten thousand dollars for the amount of principal and interest paid by a taxpayer for a taxable year on a postsecondary education loan.

Current Bill Text

LCO No. 857 1 of 1

General Assembly Proposed Bill No. 5131
February Session, 2026 LCO No. 857

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. CALLAHAN, 108th Dist.
REP. POLLETTA, 68th Dist.

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
FOR PRINCIPAL AND INTEREST PAID ON POSTSECONDARY
EDUCATION LOANS.
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 ten thousand dollars for the 2
amount of principal and interest paid by a taxpayer for a taxable year 3
on a postsecondary education loan. 4
Statement of Purpose:
To establish a personal income tax deduction of up to ten thousand
dollars for the amount of principal and interest paid by a taxpayer for a
taxable year on a postsecondary education loan.