NY State Senate Bill 2017-S6240

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 01, 2018	reported and committed to finance
Jan 03, 2018	referred to higher education
May 11, 2017	referred to higher education

Votes

- May 1, 2018 - Higher Education Committee Vote
  S6240
  
  16
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Higher Education Committee Vote: May 1, 2018
      
      aye (16)
      
      Bailey
      
      Breslin
      
      Croci
      
      Funke
      
      Gallivan
      
      Griffo
      
      Krueger
      
      LaValle
      
      Ortt
      
      Parker
      
      Peralta
      
      Ritchie
      
      Rivera
      
      Robach
      
      Seward
      
      Stavisky
      
      aye wr (2)
      
      Alcantara
      
      Serino

2017-S6240 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Education Law
Laws Affected:: Add §682, Ed L; amd §§208 & 612, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S341
2021-2022: S5298
2023-2024: S5109

2017-S6240 (ACTIVE) - Summary

Relates to establishing student loan repayment accounts; authorizes employers to establish student loan repayment accounts and provide matching funds up to $2500 a year; establishes tax deductions for participating employers.

2017-S6240 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6240

 TITLE OF BILL :  An act to amend the education law and the tax law,
in relation to establishing student loan repayment accounts

 PURPOSE OR GENERAL IDEA OF THE BILL :

This bill would allow employers to establish tax-deductible student
loan repayment accounts.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends the education law to authorize employers
to create student loan repayment accounts. Employees will be allowed
to deposit up to $2,500 of their pre-taxable income annually.
Employers must contribute matching funds valued at 50%-100% of the
employee's contribution, annually, per employee account.

Section 2 adds a new paragraph that establishes student loan repayment
accounts, which allow a deduction from entire net income in an amount
equal to the total amount of matching contributions made to employees'
student loan repayment accounts by a taxpayer during the taxable year.

Section 3 establishes adds a new paragraph that states the amount
equal to the total of matching contributions made by a taxpayer during
the taxable year to employees' student loan repayment accounts be

established pursuant to section six hundred eighty-two of the
education law.

Section 4 lists the effective date.

 JUSTIFICATION :

New Yorkers of all ages are currently facing heavy financial burdens
due to high amounts of student loan debt. Many families are struggling
with this burdensome debt while trying to provide for their families,
attempting to establish careers, and buy homes within the state.

In 2015, 17.9% of college graduates in New York State had accumulated
approximately $32,000 in student loan debt (The Federal Reserve Bank
of New York). Studies have shown that people younger than 40 years old
continue to have approximately 65% of outstanding higher education
debt.

According to a 2016 study by the Society of Human Resource Management,
only 4% of companies are currently offering student loan repayment
assistance. This bill aims to raise that percentage and to create a
better environment for both employees and employers.

Student loan repayment accounts would help businesses and employers in
New York to attract and retain highly qualified employees. By
providing opportunities for our citizens to be successful contributors
to our economy, we are paving the way for a better business climate as
well as a stronger workforce in the State of New York.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
Sixty days after becoming law.

2017-S6240 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6240
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 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:
 
