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

Plain English Breakdown

The official source material does not specify if there is an annual limit of $10,000 on the deduction. The candidate explanation's claim about this limit was removed as it cannot be verified from the provided sources.

Tax Deduction for Education Loan Payments

This act allows people who pay back loans for their college or other post-high school education to deduct up to $10,000 from their income tax.

What This Bill Does

• Creates a new personal income tax deduction of up to $10,000 for the amount paid on principal and interest for postsecondary education loans.
• Applies this deduction to payments made in a single year (taxable year).

Who It Names or Affects

• People who have taken out loans for their college or other post-high school education.
• Taxpayers who make payments on these loans and file personal income tax returns.

Terms To Know

Postsecondary education loan

A loan given to help pay for education after high school, such as college or vocational training.

Taxable year

The period (usually one calendar year) used by the government to calculate income taxes due.

Limits and Unknowns

• It is not clear if there are any limits on how many years a person can claim this deduction.
• This bill has passed both chambers of the legislature but it's unclear what further actions or approvals might be needed before it becomes law.

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.