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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 - Dead) 2024-05-14 - REPORTED AND COMMITTED TO FINANCE [S00267 Detail]

Download: New_York-2023-S00267-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           267

                               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

        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 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
    22  section  two  hundred  ten  of  this article. If, however, the amount of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02267-01-3
        S. 267                              2

     1  credits allowed under this subdivision for any taxable year reduces  the
     2  tax  to  such  amount,  any amount of credit thus not deductible in such
     3  taxable year shall be treated as an overpayment of tax to be credited or
     4  refunded  in  accordance  with  the  provisions  of section one thousand
     5  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
     6  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
     7  notwithstanding, no interest shall be paid thereon.
     8    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     9  of  the  tax  law  is  amended  by  adding a new clause (xlx) to read as
    10  follows:
    11  (xlx) 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  two  new
    16  subsections (ooo) and (ppp) 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    (ppp) Employer education loan reduction credit. (1) Allowance of cred-
    40  it.  A taxpayer shall be allowed a credit, to be computed as provided in
    41  paragraph  two of this subsection, against the tax imposed by this arti-
    42  cle, if the taxpayer's employer provides for a  payment,  on  behalf  of
    43  such taxpayer, of any indebtedness of such taxpayer under a governmental
    44  education  loan or any interest relating to such a loan. For purposes of
    45  this subsection, "governmental education loan" shall mean any  education
    46  loan  debt,  including  judgments, owed to the federal or New York state
    47  government or any other institution.
    48    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    49  this  subsection  shall  be in an amount equal to the amount paid by the
    50  taxpayer's employer to reduce any indebtedness of the taxpayer  under  a
    51  governmental  education  loan  or  any interest relating to such a loan.
    52  Provided, however, that no such credit  allowed  under  this  subsection
    53  shall exceed ten thousand dollars.
    54    (3)  Application  of credit. If the amount of the credit allowed under
    55  this subsection for any taxable year shall exceed the taxpayer's tax for
    56  such year, the excess shall be treated as an overpayment of  tax  to  be
        S. 267                              3

     1  credited  or  refunded  in accordance with the provisions of section six
     2  hundred eighty-six of this article, provided, however, that no  interest
     3  shall be paid thereon.
     4    § 4. This act shall take effect immediately and apply to taxable years
     5  beginning  on and after the first of January next succeeding the date on
     6  which it shall have become a law.