Bill Text: NY S04436 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes a personal income tax deduction for the interest paid on student loans by individual taxpayers having a federal adjusted income of between $65,000 and $125,000, and married taxpayers filing jointly having a federal adjusted income of between $130,000 and $250,000.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S04436 Detail]

Download: New_York-2023-S04436-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4436

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 8, 2023
                                       ___________

        Introduced by Sen. FERNANDEZ -- read twice and ordered printed, and when
          printed to be committed to the Committee on Budget and Revenue

        AN  ACT to amend the tax law, in relation to establishing a reduction of
          certain taxpayer's federal adjusted gross income, for  state  personal
          income  tax  purposes,  for student loan interest payments made by the
          taxpayer

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Subsection (c) of section 612 of the tax law is amended by
     2  adding a new paragraph 47 to read as follows:
     3    (47)(A) (i) For a taxpayer who files singly or as the head of a house-
     4  hold with a federal adjusted income, without the deduction of any inter-
     5  est paid on student loans, of not less than sixty-five thousand  dollars
     6  nor more than eighty thousand dollars, the difference between the inter-
     7  est  paid  on  student loans by the taxpayer, is an amount not to exceed
     8  two thousand five hundred dollars,  and  the  amount  of  such  interest
     9  deducted by such taxpayer to calculate his or her federal adjusted gross
    10  income; and
    11    (ii)  For  a  taxpayer  who files singly or as the head of a household
    12  with a federal adjusted gross income of not less  than  eighty  thousand
    13  dollars,  nor more than one hundred twenty-five thousand dollars, inter-
    14  est, in an amount not to exceed two thousand five hundred dollars,  paid
    15  on indebtedness incurred from a student loan; and
    16    (iii)  For  married  taxpayers  filing jointly with a federal adjusted
    17  gross income, without the deduction of  any  interest  paid  on  student
    18  loans,  of  not  less than one hundred thirty thousand dollars, nor more
    19  than one hundred sixty thousand  dollars,  the  difference  between  the
    20  interest  paid  on  student  loans by the taxpayers, is an amount not to
    21  exceed two thousand five hundred dollars, and the amount of such  inter-
    22  est deducted by such taxpayers to calculate their federal adjusted gross
    23  income; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08763-01-3
        S. 4436                             2

     1    (iv)  For  married  taxpayers  filing  jointly with a federal adjusted
     2  gross income of not less than one hundred sixty  thousand  dollars,  nor
     3  more than two hundred fifty thousand dollars, interest, in an amount not
     4  to  exceed  two  thousand  five  hundred  dollars,  paid on indebtedness
     5  incurred from a student loan.
     6    (B)  For the purposes of this paragraph, "student loan" shall have the
     7  same meaning as ascribed to such term by subparagraph (B)  of  paragraph
     8  forty-two of this subsection, as added by chapter four hundred fifty-six
     9  of the laws of two thousand seventeen.
    10    §  2.  This  act shall take effect immediately, and shall apply to the
    11  taxable year in which it shall take effect and to all subsequent taxable
    12  years.