AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 7120 amends Rhode Island's personal income tax law to allow residents to deduct interest payments on outstanding student loans from their federal adjusted gross income. This change directly affects individuals who pay interest on student loans and file state tax returns, potentially lowering their taxable income. The bill modifies the state tax code by adding specific provisions to the section governing resident individual income calculations. It is currently under review by the House Finance Committee and has not yet been enacted.