Bill Text: NY A06601 | 2017-2018 | General Assembly | Introduced

---

Bill Title: Grants a personal income tax deduction for the amount of any student loan that is discharged as the result of the death or permanent and total disability of the borrower.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-06-14 - substituted by s4491 [A06601 Detail]

Download: New_York-2017-A06601-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          6601
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      March 9, 2017
                                       ___________
        Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
          tee on Ways and Means
        AN  ACT  to  amend  the tax law, in relation to providing a reduction of
          federal adjusted gross income, for state personal income tax purposes,
          the amount of any student loan discharged as a result of the death  or
          disability of the borrower
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (c) of section 612 of the tax law is amended  by
     2  adding a new paragraph 42 to read as follows:
     3    (42) (A) The amount of any student loan that is discharged, whether in
     4  whole or in part, if such discharge was:
     5    (i)  pursuant  to  subsection  (a) or (d) of section 437 of the Higher
     6  Education Act of 1965 or the parallel benefit provided pursuant to  part
     7  D of title IV of such act;
     8    (ii)  pursuant  to section 464(c)(1)(F) of the Higher Education Act of
     9  1965; or
    10    (iii) otherwise discharged on account of the death or total and perma-
    11  nent disability of the person  on  whose  behalf  the  indebtedness  was
    12  incurred.
    13    (B) For the purposes of this paragraph, "student loan" means:
    14    (i)  a  student  loan  as defined in section 108(f)(2) of the Internal
    15  Revenue Code of 1986; or
    16    (ii) a private education loan, as defined in  section  140(7)  of  the
    17  Consumer Credit Protection Act.
    18    §  2.  This  act  shall take effect immediately and shall apply to the
    19  taxable year in which it takes effect and to subsequent taxable years.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10024-01-7