HI HB1276

Allows Hawaii individual taxpayers to deduct up to $5,000 per taxable year for student loan interest paid on qualified education loans as defined by federal law (26 U.S.C. § 221).

Adds a new section to Chapter 235 of Hawaii Revised Statutes establishing the deduction from gross income.

Requires the Director of Taxation to prepare forms necessary to claim the deduction and may require taxpayers to provide reasonable information to validate claims.

Effective July 1, 2017, and applies to taxable years beginning after December 31, 2016.

Intended to encourage Hawaii residents to pursue postsecondary education by reducing the burden of student loan debt.