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.