NY State Senate Bill 2021-S5244

Senate Bill S5244

2021-2022 Legislative Session

Creates a tax credit for employers who help reduce the governmental education loans their employees and said employees who receive such reduction in governmental education loans

download bill text pdf

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 26, 2021	referred to budget and revenue

2021-S5244 (ACTIVE) - Details

See Assembly Version of this Bill:: A825
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5726, A7491
2019-2020: S1973, A1603
2023-2024: S267, A1756

2021-S5244 (ACTIVE) - Summary

Creates a tax credit for employers who help reduce the governmental education loans of their employees and said employees who receive such reduction in governmental education loans.

2021-S5244 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5244

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to creating a tax credit for
employers who reduce the governmental education loans of their employees
and said employees who receive such reduction in governmental education
loans

 
PURPOSE::

This bill would create a tax credit for employers who assist their
employees in paying back their governmental education loans that they
received during their time as a student.

 
SUMMARY OF PROVISIONS::

Section 1 amends the tax law by adding a new subdivision that allows a
taxpayer a credit if it provides for a payment, on behalf of an employ-
ee, of any debt that the employee owes under a governmental education

loan or any interest relating to such loan.

Section 2 amends paragraph 1 of subsection (i) of section 606 of the tax
law by adding a new clause (xliii).

Section 3 amends section 606 of the tax law by adding two new
subsections, (hhh) which would create an employee indebtedness reduction
credit, and (iii) which would create an employer education loan
reduction credit.

Section 4 contains the effective date.

 
JUSTIFICATION::

Governmental loans not only put financial strain on those who carry
them, but also mental and physical stress that could lead to serious
issues. This bill provides an incentive for employers to help relieve
some of their employee's financial burdens, via governmental loans,
while receiving benefits for doing so. This legislation would also open
up the job market for those who have governmental loans because they
will have an incentive to work for potential companies and organizations
that would be willing to pay their loans. Employers could use this not
only as a form of recruitment but as a retention strategy for skilled
employees.

 
LEGISLATIVE HISTORY::

2019-20: S.1973
2017-18: S.5726/A.7491

 
FISCAL IMPLICATIONS::

To be determined.

 
EFFECTIVE DATE::



This act shall take effect immediately and apply to taxable years begin-
ning on and after the first of January next succeeding the date on which
it shall have become a law.

2021-S5244 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5244
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 26, 2021
                                ___________
 
 Introduced  by Sen. BENJAMIN -- 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 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 55 to read as follows:
   55. 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05426-01-1

 S. 5244                             2
 
 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  (xlvi)  to  read  as
 follows:
 (XLVI) EMPLOYEE INDEBTEDNESS         AMOUNT OF CREDIT
 REDUCTION CREDIT                     UNDER SUBDIVISION
 UNDER SUBSECTION (KKK)               FIFTY-FIVE OF SECTION
                                      TWO HUNDRED TEN-B
   §  3.  Section  606  of  the  tax  law  is  amended  by adding two new
 subsections (kkk) and (lll) to read as follows:
   (KKK) 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.
   (LLL) 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
 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

 S. 5244                             3
 
 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.

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