Modification Higher Education Expenses Income Tax Incentive

The state allows a student pursuing higher education who satisfies statutorily specified eligibility criteria to claim an income tax incentive for amounts paid for tuition and fees for qualifying academic semesters or terms that the student completes. The act clarifies the statute that provides for the income tax incentive to improve the administration, including data tracking and reporting, of the incentive.

For the 2025-26 state fiscal year, $135,446 is appropriated from the general fund to the department of revenue for use by the taxation business group to implement the act.

(Note: This summary applies to this bill as enacted.)