HF 754

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/23/2023 03:31pm

A bill for an act
relating to taxation; individual income; establishing a subtraction for certain student
loan discharges; amending Minnesota Statutes 2022, section 290.0132, subdivision
24.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 290.0132, subdivision 24, is amended to read:

Subd. 24.

deleted text begin Discharge of indebtedness; education loans deleted text end new text begin Student loan discharges new text end .

(a)
The deleted text begin amount equal to the discharge of indebtedness of the deleted text end new text begin qualified student loan discharge
of a new text end taxpayer is a subtraction deleted text begin if: deleted text end new text begin .
new text end

deleted text begin (1) the indebtedness discharged is a qualified education loan; and
deleted text end

deleted text begin (2) the indebtedness was discharged under section 136A.1791, or following the taxpayer's
completion of an income-driven repayment plan.
deleted text end

deleted text begin (b) For the purposes of this subdivision, "qualified education loan" has the meaning
given in section 221 of the Internal Revenue Code.
deleted text end

deleted text begin (c) For purposes of this subdivision, "income-driven repayment plan" means a payment
plan established by the United States Department of Education that sets monthly student
loan payments based on income and family size under United States Code, title 20, section
1087e, or similar authority and specifically includes, but is not limited to:
deleted text end

new text begin (b) For the purposes of this subdivision, "qualified student loan discharge" means a
discharge of indebtedness eligible for the exclusion from gross income under section 9675
of Public Law 117-2. A discharge of indebtedness that occurred after December 31, 2025,
but otherwise qualifies for the exclusion under that section is a qualified student loan
discharge.
new text end

new text begin (c) "Qualified student loan discharge" includes but is not limited to a discharge of
indebtedness under:
new text end

(1) the income-based repayment plan under United States Code, title 20, section 1098e;

(2) the income contingent repayment plan established under United States Code, title
20, section 1087e, subsection (e); deleted text begin and
deleted text end

(3) the PAYE program or REPAYE program established by the Department of Education
under administrative regulations new text begin ; and
new text end

new text begin (4) section 136A.1791 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end