Bill Text: NY A00825 | 2021-2022 | General Assembly | Amended
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: Moderate Partisan Bill (Democrat 9-2)
Status: (Introduced - Dead) 2022-01-26 - print number 825a [A00825 Detail]
Download: New_York-2021-A00825-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 825--A 2021-2022 Regular Sessions IN ASSEMBLY (Prefiled) January 6, 2021 ___________ Introduced by M. of A. JONES, COLTON, DICKENS, WALLACE, WILLIAMS, J. RIVERA, MORINELLO, BLANKENBUSH, HEVESI, CARROLL -- Multi-Sponsored by -- M. of A. SIMON -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05426-02-2A. 825--A 2 1 shall exceed ten thousand dollars for each employee employed by such 2 employer. 3 (c) Application of credit. The credit allowed under this subdivision 4 for any taxable year shall not reduce the tax due for such year to less 5 than the amount prescribed in paragraph (d) of subdivision one of 6 section two hundred ten of this article. If, however, the amount of 7 credits allowed under this subdivision for any taxable year reduces the 8 tax to such amount, any amount of credit thus not deductible in such 9 taxable year shall be treated as an overpayment of tax to be credited or 10 refunded in accordance with the provisions of section one thousand 11 eighty-six of this chapter. Provided, however, the provisions of 12 subsection (c) of section one thousand eighty-eight of this chapter 13 notwithstanding, no interest shall be paid thereon. 14 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 15 of the tax law is amended by adding a new clause (xlix) to read as 16 follows: 17 (xlix) Employee indebtedness Amount of credit 18 reduction credit under subdivision 19 under subsection (nnn) fifty-eight of section 20 two hundred ten-B 21 § 3. Section 606 of the tax law is amended by adding two new 22 subsections (nnn) and (ooo) to read as follows: 23 (nnn) Employee indebtedness reduction credit. (1) Allowance of credit. 24 A taxpayer shall be allowed a credit, to be computer as provided in 25 paragraph two of this subsection, against the tax imposed by this arti- 26 cle, if it provides for a payment, on behalf of an employee, of any 27 indebtedness of the employee under a governmental education loan or any 28 interest relating to such a loan. For purposes of this subsection, 29 "governmental education loan" shall mean any education loan debt, 30 including judgments, owed to the federal or New York state government or 31 any other institution. 32 (2) Amount of credit. The credit allowed pursuant to paragraph one of 33 this subsection shall be in an amount equal to the taxpayer's payment, 34 on behalf of an employee, of any indebtedness of the employee under a 35 governmental education loan or any interest relating to such a loan. 36 Provided, however, that no such credit allowed under this subsection 37 shall exceed ten thousand dollars for each employee employed by such 38 employer. 39 (3) Application of credit. If the amount of the credit allowed under 40 this subsection for any taxable year shall exceed the taxpayer's tax for 41 such year, the excess shall be treated as an overpayment of tax to be 42 credited or refunded in accordance with the provisions of section six 43 hundred eighty-six of this article, provided, however, that no interest 44 shall be paid thereon. 45 (ooo) Employer education loan reduction credit. (1) Allowance of cred- 46 it. A taxpayer shall be allowed a credit, to be computed as provided in 47 paragraph two of this subsection, against the tax imposed by this arti- 48 cle, if the taxpayer's employer provides for a payment, on behalf of 49 such taxpayer, of any indebtedness of such taxpayer under a governmental 50 education loan or any interest relating to such a loan. For purposes of 51 this subsection, "governmental education loan" shall mean any education 52 loan debt, including judgments, owed to the federal or New York state 53 government or any other institution. 54 (2) Amount of credit. The credit allowed pursuant to paragraph one of 55 this subsection shall be in an amount equal to the amount paid by the 56 taxpayer's employer to reduce any indebtedness of the taxpayer under aA. 825--A 3 1 governmental education loan or any interest relating to such a loan. 2 Provided, however, that no such credit allowed under this subsection 3 shall exceed ten thousand dollars. 4 (3) Application of credit. If the amount of the credit allowed under 5 this subsection for any taxable year shall exceed the taxpayer's tax for 6 such year, the excess shall be treated as an overpayment of tax to be 7 credited or refunded in accordance with the provisions of section six 8 hundred eighty-six of this article, provided, however, that no interest 9 shall be paid thereon. 10 § 4. This act shall take effect immediately and apply to taxable years 11 beginning on and after the first of January next succeeding the date on 12 which it shall have become a law.