BILL NUMBER: S4202A
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--line deduction of up to $5,000 in student
loan debt not already voted by federal tax deductions and credits, in
addition to removing any employer or third party payments t student
loans as income, in adherence to internal revenue service statute.
 
JUSTIFICATION:
Overwhelming student loan debt can have the effect of stalling career,
life, and financial advancement for young New Yorkers. This bill will
give working New Yorkers a direct tax break by excluding up to $5,000
from their state income each year when an employer helps facilitate
payment of employee student loan debt or contribution to a 529 plan.
These payments would be made automatically through payroll using systems
employers already have in place.
Student loans are becoming more and more a necessity, with public-univ-
ersity 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.
When we address student loan debt, we allow individuals that have gone
to college the opportunity to make greater contributions to the circular
economy, which helps build communities and support. local businesses. In
an era of unaffordability, this bill presents a solution to assist indi-
viduals, families, and increase consumer spending across New York.
Economically, this measure would assist not just those who have obtained
a degree from a college or university, but also those who have not by
shoring up additional monies for college educated individuals to spend
on contracting, restaurants, and other business sectors consisting of
those who perhaps have not gone to college.
 
LEGISLATIVE HISTORY:
S2895 Comrie/ A1563 Simon
S5836 2022
S 4603 CONRIE 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
S4202A: 612 tax law, 612(c) tax law