Mississippi House Bill HB1508

Mississippi 2023 Regular Session

• Introduced: 2/3/23
• Refer: 2/3/23
• Failed: 2/22/23

Caption

Income tax; exclude forgiven, cancelled or discharged federal student loan debt from definition of "gross income".

Impact

If enacted, HB1508 will specifically change how state tax laws interpret income concerning federal student loan debt cancellation. Currently, federal student loans that are forgiven can be considered taxable income at the federal level. By amending state law to exclude this type of forgiven debt from gross income, the bill will align state tax provisions with federal relief efforts, potentially allowing individuals to retain more of their financial resources in a time of economic uncertainty. This move could significantly lower tax liabilities for many borrowers across Mississippi.

Summary

House Bill 1508 seeks to amend Section 27-7-15 of the Mississippi Code of 1972 by excluding forgiven, canceled, or discharged federal student loan debt from the definition of 'gross income' for state income tax purposes. This legislative change aims to provide relief to borrowers who have had their federal student loans forgiven, thereby ensuring that such substantial financial relief does not create additional tax burdens on those individuals. The bill addresses a growing concern among lawmakers regarding the financial implications of student debt on citizens, especially in the current economic landscape.

Contention

While HB1508 appears to provide much-needed financial relief, the bill may also face contention as it could lead to debates over the broader implications of tax exemptions and their impact on state revenue. Critics might express concerns over the fairness of such tax exemptions and the potential loss of state funds that could be attributed to the exclusion of this income, prompting a discussion about the balance between providing relief and ensuring adequate state revenue for public services.