S T A T E O F N E W Y O R K
________________________________________________________________________
825--A
2021-2022 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 6, 2021
___________
Introduced by M. of A. JONES, COLTON, DICKENS, WALLACE, WILLIAMS,
J. RIVERA, MORINELLO, BLANKENBUSH, HEVESI, CARROLL -- Multi-Sponsored
by -- M. of A. SIMON -- read once and referred to the Committee on
Ways and Means -- recommitted to the Committee on Ways and Means in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law, in relation to creating a tax credit for
employers who reduce the governmental education loans of their employ-
ees and said employees who receive such reduction in governmental
education loans
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 210-B of the tax law is amended by adding a new
subdivision 58 to read as follows:
58. EMPLOYEE INDEBTEDNESS REDUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARA-
GRAPH (B) OF THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE,
IF IT PROVIDES FOR A PAYMENT, ON BEHALF OF AN EMPLOYEE, OF ANY INDEBT-
EDNESS OF THE EMPLOYEE UNDER A GOVERNMENTAL EDUCATION LOAN OR ANY INTER-
EST RELATING TO SUCH A LOAN. FOR PURPOSES OF THIS SUBDIVISION, "GOVERN-
MENTAL EDUCATION LOAN" SHALL MEAN ANY EDUCATION LOAN DEBT, INCLUDING
JUDGMENTS, OWED TO THE FEDERAL OR NEW YORK STATE GOVERNMENT OR ANY OTHER
INSTITUTION.
(B) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S PAYMENT,
ON BEHALF OF AN EMPLOYEE, OF ANY INDEBTEDNESS OF THE EMPLOYEE UNDER A
GOVERNMENTAL EDUCATION LOAN OR ANY INTEREST RELATING TO SUCH A LOAN.
PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05426-02-2
A. 825--A 2
SHALL EXCEED TEN THOUSAND DOLLARS FOR EACH EMPLOYEE EMPLOYED BY SUCH
EMPLOYER.
(C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF
CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xlix) to read as
follows:
(XLIX) EMPLOYEE INDEBTEDNESS AMOUNT OF CREDIT
REDUCTION CREDIT UNDER SUBDIVISION
UNDER SUBSECTION (NNN) FIFTY-EIGHT OF SECTION
TWO HUNDRED TEN-B
§ 3. Section 606 of the tax law is amended by adding two new
subsections (nnn) and (ooo) to read as follows:
(NNN) EMPLOYEE INDEBTEDNESS REDUCTION CREDIT. (1) ALLOWANCE OF CREDIT.
A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTER AS PROVIDED IN
PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE, IF IT PROVIDES FOR A PAYMENT, ON BEHALF OF AN EMPLOYEE, OF ANY
INDEBTEDNESS OF THE EMPLOYEE UNDER A GOVERNMENTAL EDUCATION LOAN OR ANY
INTEREST RELATING TO SUCH A LOAN. FOR PURPOSES OF THIS SUBSECTION,
"GOVERNMENTAL EDUCATION LOAN" SHALL MEAN ANY EDUCATION LOAN DEBT,
INCLUDING JUDGMENTS, OWED TO THE FEDERAL OR NEW YORK STATE GOVERNMENT OR
ANY OTHER INSTITUTION.
(2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S PAYMENT,
ON BEHALF OF AN EMPLOYEE, OF ANY INDEBTEDNESS OF THE EMPLOYEE UNDER A
GOVERNMENTAL EDUCATION LOAN OR ANY INTEREST RELATING TO SUCH A LOAN.
PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBSECTION
SHALL EXCEED TEN THOUSAND DOLLARS FOR EACH EMPLOYEE EMPLOYED BY SUCH
EMPLOYER.
(3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
(OOO) EMPLOYER EDUCATION LOAN REDUCTION CREDIT. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE, IF THE TAXPAYER'S EMPLOYER PROVIDES FOR A PAYMENT, ON BEHALF OF
SUCH TAXPAYER, OF ANY INDEBTEDNESS OF SUCH TAXPAYER UNDER A GOVERNMENTAL
EDUCATION LOAN OR ANY INTEREST RELATING TO SUCH A LOAN. FOR PURPOSES OF
THIS SUBSECTION, "GOVERNMENTAL EDUCATION LOAN" SHALL MEAN ANY EDUCATION
LOAN DEBT, INCLUDING JUDGMENTS, OWED TO THE FEDERAL OR NEW YORK STATE
GOVERNMENT OR ANY OTHER INSTITUTION.
(2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO THE AMOUNT PAID BY THE
TAXPAYER'S EMPLOYER TO REDUCE ANY INDEBTEDNESS OF THE TAXPAYER UNDER A
A. 825--A 3
GOVERNMENTAL EDUCATION LOAN OR ANY INTEREST RELATING TO SUCH A LOAN.
PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBSECTION
SHALL EXCEED TEN THOUSAND DOLLARS.
(3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
§ 4. This act shall take effect immediately and apply to taxable years
beginning on and after the first of January next succeeding the date on
which it shall have become a law.