S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  341--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (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  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 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 FIVE THOUSAND DOLLARS ANNUALLY, INTO SUCH ACCOUNTS  SOLELY
 FOR  UNDERGRADUATE OR GRADUATE STUDENT LOAN REPAYMENTS. EMPLOYERS ELECT-
 ING TO ESTABLISH SUCH ACCOUNTS  MAY  CONTRIBUTE  MATCHING  FUNDS  TO  AN
 EMPLOYEE'S  STUDENT  LOAN  REPAYMENT  ACCOUNT  AND  SHALL  RECEIVE A TAX
 DEDUCTION FOR SUCH CONTRIBUTIONS. SUCH CONTRIBUTION MAY BE UP TO A MAXI-
 MUM OF ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT, UP TO  FIVE  THOU-
 SAND 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 COMPTROLLER AND THE
 HIGHER EDUCATION SERVICES CORPORATION. ALL PARTICIPATING  EMPLOYERS  AND
 EMPLOYEES  SHALL  PROVIDE  THE  COMPTROLLER AND THE CORPORATION WITH ALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05575-02-9

 S. 341--A                           2
 
 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-
 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. Notwithstanding any provision of the tax law to the contrary, the
 aggregate  of tax expenditure and taxes forgone pursuant to sections two
 and three of this act shall not exceed $70,000,000. The commissioner  of
 taxation  and  finance  shall immediately suspend both deductions estab-
 lished pursuant to such sections upon reaching the  $70,000,000  thresh-
 old.
   §  5.  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. Effective immediately the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such date.