BILL NUMBER: S4202
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing a personal
income tax deduction for student loan payments
 
PURPOSE:
The purpose of this bill is to help alleviate the crushing burden of
student loan debt that many young New Yorkers and their parents face.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Section 612 subsection (c) of the tax law
by adding a new paragraph 44, which provides that a taxpayer with
student loan debt incurred on behalf of himself, his spouse, or a
dependent may take an above-the-line deduction of up to $5,000 in
student loan debt not already covered by federal tax deductions and
credits.
 
JUSTIFICATION:
This bill is intended to fill a critical need for young college gradu-
ates in a difficult job market where more than two million graduates are
unemployed. At-the same time, student loans are becoming more and more a
necessity, with public-university tuitions more than doubling in the
past twenty years, well above the rate of inflation. Borrowers now hold
more than $1 trillion in student loan debt - more than credit cards and
second to only mortgages. The crushing student loan debt keeps New York-
ers out of the middle class. This bill would allow taxpayers to use up
to $5,000 per year in pretax dollars to repay student loans.
 
LEGISLATIVE HISTORY:
S2895 Comrie/ A1563 Simon
S5836 2022
S 4603 COMRIE Same as A3419 Simotas
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2022.

Statutes affected:
S4202: 612 tax law, 612(c) tax law