Senate Bill No. 10
(By Senator Bailey)
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[Introduced January 9, 2008; 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 §11-21-12i, 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 §11-21-12i, to read as
follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-12i. 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, and 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,
any interest paid during the taxable year is an authorized
modification reducing federal adjusted gross income
if the interest
was paid on a:
(1) Student loan undertaken to attend an institution of higher
education or a vocational or technical school; and
(2) Loan undertaken to purchase an automobile for personal use
and not for business use.
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.