   Section 1. The education law is amended by adding a new section 682 to
 read as follows:
   §  682.  STUDENT  LOAN  REPAYMENT  ACCOUNTS.  1. AN EMPLOYER IS HEREBY
 AUTHORIZED TO ESTABLISH STUDENT  LOAN  REPAYMENT  ACCOUNTS  WHICH  SHALL
 PERMIT  HIS  OR  HER  EMPLOYEES  TO  DEPOSIT  A PORTION OF THEIR PRE-TAX
 INCOME, UP TO TWENTY-FIVE HUNDRED DOLLARS ANNUALLY, INTO  SUCH  ACCOUNTS
 SOLELY  FOR UNDERGRADUATE OR GRADUATE STUDENT LOAN REPAYMENTS. EMPLOYERS
 ELECTING TO ESTABLISH SUCH ACCOUNTS SHALL CONTRIBUTE MATCHING  FUNDS  TO
 AN  EMPLOYEE'S  STUDENT  LOAN  REPAYMENT ACCOUNT AND SHALL RECEIVE A TAX
 DEDUCTION FOR SUCH CONTRIBUTIONS. SUCH CONTRIBUTION SHALL  BE  MINIMALLY
 FIFTY  PERCENT  OF  THE  EMPLOYEE'S  DEPOSIT  AND  A MAXIMUM ONE HUNDRED
 PERCENT OF THE EMPLOYEE'S DEPOSIT, UP  TO  TWENTY-FIVE  HUNDRED  DOLLARS
 ANNUALLY, PER EMPLOYEE ACCOUNT.
   2.  FOR  THE  PURPOSES  OF THIS SECTION, "STUDENT LOAN" SHALL MEAN THE
 CUMULATIVE TOTAL OF THE  ANNUAL  STUDENT  LOANS  COVERING  THE  COST  OF
 ATTENDANCE  AT  AN  UNDERGRADUATE OR GRADUATE COLLEGE OR UNIVERSITY, AND
 ANY INTEREST THEREON.
   3. EMPLOYEE STUDENT LOAN REPAYMENT ACCOUNTS SHALL BE  ESTABLISHED  FOR
 THE  DEPOSIT OF FUNDS TO BE USED BY THE EMPLOYEE SOLELY FOR REPAYMENT OF
 STUDENT LOANS. SUCH ACCOUNTS SHALL BE MANAGED BY  THE  HIGHER  EDUCATION
 SERVICES  CORPORATION.  ALL  PARTICIPATING EMPLOYERS AND EMPLOYEES SHALL
 PROVIDE THE CORPORATION WITH  ALL  NECESSARY  INFORMATION  IN  ORDER  TO
 IMPLEMENT THE PROVISIONS OF THIS SECTION.
   4.  MONEYS IN A STUDENT LOAN REPAYMENT ACCOUNT SHALL BE AVAILABLE ONLY
 FOR REPAYMENTS OF STUDENT LOANS AS DEFINED IN THIS  SECTION.  ANY  WITH-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11168-02-7

 S. 6240                             2
 
 DRAWAL  OR  DISTRIBUTION  FROM  A  STUDENT  LOAN REPAYMENT ACCOUNT WHICH
 VIOLATED THE PROVISIONS OF THIS SUBDIVISION SHALL BE SUBJECT TO A PENAL-
 TY OF TEN PERCENT ON ANY SUCH WITHDRAWAL OR DISTRIBUTION.
   5. THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE SHALL
 JOINTLY  PROMULGATE  RULES  AND  REGULATIONS  NECESSARY TO IMPLEMENT THE
 PROVISIONS OF THIS SECTION.
   § 2. Subdivision 9 of section 208 of the tax law is amended by  adding
 a new paragraph (u) to read as follows:
   (U)  A  TAXPAYER ESTABLISHING STUDENT LOAN REPAYMENT ACCOUNTS PURSUANT
 TO SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW SHALL BE  ALLOWED
 A  DEDUCTION  FROM  ENTIRE  NET  INCOME  IN AN AMOUNT EQUAL TO THE TOTAL
 AMOUNT OF MATCHING CONTRIBUTIONS MADE TO EMPLOYEES' STUDENT LOAN  REPAY-
 MENT ACCOUNTS BY A TAXPAYER DURING THE TAXABLE YEAR.
   § 3. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 17 to read as follows:
   (17)  THE  AMOUNT  EQUAL TO THE TOTAL AMOUNT OF MATCHING CONTRIBUTIONS
 MADE BY A TAXPAYER DURING THE TAXABLE YEAR TO  EMPLOYEES'  STUDENT  LOAN
 REPAYMENT  ACCOUNTS  ESTABLISHED PURSUANT TO SECTION SIX HUNDRED EIGHTY-
 TWO OF THE EDUCATION LAW.
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law  and  shall apply to taxable years commencing on or
 after such effective date; provided, however, that effective  immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized  and  directed  to  be  made  and completed on or before such
 effective date.

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Senate Bill S6240

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

May 1, 2018 - Higher Education Committee Vote

Higher Education Committee Vote: May 1, 2018

2017-S6240 (ACTIVE) - Details

2017-S6240 (ACTIVE) - Summary

2017-S6240 (ACTIVE) - Sponsor Memo

2017-S6240 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6240

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Sponsored By

Fred Akshar

Archive: Last Bill Status - In Senate Committee Finance Committee

2017-S6240 (ACTIVE) - Details

2017-S6240 (ACTIVE) - Summary

2017-S6240 (ACTIVE) - Sponsor Memo

2017-S6240 (ACTIVE) - Bill Text download pdf

Comments