Today, Governor Walz signed the first piece of legislation this session that could have significant tax savings for student loan borrowers. The legislation is designed to bring tax conformity between federal and state taxes and will ensure that student loan borrowers will not pay state income tax on any student debt that they have forgiven by the federal government.
Unfortunately, the student debt relief plan is on hold while the US Supreme Court considers the issue on February 28, 2023. A ruling is expected this spring on the issue.
LeadMN Preident John Runningen was invited to attend the bill signing to thank Governor Walz, Lt Governor Flanagan, Speaker Hortman, Majority Leader Dziedzic, Minority leader Demuth, Minority Leader Johnson and all the legislative leaders that made this legislation happen.
This legislation saved student loan borrowers between $500-$2000 in state income taxes.