CT HB06445

Establishes a personal income tax deduction for interest paid on qualified student loans, effective for taxable years beginning January 1, 2015.

Allows a maximum annual deduction of $2,500 per taxpayer for student loan interest payments.

Defines "qualified student loans" as loans taken to pay education expenses for the taxpayer, spouse, or dependent at an eligible institution of higher education, including graduate school.

Limits the deduction to taxpayers with modified adjusted gross income below $80,000 (or $160,000 for joint filers) and excludes those filing as married filing separately or claimed as dependents by another person.

Qualifies education expenses include tuition, fees, room and board, books, supplies, equipment, and transportation at institutions eligible to participate in federal student aid programs.