2021 House Bill 4943

Exclude “forgiven” college loan revenue from state income tax

Introduced in the House

May 27, 2021

Introduced by Rep. Sarah Anthony (D-68)

To exclude from an individual’s state income tax liability the value of college loans that have been “forgiven,” meaning the recipient got the money but didn’t pay it back and now won’t have to pay it back. Under federal tax law that makes the loan proceeds “income” and subject to federal income tax.

Referred to the Committee on Tax Policy