New York S 1674: Creates a tax credit for employers who help reduce higher education loans of their employees

Bill Text

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S01674 Summary:

BILL NOS01674 

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SAME ASNo Same As

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SPONSORGOUNARDES

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COSPNSRJACKSON

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MLTSPNSR

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Amd §§210-B, 606 & 1511, Tax L

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Creates a tax credit for employers who help reduce higher education loans of their employees

Go to top S01674 Actions:

BILL NOS01674 

&nbsp

01/13/2025REFERRED TO BUDGET AND REVENUE

05/28/2025REPORTED AND COMMITTED TO FINANCE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS01674 Committee&nbspVotes:

Go to topS01674 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS01674 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1674

 2025-2026 Regular Sessions

 IN SENATE

 January 13, 2025
 ___________

 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 education loans of their employees

 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 61 to read as follows:
 3 61. 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 higher education loan or any interest
 8 relating to such a loan. For purposes of this subdivision, "higher
 9 education loan" shall mean any education loan debt, including judgments,
 10 owed to the federal or New York state government or any other institu-
 11 tion related to an undergraduate program of study.
 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 higher 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

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02223-03-5

 S. 1674 2

 1 refunded in accordance with the provisions of section one thousand
 2 eighty-six of this chapter. Provided, however, the provisions of
 3 subsection (c) of section one thousand eighty-eight of this chapter
 4 notwithstanding, no interest shall be paid thereon.
 5 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 6 of the tax law is amended by adding a new clause (lii) to read as
 7 follows:
 8 (lii) Employee indebtedness Amount of credit
 9 reduction credit under subdivision
 10 under subsection (qqq) sixty-one of section
 11 two hundred ten-B
 12 § 3. Section 606 of the tax law is amended by adding a new subsection
 13 (qqq) to read as follows:
 14 (qqq) Employee indebtedness reduction credit. (1) Allowance of credit.
 15 A taxpayer shall be allowed a credit, to be computed as provided in
 16 paragraph two of this subsection, against the tax imposed by this arti-
 17 cle, if it provides for a payment, on behalf of an employee, of any
 18 indebtedness of the employee under a higher education loan or any inter-
 19 est relating to such a loan. For purposes of this subsection, "higher
 20 education loan" shall mean any education loan debt, including judgments,
 21 owed to the federal or New York state government or any other institu-
 22 tion related to a undergraduate program of study.