§ 17144.8. — 17144.8. (Amended by Stats. 2024, Ch. 80, Sec. 120.)

California § 17144.8.

• Jurisdiction: California
• Code RTC: Revenue and Taxation Code - RTC
• Div. 2.: DIVISION 2. OTHER TAXES
• Part 10.: PART 10. PERSONAL INCOME TAX
• Ch. 3.: CHAPTER 3. Computation of Taxable Income
• Art. 3.: ARTICLE 3. Items Specifically Excluded from Gross Income

Text

(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 finds 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, 2026, 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.

Legislative History

Amended by Stats. 2024, Ch. 80, Sec. 120. (SB 1525) Effective January 1, 2025.