SB 111

Bill Subjects

Personal Income Tax Law Discharge Of Fees Exclusion Higher Education Emergency Grants Student Loan Debt

Abstract

(1) 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, and provides various exclusions from gross income. Existing law authorizes the Chancellor of the California Community Colleges to discharge unpaid fees due or owed by a student to a community college district. This bill would exclude from an individual's gross income, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, any amount relating to the discharge of unpaid fees due or owed by a student pursuant to that law. (2) Existing federal law authorizes various specified higher education emergency grants to support students and higher education institutions with expenses and financial needs related to the COVID-19 pandemic. This bill would, for taxable years beginning on or after January 1, 2020, and before January 1, 2028, exclude from an individual's gross income specified higher education emergency grants received by a student in postsecondary education, as specified. (3) Existing federal law excludes from gross income the amount of certain student loans discharged, in whole or in part, after December 31, 2020, and before January 1, 2026. This bill would, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, exclude from an individual's gross income the amount of certain student loans discharged, in whole or in part, after December 31, 2020, and before January 1, 2026, in conformity with that federal law. (4) This bill would appropriate $20,000 from the General Fund to the Franchise Tax Board for the purpose of administering the provisions of this bill. (5) 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 make findings and declarations related to a gift of public funds. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.