2015 - 2016 LEGISLATURE
January 22, 2016 - Introduced by Senators Marklein,
Gudex, Lasee, Moulton and
Nass, cosponsored by Representatives
Macco, Murphy, Bernier, Czaja,
Duchow, Horlacher, Kitchens, Knodl, Kremer, Kulp, Mursau, A. Ott,
Petryk, Quinn, Rodriguez and Tranel. Referred to Committee on
Universities and Technical Colleges.
1An Act to create
71.05 (6) (b) 53. of the statutes; relating to: creating an
2individual income tax deduction for certain interest paid on qualified education
Analysis by the Legislative Reference Bureau
This bill creates an individual income tax subtract modification, or deduction,
for interest paid by a claimant on certain qualified education loans, to the extent that
the claimant has not already deducted such interest from his federal taxes. Under
federal law, a deduction for qualified education loan interest exists but the deduction
is capped at $2,500 per year, and the maximum deduction amount is phased down
to zero as the claimant's income rises to the annual income limit that is set under
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:
71.05 (6) (b) 53. of the statutes is created to read:
(b) 53. Interest paid by a claimant in the year to which the claim 2
relates on a qualified education loan, as that term is used in section 221
of the 3
Internal Revenue Code, calculated as follows:
a. Determine the amount that would be allowed as a deduction under section 5221
of the Internal Revenue Code if it were calculated without regard to the 6
limitation under section 221
(b) (1) of the Internal Revenue Code.
b. From the amount calculated under subd. 53. a., subtract the amount the 8
claimant deducted from gross income for a qualified education loan, in the year to 9
which the claim relates, in the claimant's calculation of federal adjusted gross 10
This act first applies to taxable years beginning on January 1 of the year 13
in which this subsection takes effect, except that if this subsection takes effect after 14
July 31 this act first applies to taxable years beginning on January 1 of the year 15
following the year in which this subsection takes effect.