Bill > HB1720

This bill amends Mississippi's state income tax law to exclude certain forgiven federal student loan debt from gross income. Specifically, for the 2024 tax year and subsequent years, individuals who have served or are currently serving in an underserved or rural community (as defined by the Mississippi Department of Health or the United States Department of Agriculture) will not have to pay income tax on student loan debt forgiven under the Public Service Loan Forgiveness (PSLF) Program. The PSLF Program is a federal program that forgives student loan debt for borrowers who work in public service jobs and make qualifying payments over a certain period. By excluding this forgiven debt from gross income, the bill aims to provide tax relief for public service workers in rural or underserved areas, recognizing their contributions to communities with limited access to services. The bill will take effect on January 1, 2025, and does not impact any existing tax claims or assessments prior to that date.