H.B. No. 281 Summary

• Enacts the "Blair Deduction" allowing recent college graduates to claim an income tax deduction for qualified higher education expenses up to $10,000 per year.

• Eligible individuals must have graduated from an eligible educational institution with an associate, technical, baccalaureate, master's, professional, or other advanced degree on or after the bill's effective date.

• Qualified higher education expenses include tuition, fees, books, supplies, equipment, room and board, and special needs services, excluding scholarships, grants, gifts, and amounts covered by federal tax credits or deductions.

• Taxpayers may claim the deduction in the taxable year immediately following graduation and for subsequent years, provided total deductions across all years do not exceed the total qualified expenses paid.

• Taxpayers may defer the deduction for any taxable year during which they are enrolled full-time in an eligible educational institution pursuing a more advanced degree, and must maintain records for inspection by the tax commissioner.