Bill Text: NY S08141 | 2021-2022 | General Assembly | Introduced

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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: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-26 - REFERRED TO BUDGET AND REVENUE [S08141 Detail]

Download: New_York-2021-S08141-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8141

                    IN SENATE

                                    January 26, 2022
                                       ___________

        Introduced by Sen. GOUNARDES -- 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 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 58 to read as follows:
     3    58. 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
    22  section  two  hundred  ten  of  this article. If, however, the amount of
    23  credits allowed under this subdivision for any taxable year reduces  the
    24  tax  to  such  amount,  any amount of credit thus not deductible in such
    25  taxable year shall be treated as an overpayment of tax to be credited or
    26  refunded in accordance with  the  provisions  of  section  one  thousand
    27  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    28  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    29  notwithstanding, no interest shall be paid thereon.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05426-03-2
        S. 8141                             2

     1    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
     2  of the tax law is amended by adding a  new  clause  (xlix)  to  read  as
     3  follows:
     4  (xlix) Employee indebtedness         Amount of credit
     5  reduction credit                     under subdivision
     6  under subsection (nnn)               fifty-eight of section
     7                                       two hundred ten-B
     8    §  3.  Section  606  of  the  tax  law  is  amended  by adding two new
     9  subsections (nnn) and (ooo) to read as follows:
    10    (nnn) Employee indebtedness reduction credit. (1) Allowance of credit.
    11  A taxpayer shall be allowed a credit, to  be  computer  as  provided  in
    12  paragraph  two of this subsection, against the tax imposed by this arti-
    13  cle, if it provides for a payment, on behalf  of  an  employee,  of  any
    14  indebtedness  of the employee under a governmental education loan or any
    15  interest relating to such a  loan.  For  purposes  of  this  subsection,
    16  "governmental  education  loan"  shall  mean  any  education  loan debt,
    17  including judgments, owed to the federal or New York state government or
    18  any other institution.
    19    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    20  this  subsection  shall be in an amount equal to the taxpayer's payment,
    21  on behalf of an employee, of any indebtedness of the  employee  under  a
    22  governmental  education  loan  or  any interest relating to such a loan.
    23  Provided, however, that no such credit  allowed  under  this  subsection
    24  shall  exceed  ten  thousand  dollars for each employee employed by such
    25  employer.
    26    (3) Application of credit. If the amount of the credit  allowed  under
    27  this subsection for any taxable year shall exceed the taxpayer's tax for
    28  such  year,  the  excess shall be treated as an overpayment of tax to be
    29  credited or refunded in accordance with the provisions  of  section  six
    30  hundred  eighty-six of this article, provided, however, that no interest
    31  shall be paid thereon.
    32    (ooo) Employer education loan reduction credit. (1) Allowance of cred-
    33  it.  A taxpayer shall be allowed a credit, to be computed as provided in
    34  paragraph two of this subsection, against the tax imposed by this  arti-
    35  cle,  if  the  taxpayer's  employer provides for a payment, on behalf of
    36  such taxpayer, of any indebtedness of such taxpayer under a governmental
    37  education loan or any interest relating to such a loan. For purposes  of
    38  this  subsection, "governmental education loan" shall mean any education
    39  loan debt, including judgments, owed to the federal or  New  York  state
    40  government or any other institution.
    41    (2)  Amount of credit. The credit allowed pursuant to paragraph one of
    42  this subsection shall be in an amount equal to the amount  paid  by  the
    43  taxpayer's  employer  to reduce any indebtedness of the taxpayer under a
    44  governmental education loan or any interest relating  to  such  a  loan.
    45  Provided,  however,  that  no  such credit allowed under this subsection
    46  shall exceed ten thousand dollars.
    47    (3) Application of credit. If the amount of the credit  allowed  under
    48  this subsection for any taxable year shall exceed the taxpayer's tax for
    49  such  year,  the  excess shall be treated as an overpayment of tax to be
    50  credited or refunded in accordance with the provisions  of  section  six
    51  hundred  eighty-six of this article, provided, however, that no interest
    52  shall be paid thereon.
    53    § 4. This act shall take effect immediately and apply to taxable years
    54  beginning on and after the first of January next succeeding the date  on
    55  which it shall have become a law.