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) 2019-02-28 - PRINT NUMBER 341A [S00341 Detail]

Download: New_York-2019-S00341-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                     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.

        S. 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.