S.580

Allows gross income tax deduction for certain student loan interest.

Introduced·1/13/26

New Jersey S580 allows a gross income tax deduction for student loan interest, mirroring the federal deduction.

New Jersey S580 introduces a gross income tax deduction for student loan interest, aligning with the federal deduction under section 221 of the Internal Revenue Code. This deduction applies to interest paid on qualified education loans, with a maximum limit of $2,500, subject to inflation adjustments. The deduction phases out for taxpayers with modified adjusted gross incomes exceeding $70,000 for single filers and $140,000 for joint filers, and is eliminated entirely for incomes over $85,000 and $170,000, respectively.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.

Where it stands

Current
Budget and Appropriations Committee
Next
Committee decision

Sponsors

D
1
2
RR
Democratic CaucusRepublican Caucus

Roll Call Votes

Senate Higher Eduction Committee: Reported with Substitution

5 Yea

DRDDR

0 Nay

Calendar

May 18

11:30 AM

Senate Higher Education Hearing

History

May 18

Senate

Reported from Senate Committee as a Substitute, 2nd Reading

May 18

Senate

Referred to Senate Budget and Appropriations Committee

Jan 13

Senate

Introduced in the Senate, Referred to Senate Higher Education Committee