Senate Bill No. 250

(By Senators Bailey, Minard and Love)

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[Introduced January 24, 2006; referred to the Committee

on Finance.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-21-12h, relating to providing a tax deduction on interest paid on student loans and automobile loans.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-21-12h, to read as follows:
PART I. GENERAL.

ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12h. Deduction for interest paid on student loans and automobile loans.

(a) In addition to amounts authorized to be subtracted from federal adjusted gross income pursuant to subsection ©, section twelve of this article, any interest paid during the taxable year on a student loan undertaken to attend an institution of higher education or a vocational or technical school is an authorized modification reducing federal adjusted gross income, but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made.
(b) In addition to amounts authorized to be subtracted from federal adjusted gross income pursuant to subsection ©, section twelve of this article, any interest paid during the taxable year on a loan undertaken to purchase an automobile for personal use and not for business use is an authorized modification reducing federal adjusted gross income, but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made.


NOTE: The purpose of this bill is to provide a tax deduction on interest paid on student loans and automobile loans.

This section is new; therefore, strike-throughs and underscoring have been omitted.