Bill Text: NY S04491 | 2017-2018 | General Assembly | Introduced

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Bill Title: Grants a personal income tax deduction for the amount of any student loan that is discharged as the result of the death or permanent and total disability of the borrower.

Spectrum: Moderate Partisan Bill (Republican 7-2)

Status: (Passed) 2017-12-13 - SIGNED CHAP.456 [S04491 Detail]

Download: New_York-2017-S04491-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4491
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 16, 2017
                                       ___________
        Introduced  by  Sen.  FELDER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        AN ACT to amend the tax law, in relation to  providing  a  reduction  of
          federal adjusted gross income, for state personal income tax purposes,
          the  amount of any student loan discharged as a result of the death or
          disability of the borrower
          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 42 to read as follows:
     3    (42) (A) The amount of any student loan that is discharged, whether in
     4  whole or in part, if such discharge was:
     5    (i) pursuant to subsection (a) or (d) of section  437  of  the  Higher
     6  Education  Act of 1965 or the parallel benefit provided pursuant to part
     7  D of title IV of such act;
     8    (ii) pursuant to section 464(c)(1)(F) of the Higher Education  Act  of
     9  1965; or
    10    (iii) otherwise discharged on account of the death or total and perma-
    11  nent  disability  of  the  person  on  whose behalf the indebtedness was
    12  incurred.
    13    (B) For the purposes of this paragraph, "student loan" means:
    14    (i) a student loan as defined in section  108(f)(2)  of  the  Internal
    15  Revenue Code of 1986; or
    16    (ii)  a  private  education  loan, as defined in section 140(7) of the
    17  Consumer Credit Protection Act.
    18    § 2. This act shall take effect immediately and  shall  apply  to  the
    19  taxable year in which it takes effect and to subsequent taxable years.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10024-01-7