S580 • 2026

Allows gross income tax deduction for certain student loan interest.

Budget Education Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Beach, James
Last action: 2026-05-18
Official status: Referred to Senate Budget and Appropriations Committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Allows gross income tax deduction for certain student loan interest.

What This Bill Does

Allows gross income tax deduction for certain student loan interest.
Topic: Budget and Appropriations Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-05-18 New Jersey Legislature
Reported from Senate Committee as a Substitute, 2nd Reading
2026-05-18 New Jersey Legislature
Referred to Senate Budget and Appropriations Committee
2026-01-13 New Jersey Legislature
Introduced in the Senate, Referred to Senate Higher Education Committee

Official Summary Text

Allows gross income tax deduction for certain student loan interest.
Topic:
Budget and Appropriations
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text

S580 SCS

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 580

STATE OF NEW JERSEY

222nd LEGISLATURE

�
ADOPTED
MAY 18, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

Senator� ROBERT W. SINGER

District 30 (Monmouth and Ocean)

Co-Sponsored by:

Senator Amato

SYNOPSIS

���� Allows gross income tax deduction for certain student
loan interest.

CURRENT VERSION OF TEXT

���� Substitute as adopted by the Senate Higher Education
Committee.

��

An Act

allowing a gross
income tax deduction for interest paid on certain student loans and
supplementing chapter 3 of Title 54A of the New Jersey Statutes.

����
Be It Enacted

by the Senate and General Assembly of the State of New Jersey:

���� 1.��� a.� A taxpayer with
gross income of $85,000 or less shall be allowed a deduction, not to exceed
$2,500, from the taxpayer�s gross income for the taxable year in the amount of
interest payments paid on a qualified education loan, other than interest paid
on a student loan under the New Jersey College Loans to Assist State Students
Program for which a deduction is allowed pursuant to section 4 of P.L.2021,
c.128 (C.54A:3-13).

���� b.� As used in this section, �qualified
education loan� means any indebtedness incurred by the taxpayer solely to pay higher
education expenses which are incurred on behalf of the taxpayer, the taxpayer�s
spouse, or any dependent of the taxpayer at the time the indebtedness occurred.

���� 2.��� This act shall take
effect immediately and shall apply to taxable years beginning on or after the
January 1 next following the date of enactment.