Establishes a personal income tax deduction for the interest paid on student loans by individual taxpayers having a federal adjusted income of between $65,000 and $125,000, and married taxpayers filing jointly having a federal adjusted income of between $130,000 and $250,000.
STATE OF NEW YORK
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8442
2025-2026 Regular Sessions
IN ASSEMBLY
May 16, 2025
___________
Introduced by M. of A. SIMONE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to establishing a reduction of
certain taxpayer's federal adjusted gross income, for state personal
income tax purposes, for student loan interest payments made by the
taxpayer
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (c) of section 612 of the tax law is amended by
2 adding a new paragraph 48 to read as follows:
3 (48)(A) (i) For a taxpayer who files singly or as the head of a house-
4 hold with a federal adjusted income, without the deduction of any inter-
5 est paid on student loans, of not less than sixty-five thousand dollars
6 nor more than eighty thousand dollars, the difference between the inter-
7 est paid on student loans by the taxpayer, in an amount not to exceed
8 two thousand five hundred dollars, and the amount of such interest
9 deducted by such taxpayer to calculate their federal adjusted gross
10 income; and
11 (ii) For a taxpayer who files singly or as the head of a household
12 with a federal adjusted gross income of not less than eighty thousand
13 dollars, nor more than one hundred twenty-five thousand dollars, inter-
14 est, in an amount not to exceed two thousand five hundred dollars, paid
15 on indebtedness incurred from a student loan; and
16 (iii) For married taxpayers filing jointly with a federal adjusted
17 gross income, without the deduction of any interest paid on student
18 loans, of not less than one hundred thirty thousand dollars, nor more
19 than one hundred sixty thousand dollars, the difference between the
20 interest paid on student loans by the taxpayers, in an amount not to
21 exceed two thousand five hundred dollars, and the amount of such inter-
22 est deducted by such taxpayers to calculate their federal adjusted gross
23 income; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02310-01-5
A. 8442 2
1 (iv) For married taxpayers filing jointly with a federal adjusted
2 gross income of not less than one hundred sixty thousand dollars, nor
3 more than two hundred fifty thousand dollars, interest, in an amount not
4 to exceed two thousand five hundred dollars, paid on indebtedness
5 incurred from a student loan.
6 (B) For the purposes of this paragraph, "student loan" shall have the
7 same meaning as ascribed to such term by subparagraph (B) of paragraph
8 forty-two of this subsection, as added by chapter four hundred fifty-six
9 of the laws of two thousand seventeen.
10 § 2. This act shall take effect immediately, and shall apply to the
11 taxable year in which it shall take effect and to all subsequent taxable
12 years.
