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AB-461 Personal income taxes: exclusion: forgiven student loan debt.(2017-2018)

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Date Published: 04/07/2017 04:00 AM
AB461:v98#DOCUMENT

Amended  IN  Assembly  April 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 461


Introduced by Assembly Member Muratsuchi
(Coauthor: Assembly Member Ridley-Thomas)

February 13, 2017


An act to amend Section 17132.11 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 461, as amended, Muratsuchi. Personal income taxes: exclusion: forgiven student loan debt.
The Personal Income Tax Law provides various exclusions from gross income in determining tax liability, including an exclusion for the amount of student loan indebtedness repaid or canceled pursuant to a specified federal law, relating to income-based repayment.
This bill would, for taxable years beginning on or after January 1, 2017, expand and before January 1, 2022, revise this exclusion to include student loan indebtedness canceled, pursuant to federal law, that includes other repayment plans.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17132.11 of the Revenue and Taxation Code is amended to read:

17132.11.
 (a) For taxable years beginning on or after January 1, 2014, and before January 1, 2017, gross income shall not include any loan amount repaid by the United States Secretary of Education or canceled pursuant to Section 1098e of Title 20 of the United States Code.
(b) For taxable years beginning on or after January 1, 2017, and before January 1, 2022, gross income shall not include any loan amount repaid by the United States Secretary of Education or canceled pursuant to Section 1087e or 1098e of Title 20 of the United States Code.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.