Assembly Bill A6056

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6056
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 23, 2017
                                ___________
 
 Introduced  by  M.  of  A.  LUPINACCI  --  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 paragraph 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02980-01-7
              

 A. 6056                             2
 
   (A) "EDUCATIONAL LOAN" SHALL HAVE THE  SAME  MEANING  AS  PROVIDED  BY
 SUBDIVISION FOUR OF SECTION SIX HUNDRED TWENTY OF THE EDUCATION LAW;
   (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.
   § 2. This act shall take effect immediately and apply to taxable years
 beginning on and after 2017.