What's happening
This bill allows New York taxpayers with income below certain thresholds to deduct student loan payments from their taxable income.
Why it matters
Reduces tax burden for lower- and middle-income New Yorkers with student debt. , helping borrowers by allowing them to deduct principal and interest payments—potentially freeing up income for other expenses or savings.
Establishes clear income and deduction caps. (e.g., $8,000 for joint filers, $4,000 for singles; eligibility up to $160,000 household income), targeting relief to those most likely to be financially strained by student loans.
Treats both principal and interest as deductible. , which is broader than federal tax law (which usually only allows interest), making this a more significant benefit for eligible New Yorkers.
Could incentivize higher education by reducing its long-term financial penalty. , possibly influencing students’ willingness to borrow for college and supporting upward mobility.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Deduct Student Loan Payments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5879
2019-2020 Regular Sessions
IN ASSEMBLY
February 20, 2019
Introduced by M. of A. MALLIOTAKIS -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to an adjustment of income for educational loan payments
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) In the case of a taxpayer owing money on an educational loan, there shall be allowed an adjustment for the taxable year of an amount equal to the principal and interest paid by the taxpayer during the taxable year on any educational loan incurred at an institution of higher education. The maximum adjustment allowed in a given taxable year shall be as follows:
(A) eight thousand dollars for resident married individuals filing joint returns and resident surviving spouses;
(B) six thousand dollars for resident heads of households; and
(C) four thousand dollars for resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts.
A taxpayer shall be eligible for the adjustment only if his or her income is at or below the following amounts:
(A) one hundred sixty thousand dollars for resident married individuals filing joint returns and resident surviving spouses;
(B) one hundred twenty thousand dollars for resident heads of households; and
(C) eighty thousand dollars for resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts.
For purposes of this paragraph:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09941-01-9
A. 5879 2
(A) "Educational loan" shall have the same meaning as provided by subdivision four of section six hundred twenty of the education law;
(B) "Institution of higher education" shall have the same meaning as provided by paragraph three of subsection (t) of section six hundred six of this article.
§ 2. This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2019.
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.