PROVIDENCE, R.I. (AP) — A bill has been introduced in the Rhode Island General Assembly to allow college graduates to claim a tax credit for their student loan payments.
The sponsors of the legislation, Rep. Christopher R. Blazejewski and Sen. Ryan W. Pearson, say their proposal could help keeping talented, educated people from leaving the state and draw people to Rhode Island.
The “Stay Invested in Rhode Island Tax Credit” would allow college graduates who live and work in Rhode Island to claim a credit on their personal income tax for up to 10 years after graduating. The amount would be based on the loan payments made during the tax year.
The Democrats say the change could help revive the state’s economy. They say graduates will likely spend more locally as they pay down their debt.