Bill Text: NY S00267 | 2023-2024 | General Assembly | Amended

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Bill Title: Creates a tax credit for employers who help reduce the governmental education loans of their employees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-14 - REPORTED AND COMMITTED TO FINANCE [S00267 Detail]

Download: New_York-2023-S00267-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         267--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed  to  be  committed  to  the Committee on Budget and Revenue --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee

        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

          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 59 to read as follows:
     3    59. 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.
                                                                   LBD02267-02-3
        S. 267--A                           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 (l) to read as follows:
    11  (l) Employee indebtedness            Amount of credit
    12  reduction credit                     under subdivision
    13  under subsection (ooo)               fifty-nine of section
    14                                       two hundred ten-B
    15    §  3. Section 606 of the tax law is amended by adding a new subsection
    16  (ooo) to read as follows:
    17    (ooo) Employee indebtedness reduction credit. (1) Allowance of credit.
    18  A taxpayer shall be allowed a credit, to  be  computed  as  provided  in
    19  paragraph  two of this subsection, against the tax imposed by this arti-
    20  cle, if it provides for a payment, on behalf  of  an  employee,  of  any
    21  indebtedness  of the employee under a governmental education loan or any
    22  interest relating to such a  loan.  For  purposes  of  this  subsection,
    23  "governmental  education  loan"  shall  mean  any  education  loan debt,
    24  including judgments, owed to the federal or New York state government or
    25  any other institution.
    26    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    27  this  subsection  shall be in an amount equal to the taxpayer's payment,
    28  on behalf of an employee, of any indebtedness of the  employee  under  a
    29  governmental  education  loan  or  any interest relating to such a loan.
    30  Provided, however, that no such credit  allowed  under  this  subsection
    31  shall  exceed  ten  thousand  dollars for each employee employed by such
    32  employer.
    33    (3) Application of credit. If the amount of the credit  allowed  under
    34  this subsection for any taxable year shall exceed the taxpayer's tax for
    35  such  year,  the  excess shall be treated as an overpayment of tax to be
    36  credited or refunded in accordance with the provisions  of  section  six
    37  hundred  eighty-six of this article, provided, however, that no interest
    38  shall be paid thereon.
    39    § 4. This act shall take effect immediately and apply to taxable years
    40  beginning on and after the first of January next succeeding the date  on
    41  which it shall have become a law.