as introduced - 92nd Legislature (2021 - 2022) Posted on 02/22/2021 02:42pm
Engrossments | ||
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Introduction | Posted on 02/22/2021 |
A bill for an act
relating to taxation; individual income; allowing a subtraction for federally
discharged student loans; amending Minnesota Statutes 2020, section 290.0132,
subdivision 24.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2020, section 290.0132, subdivision 24, is amended to read:
(a) The amount equal to the
discharge of indebtedness of the taxpayer is a subtraction if:
(1) the indebtedness discharged is a qualified education loan; and
(2) the indebtedness was dischargednew text begin as part of a federal loan forgiveness program ornew text end
under section 136A.1791deleted text begin , or following the taxpayer's completion of an income-driven
repayment plandeleted text end .
(b) For the purposes of this subdivision, "qualified education loan" has the meaning
given in section 221 of the Internal Revenue Code.
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(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
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(1) the income-based repayment plan under United States Code, title 20, section 1098e;
deleted text end
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(2) the income contingent repayment plan established under United States Code, title
20, section 1087e, subsection (e); and
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(3) the PAYE program or REPAYE program established by the Department of Education
under administrative regulations.
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This section is effective for taxable years beginning after December
31, 2020.
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