California has broadened its income tax exclusion for student loan debt that is canceled or repaid by the federal government. Between January 1, 2017, and January 1, 2022, the exclusion applies to federal loans the borrower repays under:
- income contingent repayment plans;
- pay-as-you-earn repayment plans; and
- revised pay-as-you-earn repayment plans.
Currently, the exclusion applies to student loan debt that is canceled or repaid by the government under the income-based repayment program.
Ch. 525 (A.B. 461), Laws 2017, effective October 6, 2017, applicable as noted; Bill Analysis, Office of Senate Floor Analyses, September 5, 2017