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

HB 1720 modifies Mississippi's income tax law to exclude forgiven or canceled federal student loan debt from taxable "gross income" for eligible residents. Specifically, it applies to individuals who received debt forgiveness through the Public Service Loan Forgiveness (PSLF) program and served or currently serve in an underserved or rural community as defined by the Mississippi Department of Health or USDA. The bill amends Section 27-7-15 of the Mississippi Code to add this exclusion, ensuring such forgiven debt does not increase state tax liability. This change directly affects Mississippi residents working in qualifying public service roles who benefited from federal student loan forgiveness.