| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Amended IN Assembly | |
| 1 | + | Amended IN Assembly March 22, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 26Introduced by Assembly Member Mike Fong Members Mike Fong and SantiagoDecember 05, 2022 An act to add Section 17132.12 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 26, as amended, Mike Fong. Personal Income Tax Law: exclusion: federal student loan debt relief plan.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. 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 exclude from an individuals gross income, for taxable years beginning on or after January 1, 2022, 2023, any amount of qualified student loan debt, as defined, that is discharged under the federal student loan debt relief plan, as specified. The bill would specify that its provisions shall only become operative upon the enactment of legislation that would conform to specified federal law. The bill would also include additional information required for any bill authorizing a new tax expenditure. 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. The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17132.12 is added to the Revenue and Taxation Code, to read:17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code.(b) For purposes of this section, the following definitions apply:(1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code.(2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a).(c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.(d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following:(A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic.(B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program.(2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows:(A) The number of taxpayers excluding income pursuant to this section.(B) The total dollar amount of income excluded pursuant to this section.SEC. 2.(a)(1)For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under Section 17132.12 of the Revenue and Taxation Code, as added by this act, are both of the following:(A)To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic. (B)To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program. (2)The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows: (A)The number of taxpayers excluding income pursuant to Section 17132.12 of the Revenue and Taxation Code. (B)The total dollar amount of income excluded pursuant to Section 17132.12 of the Revenue and Taxation Code.(C)The total number of taxpayers in each tax bracket who excluded income pursuant to Section 17132.12 of the Revenue and Taxation Code.(3)The Franchise Tax Board shall have the following data collection and reporting requirements:(A)Collect data on the number of taxpayers excluding income pursuant to Section 17132.12 of the Revenue and Taxation Code.(B)Collect data on the total dollar amount of income excluded pursuant to Section 17132.12 of the Revenue and Taxation Code.(C)Collect data on the total number of taxpayers in each tax bracket who excluded income pursuant to Section 17132.12 of the Revenue and Taxation Code.(b)(1)By March 1, 2024, and on or before each March 1 thereafter, the Franchise Tax Board shall provide the data required by subdivision (a) in a report to the Legislature for each calendar year in which the exclusion under Section 17132.12 of the Revenue and Taxation Code, as added by this act, is allowed. The report shall be submitted in compliance with Section 9795 of the Government Code.(2)The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 of the Revenue and Taxation Code. SEC. 3.The provisions of this act adding Section 17132.12 to the Revenue and Taxation Code shall only become operative if a bill is enacted by the Legislature that would incorporate in the Revenue and Taxation Code the amendments made by Section 9675(a) of the American Recovery Plan Act of 2021 (Public Law 117-2) to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.SEC. 4.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. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly March 22, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 26Introduced by Assembly Member Mike Fong Members Mike Fong and SantiagoDecember 05, 2022 An act to add Section 17132.12 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 26, as amended, Mike Fong. Personal Income Tax Law: exclusion: federal student loan debt relief plan.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. 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 exclude from an individuals gross income, for taxable years beginning on or after January 1, 2022, 2023, any amount of qualified student loan debt, as defined, that is discharged under the federal student loan debt relief plan, as specified. The bill would specify that its provisions shall only become operative upon the enactment of legislation that would conform to specified federal law. The bill would also include additional information required for any bill authorizing a new tax expenditure. 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. The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 22, 2023 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 20, 2023 | |
| 8 | 7 | Amended IN Assembly March 22, 2023 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 26 | |
| 15 | 14 | ||
