Bill Text: CA SB1 | 2023-2024 | Regular Session | Amended
Bill Title: Personal Income Tax Law: exclusion: student loan debt.
Spectrum: Strong Partisan Bill (Democrat 13-1)
Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB1 Detail]
Download: California-2023-SB1-Amended.html
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Amended
IN
Senate
May 01, 2023 |
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Amended
IN
Senate
March 30, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1
| Introduced by Senators Glazer, Limón, Newman, Rubio, and Wilk (Coauthors: Senators Allen, Cortese, Dodd, Laird, Min, Roth, Stern, and Umberg) (Coauthor: Assembly Member Cervantes) |
December 05, 2022 |
An act to amend Section 17144.8 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as amended, Glazer.
Personal Income Tax Law: exclusion: student loan debt.
The Personal Income Tax Law, in modified conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, including an exclusion for the amount of student loan indebtedness repaid or canceled pursuant to a specified federal law.
This bill would exclude from an individual’s gross income, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, the amount of certain student loans discharged, in whole or in part, after December 31, 2020, and before January 1, 2026, in conformity with federal law.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance
indicators, and data collection requirements.
This bill would make findings and declarations related to a gift of public funds.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17144.8 of the Revenue and Taxation Code is amended to read:17144.8.
(a) Section 108(f)(5) of the Internal Revenue Code, relating to discharges on account of death or disability, as added by Section 11031(a) of the federal Tax Cuts and Jobs Act (Public Law 115-97), shall apply except as otherwise provided.(b) Section 108(f)(5)(A) of the Internal Revenue Code, as added by Section 11031(a) of the federal Tax Cuts and Jobs Act (Public Law 115-97), is modified by substituting the phrase “after December 31, 2018,” in lieu of the phrase “after December 31, 2017, and before January 1, 2026.”
(c) (1) For
taxable years beginning on or after January 1, 2021, and before January 1, 2026, the amendments made by Section 9675(a) of the American Rescue Plan Act of 2021 (Public Law 117-2) to Section 108(f)(5) of the Internal Revenue Code relating to the special rule for discharges in 2021 through 2025 shall apply.
(2) (A) For purposes of complying with Section 41, as it pertains to this subdivision, the Legislature funds and declares as follows:
(i) The specific goal, purpose, and objective of the exclusion is to provide financial relief to taxpayers with discharges of student loan debt.
(ii) The performance indicators for the Legislature to use in determining if the exclusion has achieved this goal shall be the number of taxpayers excluding discharge of indebtedness income based on this subdivision, and the total dollar value of income so excluded.
(B) The Legislative Analyst’s Office shall, no later than October 1, 2024, submit a report to the Legislature, in accordance with Section 9795 of the Government Code, that estimates the number of taxpayers with discharged student loan debt excluded from income, and estimates the total dollar value of the debt discharged, to the extent data is available.
It is the intent of the Legislature to comply with Section 41.
