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Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to modifications reducing federal adjusted gross income
Purpose
Establishes a state student loan interest tax deduction matching the federal deduction and for undergraduate loan interest with no income or total deduction limit to help New Yorkers with student debt.
Summary of provisions
Section 1 amends Section 612 of the Tax Law to add a new Paragraph 44 to establish a state student loan interest tax deduction matching the federal deduction and with no income or total deduction limit for undergraduate loan interest.
Subparagraph (A) establishes a state tax deduction for student loan interest equal to the deduction allowed under federal Internal Revenue Code Section 221.
Subparagraph (B) establishes a state tax deduction for undergraduate student loan interest with no income or total deduction limit, to the extent such interest is not used as the basis for a deduction under subparagraph (A).
Section 2 establishes an effective date.
Justification
Over sixty percent of New Yorkers graduate with college debt, and average debt at graduation in New York is over $27,000 according to The Institute for College Access & Success.
This debt is impacting these New Yorkers' daily lives including their ability to make home and car purchases and their decisions about whether to start a family or a small business, among other consequences.
Massachusetts allows taxpayers to deduct student loan interest payments from their state income to the same extent such payments are deductible on the federal level, and allows an additional deduction for undergraduate loan interest that is not otherwise deductible under the federal rules. This bill would establish a similar framework for New York, adding an additional state level deduction for student loan interest to match the federal deduction and permitting an additional state deduction for undergraduate loan interest with no income or total deduction limit.
Legislative history
New
Fiscal implications
To be determined.
Effective date
Tax year for the year in which the legislation becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.