Assembly Bill A8675

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

                                  8675

                          I N  A S S E M B L Y

                            January 12, 2016
                               ___________

Introduced  by  M. of A. LUPINACCI, MALLIOTAKIS, WALTER -- read once and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to  deduction  for  educational
  loan payments

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (d) of section 615 of the tax law is amended  by
adding a new subparagraph 5 to read as follows:
  (5)  IN  THE  CASE  OF  A TAXPAYER OWING MONEY ON AN EDUCATIONAL LOAN,
THERE SHALL BE ALLOWED AS A DEDUCTION FOR THE  TAXABLE  YEAR  AN  AMOUNT
EQUAL  TO  THE  PRINCIPAL  AND  INTEREST PAID BY THE TAXPAYER DURING THE
TAXABLE YEAR ON ANY EDUCATIONAL LOAN INCURRED AT AN INSTITUTION OF HIGH-
ER EDUCATION.  THE MAXIMUM DEDUCTION ALLOWED IN  A  GIVEN  TAXABLE  YEAR
SHALL BE AS FOLLOWS:
  (A)  EIGHT  THOUSAND  DOLLARS  FOR RESIDENT MARRIED INDIVIDUALS FILING
JOINT RETURNS AND RESIDENT SURVIVING SPOUSES;
  (B) SIX THOUSAND DOLLARS FOR RESIDENT HEADS OF HOUSEHOLDS; AND
  (C) FOUR THOUSAND DOLLARS FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT
MARRIED INDIVIDUALS FILING SEPARATE RETURNS  AND  RESIDENT  ESTATES  AND
TRUSTS.
  A  TAXPAYER  SHALL  BE  ELIGIBLE  FOR THE DEDUCTION ONLY IF HIS OR HER
INCOME IS AT OR BELOW THE FOLLOWING AMOUNTS:
  (A) ONE HUNDRED SIXTY THOUSAND DOLLARS FOR RESIDENT  MARRIED  INDIVID-
UALS FILING JOINT RETURNS AND RESIDENT SURVIVING SPOUSES;
  (B)  ONE  HUNDRED TWENTY THOUSAND DOLLARS FOR RESIDENT HEADS OF HOUSE-
HOLDS; AND
  (C) EIGHTY THOUSAND DOLLARS FOR RESIDENT UNMARRIED INDIVIDUALS,  RESI-
DENT  MARRIED  INDIVIDUALS  FILING SEPARATE RETURNS AND RESIDENT ESTATES
AND TRUSTS.
  FOR PURPOSES OF THIS SUBPARAGRAPH:
  (A) "EDUCATIONAL LOAN" SHALL HAVE THE  SAME  MEANING  AS  PROVIDED  BY
SUBDIVISION FOUR OF SECTION SIX HUNDRED TWENTY OF THE EDUCATION LAW;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13484-01-6

              

A. 8675                             2

  (B)  "INSTITUTION  OF HIGHER EDUCATION" SHALL HAVE THE SAME MEANING AS
PROVIDED BY PARAGRAPH THREE OF SUBSECTION (T) OF SECTION SIX HUNDRED SIX
OF THE TAX LAW.
  S 2. This act shall take effect immediately and apply to taxable years
beginning on and after 2016.