Relating to: an income tax subtraction for payments on education loans. (FE)

SB 601 creates a Wisconsin income tax deduction for payments on qualified education loans, allowing taxpayers to subtract up to $5,130 annually (adjusted yearly for inflation) for principal or interest paid. It directly affects Wisconsin residents with qualifying education loans who meet federal definition (per IRS Section 221(d)). Key provisions exclude amounts withdrawn from college savings accounts (Sec. 224.50) and prevent double-deduction with federal tax filings. The deduction amount increases annually based on U.S. August CPI changes from the prior year, rounded to the nearest $10. This is a state tax policy change, not a federal one.