FILED SENATE
May 2, 2024
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 812
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS45395-NIf-171
Short Title: Student Tax Reduction (STAR) Act. (Public)
Sponsors: Senators Smith and Grafstein (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ELIMINATE THE TAX BURDEN ON STUDENT DEBT RELIEF.
3 The General Assembly of North Carolina enacts:
4 SECTION 1. G.S. 105-153.5(c2) reads as rewritten:
5 "(c2) Decoupling Adjustments. – In calculating North Carolina taxable income, a taxpayer
6 must make the following adjustments to the taxpayer's adjusted gross income:
7 …
8 (22) For taxable years 2021 through 2025, a taxpayer must add an amount equal to
9 the amount by which the taxpayer's exclusion from the taxpayer's gross
10 income for the discharge of a student loan under section 108(f)(5) of the Code
11 exceeds the exclusion that would have been allowed under the Internal
12 Revenue Code as enacted as of May 1, 2020. The purpose of this subdivision
13 is to decouple from the exclusion from income for the discharge of a student
14 loan under section 9675 of the American Rescue Plan Act of 2021. If the
15 taxpayer is insolvent, as defined in section 108(d)(3) of the Code, then the
16 addition required under this subdivision is limited to the amount of discharge
17 of student loan indebtedness excluded from adjusted gross income under
18 section 108(f)(5) of the Code that exceeds the amount of discharge of
19 indebtedness that would have been excluded under section 108(a)(1)(B) of the
20 Code.
21 …."
22 SECTION 2. This act is effective for taxable years beginning on or after January 1,
23 2025.
*DRS45395-NIf-171*


Statutes affected:
Filed: 105-153.5
Edition 1: 105-153.5