Assemblymember Wallis announced that Assembly Bill 2312 has successfully passed out of the Revenue and Taxation Committee. The bill proposes a significant change to state income tax deductions, allowing Californians to deduct 100% of the interest paid on student loans, regardless of whether they itemize deductions.
AB 2312 aims to address the financial strain many recent graduates face due to student debt. By making student loan interest fully deductible, the legislation seeks to alleviate economic pressures on Californians struggling with high education costs and the affordability crisis in California.
Assemblymember Wallis commented on the bill’s progress: “California’s affordability crisis is real, with student loans playing a major role. By making student loan interest fully deductible, we’re not just assisting students and families; we’re also bolstering our economy. This bill will enable thousands to manage their finances better, easing the burden of basic expenses and even making it possible to save for a home.”
