Bill Text: NY A01756 | 2023-2024 | General Assembly | Amended
Bill Title: Creates a tax credit for employers who help reduce the governmental education loans of their employees.
Spectrum: Moderate Partisan Bill (Democrat 9-2)
Status: (Introduced) 2024-01-03 - referred to ways and means [A01756 Detail]
Download: New_York-2023-A01756-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1756--A 2023-2024 Regular Sessions IN ASSEMBLY January 20, 2023 ___________ Introduced by M. of A. JONES, COLTON, DICKENS, WALLACE, WILLIAMS, RIVERA, MORINELLO, BLANKENBUSH, HEVESI, CARROLL -- Multi-Sponsored by -- M. of A. SIMON -- read once and referred to the Committee on Ways and Means -- 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. LBD02267-03-3A. 1756--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.
