Urges Congress to amend tax code to permanently exclude all forms of discharged student loans from federal income tax.*
What changed between versions
The resolution now urges Congress to 'permanently exclude' all forms of discharged student loans from federal income tax, rather than simply 'exclude' them. This makes the ask explicit that any relief should be permanent, not time-limited.
The operative section previously urged Congress to permanently exclude only discharges 'on account of death or disability.' That limitation was removed, so the resolution now covers all forms of discharged student loans without restriction.
New Whereas clauses reference proposed federal regulations that would discharge: interest on federal student loans, outstanding amounts for borrowers who were eligible but never applied, loans from low-financial-value programs, and loans for borrowers experiencing hardship. This broadens the context to cover anticipated future discharges beyond death or disability.
The original Whereas clause stating that 'not all forms of discharged student loans are excluded from the federal income tax' was removed, as it is superseded by the new clauses about the American Rescue Plan Act and its expiration.
New Whereas clauses reference the American Rescue Plan Act of 2021 (Pub.L.117-2), which exempted virtually all student loan debt from income tax for discharges between January 1, 2021 and January 1, 2026. The resolution warns that this exemption expires on January 1, 2026, potentially saddling borrowers with substantial tax liabilities.
New co-sponsors added: Assemblywoman Garnet R. Hall (District 28) as a primary sponsor, and Assemblymen Rodriguez and Assemblywoman Lampitt as additional co-sponsors.
Several Whereas clauses were reworded for clarity: 'Under federal law' became 'Federal law has traditionally treated'; date language changed from 'after...before' to 'between'; and the Income-Driven Repayment clause was restructured. The explanatory Statement section at the end was removed.
