income tax; deduction; tuition; loans

HB 2422 adds new itemized deductions to Arizona's income tax code, allowing taxpayers who itemize deductions to subtract tuition payments for public, nonprofit, or private colleges/universities and student loan repayments starting with tax returns filed in 2025. This change directly affects Arizona residents paying for higher education or repaying student loans who choose to itemize their deductions instead of taking the standard deduction. The bill does not replace existing education tax credits but creates a separate deduction for these expenses. It reduces taxable income for qualifying taxpayers, potentially lowering their overall tax liability.