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Who cares
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Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides for a personal income tax deduction for student loan payments
In Assembly Committee · Ways And Means · Sponsor Aravella Simotas
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7404
Title of bill
An act to amend the tax law, in relation to authorizing a personal income tax deduction for student loan payments
Purpose
The purpose of this bill is to help alleviate the crushing burden of student loan debt that many young New Yorkers and their parents face.
Summary of provisions
Section 1 of the bill amends Section 612 subsection (c) of the tax law by adding a new paragraph 39. Paragraph 39 provides that a taxpayer with student loan debt incurred on behalf of himself, his spouse, or a dependent may take an above-the-line deduction of up to $5,000 in student loan debt not already covered by federal tax deductions and credits.
Justification
This bill is intended to fill a critical need for young college gradu- ates in a difficult job market where more than two million graduates are unemployed. At the same time, student loans are becoming more and more a necessity, with public-university tuitions more than doubling in the past twenty years, well above the rate of inflation. Borrowers now hold more than $1 trillion in student loan debt - more than credit cards and second to only mortgages. The crushing student loan debt keeps New York- ers out of the middle class. This bill would allow taxpayers to use up to $5,000 per year in pre-tax dollars to repay student loans.
Fiscal implications
To be determined.
Effective date
Shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.