| 16 | - | Introduced by Assembly Members Mike Fong and SantiagoDecember 05, 2022 | |
| 15 | + | Introduced by Assembly Member Mike Fong Members Mike Fong and SantiagoDecember 05, 2022 | |
| 17 | 16 | ||
| 18 | - | Introduced by Assembly Members Mike Fong and Santiago | |
| 17 | + | Introduced by Assembly Member Mike Fong Members Mike Fong and Santiago | |
| 19 | 18 | December 05, 2022 | |
| 20 | 19 | ||
| 21 | - | An act to add | |
| 20 | + | An act to add Section 17132.12 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | 26 | AB 26, as amended, Mike Fong. Personal Income Tax Law: exclusion: federal student loan debt relief plan. | |
| 28 | 27 | ||
| 29 | - | 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 individuals gross income, for taxable years beginning on or after January 1, | |
| 28 | + | 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. 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 exclude from an individuals gross income, for taxable years beginning on or after January 1, 2022, 2023, any amount of qualified student loan debt, as defined, that is discharged under the federal student loan debt relief plan, as specified. The bill would specify that its provisions shall only become operative upon the enactment of legislation that would conform to specified federal law. The bill would also include additional information required for any bill authorizing a new tax expenditure. 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. The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy. | |
| 30 | 29 | ||
| 31 | - | 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. | |
| 30 | + | 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. 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. | |
| 32 | 31 | ||
| 33 | - | This bill would exclude from an individuals gross income, for taxable years beginning on or after January 1, | |
| 32 | + | This bill would exclude from an individuals gross income, for taxable years beginning on or after January 1, 2022, 2023, any amount of qualified student loan debt, as defined, that is discharged under the federal student loan debt relief plan, as specified. The bill would specify that its provisions shall only become operative upon the enactment of legislation that would conform to specified federal law. The bill would also include additional information required for any bill authorizing a new tax expenditure. | |
| 34 | 33 | ||
| 35 | 34 | 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. | |
| 36 | 35 | ||
| 37 | 36 | The bill would also include additional information required for any bill authorizing a new tax expenditure. | |
| 38 | 37 | ||
| 39 | 38 | This bill would take effect immediately as a tax levy. | |
| 40 | 39 | ||
| 41 | 40 | ## Digest Key | |
| 42 | 41 | ||
| 43 | 42 | ## Bill Text | |
| 44 | 43 | ||
| 45 | - | The people of the State of California do enact as follows:SECTION 1. Section 17132.12 is added to the Revenue and Taxation Code, to read:17132.12. (a) For taxable years beginning on or after January 1, | |
| 44 | + | The people of the State of California do enact as follows:SECTION 1. Section 17132.12 is added to the Revenue and Taxation Code, to read:17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code.(b) For purposes of this section, the following definitions apply:(1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code.(2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a).(c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.(d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following:(A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic.(B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program.(2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows:(A) The number of taxpayers excluding income pursuant to this section.(B) The total dollar amount of income excluded pursuant to this section.SEC. 2.(a)(1)For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under Section 17132.12 of the Revenue and Taxation Code, as added by this act, are both of the following:(A)To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic. (B)To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program. (2)The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows: (A)The number of taxpayers excluding income pursuant to Section 17132.12 of the Revenue and Taxation Code. (B)The total dollar amount of income excluded pursuant to Section 17132.12 of the Revenue and Taxation Code.(C)The total number of taxpayers in each tax bracket who excluded income pursuant to Section 17132.12 of the Revenue and Taxation Code.(3)The Franchise Tax Board shall have the following data collection and reporting requirements:(A)Collect data on the number of taxpayers excluding income pursuant to Section 17132.12 of the Revenue and Taxation Code.(B)Collect data on the total dollar amount of income excluded pursuant to Section 17132.12 of the Revenue and Taxation Code.(C)Collect data on the total number of taxpayers in each tax bracket who excluded income pursuant to Section 17132.12 of the Revenue and Taxation Code.(b)(1)By March 1, 2024, and on or before each March 1 thereafter, the Franchise Tax Board shall provide the data required by subdivision (a) in a report to the Legislature for each calendar year in which the exclusion under Section 17132.12 of the Revenue and Taxation Code, as added by this act, is allowed. The report shall be submitted in compliance with Section 9795 of the Government Code.(2)The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 of the Revenue and Taxation Code. SEC. 3.The provisions of this act adding Section 17132.12 to the Revenue and Taxation Code shall only become operative if a bill is enacted by the Legislature that would incorporate in the Revenue and Taxation Code the amendments made by Section 9675(a) of the American Recovery Plan Act of 2021 (Public Law 117-2) to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.SEC. 4.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. | |
