BILL NUMBER: S2576

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing for the deduction
of student loan interest from federal adjusted gross income

 
PURPOSE:

To allow the deduction of student loan interest from federal adjusted
gross income.

 
SUMMARY OF PROVISIONS:

Section one adds paragraph 46 to subsection (c) of section 612 of the
Tax Law, allowing New York taxpayers to deduct interest paid on quali-
fied education loans, during the taxable year, matching the benefit
given at the federal level.

Section two provides the effective date.

              

 
JUSTIFICATION:

Higher education has become exceptionally expensive. Higher education
expenses force students and parents across the state to take out loans,
often in the hope of acquiring an education that will open up opportu-
nities to a middle-class life. Yet, crippling student loan debt is
preventing young people from achieving the type of financial security
they were always told would accompany a college education.  Millennia's
are on track to end up better than their parents. Instead of buying a
home, starting a business, or even starting a family, young people are
paying student loans. This reality is limiting the economic growth of
our state and localities. This bill will create a state equivalent to
the student loan tax deduction that already exists on the federal level.
Thus, the state student loan interest deduction will allow individuals
who make no more than $70,000 and joint filers who make no more than
$170,000 to deduct up to $2,500 in interest paid to qualified student
loans from their taxable income.

 
LEGISLATIVE HISTORY:

2022: S8379 - Committed to Finance

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.