What's happening
This bill creates a tax credit for employers and employees when employers pay down employees' governmental education loans, up to $10,000 per employee.
Why it matters
Encourages employer participation in student debt relief. By offering a substantial tax credit (up to $10,000 per employee), the bill incentivizes businesses to help their workers pay down government-backed education loans, which could make such benefits more common and competitive in the job market.
Direct tax benefit to employees as well. Employees whose employers make these qualifying student loan payments can also claim a tax credit, potentially doubling the benefit for the worker and further easing the personal financial burden of student debt.
Targets both federal and state student loans. The credit applies broadly to debts owed to the federal government, New York State, or any other institution, which means a wide range of government-backed education loans (including judgments) are eligible, increasing its reach among indebted New Yorkers.
Refundable credit design increases accessibility. If the tax credit exceeds the tax owed, the excess is treated as a tax overpayment and refunded (though without interest), ensuring that even those with low tax liability can benefit financially from employer loan payments.
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Who cares
Headline styles
Employer Student Loan Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
12 Co-sponsors
2 Multi-sponsors
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.
Employer Student Loan Tax Credit
In Senate Committee · Investigations And Government Operations · Sponsor Betty Little
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7491
2017-2018 Regular Sessions
IN ASSEMBLY
April 27, 2017
Introduced by M. of A. JONES -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to creating a tax credit for employers who reduce the governmental education loans of their employees and said employees who receive such reduction in governmental education loans
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Employee indebtedness reduction credit. (a) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in paragraph (b) of this subdivision, against the tax imposed by this article, if it provides for a payment, on behalf of an employee, of any indebtedness of the employee under a governmental education loan or any interest relating to such a loan. For purposes of this subdivision, "governmental education loan" shall mean any education loan debt, including judgments, owed to the federal or New York state government or any other institution.
(b) Amount of credit. The credit allowed pursuant to paragraph (a) of this subdivision shall be in an amount equal to the taxpayer's payment, on behalf of an employee, of any indebtedness of the employee under a governmental education loan or any interest relating to such a loan. Provided, however, that no such credit allowed under this subdivision shall exceed ten thousand dollars for each employee employed by such employer.
(c) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. If, however, the amount of credits allowed under this subdivision for any taxable year reduces the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10971-02-7
A. 7491 2
tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (xliv) Employee indebtedness Amount of credit reduction credit under subdivision under subsection (iii) fifty-three of section
two hundred ten-B
§ 3. Section 606 of the tax law is amended by adding two new subsections (iii) and (jjj) to read as follows:
(iii) Employee indebtedness reduction credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computer as provided in paragraph two of this subsection, against the tax imposed by this article, if it provides for a payment, on behalf of an employee, of any indebtedness of the employee under a governmental education loan or any interest relating to such a loan. For purposes of this subsection, "governmental education loan" shall mean any education loan debt, including judgments, owed to the federal or New York state government or any other institution.
(2) Amount of credit. The credit allowed pursuant to paragraph one of this subsection shall be in an amount equal to the taxpayer's payment, on behalf of an employee, of any indebtedness of the employee under a governmental education loan or any interest relating to such a loan. Provided, however, that no such credit allowed under this subsection shall exceed ten thousand dollars for each employee employed by such employer.
(3) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
(jjj) Employer education loan reduction credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in paragraph two of this subsection, against the tax imposed by this article, if the taxpayer's employer provides for a payment, on behalf of such taxpayer, of any indebtedness of such taxpayer under a governmental education loan or any interest relating to such a loan. For purposes of this subsection, "governmental education loan" shall mean any education loan debt, including judgments, owed to the federal or New York state government or any other institution.
(2) Amount of credit. The credit allowed pursuant to paragraph one of this subsection shall be in an amount equal to the amount paid by the taxpayer's employer to reduce any indebtedness of the taxpayer under a governmental education loan or any interest relating to such a loan. Provided, however, that no such credit allowed under this subsection shall exceed ten thousand dollars.
(3) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six
A. 7491 3
hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 4. This act shall take effect immediately and apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law.
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.