Allows a deduction from federal adjusted gross income for interest payments on outstanding student loans.
Impact
If enacted, HB 5759 would specifically modify the existing tax laws concerning the personal income tax brackets in Rhode Island. The introduction of this deduction aims to make higher education more accessible by lightening the student debt load, which has become a significant concern among young professionals and working families. This change could lead to a considerable financial impact on state revenues, which lawmakers will need to evaluate to ensure fiscal sustainability while addressing the needs of their constituents.
Summary
House Bill 5759 seeks to amend Rhode Island's personal income tax laws by introducing a tax deduction for interest payments on outstanding student loans. This legislation is presented as a financial relief measure for residents burdened by student debt. By allowing individuals to subtract these payments from their federal adjusted gross income, the bill aims to alleviate some of the financial pressures associated with student loan repayment, potentially making it easier for borrowers to manage their financial obligations and stimulate local economies as residents have more disposable income.
Contention
While proponents of the bill argue it represents a necessary step toward providing financial relief to student borrowers, there may be concerns regarding the implications for state tax revenue. Opponents might argue that providing such deductions could disproportionately benefit higher-income earners who are more likely to have substantial student loan interest payments, thereby raising questions about equity in tax policy. The bill is likely to generate discussion regarding whether it truly addresses the affordability of higher education or merely serves as a temporary fix for a deeper systemic issue.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.
Allows a modification for all taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2025.
Allows a modification up to $50,000 of taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2025.
Allows a modification to federal adjusted gross income of twenty thousand dollars ($20,000) of social security income for tax years beginning on or after January 1, 2024.
Phases in modifications to federal adjusted gross income over a 4 year period for social security income, from 25% up to 100%, beginning on or after January 1, 2025.
Allows a modification to federal adjusted gross income of fifty thousand dollars ($50,000) of taxable pension and/or annuity income for tax years beginning on or after January 1, 2025.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Gradually phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty-five percent (25%) up to one hundred percent (100%), beginning on or after January 1, 2026.
Phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty percent (20%) up to eighty percent (80%), beginning on or after January 1, 2026.