Bill Text: NY S00341 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to establishing student loan repayment accounts; authorizes employers to establish student loan repayment accounts and provide matching funds up to $5000 a year; establishes tax deductions for participating employers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HIGHER EDUCATION [S00341 Detail]
Download: New_York-2019-S00341-Introduced.html
Bill Title: Relates to establishing student loan repayment accounts; authorizes employers to establish student loan repayment accounts and provide matching funds up to $5000 a year; establishes tax deductions for participating employers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HIGHER EDUCATION [S00341 Detail]
Download: New_York-2019-S00341-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 341 2019-2020 Regular Sessions IN SENATE (Prefiled) January 9, 2019 ___________ Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law and the tax law, in relation to estab- lishing student loan repayment accounts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The education law is amended by adding a new section 682 to 2 read as follows: 3 § 682. Student loan repayment accounts. 1. An employer is hereby 4 authorized to establish student loan repayment accounts which shall 5 permit his or her employees to deposit a portion of their pre-tax 6 income, up to twenty-five hundred dollars annually, into such accounts 7 solely for undergraduate or graduate student loan repayments. Employers 8 electing to establish such accounts shall contribute matching funds to 9 an employee's student loan repayment account and shall receive a tax 10 deduction for such contributions. Such contribution shall be minimally 11 fifty percent of the employee's deposit and a maximum one hundred 12 percent of the employee's deposit, up to twenty-five hundred dollars 13 annually, per employee account. 14 2. For the purposes of this section, "student loan" shall mean the 15 cumulative total of the annual student loans covering the cost of 16 attendance at an undergraduate or graduate college or university, and 17 any interest thereon. 18 3. Employee student loan repayment accounts shall be established for 19 the deposit of funds to be used by the employee solely for repayment of 20 student loans. Such accounts shall be managed by the higher education 21 services corporation. All participating employers and employees shall 22 provide the corporation with all necessary information in order to 23 implement the provisions of this section. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05575-01-9S. 341 2 1 4. Moneys in a student loan repayment account shall be available only 2 for repayments of student loans as defined in this section. Any with- 3 drawal or distribution from a student loan repayment account which 4 violated the provisions of this subdivision shall be subject to a penal- 5 ty of ten percent on any such withdrawal or distribution. 6 5. The commissioner and the commissioner of taxation and finance shall 7 jointly promulgate rules and regulations necessary to implement the 8 provisions of this section. 9 § 2. Subdivision 9 of section 208 of the tax law is amended by adding 10 a new paragraph (u) to read as follows: 11 (u) A taxpayer establishing student loan repayment accounts pursuant 12 to section six hundred eighty-two of the education law shall be allowed 13 a deduction from entire net income in an amount equal to the total 14 amount of matching contributions made to employees' student loan repay- 15 ment accounts by a taxpayer during the taxable year. 16 § 3. Subsection (c) of section 612 of the tax law is amended by adding 17 a new paragraph 17 to read as follows: 18 (17) The amount equal to the total amount of matching contributions 19 made by a taxpayer during the taxable year to employees' student loan 20 repayment accounts established pursuant to section six hundred eighty- 21 two of the education law. 22 § 4. This act shall take effect on the sixtieth day after it shall 23 have become a law and shall apply to taxable years commencing on or 24 after such effective date. Effective immediately the addition, amendment 25 and/or repeal of any rule or regulation necessary for the implementation 26 of this act on its effective date are authorized to be made and 27 completed on or before such date.