HB3098 Summary

• Creates a new deduction under the Illinois Income Tax Act for individuals, trusts, and estates for qualified education loan payments made during the taxable year, effective for tax years ending on or after December 31, 2019.

• Allows deduction of any payment made toward qualified education loan indebtedness, including principal and interest payments, but only to the extent the taxpayer was not entitled to a federal deduction under Internal Revenue Code Section 221.

• Applies to payments made by the taxpayer directly and to payments made by the taxpayer's employer on behalf of the taxpayer.

• Defines "qualified education loan" using the same meaning as in Internal Revenue Code Section 221.

• Exempts this deduction from Illinois' automatic sunset provisions, meaning it will remain in effect indefinitely unless specifically repealed.