Assembly Bill A10698A

2021-2022 Legislative Session

Excludes certain student loan discharge or forgiveness amounts from state income tax

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2021-A10698 - Details

See Senate Version of this Bill:
S9548
Current Committee:
Assembly Ways And Means
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2023-2024 Legislative Session:
A4421, S143

2021-A10698 - Summary

Enacts the "Tax-free debt forgiveness act"; excludes certain student loan forgiveness amounts authorized under 20 U.S.C. Sections 1098aa, 1098bb, 1098cc, 1098dd or 1098ee from state income tax.

2021-A10698 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10698
 
                           I N  A S S E M B L Y
 
                             September 9, 2022
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Reyes) --
   read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to  including  certain  student
   loan  forgiveness  amounts  as  a  reduction of federal adjusted gross
   income
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "Tax-free
 debt forgiveness act".
   § 2. Subparagraph (A) of paragraph 42 of subsection (c) of section 612
 of the tax law, as added by chapter 456 of the laws of 2017, is  amended
 to read as follows:
   (A)  The  amount  of  any  student loan that is discharged, whether in
 whole or in part, if such discharge was:
   (i) pursuant to subsection (a) or (d) of section  437  of  the  Higher
 Education  Act of 1965 or the parallel benefit provided pursuant to part
 D of title IV of such act;
   (ii) pursuant to section 464(c)(1)(F) of the Higher Education  Act  of
 1965; [or]
   (iii) otherwise discharged on account of the death or total and perma-
 nent  disability  of  the  person  on  whose behalf the indebtedness was
 incurred; OR
   (IV) ANY AMOUNT DISCHARGED OR FORGIVEN BY THE SECRETARY  OF  EDUCATION
 PURSUANT  TO  AUTHORIZATION  PROVIDED  BY  20  U.S.C.  § 1098AA, 1098BB,
 1098CC, 1098DD OR 1098EE.
   § 3. This act shall take effect immediately, and shall  apply  to  the
 taxable year in which it shall take effect and to all subsequent taxable
 years.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16288-02-2

co-Sponsors

2021-A10698A (ACTIVE) - Details

See Senate Version of this Bill:
S9548
Current Committee:
Assembly Ways And Means
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2023-2024 Legislative Session:
A4421, S143

2021-A10698A (ACTIVE) - Summary

Enacts the "Tax-free debt forgiveness act"; excludes certain student loan forgiveness amounts authorized under 20 U.S.C. Sections 1098aa, 1098bb, 1098cc, 1098dd or 1098ee from state income tax.

2021-A10698A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10698--A
 
                           I N  A S S E M B L Y
 
                             September 9, 2022
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES  --  (at request of M. of A. Reyes,
   Kelles, Cruz) -- read once and referred to the Committee on  Ways  and
   Means  --  committee  discharged,  bill  amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to  excluding  certain  student
   loan discharge or forgiveness amounts from state income tax

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as  the  "Tax-free
 debt forgiveness act".
   § 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 47 to read as follows:
   (47)  THE  AMOUNT  OF  ANY  STUDENT LOAN DISCHARGED OR FORGIVEN BY THE
 SECRETARY OF EDUCATION PURSUANT TO AUTHORIZATION PROVIDED BY 20 U.S.C. §
 1098AA, 1098BB, 1098CC, 1098DD OR 1098EE SHALL NOT BE CONSIDERED TAXABLE
 INCOME FOR THE PURPOSE OF CALCULATING NEW YORK  ADJUSTED  GROSS  INCOME,
 IRRESPECTIVE  OF  WHETHER  IT  IS  CONSIDERED TAXABLE INCOME FOR FEDERAL
 INCOME TAX PURPOSES.
   § 3. This act shall take effect immediately, and shall  apply  to  the
 taxable year in which it shall take effect and to all subsequent taxable
 years.
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16288-04-2

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