Details of Public Law 116-260, section 277 , Emergency Financial Aid Grants

Under the provision, certain emergency financial aid grants under the CARES Act and other emergency financial aid grants that provide relief during the coronavirus emergency are excluded from the gross income of college and university students.

In addition, grants excluded from gross income will not be considered for purposes of the determining the amount of the American Opportunity and Lifetime Learning tax credits allowed to an individual.

Also, the exclusion does not apply to payment received for teaching, research, or other services required as a condition of the grant.

California generally conforms to IRC section 61 pursuant to RTC sections 17071, under the PITL, and section 24271, under the CTL, as of 1/1/2015, except as otherwise provided.

California does not conform to the federal exclusion from gross income of emergency financial aid grants, and also does not conform to the federal American Opportunity and Lifetime Learning tax credits.

20/21 21/22 22/23 23/24 N/A $ (26,000,000) $ 0 $ 0