(b) To qualify for the credit, a resident taxpayer's
modified adjusted gross income must be less than seventy-five
thousand dollars ($75,000) or less than one hundred fifty-five
thousand dollars ($155,000) if filing a joint return. The credit
can reduce the amount of income subject to tax by up to two
thousand five hundred dollars ($2,500).
(c) The qualified student loan must have been taken solely
to pay educational expenses, including tuition and fees, room
and board, books, supplies and equipment and other necessary
expenses, and the loan cannot be from a related person or made
under a qualified employer plan.
(d) The tax credit provided in this section may be used
during the remaining period of the student loan.
(e) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Qualified educational institution." A college, university,
vocational school or other postsecondary educational institution
eligible to participate in a student aid program administered by
the Federal Department of Education.
"Qualified student loan." Indebtedness incurred by a
taxpayer to pay educational expenses, which are incurred on
behalf of the taxpayer, the taxpayer's spouse or any dependent
of the taxpayer at the time the indebtedness was incurred.
"Student loan interest." Interest paid during the year on a
qualified student loan to attend a qualified educational
institution, including both required and voluntary interest
payments.
Section 2. This act shall apply to taxable years commencing
after December 31, 2019.
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