Bill Text: NY A00825 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 - Dead) 2022-01-26 - print number 825a [A00825 Detail]
Download: New_York-2021-A00825-Introduced.html
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 - Dead) 2022-01-26 - print number 825a [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. LBD05426-01-1A. 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.