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A08874 Summary:

BILL NOA08874
 
SAME ASSAME AS S08070
 
SPONSORReyes
 
COSPNSRBichotte Hermelyn, Weprin
 
MLTSPNSR
 
Amd §612, Tax L (as proposed in S.143 & A.4421)
 
Excludes certain student loan forgiveness amounts authorized under any federal program to the extent included in federal adjusted gross income.
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A08874 Actions:

BILL NOA08874
 
01/25/2024referred to ways and means
03/05/2024reported
03/07/2024advanced to third reading cal.359
03/11/2024substituted by s8070
 S08070 AMEND= GIANARIS
 01/05/2024REFERRED TO RULES
 01/08/2024ORDERED TO THIRD READING CAL.56
 01/24/2024PASSED SENATE
 01/24/2024DELIVERED TO ASSEMBLY
 01/24/2024referred to ways and means
 03/11/2024substituted for a8874
 03/11/2024ordered to third reading cal.359
 03/12/2024passed assembly
 03/12/2024returned to senate
 03/22/2024DELIVERED TO GOVERNOR
 03/22/2024SIGNED CHAP.109
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A08874 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8874
 
SPONSOR: Reyes
  TITLE OF BILL: An act to amend the tax law, in relation to excluding certain student loan discharge or forgiveness amounts from state income tax to the extent such amount is included in federal adjusted gross income   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to exclude any federal student loan forgiveness awards authorized by the Secretary of Education from New York adjusted gross income, further ensuring the effectiveness of Chap- ter 750 of the Laws of 2023.   SUMMARY OF PROVISIONS: Section 1 of the bill makes the following changes to Chapter 750 of the Laws of 2023 (Approval Memo 72): Remove provisions that would limit the state deduction of student loan forgiveness to only four provisions of federal law; and Removes language stating "irrespective of whether it is considered taxa- ble income for federal tax purposes" which would have resulted in a double deduction from New York state taxable income Section 2 provides the effective date.   JUSTIFICATION: The bill intends to alleviate the effects of rising student loan debt by allowing New York State to ensure that beneficiaries of student loan debt relief do not have to pay money out of their own pockets in the form of tax liability on such forgiveness. Although, the American Rescue Plan stipulated that student loan debt would be classified as non-taxable income at the federal level, current New York State tax laws limited relief to four statutes of federal law, provided under 20 U.S.C. § 1098aa, 1098bb, 1098cc, 1098dd and 1098ee. In June 2023, federal student loan forgiveness under these statues were struck down by the Supreme Court. This bill makes amendments to Chapter 750 of the Laws of 2023 to expand provisions in state tax law to ensure that no state taxes would be owed on any federal student loan debt forgiveness authorized by the Secretary of Education.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the State.   EFFECTIVE DATE: This act shall take effect on the same date and in the same manner as a Chapter of the Laws of 2023 amending the tax law to excluding certain student loan discharge or forgiveness amounts from state income tax, as proposed in legislative bill numbers S. 143 and A. 4421, takes effect.
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A08874 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8874
 
                   IN ASSEMBLY
 
                                    January 25, 2024
                                       ___________
 
        Introduced  by M. of A. REYES -- read once and referred to the Committee
          on Ways and Means
 
        AN ACT to amend the tax law, in relation to  excluding  certain  student
          loan  discharge  or  forgiveness  amounts from state income tax to the
          extent such amount is included in federal adjusted gross income
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph  47 of subsection (c) of section 612 of the tax
     2  law, as added by a chapter of the laws of 2023,  amending  the  tax  law
     3  relating  to  excluding  certain  student  loan discharge or forgiveness
     4  amounts from state income tax, as proposed in legislative bills  numbers
     5  S. 143 and A.  4421, is amended to read as follows:
     6    (47)  [The] For taxable years beginning on or after January first, two
     7  thousand twenty-three, the amount of  any  student  loan  discharged  or
     8  forgiven  by  the  secretary  of  education  pursuant  to [authorization
     9  provided by 20 U.S.C. § 1098aa, 1098bb, 1098cc, 1098dd or  1098ee  shall
    10  not be considered taxable income for the purpose of calculating New York
    11  adjusted  gross income, irrespective of whether it is considered taxable
    12  income  for  federal  income  tax  purposes]  any  federally  authorized
    13  program, to the extent included in federal adjusted gross income.
    14    §  2.  This  act  shall  take  effect on the same date and in the same
    15  manner as a chapter of the laws of 2023, amending the tax  law  relating
    16  to  excluding certain student loan discharge or forgiveness amounts from
    17  state income tax, as proposed in legislative bills numbers S. 143 and A.
    18  4421, takes effect.
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01849-02-4
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