S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  825--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  JONES,  COLTON,  DICKENS, WALLACE, WILLIAMS,
   J. RIVERA, MORINELLO, BLANKENBUSH, HEVESI, CARROLL --  Multi-Sponsored
   by  --  M.  of  A. SIMON -- read once and referred to the Committee on
   Ways and Means -- recommitted to the Committee on Ways  and  Means  in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend the tax law, in relation to creating a tax credit for
   employers who reduce the governmental education loans of their employ-
   ees and said employees who  receive  such  reduction  in  governmental
   education loans
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 210-B of the tax law is amended  by  adding  a  new
 subdivision 58 to read as follows:
   58. EMPLOYEE INDEBTEDNESS REDUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
 TAXPAYER  SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARA-
 GRAPH (B) OF THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS  ARTICLE,
 IF  IT  PROVIDES FOR A PAYMENT, ON BEHALF OF AN EMPLOYEE, OF ANY INDEBT-
 EDNESS OF THE EMPLOYEE UNDER A GOVERNMENTAL EDUCATION LOAN OR ANY INTER-
 EST RELATING TO SUCH A LOAN. FOR PURPOSES OF THIS SUBDIVISION,  "GOVERN-
 MENTAL  EDUCATION  LOAN"  SHALL  MEAN ANY EDUCATION LOAN DEBT, INCLUDING
 JUDGMENTS, OWED TO THE FEDERAL OR NEW YORK STATE GOVERNMENT OR ANY OTHER
 INSTITUTION.
   (B) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH (A)  OF
 THIS  SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S PAYMENT,
 ON BEHALF OF AN EMPLOYEE, OF ANY INDEBTEDNESS OF THE  EMPLOYEE  UNDER  A
 GOVERNMENTAL  EDUCATION  LOAN  OR  ANY INTEREST RELATING TO SUCH A LOAN.
 PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED  UNDER  THIS  SUBDIVISION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05426-02-2
              

 A. 825--A                           2
 
 SHALL  EXCEED  TEN  THOUSAND  DOLLARS FOR EACH EMPLOYEE EMPLOYED BY SUCH
 EMPLOYER.
   (C)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE.  IF,  HOWEVER,  THE  AMOUNT  OF
 CREDITS  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
 TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xlix) to read as
 follows:
 (XLIX) EMPLOYEE INDEBTEDNESS         AMOUNT OF CREDIT
 REDUCTION CREDIT                     UNDER SUBDIVISION
 UNDER SUBSECTION (NNN)               FIFTY-EIGHT OF SECTION
                                      TWO HUNDRED TEN-B
   § 3. Section 606  of  the  tax  law  is  amended  by  adding  two  new
 subsections (nnn) and (ooo) to read as follows:
   (NNN) EMPLOYEE INDEBTEDNESS REDUCTION CREDIT. (1) ALLOWANCE OF CREDIT.
 A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE COMPUTER AS PROVIDED IN
 PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS  ARTI-
 CLE,  IF  IT  PROVIDES  FOR  A PAYMENT, ON BEHALF OF AN EMPLOYEE, OF ANY
 INDEBTEDNESS OF THE EMPLOYEE UNDER A GOVERNMENTAL EDUCATION LOAN OR  ANY
 INTEREST  RELATING  TO  SUCH  A  LOAN.  FOR PURPOSES OF THIS SUBSECTION,
 "GOVERNMENTAL EDUCATION  LOAN"  SHALL  MEAN  ANY  EDUCATION  LOAN  DEBT,
 INCLUDING JUDGMENTS, OWED TO THE FEDERAL OR NEW YORK STATE GOVERNMENT OR
 ANY OTHER INSTITUTION.
   (2)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
 THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO THE  TAXPAYER'S  PAYMENT,
 ON  BEHALF  OF  AN EMPLOYEE, OF ANY INDEBTEDNESS OF THE EMPLOYEE UNDER A
 GOVERNMENTAL EDUCATION LOAN OR ANY INTEREST RELATING  TO  SUCH  A  LOAN.
 PROVIDED,  HOWEVER,  THAT  NO  SUCH CREDIT ALLOWED UNDER THIS SUBSECTION
 SHALL EXCEED TEN THOUSAND DOLLARS FOR EACH  EMPLOYEE  EMPLOYED  BY  SUCH
 EMPLOYER.
   (3)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
 SHALL BE PAID THEREON.
   (OOO) EMPLOYER EDUCATION LOAN REDUCTION CREDIT. (1) ALLOWANCE OF CRED-
 IT.  A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
 PARAGRAPH  TWO OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE, IF THE TAXPAYER'S EMPLOYER PROVIDES FOR A  PAYMENT,  ON  BEHALF  OF
 SUCH TAXPAYER, OF ANY INDEBTEDNESS OF SUCH TAXPAYER UNDER A GOVERNMENTAL
 EDUCATION  LOAN OR ANY INTEREST RELATING TO SUCH A LOAN. FOR PURPOSES OF
 THIS SUBSECTION, "GOVERNMENTAL EDUCATION LOAN" SHALL MEAN ANY  EDUCATION
 LOAN  DEBT,  INCLUDING  JUDGMENTS, OWED TO THE FEDERAL OR NEW YORK STATE
 GOVERNMENT OR ANY OTHER INSTITUTION.
   (2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE  OF
 THIS  SUBSECTION  SHALL  BE IN AN AMOUNT EQUAL TO THE AMOUNT PAID BY THE
 TAXPAYER'S EMPLOYER TO REDUCE ANY INDEBTEDNESS OF THE TAXPAYER  UNDER  A
 A. 825--A                           3
 
 GOVERNMENTAL  EDUCATION  LOAN  OR  ANY INTEREST RELATING TO SUCH A LOAN.
 PROVIDED, HOWEVER, THAT NO SUCH CREDIT  ALLOWED  UNDER  THIS  SUBSECTION
 SHALL EXCEED TEN THOUSAND DOLLARS.
   (3)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
 SHALL BE PAID THEREON.
   § 4. This act shall take effect immediately and apply to taxable years
 beginning  on and after the first of January next succeeding the date on
 which it shall have become a law.