What's happening
This bill creates a youth earned income tax credit, increases the standard deduction for young adults, and allows a student loan interest deduction.
Why it matters
Targets financial support to young workers. By creating a youth earned income tax credit for 17- to early-20s workers (who are too young for the federal EITC), the bill aims to increase take-home pay for teens and young adults starting out in the workforce, potentially encouraging employment and financial independence.
Reduces tax burden for emerging adults. The increased standard deduction for unmarried individuals aged 18–24 recognizes the unique financial challenges of this age group (such as low starting wages and transition expenses), allowing them to keep more of their income and easing the path toward self-sufficiency.
Addresses student debt early. Allowing a deduction for student loan interest paid by young adults can provide immediate, tangible relief for those beginning to repay education loans, helping to reduce the early financial strain of higher education and possibly improving credit outcomes.
Includes reporting and oversight. The required annual reports on the youth tax credit’s usage and impact (broken down by county and average credit size) create transparency, giving policymakers and the public data to assess whether the interventions are reaching their intended populations and having the desired effects.
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Tax Breaks for Young Workers
Plain English, a few words. Used as the page title.
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History
- 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.
Tax Breaks for Young Workers
In Senate Committee · Investigations And Government Operations · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2108
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. BRONSON -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing an earned income tax credit to youth workers, increasing the standard deduction and providing for the deduction of student loan interest; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (d-2) to read as follows:
(d-2) Earned income tax credit for youth workers. (1) A taxpayer described in paragraph two of this subsection shall be allowed a credit equal to the product of one and three-tenths and the amount of the earned income tax credit that would have been allowed to the taxpayer under section 32 of the internal revenue code, if the taxpayer had attained the minimum age of eligibility for such earned income tax credit set forth in section 32(c)(1)(A)(ii)(II) of the internal revenue code.
(2) To be allowed a credit under this subsection, a taxpayer must satisfy all of the following qualifications:
(A) The taxpayer must be a resident taxpayer who is not claimed as a dependent of another taxpayer.
(B) The taxpayer must have attained the age of seventeen and must not have attained the minimum age at which a taxpayer is qualified for the earned income tax credit as such age is set forth in section 32(c)(1)(A)(ii)(II) of the internal revenue code.
(C) The taxpayer must not be the custodial or non-custodial parent of a minor child or children.
(3) Nothing in this section shall be deemed to prohibit the qualifications of a taxpayer who is otherwise eligible for the earned income tax credit and who is enrolled in a full-time or part-time academic program
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07413-01-7
A. 2108 2
leading to completion of a high school diploma, general equivalency diploma, post-secondary certificate or work readiness credential, associate degree or baccalaureate degree.
(4) Reports. The commissioner shall prepare a preliminary written report after July thirty-first and a final written report after December thirty-first of each calendar year, which shall contain statistical information regarding the credits granted on or before such dates under this subsection during such calendar year. Copies of these reports shall be submitted by such commissioner to the governor, the temporary president of the senate, the speaker of the assembly, the chairman of the senate finance committee and the chairman of the assembly ways and means committee within sixty days of July thirty-first with respect to the preliminary report, and within forty-five days of December thirty-first with respect to the final report. Such reports shall contain, but need not be limited to, the number of credits and the average amount of such credits allowed. Such information shall include the number of credits and the average amount of such credits allowed; and of those, the number of credits and the average amounts of such credits allowed to taxpayers in each county.
§ 2. Subsection (a) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows:
(a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident individual who is not married nor the head of a household nor a surviving spouse nor an individual whose federal exemption amount is zero shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred ninety-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty-nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. For taxable years beginning after two thousand seventeen, the New York standard deduction of a resident individual who is between the ages of eighteen and twenty-four and who is not married nor the head of a household nor a surviving spouse nor an individual whose federal exemption amount is zero shall be ten thousand dollars.
§ 3. Section 615 of the tax law is amended by adding a new subsection (h) to read as follows:
(h) For taxable years beginning on and after January first, two thousand eighteen, in the case of a resident individual, there shall be allowed as a deduction for the taxable year an amount equal to the interest paid by the taxpayer during the taxable year on any qualified education loan to the extent and as provided in section 221 of the Internal Revenue Code.
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020 and shall expire and be deemed repealed December 31, 2025.
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.