| 46 | 45 | ||
| 47 | 46 | The people of the State of California do enact as follows: | |
| 48 | 47 | ||
| 49 | 48 | ## The people of the State of California do enact as follows: | |
| 50 | 49 | ||
| 51 | - | SECTION 1. Section 17132.12 is added to the Revenue and Taxation Code, to read:17132.12. (a) For taxable years beginning on or after January 1, | |
| 50 | + | SECTION 1. Section 17132.12 is added to the Revenue and Taxation Code, to read:17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code.(b) For purposes of this section, the following definitions apply:(1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code.(2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a).(c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.(d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following:(A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic.(B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program.(2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows:(A) The number of taxpayers excluding income pursuant to this section.(B) The total dollar amount of income excluded pursuant to this section. | |
| 52 | 51 | ||
| 53 | 52 | SECTION 1. Section 17132.12 is added to the Revenue and Taxation Code, to read: | |
| 54 | 53 | ||
| 55 | 54 | ### SECTION 1. | |
| 56 | 55 | ||
| 57 | - | 17132.12. (a) For taxable years beginning on or after January 1, | |
| 56 | + | 17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code.(b) For purposes of this section, the following definitions apply:(1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code.(2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a).(c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.(d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following:(A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic.(B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program.(2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows:(A) The number of taxpayers excluding income pursuant to this section.(B) The total dollar amount of income excluded pursuant to this section. | |
| 58 | 57 | ||
| 59 | - | 17132.12. (a) For taxable years beginning on or after January 1, | |
| 58 | + | 17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code.(b) For purposes of this section, the following definitions apply:(1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code.(2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a).(c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.(d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following:(A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic.(B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program.(2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows:(A) The number of taxpayers excluding income pursuant to this section.(B) The total dollar amount of income excluded pursuant to this section. | |
| 60 | 59 | ||
| 61 | - | 17132.12. (a) For taxable years beginning on or after January 1, | |
| 60 | + | 17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code.(b) For purposes of this section, the following definitions apply:(1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code.(2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a).(c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025.(d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following:(A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic.(B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program.(2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows:(A) The number of taxpayers excluding income pursuant to this section.(B) The total dollar amount of income excluded pursuant to this section. | |
| 62 | 61 | ||
| 63 | 62 | ||
| 64 | 63 | ||
| 65 | - | 17132.12. (a) For taxable years beginning on or after January 1, | |
| 64 | + | 17132.12. (a) For taxable years beginning on or after January 1, 2022, 2023, gross income does not include any amount of qualified student loan debt that is discharged under the federal student loan debt relief plan, as described in the Federal Register (87 Fed.Reg. 61512 (October 12, 2022)), as administered by the United States Department of Education pursuant to Section 1098bb of Title 20 of the United States Code. | |
| 66 | 65 | ||
| 67 | 66 | (b) For purposes of this section, the following definitions apply: | |
| 68 | 67 | ||
| 69 | 68 | (1) Federal Pell Grant means a grant made pursuant to Section 1070a of Title 20 of the United States Code. | |
| 70 | 69 | ||
