Bill Text: NY A01603 | 2019-2020 | General Assembly | Introduced


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 11-2)

Status: (Introduced) 2019-01-15 - referred to ways and means [A01603 Detail]

Download: New_York-2019-A01603-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1603
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
                                       ___________
        Introduced  by  M. of A. JONES, ORTIZ, COLTON, DICKENS, WALLACE, CRESPO,
          WILLIAMS, RIVERA, MORINELLO, BLANKENBUSH, HEVESI,  CARROLL  --  Multi-
          Sponsored  by  --  M.  of  A.  SIMON  -- read once and referred to the
          Committee on Ways and Means
        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 53 to read as follows:
     3    53. 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02825-01-9

        A. 1603                             2
     1  section two hundred ten of this article.  If,  however,  the  amount  of
     2  credits  allowed under this subdivision for any taxable year reduces the
     3  tax to such amount, any amount of credit thus  not  deductible  in  such
     4  taxable year shall be treated as an overpayment of tax to be credited or
     5  refunded  in  accordance  with  the  provisions  of section one thousand
     6  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
     7  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
     8  notwithstanding, no interest shall be paid thereon.
     9    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    10  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    11  follows:
    12  (xliv) Employee indebtedness         Amount of credit
    13  reduction credit                     under subdivision
    14  under subsection (jjj)               fifty-three of section
    15                                       two hundred ten-B
    16    § 3. Section 606  of  the  tax  law  is  amended  by  adding  two  new
    17  subsections (jjj) and (kkk) to read as follows:
    18    (jjj) Employee indebtedness reduction credit. (1) Allowance of credit.
    19  A  taxpayer  shall  be  allowed  a credit, to be computer as provided in
    20  paragraph two of this subsection, against the tax imposed by this  arti-
    21  cle,  if  it  provides  for  a payment, on behalf of an employee, of any
    22  indebtedness of the employee under a governmental education loan or  any
    23  interest  relating  to  such  a  loan.  For purposes of this subsection,
    24  "governmental education  loan"  shall  mean  any  education  loan  debt,
    25  including judgments, owed to the federal or New York state government or
    26  any other institution.
    27    (2)  Amount of credit. The credit allowed pursuant to paragraph one of
    28  this subsection shall be in an amount equal to the  taxpayer's  payment,
    29  on  behalf  of  an employee, of any indebtedness of the employee under a
    30  governmental education loan or any interest relating  to  such  a  loan.
    31  Provided,  however,  that  no  such credit allowed under this subsection
    32  shall exceed ten thousand dollars for each  employee  employed  by  such
    33  employer.
    34    (3)  Application  of credit. If the amount of the credit allowed under
    35  this subsection for any taxable year shall exceed the taxpayer's tax for
    36  such year, the excess shall be treated as an overpayment of  tax  to  be
    37  credited  or  refunded  in accordance with the provisions of section six
    38  hundred eighty-six of this article, provided, however, that no  interest
    39  shall be paid thereon.
    40    (kkk) Employer education loan reduction credit. (1) Allowance of cred-
    41  it.  A taxpayer shall be allowed a credit, to be computed as provided in
    42  paragraph  two of this subsection, against the tax imposed by this arti-
    43  cle, if the taxpayer's employer provides for a  payment,  on  behalf  of
    44  such taxpayer, of any indebtedness of such taxpayer under a governmental
    45  education  loan or any interest relating to such a loan. For purposes of
    46  this subsection, "governmental education loan" shall mean any  education
    47  loan  debt,  including  judgments, owed to the federal or New York state
    48  government or any other institution.
    49    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    50  this  subsection  shall  be in an amount equal to the amount paid by the
    51  taxpayer's employer to reduce any indebtedness of the taxpayer  under  a
    52  governmental  education  loan  or  any interest relating to such a loan.
    53  Provided, however, that no such credit  allowed  under  this  subsection
    54  shall exceed ten thousand dollars.
    55    (3)  Application  of credit. If the amount of the credit allowed under
    56  this subsection for any taxable year shall exceed the taxpayer's tax for

        A. 1603                             3
     1  such year, the excess shall be treated as an overpayment of  tax  to  be
     2  credited  or  refunded  in accordance with the provisions of section six
     3  hundred eighty-six of this article, provided, however, that no  interest
     4  shall be paid thereon.
     5    § 4. This act shall take effect immediately and apply to taxable years
     6  beginning  on and after the first of January next succeeding the date on
     7  which it shall have become a law.
feedback