AN ACT EXEMPTING FROM THE PERSONAL INCOME TAX THE AMOUNT OF STATE AND FEDERAL DEBT RELIEF RECEIVED BY A TAXPAYER FOR STUDENT LOANS AND MEDICAL DEBT.

HB 5112 exempts taxpayers from state personal income tax on debt relief received for student loans or medical debt. It directly affects individuals who have had these debts forgiven by state or federal programs. The bill amends tax law to exclude the amount of debt relief (from both state and federal sources) from taxable income. This creates a concrete policy change: taxpayers no longer owe state income tax on forgiven student or medical debt amounts.