LRB-1967/1
MES:jld:ph
2009 - 2010 LEGISLATURE
April 9, 2009 - Introduced by Senators Darling, Leibham, Kedzie, A. Lasee, Hopper,
Schultz, Plale and
Taylor, cosponsored by Representatives Vos, Knodl,
Gunderson, A. Ott, Bies, Jorgensen, Lothian, Kramer, Brooks, Murtha,
Kleefisch, Strachota, Nass, Spanbauer and Van Roy. Referred to Committee
on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue.
SB166,1,3
1An Act to create 71.05 (6) (b) 47. of the statutes;
relating to: creating an
2individual income tax deduction for any amount of interest paid on certain
3loans that are used for educational expenses.
Analysis by the Legislative Reference Bureau
Generally under current federal law, students may claim an income tax
deduction for up to $2,500 of interest that they pay each year on qualified student
loans for themselves, their spouse, or their dependents. This federal deduction
phases out as the claimant's modified adjusted gross income increases.
This bill creates an individual income tax deduction for any amount of interest
that is paid on certain educational expenses loans. The loans to which the exemption
applies are loans that are used to pay for tuition and other educational expenses that
are directly related to the claimant's, or the claimant spouse's, attendance at certain
accredited, nonprofit, postsecondary educational institutions.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB166, s. 1
1Section
1. 71.05 (6) (b) 47. of the statutes is created to read:
SB166,2,52
71.05
(6) (b) 47. Any amount of interest paid on a loan, the proceeds of which
3are used to pay for tuition, fees, books, room and board, and educational supplies that
4are directly related to the claimant's, or the claimant spouse's, attendance at an
5eligible educational institution, as defined in s. 18.81 (2).
SB166,2,107
(1) This act first applies to taxable years beginning on January 1 of the year
8in which this subsection takes effect, except that if this subsection takes effect after
9July 31 this act first applies to taxable years beginning on January 1 of the year
10following the year in which this subsection takes effect.
