WI SB601

Creates a new Wisconsin state income tax deduction for principal and interest payments on qualified education loans, effective for tax years beginning after December 31, 2025

Sets the maximum deduction at $5,130 for the 2026 tax year, with annual inflation adjustments based on the U.S. Consumer Price Index beginning in 2027

Excludes payments made using funds withdrawn from college savings accounts (529 plans) from the deduction

Prevents double-dipping by disallowing the state subtraction for any interest already deducted under federal law (current federal deduction allows up to $2,500 annually)

Referred to the Senate Committee on Agriculture and Revenue; introduced October 30, 2025