S2051 — An Act relative to the accessibility and affordability of trade school education

Summary

An Act relative to the accessibility and affordability of trade school education

Bill Text

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The bill expands and modifies tax deducibility for tuition and education debt payments under Massachusetts tax law.

• Part B of section 3 of chapter 62

  (20) An amount equal to the amount by which tuition payments by the taxpayer to a private occupational school, as defined in section 263 of chapter 112, in which the taxpayer or a dependent of said taxpayer, pursuant to subparagraph (3) of paragraph (b) of part B, is enrolled, less any scholarships, grants or financial aid received, exceeds twenty-five percent of the taxpayer’s Massachusetts adjusted gross income, exclusive of this deduction but, the deduction shall be limited in the manner provided in section 222(d)(3) of the Code as amended and in effect for the taxable year. An individual who is a nonresident for all or part of the taxable year shall not be eligible to claim this deduction.

  This addition creates a new tax deduction for tuition payments exceeding 25% of a taxpayer's adjusted gross income for certain private occupational school attendees.

• Part B of section 3 of chapter 62

  subparagraph (12) → (12) An amount equal to the amount of interest payments paid by the taxpayer on education debt during the taxable year. For the purposes of this subparagraph, the term "education debt'' shall mean any loan which was or is administered by the financial aid office of a private occupational school, as defined in section 263 of chapter 112, or a two-year or four-year college at which the taxpayer, or a dependent of such taxpayer, pursuant to subparagraph (3) of paragraph (b) of Part B of this section, was enrolled as an undergraduate student and which loan has been secured through a state student loan program, a federal student loan program or a commercial lender and which loan was obtained and expended solely for the purposes of paying tuition and other expenses directly related to such undergraduate student enrollment. A taxpayer who claims a deduction under this section shall not be eligible for a deduction for the same expenses under subparagraph (1) of paragraph (d) of section 2 of this chapter.

  This change updates the definition and eligibility criteria for the deduction on interest payments for education debt, ensuring it applies to a wider range of loans for undergraduates.

Sponsors

• Patrick M. O'Connor · Primary

Subjects