STATE OF NEW YORK
________________________________________________________________________
267--A
2023-2024 Regular Sessions
IN SENATE(Prefiled)
January 4, 2023
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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
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 59 to read as follows:
3 59. 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
17 shall exceed ten thousand dollars for each employee employed by such
18 employer.
19 (c) Application of credit. The credit allowed under this subdivision
20 for any taxable year shall not reduce the tax due for such year to less
21 than the amount prescribed in paragraph (d) of subdivision one of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02267-02-3
S. 267--A 2
1 section two hundred ten of this article. If, however, the amount of
2 credits allowed under this subdivision for any taxable year reduces the
3 tax to such amount, any amount of credit thus not deductible in such
4 taxable year shall be treated as an overpayment of tax to be credited or
5 refunded in accordance with the provisions of section one thousand
6 eighty-six of this chapter. Provided, however, the provisions of
7 subsection (c) of section one thousand eighty-eight of this chapter
8 notwithstanding, no interest shall be paid thereon.
9 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
10 of the tax law is amended by adding a new clause (l) to read as follows:
11 (l) Employee indebtednessAmount of credit
12 reduction creditunder subdivision
13 under subsection (ooo)fifty-nine of section
14 two hundred ten-B
15 § 3. Section 606 of the tax law is amended by adding a new subsection
16 (ooo) to read as follows:
17 (ooo) Employee indebtedness reduction credit. (1) Allowance of credit.
18 A taxpayer shall be allowed a credit, to be computed as provided in
19 paragraph two of this subsection, against the tax imposed by this arti-
20 cle, if it provides for a payment, on behalf of an employee, of any
21 indebtedness of the employee under a governmental education loan or any
22 interest relating to such a loan. For purposes of this subsection,
23 "governmental education loan" shall mean any education loan debt,
24 including judgments, owed to the federal or New York state government or
25 any other institution.
26 (2) Amount of credit. The credit allowed pursuant to paragraph one of
27 this subsection shall be in an amount equal to the taxpayer's payment,
28 on behalf of an employee, of any indebtedness of the employee under a
29 governmental education loan or any interest relating to such a loan.
30 Provided, however, that no such credit allowed under this subsection
31 shall exceed ten thousand dollars for each employee employed by such
32 employer.
33 (3) Application of credit. If the amount of the credit allowed under
34 this subsection for any taxable year shall exceed the taxpayer's tax for
35 such year, the excess shall be treated as an overpayment of tax to be
36 credited or refunded in accordance with the provisions of section six
37 hundred eighty-six of this article, provided, however, that no interest
38 shall be paid thereon.
39 § 4. This act shall take effect immediately and apply to taxable years
40 beginning on and after the first of January next succeeding the date on
41 which it shall have become a law.
