Bill Text: NY A00825 | 2021-2022 | 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 9-2)

Status: (Introduced) 2021-01-06 - referred to ways and means [A00825 Detail]

Download: New_York-2021-A00825-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                           825

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by  M.  of  A.  JONES,  COLTON,  DICKENS, WALLACE, WILLIAMS,
          J. 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 55 to read as follows:
     3    55. 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05426-01-1

        A. 825                              2

     1  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
     2  section two hundred ten of this article.  If,  however,  the  amount  of
     3  credits  allowed under this subdivision for any taxable year reduces the
     4  tax  to  such  amount,  any amount of credit thus not deductible in such
     5  taxable year shall be treated as an overpayment of tax to be credited or
     6  refunded in accordance with  the  provisions  of  section  one  thousand
     7  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
     8  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
     9  notwithstanding, no interest shall be paid thereon.
    10    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    11  of the tax law is amended by adding a  new  clause  (xlvi)  to  read  as
    12  follows:
    13  (xlvi) Employee indebtedness         Amount of credit
    14  reduction credit                     under subdivision
    15  under subsection (kkk)               fifty-five of section
    16                                       two hundred ten-B
    17    §  3.  Section  606  of  the  tax  law  is  amended  by adding two new
    18  subsections (kkk) and (lll) to read as follows:
    19    (kkk) Employee indebtedness reduction credit. (1) Allowance of credit.
    20  A taxpayer shall be allowed a credit, to  be  computer  as  provided  in
    21  paragraph  two of this subsection, against the tax imposed by this arti-
    22  cle, if it provides for a payment, on behalf  of  an  employee,  of  any
    23  indebtedness  of the employee under a governmental education loan or any
    24  interest relating to such a  loan.  For  purposes  of  this  subsection,
    25  "governmental  education  loan"  shall  mean  any  education  loan debt,
    26  including judgments, owed to the federal or New York state government or
    27  any other institution.
    28    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    29  this  subsection  shall be in an amount equal to the taxpayer's payment,
    30  on behalf of an employee, of any indebtedness of the  employee  under  a
    31  governmental  education  loan  or  any interest relating to such a loan.
    32  Provided, however, that no such credit  allowed  under  this  subsection
    33  shall  exceed  ten  thousand  dollars for each employee employed by such
    34  employer.
    35    (3) Application of credit. If the amount of the credit  allowed  under
    36  this subsection for any taxable year shall exceed the taxpayer's tax for
    37  such  year,  the  excess shall be treated as an overpayment of tax to be
    38  credited or refunded in accordance with the provisions  of  section  six
    39  hundred  eighty-six of this article, provided, however, that no interest
    40  shall be paid thereon.
    41    (lll) Employer education loan reduction credit. (1) Allowance of cred-
    42  it.  A taxpayer shall be allowed a credit, to be computed as provided in
    43  paragraph two of this subsection, against the tax imposed by this  arti-
    44  cle,  if  the  taxpayer's  employer provides for a payment, on behalf of
    45  such taxpayer, of any indebtedness of such taxpayer under a governmental
    46  education loan or any interest relating to such a loan. For purposes  of
    47  this  subsection, "governmental education loan" shall mean any education
    48  loan debt, including judgments, owed to the federal or  New  York  state
    49  government or any other institution.
    50    (2)  Amount of credit. The credit allowed pursuant to paragraph one of
    51  this subsection shall be in an amount equal to the amount  paid  by  the
    52  taxpayer's  employer  to reduce any indebtedness of the taxpayer under a
    53  governmental education loan or any interest relating  to  such  a  loan.
    54  Provided,  however,  that  no  such credit allowed under this subsection
    55  shall exceed ten thousand dollars.

        A. 825                              3

     1    (3) Application of credit. If the amount of the credit  allowed  under
     2  this subsection for any taxable year shall exceed the taxpayer's tax for
     3  such  year,  the  excess shall be treated as an overpayment of tax to be
     4  credited or refunded in accordance with the provisions  of  section  six
     5  hundred  eighty-six of this article, provided, however, that no interest
     6  shall be paid thereon.
     7    § 4. This act shall take effect immediately and apply to taxable years
     8  beginning on and after the first of January next succeeding the date  on
     9  which it shall have become a law.
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