Bill Text: CA SB150 | 2015-2016 | Regular Session | Chaptered

California Senate Bill 150 (Prior Session Legislation)

Bill Title: Personal Income Tax Law: exclusion: student loan debt forgiveness.

Spectrum: Strong Partisan Bill (Republican 11-1)

Status: (Passed) 2015-10-08 - Chaptered by Secretary of State. Chapter 650, Statutes of 2015. [SB150 Detail]

Download: California-2015-SB150-Chaptered.html

BILL NUMBER: SB 150	CHAPTERED
	BILL TEXT

	CHAPTER  650
	FILED WITH SECRETARY OF STATE  OCTOBER 8, 2015
	APPROVED BY GOVERNOR  OCTOBER 8, 2015
	PASSED THE SENATE  SEPTEMBER 11, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 11, 2015
	AMENDED IN ASSEMBLY  SEPTEMBER 11, 2015
	AMENDED IN SENATE  JUNE 22, 2015
	AMENDED IN SENATE  JUNE 4, 2015
	AMENDED IN SENATE  MAY 14, 2015

INTRODUCED BY   Senators Nguyen and Huff
   (Coauthors: Senators Bates, Berryhill, Fuller, Morrell, and Vidak)

   (Coauthors: Assembly Members Brough, Ch�vez, Cristina Garcia,
Mathis, and Olsen)

                        JANUARY 29, 2015

   An act to add and repeal Section 17144.7 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 150, Nguyen. Personal Income Tax Law: exclusion: student loan
debt forgiveness.
   The Personal Income Tax Law provides for various exclusions from
gross income, including an exclusion for the amount of student loan
indebtedness repaid or canceled pursuant to a specified federal law.
   This bill would exclude from gross income the amount of student
loan indebtedness discharged on or after January 1, 2015, and before
January 1, 2020, for an eligible individual who is granted a
discharge under specified conditions, as provided.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17144.7 is added to the Revenue and Taxation
Code, to read:
   17144.7.  (a) Section 108(f)(1) of the Internal Revenue Code is
modified to additionally provide that in the case of an individual,
gross income does not include any amount that, but for this section,
would be includable in gross income by reason of the discharge, in
whole or in part, of any student loan if the individual is an
eligible individual for the taxable year.
   (b) Section 108(f)(2) of the Internal Revenue Code, relating to
student loan, is modified to additionally provide that a student loan
means a student obligation note or other debt evidencing a loan to
any individual for the purpose of attending a for-profit higher
education company or for the purpose of consolidating or refinancing
a loan used to attend a for-profit higher education company, which is
either a guaranteed student loan, an educational loan, or a loan
eligible for consolidation or refinancing under Part B of Title IV of
the Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1071 et
seq.).
   (c) For purposes of this section, an individual is an eligible
individual for a taxable year if any of the following apply during
the taxable year:
   (1) The individual is granted a discharge of any student loan
pursuant to the discharge agreement.
   (2) The individual is granted a discharge of any student loan
pursuant to paragraph 23 of the William D. Ford Federal Direct Loan
Program Borrower's Rights and Responsibilities Statement because of
either of the following:
   (A) The individual could not complete a program of study because
the school closed.
   (B) The individual successfully asserts that the school did
something wrong or failed to do something that it should have done.
   (3) The individual attended a Corinthian Colleges, Inc. school on
or before May 1, 2015, is granted a discharge of any student loan
made in connection with attending that school, and that discharge is
not covered by paragraph (1) or (2).
   (d) For purposes of this section, "discharge agreement" means the
agreement between ECMC Group, Inc., Zenith Education Group, and the
Consumer Financial Protection Bureau concerning the purchase of
certain assets of Corinthian Colleges, Inc., dated February 2, 2015.
   (e) This section shall apply to discharges of indebtedness
occurring on or after January 1, 2015, and before January 1, 2020.
   (f) This section shall remain in effect only until December 1,
2020, and as of that date is repealed.
  SEC. 2.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.