STATE OF NEW YORK ________________________________________________________________________ 4994 2021-2022 Regular Sessions IN SENATE February 22, 2021 ___________ Introduced by Sen. PARKER -- 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 modifications reducing federal adjusted gross income 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 44 to read as follows: 3 44. (A) an amount equal to the interest paid by the taxpayer during 4 the taxable year on any qualified education loan to the extent such 5 interest is deductible in accordance with 26 U.S.C § 221 for federal tax 6 purposes; and (B) an amount equal to the amount of interest payments 7 paid by the taxpayer on education debt during the taxable year. For the 8 purposes of subparagraph (B), the term "educational debt" shall mean any 9 loan which was or is administered by the financial aid office of a two- 10 year or four-year college at which the taxpayer, or a dependent of such 11 taxpayer, was enrolled as an undergraduate student and which loan has 12 been secured through a state student loan program, a federal student 13 loan program or a commercial lender and which loan was obtained and 14 expended solely for the purposes of paying tuition and other expenses 15 directly related to such undergraduate student enrollment. A taxpayer 16 shall not be eligible for a deduction for the same expenses under 17 subparagraph (A) and subparagraph (B) of this paragraph. 18 § 2. This act shall take effect immediately and shall be deemed to 19 have been in full force and effect on and after January first of the 20 calendar year in which it takes effect, and shall apply to the tax year 21 commencing on and after such date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09278-01-1