What's happening
This bill allows New York taxpayers to deduct up to $5,000 in student loan payments from state income tax, starting in 2020.
Why it matters
Targets out-of-pocket student loan payments. Only payments not already deducted from federal taxes or reimbursed by another source are eligible, meaning it specifically benefits those paying directly from their own funds.
Covers loans for self, spouse, or dependents. The deduction applies to loans taken out for the taxpayer, their spouse, or dependents, potentially increasing the number of households who could benefit—not just graduates, but also parents and guardians supporting others.
Aligns with federal definitions. By referencing Section 221 of the Internal Revenue Code for “qualified education loans,” the bill limits the deduction to broadly recognized student loan types, reducing ambiguity and confusion during tax filing.
May help offset high cost of education and living. For New Yorkers struggling with student debt, this deduction could provide meaningful annual tax relief, making higher education a little more financially manageable and potentially encouraging retention of residents burdened by loans.
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Who cares
Headline styles
Deduct Student Loan Payments
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
History
- Referred to budget and revenue
- Referred to budget and revenue
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.
Deduct Student Loan Payments
In Assembly Committee · Ways And Means · Sponsor Aravella Simotas
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2798
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sens. COMRIE, ADDABBO, FELDER, MONTGOMERY, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to authorizing a personal income tax deduction for student 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) Payment not in excess of five thousand dollars actually paid by an eligible borrower for student loan repayment, to the extent not deductible in determining federal adjusted gross income and not reimbursed. For the purposes of this paragraph, the following terms have the following meanings:
(i) "Student loans" means any indebtedness incurred by the taxpayer solely for any qualified education loan to the extent provided in section 221 of the Internal Revenue Code.
(ii) "Eligible borrower" shall mean a taxpayer who has incurred indebtedness on student loans as defined in subparagraph (i) of this paragraph on behalf of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01394-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to authorizing a personal income tax deduction for student loan payments
Purpose
The purpose of this bill is to help alleviate the crushing burden of student loan debt that many young New Yorkers and their parents face.
Summary of provisions
Section 1 of the bill amends Section 612 subsection (c) of the tax law by adding a new paragraph 44, which provides that a taxpayer with student loan debt incurred on behalf of himself, his spouse, or a dependent may take an above-the-line deduction of up to $5,000 in student loan debt not already covered by federal tax deductions and credits.
Justification
This bill is intended to fill a critical need for young college gradu- ates in a difficult job market where more than two million graduates are unemployed. At-the same time, student loans are becoming more and more a necessity, with public-university tuitions more than doubling in the past twenty years, well above the rate of inflation. Borrowers now hold more than $1 trillion in student loan debt - more than credit cards and second to only mortgages. The crushing student loan debt keeps New York- ers out of the middle class. This bill would allow taxpayers to use up to $5,000 per year in pretax dollars to repay student loans.
Legislative history
S 4603 COMRIE Same as A3419 Simotas
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.