senate Bill S473A

2013-2014 Legislative Session

Provides for a personal income tax deduction for student loan payments

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 21, 2014 print number 473a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S473 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7404

S473 - Bill Texts

view summary

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

view 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.

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                    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

S473A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7404

S473A (ACTIVE) - Bill Texts

view summary

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

view 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 full text
download pdf
                    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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