BILL NUMBER: S1674
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the tax law, in relation to creating a tax credit for
employers who reduce the education loans of their employees
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would create a tax credit for employers who assist their
employees in paying back their governmental education loans that they
received during their time as a student.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new subdivision 61 to Section 210-B of Tax Law to
create a corporate franchise tax credit when an employer provides for a
payment, on behalf of an employee, of any debt that the employee owes
under a higher education loan or any interest relating to such loan.
Section 2 amends Section 606 of Tax Law to make an edit in conformance
with section 3.
Section 3 amends Section 606 of Tax Law to create a new subsection
(qqq) to create this same credit for employers who pay personal income
tax.
Section 4 amends Section 1511 of Tax Law to create a new subdivision
(ff) to create this same credit for employers who pay insurance fran-
chise tax.
Section 5 sets the effective date.
 
JUSTIFICATION:
Higher education loans put financial strain, mental, and physical stress
on those who carry them. This bill provides an incentive for employers
to help relieve some of their employee's financial burdens while receiv-
ing tax benefits for doing so. This legislation would also open up the
job market for those who have higher education loans because they will
have an incentive to work for potential companies and organizations that
would be willing to pay their loans. Employers could use this as both a
recruitment and retention strategy for skilled employees.
 
PRIOR LEGISLATIVE HISTORY:
2024: S267A - Committed to Finance
2023: S267A - Committed to Finance
2022: S8141 - Referred to Budget and Revenue
2021: S5244 - Referred to Budget and Revenue
2019-2020: S1973 - Referred to Investigations and Government Operations
2017-2018: S5726 - Referred to Investigations and Government Operations
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
This act shall take effect immediately and apply to taxable years begin-
ning on and after the first of January next succeeding the date on which
it shall have become a law.

Statutes affected:
S1674: 210-B tax law, 606 tax law, 606(i) tax law, 1511 tax law