Provides for a reduction in income for interest paid on student loans for taxpayers who are at least eighteen years but less than thirty years of age

BILL NUMBER:A9189

Title of bill

An act to amend the tax law, in relation to reducing income by the amount of interest paid for student loans

PURPOSE OR GENERAL IDEA OF BILL:; Provides for a reduction in income for interest paid on student pans for taxpayers who are at least eighteen but less thirty years of age.

Summary of specific provisions

Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph. For years after 2009, taxpayers who are at least 18 years of age and no more than thirty years of age will have all interest paid on student loans subtracted from federal adjusted gross income. "Student loans" are defined as any loan to a student from a lender to help pay the cost of post-secondary education at a postsecondary school. "Lenders" are defined as a bank, savings and loan association, credit union, pension fund, insurance company, school, or state lending agency.

Justification

This legislation will provide personal tax relief to young, college educated residents of New York and encourage them to remain in New York. Generally, it is between the ages of 18 and 30 where most students and former students face the greatest difficulty repaying their student loans. This legislation will provide relief during that period.

Legislative history

This is new legislation.

FISCAL IMPLICATIONS:; To be determined

Effective date

This act shall take effect immediately.