Bill would make tuition, fees tax-deductible in R.I.

PROVIDENCE – A Burrillville legislator has introduced legislation to apply the same deductions for college tuition and fees to Rhode Island income taxes as are already applied to federal income taxes – up to $4,000 per year.
The measure, sponsored by Rep. Edwin R. Pacheco, a Democrat, would make the deduction available to people paying their own way through school and for those paying for a spouse or dependent if the filer’s adjusted gross income is $80,000 or less ($160,000 for a joint return).
Mirroring the federal tax rules, the credit would go up to $4,000 a year if the AGI is below $65,000 ($130,000 if filing jointly) or up to $2,000 deduction for AGIs between $65,000 and $80,000 ($130,000 and $160,000 for joint filers).
“Rhode Island has identified the creation of a better-educated work force as one of our priorities and one of our methods for strengthening our economy,” Pacheco said, adding that a state tax deduction would provide “some needed relief” and “serve as an incentive to encourage more Rhode Islanders to pursue higher education.”
The bill is before the House Finance Committee.