What's happening
This bill allows New York taxpayers to deduct up to $2,500 of student loan interest for higher education from state taxes.
Why it matters
Helps ease the financial burden of student loan repayment. by allowing state taxpayers to deduct up to $2,500 in student loan interest, which may encourage more New Yorkers to pursue higher education without as much worry about long-term debt.
Aligns New York state tax benefits with federal policy. (specifically, the federal student loan interest deduction under IRS code section 221), making it easier for borrowers to understand and claim similar tax relief at both the state and federal levels.
Targets middle- and lower-income residents. who are more likely to be repaying student loans and for whom the deduction cap is most relevant, potentially putting more money back into the pockets of those who need it most and stimulating local economies.
Represents a policy shift prioritizing educational affordability and workforce development. by using the tax code to reduce costs associated with higher education, which could help the state attract and retain skilled workers.
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Cap Student Loan Interest Deduction
Plain English, a few words. Used as the page title.
Sponsors
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History
- Print number 1412a
- Amend and recommit to ways and means
- Referred to ways and means
- Referred to ways and means
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.
Cap Student Loan Interest Deduction
In Senate Committee · Investigations And Government Operations · Sponsor Kenneth P. LaValle
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1412--A
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. JENNE -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to interest on indebtedness incurred by taxpayer to pay for higher education
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows:
(44) Interest on indebtedness incurred by the taxpayer solely to pay qualified higher education expenses to the extent such interest is deductible, in accordance with Title 26 U.S.C. § 221, for federal tax purposes, but not to exceed two thousand five hundred dollars.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02536-03-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.