Bill Text: NY A01603 | 2019-2020 | General Assembly | Introduced
Bill Title: Creates a tax credit for employers who help reduce the governmental education loans of their employees and said employees who receive such reduction in governmental education loans.
Spectrum: Moderate Partisan Bill (Democrat 11-2)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A01603 Detail]
Download: New_York-2019-A01603-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1603 2019-2020 Regular Sessions IN ASSEMBLY January 15, 2019 ___________ Introduced by M. of A. JONES, ORTIZ, COLTON, DICKENS, WALLACE, CRESPO, WILLIAMS, RIVERA, MORINELLO, BLANKENBUSH, HEVESI, CARROLL -- Multi- Sponsored by -- M. of A. SIMON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to creating a tax credit for employers who reduce the governmental education loans of their employ- ees and said employees who receive such reduction in governmental education loans The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 53 to read as follows: 3 53. Employee indebtedness reduction credit. (a) Allowance of credit. A 4 taxpayer shall be allowed a credit, to be computed as provided in para- 5 graph (b) of this subdivision, against the tax imposed by this article, 6 if it provides for a payment, on behalf of an employee, of any indebt- 7 edness of the employee under a governmental education loan or any inter- 8 est relating to such a loan. For purposes of this subdivision, "govern- 9 mental education loan" shall mean any education loan debt, including 10 judgments, owed to the federal or New York state government or any other 11 institution. 12 (b) Amount of credit. The credit allowed pursuant to paragraph (a) of 13 this subdivision shall be in an amount equal to the taxpayer's payment, 14 on behalf of an employee, of any indebtedness of the employee under a 15 governmental education loan or any interest relating to such a loan. 16 Provided, however, that no such credit allowed under this subdivision 17 shall exceed ten thousand dollars for each employee employed by such 18 employer. 19 (c) Application of credit. The credit allowed under this subdivision 20 for any taxable year shall not reduce the tax due for such year to less 21 than the amount prescribed in paragraph (d) of subdivision one of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02825-01-9A. 1603 2 1 section two hundred ten of this article. If, however, the amount of 2 credits allowed under this subdivision for any taxable year reduces the 3 tax to such amount, any amount of credit thus not deductible in such 4 taxable year shall be treated as an overpayment of tax to be credited or 5 refunded in accordance with the provisions of section one thousand 6 eighty-six of this chapter. Provided, however, the provisions of 7 subsection (c) of section one thousand eighty-eight of this chapter 8 notwithstanding, no interest shall be paid thereon. 9 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 10 of the tax law is amended by adding a new clause (xliv) to read as 11 follows: 12 (xliv) Employee indebtedness Amount of credit 13 reduction credit under subdivision 14 under subsection (jjj) fifty-three of section 15 two hundred ten-B 16 § 3. Section 606 of the tax law is amended by adding two new 17 subsections (jjj) and (kkk) to read as follows: 18 (jjj) Employee indebtedness reduction credit. (1) Allowance of credit. 19 A taxpayer shall be allowed a credit, to be computer as provided in 20 paragraph two of this subsection, against the tax imposed by this arti- 21 cle, if it provides for a payment, on behalf of an employee, of any 22 indebtedness of the employee under a governmental education loan or any 23 interest relating to such a loan. For purposes of this subsection, 24 "governmental education loan" shall mean any education loan debt, 25 including judgments, owed to the federal or New York state government or 26 any other institution. 27 (2) Amount of credit. The credit allowed pursuant to paragraph one of 28 this subsection shall be in an amount equal to the taxpayer's payment, 29 on behalf of an employee, of any indebtedness of the employee under a 30 governmental education loan or any interest relating to such a loan. 31 Provided, however, that no such credit allowed under this subsection 32 shall exceed ten thousand dollars for each employee employed by such 33 employer. 34 (3) Application of credit. If the amount of the credit allowed under 35 this subsection for any taxable year shall exceed the taxpayer's tax for 36 such year, the excess shall be treated as an overpayment of tax to be 37 credited or refunded in accordance with the provisions of section six 38 hundred eighty-six of this article, provided, however, that no interest 39 shall be paid thereon. 40 (kkk) Employer education loan reduction credit. (1) Allowance of cred- 41 it. A taxpayer shall be allowed a credit, to be computed as provided in 42 paragraph two of this subsection, against the tax imposed by this arti- 43 cle, if the taxpayer's employer provides for a payment, on behalf of 44 such taxpayer, of any indebtedness of such taxpayer under a governmental 45 education loan or any interest relating to such a loan. For purposes of 46 this subsection, "governmental education loan" shall mean any education 47 loan debt, including judgments, owed to the federal or New York state 48 government or any other institution. 49 (2) Amount of credit. The credit allowed pursuant to paragraph one of 50 this subsection shall be in an amount equal to the amount paid by the 51 taxpayer's employer to reduce any indebtedness of the taxpayer under a 52 governmental education loan or any interest relating to such a loan. 53 Provided, however, that no such credit allowed under this subsection 54 shall exceed ten thousand dollars. 55 (3) Application of credit. If the amount of the credit allowed under 56 this subsection for any taxable year shall exceed the taxpayer's tax forA. 1603 3 1 such year, the excess shall be treated as an overpayment of tax to be 2 credited or refunded in accordance with the provisions of section six 3 hundred eighty-six of this article, provided, however, that no interest 4 shall be paid thereon. 5 § 4. This act shall take effect immediately and apply to taxable years 6 beginning on and after the first of January next succeeding the date on 7 which it shall have become a law.
