A00825 Summary:

BILL NOA00825A
 
SAME ASSAME AS S08141
 
SPONSORJones
 
COSPNSRColton, Dickens, Wallace, Williams, Rivera J, Morinello, Blankenbush, Hevesi, Carroll
 
MLTSPNSRSimon
 
Amd §§210-B & 606, Tax L
 
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.
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A00825 Actions:

BILL NOA00825A
 
01/06/2021referred to ways and means
01/05/2022referred to ways and means
01/26/2022amend and recommit to ways and means
01/26/2022print number 825a
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A00825 Committee Votes:

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A00825 Floor Votes:

There are no votes for this bill in this legislative session.
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A00825 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         825--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (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:
 
     1    Section 1. Section 210-B of the tax law is amended  by  adding  a  new
     2  subdivision 58 to read as follows:
     3    58. Employee indebtedness reduction credit. (a) Allowance of credit. A
     4  taxpayer  shall be allowed a credit, to be computed as provided in para-
     5  graph (b) of this subdivision, against the tax imposed by this  article,
     6  if  it  provides for a payment, on behalf of an employee, of any indebt-
     7  edness of the employee under a governmental education loan or any inter-
     8  est relating to such a loan. For purposes of this subdivision,  "govern-
     9  mental  education  loan"  shall  mean any education loan debt, including
    10  judgments, owed to the federal or New York state government or any other
    11  institution.
    12    (b) Amount of credit. The credit allowed pursuant to paragraph (a)  of
    13  this  subdivision shall be in an amount equal to the taxpayer's payment,
    14  on behalf of an employee, of any indebtedness of the  employee  under  a
    15  governmental  education  loan  or  any interest relating to such a loan.
    16  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
 
     1  shall  exceed  ten  thousand  dollars for each employee employed by such
     2  employer.
     3    (c)  Application  of credit. The credit allowed under this subdivision
     4  for any taxable year shall not reduce the tax due for such year to  less
     5  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
     6  section two hundred ten of this article.  If,  however,  the  amount  of
     7  credits  allowed under this subdivision for any taxable year reduces the
     8  tax to such amount, any amount of credit thus  not  deductible  in  such
     9  taxable year shall be treated as an overpayment of tax to be credited or
    10  refunded  in  accordance  with  the  provisions  of section one thousand
    11  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    12  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    13  notwithstanding, no interest shall be paid thereon.
    14    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    15  of  the  tax  law  is  amended  by adding a new clause (xlix) to read as
    16  follows:
    17  (xlix) Employee indebtedness         Amount of credit
    18  reduction credit                     under subdivision
    19  under subsection (nnn)               fifty-eight of section
    20                                       two hundred ten-B
    21    § 3. Section 606  of  the  tax  law  is  amended  by  adding  two  new
    22  subsections (nnn) and (ooo) to read as follows:
    23    (nnn) Employee indebtedness reduction credit. (1) Allowance of credit.
    24  A  taxpayer  shall  be  allowed  a credit, to be computer as provided in
    25  paragraph two of this subsection, against the tax imposed by this  arti-
    26  cle,  if  it  provides  for  a payment, on behalf of an employee, of any
    27  indebtedness of the employee under a governmental education loan or  any
    28  interest  relating  to  such  a  loan.  For purposes of this subsection,
    29  "governmental education  loan"  shall  mean  any  education  loan  debt,
    30  including judgments, owed to the federal or New York state government or
    31  any other institution.
    32    (2)  Amount of credit. The credit allowed pursuant to paragraph one of
    33  this subsection shall be in an amount equal to the  taxpayer's  payment,
    34  on  behalf  of  an employee, of any indebtedness of the employee under a
    35  governmental education loan or any interest relating  to  such  a  loan.
    36  Provided,  however,  that  no  such credit allowed under this subsection
    37  shall exceed ten thousand dollars for each  employee  employed  by  such
    38  employer.
    39    (3)  Application  of credit. If the amount of the credit allowed under
    40  this subsection for any taxable year shall exceed the taxpayer's tax for
    41  such year, the excess shall be treated as an overpayment of  tax  to  be
    42  credited  or  refunded  in accordance with the provisions of section six
    43  hundred eighty-six of this article, provided, however, that no  interest
    44  shall be paid thereon.
    45    (ooo) Employer education loan reduction credit. (1) Allowance of cred-
    46  it.  A taxpayer shall be allowed a credit, to be computed as provided in
    47  paragraph  two of this subsection, against the tax imposed by this arti-
    48  cle, if the taxpayer's employer provides for a  payment,  on  behalf  of
    49  such taxpayer, of any indebtedness of such taxpayer under a governmental
    50  education  loan or any interest relating to such a loan. For purposes of
    51  this subsection, "governmental education loan" shall mean any  education
    52  loan  debt,  including  judgments, owed to the federal or New York state
    53  government or any other institution.
    54    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    55  this  subsection  shall  be in an amount equal to the amount paid by the
    56  taxpayer's employer to reduce any indebtedness of the taxpayer  under  a

        A. 825--A                           3
 
     1  governmental  education  loan  or  any interest relating to such a loan.
     2  Provided, however, that no such credit  allowed  under  this  subsection
     3  shall exceed ten thousand dollars.
     4    (3)  Application  of credit. If the amount of the credit allowed under
     5  this subsection for any taxable year shall exceed the taxpayer's tax for
     6  such year, the excess shall be treated as an overpayment of  tax  to  be
     7  credited  or  refunded  in accordance with the provisions of section six
     8  hundred eighty-six of this article, provided, however, that no  interest
     9  shall be paid thereon.
    10    § 4. This act shall take effect immediately and apply to taxable years
    11  beginning  on and after the first of January next succeeding the date on
    12  which it shall have become a law.
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