1.1 	A bill for an act
1.2 	relating to taxation; individual income; establishing a subtraction for certain student 
1.3 	loan discharges;amending Minnesota Statutes 2022, section 290.0132, subdivision 
1.4 	24.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2022, section 290.0132, subdivision 24, is amended to read:
1.7 		Subd. 24.Discharge of indebtedness; education loans Student loan discharges. (a) 
1.8 	The amount equal to the discharge of indebtedness of the qualified student loan discharge 
1.9 	of a taxpayer is a subtraction if:.
1.10 	(1) the indebtedness discharged is a qualified education loan; and
1.11 	(2) the indebtedness was discharged under section 136A.1791, or following the taxpayer's 
1.12 	completion of an income-driven repayment plan.
1.13 	(b) For the purposes of this subdivision, "qualified education loan" has the meaning 
1.14 	given in section 221 of the Internal Revenue Code.
1.15 	(c) For purposes of this subdivision, "income-driven repayment plan" means a payment 
1.16 	plan established by the United States Department of Education that sets monthly student 
1.17 	loan payments based on income and family size under United States Code, title 20, section 
1.18 	1087e, or similar authority and specifically includes, but is not limited to:
1.19 	(b) For the purposes of this subdivision, "qualified student loan discharge" means a 
1.20 	discharge of indebtedness eligible for the exclusion from gross income under section 9675 
1.21 	of Public Law 117-2. A discharge of indebtedness that occurred after December 31, 2025, 
2.1 	but otherwise qualifies for the exclusion under that section is a qualified student loan 
2.2 	discharge.
2.3 	(c) "Qualified student loan discharge" includes but is not limited to a discharge of 
2.4 	indebtedness under:
2.5 	(1) the income-based repayment plan under United States Code, title 20, section 1098e;
2.6 	(2) the income contingent repayment plan established under United States Code, title 
2.7 	20, section 1087e, subsection (e); and
2.8 	(3) the PAYE program or REPAYE program established by the Department of Education 
2.9 	under administrative regulations; and
2.10 	(4) section 136A.1791.

2.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
2.12 	31, 2022.