Senate Bill No. 112
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced January 10, 2002; referred to the Committee
on Finance.]
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A BILL to amend article twenty-one, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated
section ten-b, relating to providing a credit against
personal income tax for payment of interest on qualified
education loans.
Be it enacted by the Legislature of West Virginia:
That article twenty-one, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
ten-b, to read as follows:
PART I. GENERAL.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10b. Credit for payment of interest on qualified education loans.
(a) Credit allowed. -- A credit against the tax imposed by
the provisions of this article shall be allowed for interest
paid during the taxable year by the taxpayer on one or more
qualified education loans subject to the following rules:
(1) The amount of credit allowed by this section is limited
to five hundred dollars or the amount of interest actually paid
on the qualified education loan or loans during the taxable
year, whichever is less.
(2) When the amount of interest paid on qualified education
loans during the taxable year is less than five hundred dollars,
the excess credit is forfeited.
(b) Definitions. -- For purposes of this section:
(1) "Excess credit" means the difference between five
hundred dollars and the amount of interest paid by the taxpayer
on student loans during the taxable year.
(2) "Qualified education loan" means a "qualified education
loan" as defined in section 223 of the Internal Revenue Code.
(3) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended, which is codified in Title 26 of the United
States Code.
(c) Effective date. -- This credit shall be allowed for
interest paid on student loans after the thirty-first day of December, two thousand one.
NOTE: The purpose of this bill is to allow credit against
West Virginia personal income tax liability for payment of up to
$500 of interest on a student loan.
This section is new, therefore, strike-throughs and
underscoring are omitted.