What's happening
This bill creates a youth earned income tax credit, raises the standard deduction for young adults, and allows student loan interest deductions.
Why it matters
Targets financial support to youth workers (ages 17 up to the federal EITC minimum age), who often have limited access to tax credits despite working, potentially encouraging early workforce participation and improving young people's financial stability.
Expands the standard deduction for unmarried young adults (ages 18–24), which could reduce taxable income and increase take-home pay for many recent high school graduates, college students, and entry-level workers, offering meaningful tax relief at a financially vulnerable stage.
Allows New York residents to deduct student loan interest from their state taxable income, aligning with federal provisions, which may ease the burden of student debt and incentivize higher education by providing direct tax savings for borrowers.
Requires annual public reporting on the youth EITC, adding transparency and allowing policymakers and the public to track which counties and demographic groups are benefiting, which can guide future policy decisions or adjustments.
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Tax Breaks for Young Workers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Tax Breaks for Young Workers
In Assembly Committee · Ways And Means · Sponsor Harry B. Bronson
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4891
2019-2020 Regular Sessions
IN SENATE
March 28, 2019
Introduced by Sen. 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 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.
LBD04478-01-9
S. 4891 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 section 1 of part JJ of chapter 59 of the laws of 2018, 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 who is claimed as a dependent by another New York state taxpayer 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 nineteen, 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 twenty, 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, 2022 and shall expire and be deemed repealed December 31, 2027.
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 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
Purpose or general idea of bill
To provide earned income tax credit to youth workers, increase the stan- dard deduction for individuals 18 to 24, and provide for the deduction of student loan interest.
Summary of specific provisions
Section 1 amends Section 606 of the tax law by adding a new subsection d-2 creating the earned income tax credit for youth workers. The credit allowed is equal to that allowed to a taxpayer under section 32 of the internal revenue code. This section sets the qualifications the taxpayer must satisfy in order to be eligible for the credit.
Section 2 amends subsection a of section 614 of the tax law by providing a standard deduction of ten thousand dollars by a New York state resi- dent who is between the ages of eighteen and twenty-four and setting other qualifications.
Section 3 adds a new subsection h to section 615 of the tax law by providing a deduction for interest paid on qualified education loans.
Section 4 is the effective date.
Justification
New York State tax law does not provide exemptions for young, independ- ent adults ages 17-24. This age group is often ignored and left out of exemptions, left with lower income deduction rates and not provided the benefits on par with the Federal government on student-loan deductions. Our youngest population of adults deserves tax relief on the same level as the rest of our independent residents throughout the state. New York is dealing with an exodus of younger adults seeking greater economic opportunities in other states. Because of the loss in population, it is in the best interest of the state to try to assist these independent young workers and students and encourage them to stay in the state to be contributing members to New York State's improvement initiatives and economic growth.
Prior legislative history
2017-18: S3596 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS 2015-16: S.3884A/A.7891A - Amend and Recommit to Investigations and Gov't Operations 2013-14: S.5393A/A.2617A - Referred to Investigations and Gov't Oper- ations 2011-12: A.5399 - Referred to Ways and Means 2009-10: S.2720/A.4875 - Referred to Investigations and Gov't Operations
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022 and shall expire and be deemed repealed December 31, 2027.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.