HB 6891 Summary

• Creates a Connecticut personal income tax deduction for student loan interest payments, effective for taxable years beginning January 1, 2020

• Limits the maximum annual deduction to $2,500 per taxpayer for interest paid on qualified student loans taken to pay education expenses

• Restricts eligibility to taxpayers with modified adjusted gross income below $75,000 (single/head of household) or $150,000 (married filing jointly), and excludes married filing separately filers

• Defines "qualified student loans" as loans taken solely to pay qualified education expenses at eligible institutions for the taxpayer, spouse, or dependent, with expenses including tuition, fees, room and board, books, supplies, and transportation

• Requires taxpayers to be at least half-time students in a certificate or degree program and legally obligated to pay the interest to claim the deduction