senate Bill S473

Amended

Provides for a personal income tax deduction for student loan payments

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / Jan / 2014
    • PRINT NUMBER 473A

Summary

Provides for a personal income tax deduction for student loan payments.

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Bill Details

See Assembly Version of this Bill:
A2123
Versions:
S473
S473A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง612, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7404, A10635

Sponsor Memo

BILL NUMBER:S473

TITLE OF BILL:
An act
to amend the tax law, in relation to authorizing a personal income tax
deduction for student loan payments

PURPOSE OR GENERAL IDEA OF BILL:
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 SPECIFIC PROVISIONS:
Section 1 of the bill amends Section 612 subsection (c) of the tax law
by adding a new paragraph 39. Paragraph 39 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
graduates 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. In September 2012, The Pew Research Center reported that
one-in-five households owed student loan debt and that the average
student loan debt in 2011 was $23,300. Borrowers now hold more than
$1 trillion in student loan debt - more than credit cards and second
only to mortgages.

In December of 2012, the Federal Reserve announced that the student
loan 90-day delinquency rate increased to 11% and for the first time
exceeded the "serious delinquency" rate for credit card debt. The
crushing student loan debt keeps New Yorkers out of the middle class.
This bill would allow taxpayers to use up to $5,000 per year in
pre-tax dollars to repay student loans.

PRIOR LEGISLATIVE HISTORY:
2012: Introduced (S.7404) with Assemblywoman Simotas (A.10635)

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2014.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   473

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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 ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (c) of section 612 of the tax law is amended  by
adding a new paragraph 39 to read as follows:
  (39)  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 REIM-
BURSED. 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.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2014.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02740-01-3

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