NY State Senate Bill S143

Current Bill Status - On Floor Calendar

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

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Actions

view actions (3)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 21, 2023	1st report cal.536
Feb 14, 2023	reported and committed to finance
Jan 04, 2023	referred to budget and revenue

Votes

view votes

Mar 21, 2023 - Finance committee Vote

S143

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Feb 14, 2023 - Budget and Revenue committee Vote

S143

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Budget and Revenue committee vote details

Budget and Revenue Committee Vote: Feb 14, 2023

aye (5)

aye wr (2)

Murray
Weber

Co-Sponsors

view additional co-sponsors

S143 (ACTIVE) - Details

See Assembly Version of this Bill:: A4421
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S9548, A10698

S143 (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.

S143 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S143

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the tax law, in relation to excluding certain student
loan discharge or forgiveness amounts from state income tax

 
PURPOSE:

The purpose of this bill is to subtract from New York adjusted gross
income any federal student loan forgiveness awards authorized by the
Secretary of Education.

 
SUMMARY OF PROVISIONS:

Section one sets the title.

Section two amends subsection (c) of section 612 of the tax law by
adding a new paragraph 47 to exclude from taxation the discharge or
forgiveness of any federal student loan when authorized by the Secretary
of Education as authorized by 20 U.S.C. § 1098aa, 1098bb, 1098cc, 1098dd

or 1098ee.

Section three sets the effective date.

 
JUSTIFICATION:

On August 24th, 2022 the Biden administration announced the federal
government will forgive billions of dollars in federal student loan debt
for low- to middle-income borrowers. Under President Biden's plan, for
individual borrowers whose income is less than $125,000 or married
couples/heads of households whose income is less than $250,000, the
Department of Education will provide up to $20,000 in debt relief for
Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.

Federal support for college has not kept up with the rising cost of
higher education, which has increased 169% in the last forty years.
This has required many low- and middle- income students to borrow to
cover the ballooning costs of an education; one which is increasingly
expected by many employers. The effects of this debt can be crushing,
causing many students to not be able to afford to finish their degree,
and makes it harder for lower-and middle- income borrowers to build
wealth. It is for these reasons this student loan forgiveness is essen-
tial. However, New York State must also ensure that beneficiaries do not
have to pay money out of their own pockets in the form of tax liability
on such forgiveness.

The American Rescue Plan (ARPA) already stipulates that this debt relief
will not be treated as taxable income for federal income tax purposes.
However, in the 2021 tax year, New York State de-coupled from several
sections of the federal IRC. This bill would amend state tax law to
ensure federal student loan debt forgiveness authorized by the Secretary
of Education and awarded to an individual will be subtracted from New
York federal adjusted gross income, thus ensuring that no state taxes
would be owed on such relief.

 
LEGISLATIVE HISTORY:

2022: Died in Rules; Died in Ways & Means (Assembly)

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
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.

S143 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    143
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced by Sens. GIANARIS, HOYLMAN, THOMAS, ADDABBO, BAILEY, BRESLIN,
   BRISPORT, COONEY, FELDER, HARCKHAM, HINCHEY, JACKSON, KAVANAGH, KRUEG-
   ER,  MYRIE,  PARKER, RAMOS, RIVERA, STAVISKY -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Budget
   and Revenue
 
 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.
                                                            LBD01849-01-3

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The New York State Senate

senate Bill S143

Sponsored By

Current Bill Status - On Floor Calendar

Your Voice

Actions

Votes

Mar 21, 2023 - Finance committee Vote

Finance Committee Vote: Mar 21, 2023

Feb 14, 2023 - Budget and Revenue committee Vote

Budget and Revenue Committee Vote: Feb 14, 2023

Co-Sponsors

S143 (ACTIVE) - Details

S143 (ACTIVE) - Summary

S143 (ACTIVE) - Sponsor Memo

S143 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S143

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Sponsored By

Current Bill Status - On Floor Calendar

Your Voice

Actions

Votes

Mar 21, 2023 - Finance committee Vote

Finance Committee Vote: Mar 21, 2023

Feb 14, 2023 - Budget and Revenue committee Vote

Budget and Revenue Committee Vote: Feb 14, 2023

Co-Sponsors

S143 (ACTIVE) - Details

S143 (ACTIVE) - Summary

S143 (ACTIVE) - Sponsor Memo

S143 (ACTIVE) - Bill Text download pdf

Comments