Budget Amendment ID: FY2019-S4-22

OTH 22

Trade School Education

Messrs. Ross, Tarr, Humason, Eldridge, O'Connor and Cyr moved that the proposed new text be amended by inserting, after section __, the following new sections:-

SECTION __. Subsection (a) of Part B of section 3 of chapter 62 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by inserting the following new subparagraph:

(20) An amount equal to the amount by which tuition payments by the taxpayer to an occupational school or trade school in which the taxpayer or a dependent of said taxpayer, pursuant to subparagraph (3) of paragraph (b) of part B, is enrolled, less any scholarships, grants or financial aid received, exceeds twenty-five percent of the taxpayer’s Massachusetts adjusted gross income, exclusive of this deduction but, the deduction shall be limited in the manner provided in section 222(d)(3) of the Code as amended and in effect for the taxable year. An individual who is a nonresident for all or part of the taxable year shall not be eligible to claim this deduction.

SECTION __. Subsection (a) of Part B of section 3 of chapter 62 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subparagraph (12) and inserting in place thereof the following subparagraph:-

(12) An amount equal to the amount of interest payments paid by the taxpayer on education debt during the taxable year. For the purposes of this subparagraph, the term "education debt'' shall mean any loan which was or is administered by the financial aid office of an occupational school or trade school, or a two-year or four-year college at which the taxpayer, or a dependent of such taxpayer, pursuant to subparagraph (3) of paragraph (b) of Part B of this section, was enrolled as an undergraduate student and which loan has been secured through a state student loan program, a federal student loan program or a commercial lender and which loan was obtained and expended solely for the purposes of paying tuition and other expenses directly related to such undergraduate student enrollment. A taxpayer who claims a deduction under this section shall not be eligible for a deduction for the same expenses under subparagraph (1) of paragraph (d) of section 2 of this chapter.