Bill would give tax credit for student loans

PROVIDENCE – Legislation introduced in the General Assembly would allow college graduates to claim a tax credit for payments on their student loans – a move aimed at keeping “talented, educated people in Rhode Island and encouraging innovators to make the state their home,” according to a statement.
The so-called “Stay Invested in Rhode Island Tax Credit” would authorize a credit against Rhode Island personal income tax for graduates who remain a resident of and work in Rhode Island for up to 10 years after graduation from an institution of higher education. The credit would be calculated based upon the student-loan payments made during the tax year.
The bills would allow a person to claim a tax credit against his or her Rhode Island personal income tax equal to the payments made toward undergraduate or graduate student-loan debt, up to a maximum annual amount of $1,000 for an associate degree holder, $5,000 for a bachelor’s degree holder, and $6,000 for a graduate degree holder. The credit would be available to all Rhode Islanders. •

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