Senate Bill S1674

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1674
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2025
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 creating a tax credit for
   employers who reduce the education loans of their employees
 
   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 61 to read as follows:
   61. 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 HIGHER EDUCATION LOAN OR ANY INTEREST
 RELATING TO SUCH A LOAN.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  "HIGHER
 EDUCATION LOAN" SHALL MEAN ANY EDUCATION LOAN DEBT, INCLUDING JUDGMENTS,
 OWED  TO  THE FEDERAL OR NEW YORK STATE GOVERNMENT OR ANY OTHER INSTITU-
 TION RELATED TO AN UNDERGRADUATE PROGRAM OF STUDY.
   (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
 HIGHER  EDUCATION  LOAN  OR  ANY  INTEREST  RELATING  TO  SUCH  A  LOAN.
 PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED  UNDER  THIS  SUBDIVISION
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02223-03-5
              

 S. 1674                             2
 
 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  (lii)  to  read  as
 follows:
 (LII) EMPLOYEE INDEBTEDNESS          AMOUNT OF CREDIT
 REDUCTION CREDIT                     UNDER SUBDIVISION
 UNDER SUBSECTION (QQQ)               SIXTY-ONE OF SECTION
                                      TWO HUNDRED TEN-B
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (qqq) to read as follows:
   (QQQ) EMPLOYEE INDEBTEDNESS REDUCTION CREDIT. (1) ALLOWANCE OF CREDIT.
 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 IT PROVIDES FOR A PAYMENT, ON BEHALF  OF  AN  EMPLOYEE,  OF  ANY
 INDEBTEDNESS OF THE EMPLOYEE UNDER A HIGHER EDUCATION LOAN OR ANY INTER-
 EST  RELATING  TO  SUCH A LOAN. FOR PURPOSES OF THIS SUBSECTION, "HIGHER
 EDUCATION LOAN" SHALL MEAN ANY EDUCATION LOAN DEBT, INCLUDING JUDGMENTS,
 OWED TO THE FEDERAL OR NEW YORK STATE GOVERNMENT OR ANY  OTHER  INSTITU-
 TION RELATED TO A UNDERGRADUATE PROGRAM OF STUDY.
   (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
 HIGHER  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.
   §  4.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ff) to read as follows:
   (FF) EMPLOYEE INDEBTEDNESS REDUCTION CREDIT. (1) ALLOWANCE OF  CREDIT.
 A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE COMPUTED AS PROVIDED IN
 PARAGRAPH TWO OF THIS SUBDIVISION, 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 HIGHER EDUCATION LOAN OR ANY INTER-
 EST  RELATING  TO SUCH A LOAN. FOR PURPOSES OF THIS SUBDIVISION, "HIGHER
 EDUCATION LOAN" SHALL MEAN ANY EDUCATION LOAN DEBT, INCLUDING JUDGMENTS,
 OWED TO THE FEDERAL OR NEW YORK STATE GOVERNMENT OR ANY  OTHER  INSTITU-
 TION RELATED TO AN UNDERGRADUATE PROGRAM OF STUDY.
   (2)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE 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
 HIGHER  EDUCATION  LOAN  OR  ANY  INTEREST  RELATING  TO  SUCH  A  LOAN.
 PROVIDED,  HOWEVER,  THAT  NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL EXCEED TEN THOUSAND DOLLARS FOR EACH  EMPLOYEE  EMPLOYED  BY  SUCH
 EMPLOYER.
   (3)  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  MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
 S. 1674                             3

 FIFTEEN HUNDRED TWO OF THIS ARTICLE OR SECTION FIFTEEN HUNDRED TWO-A  OF
 THIS  ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT
 ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
 SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY  BE  DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 5. 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.