BILL NUMBER: S2502

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 48 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 opportunities
for a better 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. 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 $95,000 and joint filers who make no more than $195,000 to
deduct up to $2,500 in interest paid to qualified student loans from
their taxable income.

 
LEGISLATIVE HISTORY:

2024: S2576 - Reported to Finance

2023: S2576 - Reported to Finance

2022: S8379 - Committed to Finance

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately.