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History
- Print number 473a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S473A
Title of bill
An act to amend the tax law, in relation to authorizing a personal income tax deduction for student loan payments
Purpose or general idea of bill
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 specific provisions
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 41 which 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 graduates 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.
The Project on Student Debt (projectonstudentdebt.org) reports the average student loan debt in 2012 for a bachelor's degree was $25,500. Borrowers now hold more than $1 trillion in student loan debt - more than credit cards and second only to mortgages.
In December of 2012, the Federal Reserve announced that the student loan 90-day delinquency rate increased to 11% and for the first time exceeded the "serious delinquency" rate for credit card debt. The crushing student loan debt keeps New Yorkers 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.
Prior legislative history
Previously introduced.
Fiscal implications
To be determined.
Effective date
Shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2015.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.