| 71 | 70 | (2) Qualified student loan debt means up to twenty thousand dollars ($20,000) for individuals who received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a), and up to ten thousand dollars ($10,000) for individuals who have not received a Federal Pell Grant, who meet the federal income requirements for debt cancellation, and whose eligible federal loans are discharged, as described in subdivision (a). | |
| 72 | 71 | ||
| 73 | - | (c) Nothing in this section is intended to limit | |
| 72 | + | (c) Nothing in this section is intended to limit the application of the American Recovery Plan Act of 2021 (Public Law 117-2) relating to special rules for discharges in 2021 through 2025, or any act that would incorporate the amendments made by the American Recovery Plan Act of 2021 to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025. | |
| 74 | 73 | ||
| 75 | 74 | (d) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under this section, as added by this act, are both of the following: | |
| 76 | 75 | ||
| 77 | 76 | (A) To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic. | |
| 78 | 77 | ||
| 79 | 78 | (B) To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program. | |
| 80 | 79 | ||
| 81 | 80 | (2) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows: | |
| 82 | 81 | ||
| 83 | 82 | (A) The number of taxpayers excluding income pursuant to this section. | |
| 84 | 83 | ||
| 85 | 84 | (B) The total dollar amount of income excluded pursuant to this section. | |
| 86 | 85 | ||
| 87 | - | (3) By January 1, 2025, the Legislative Analysts Office shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, estimating the number of taxpayers excluding income pursuant to this section and the total dollar amount of income excluded. | |
| 88 | 86 | ||
| 89 | - | (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. | |
| 90 | 87 | ||
| 91 | - | ||
| 88 | + | (a)(1)For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion under Section 17132.12 of the Revenue and Taxation Code, as added by this act, are both of the following: | |
| 92 | 89 | ||
| 93 | - | 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. | |
| 94 | 90 | ||
| 95 | - | 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. | |
| 96 | 91 | ||
| 97 | - | ### SEC. 2. | |
| 92 | + | (A)To recognize the financial hardship that Californians with federal student loan debts have endured as a result of the COVID-19 pandemic. | |
| 93 | + | ||
| 94 | + | ||
| 95 | + | ||
| 96 | + | (B)To maximize the benefits of the federal student loan debt relief plan and provide some financial relief to an estimated 4,000,000 Californians who are eligible for the program. | |
| 97 | + | ||
| 98 | + | ||
| 99 | + | ||
| 100 | + | (2)The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) are as follows: | |
| 101 | + | ||
| 102 | + | ||
| 103 | + | ||
| 104 | + | (A)The number of taxpayers excluding income pursuant to Section 17132.12 of the Revenue and Taxation Code. | |
| 105 | + | ||
| 106 | + | ||
| 107 | + | ||
| 108 | + | (B)The total dollar amount of income excluded pursuant to Section 17132.12 of the Revenue and Taxation Code. | |
| 109 | + | ||
| 110 | + | ||
| 111 | + | ||
| 112 | + | (C)The total number of taxpayers in each tax bracket who excluded income pursuant to Section 17132.12 of the Revenue and Taxation Code. | |
| 113 | + | ||
| 114 | + | ||
| 115 | + | ||
| 116 | + | (3)The Franchise Tax Board shall have the following data collection and reporting requirements: | |
| 117 | + | ||
| 118 | + | ||
| 119 | + | ||
| 120 | + | (A)Collect data on the number of taxpayers excluding income pursuant to Section 17132.12 of the Revenue and Taxation Code. | |
| 121 | + | ||
| 122 | + | ||
| 123 | + | ||
| 124 | + | (B)Collect data on the total dollar amount of income excluded pursuant to Section 17132.12 of the Revenue and Taxation Code. | |
| 125 | + | ||
| 126 | + | ||
| 127 | + | ||
| 128 | + | (C)Collect data on the total number of taxpayers in each tax bracket who excluded income pursuant to Section 17132.12 of the Revenue and Taxation Code. | |
| 129 | + | ||
| 130 | + | ||
| 131 | + | ||
| 132 | + | (b)(1)By March 1, 2024, and on or before each March 1 thereafter, the Franchise Tax Board shall provide the data required by subdivision (a) in a report to the Legislature for each calendar year in which the exclusion under Section 17132.12 of the Revenue and Taxation Code, as added by this act, is allowed. The report shall be submitted in compliance with Section 9795 of the Government Code. | |
| 133 | + | ||
| 134 | + | ||
| 135 | + | ||
| 136 | + | (2)The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 of the Revenue and Taxation Code. | |
| 137 | + | ||
| 138 | + | ||
| 139 | + | ||
| 140 | + | ||
| 141 | + | ||
| 142 | + | The provisions of this act adding Section 17132.12 to the Revenue and Taxation Code shall only become operative if a bill is enacted by the Legislature that would incorporate in the Revenue and Taxation Code the amendments made by Section 9675(a) of the American Recovery Plan Act of 2021 (Public Law 117-2) to Section 108(f)(5) of the Internal Revenue Code relating to the special rules for discharges in 2021 through 2025. | |
| 143 | + | ||
| 144 | + | ||
| 145 | + | ||
| 146 | + | SEC. 4.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. | |
| 147 | + | ||
| 148 | + | SEC. 4.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. | |
| 149 | + | ||
| 150 | + | SEC. 4.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. | |
| 151 | + | ||
| 152 | + | ### SEC. 4.SEC. 2. |