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

Mississippi's HB 1653 would have amended the state's tax code to exclude forgiven federal student loan debt under the Public Service Loan Forgiveness (PSLF) Program from the definition of "gross income" for state income tax purposes. This change would directly benefit Mississippi residents working in public service careers (such as teachers, nurses, or government employees) who had their federal student loans forgiven through PSLF after meeting service requirements. The bill’s key mechanism would have updated Section 27-7-15 of the Mississippi Code to ensure these forgiven loan amounts are not counted as taxable income when calculating state tax liability. The policy change aimed to align Mississippi tax treatment with federal tax rules for PSLF recipients.