The proposed bill, General Assembly Proposed Bill No. 5113, aims to amend chapter 229 of the general statutes to exempt from personal income tax any amounts received by taxpayers as state and federal debt settlements and debt relief specifically for student loans, medical debt, and credit card debt. This legislative change is intended to alleviate the financial burden on individuals who are managing these types of debts by ensuring that such relief is not subject to taxation.

The bill does not include any deletions from current law but introduces new legal language that clearly defines the exemptions for the specified types of debt relief. The overarching goal of the bill is to provide financial relief to taxpayers struggling with significant debt, thereby promoting economic stability and supporting individuals in their efforts to regain financial footing.