senate Bill S473A

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

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

Sponsor Memo

BILL NUMBER:S473A

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. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 41 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
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.

The Project on Student Debt (projectonstudentdebt.org) reports the
average student loan debt in 2012 for a bachelor's degree was $25,500.
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:

Previously introduced.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

Shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2015.

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

                                 473--A

                       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 -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 41 to read as follows:
  (41) 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, 2015.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02740-02-4

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