Governor Brown signs bill to exclude forgiven student loan debt from state tax liability
Torrance, CA – On Friday, Governor Edmund G. Brown, Jr. signed Assemblymember Al Muratsuchi’s (D-Torrance) Assembly Bill (AB) 461, which will expand the exclusion for forgiven or canceled student loan debt from gross income in determining state tax liability. Current federal law allows for forgiving or canceling student loan debt, but the forgiven loan debt may still be assessed as a state tax liability.
“AB 461 provides relief to those struggling with student loan debt,” said Assemblymember Muratsuchi. “This is a bipartisan tax cut based on the simple principle that no one should be taxed for forgiven student loans.”
Assemblymember Al Muratsuchi represents California’s 66th Assembly District, which includes El Camino Village, Gardena, Harbor City, Harbor Gateway, Hermosa Beach, Lomita, Los Angeles, Manhattan Beach, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Torrance, and West Carson. He serves as Chairman of the Joint Legislative Audit Committee and the Assembly Select Committee on Aerospace. Muratsuchi is a member of the Assembly Committees on Budget, Budget Subcommittee on Education Finance, Environmental Safety and Toxic Materials, Natural Resources, Utilities and Energy, and Veterans Affairs.