HB3746 Summary

• Creates a deduction for individuals, trusts, and estates under the Illinois Income Tax Act for qualified student loan payments made during the taxable year, effective for taxable years ending on or after December 31, 2017.

• The deduction applies to payments on any qualified education loan, including principal and interest payments, but only to the extent the taxpayer was not entitled to a deduction under Section 221 of the Internal Revenue Code.

• The deduction includes both payments made directly by the taxpayer and payments made by the taxpayer's employer on behalf of the taxpayer.

• The bill defines "qualified education loan" using the same meaning as Section 221 of the Internal Revenue Code.

• The deduction is permanently exempt from the Act's automatic sunset provisions, meaning it will not expire automatically and will remain in effect indefinitely.