Bill > S01125

This bill establishes a new program to help employees repay student loans by allowing employers to create student loan repayment accounts. Under the proposed law, employers can set up accounts where employees can deposit up to $5,000 per year of pre-tax income specifically for undergraduate or graduate student loan repayments. Employers can also provide matching funds to these accounts, up to 100% of the employee's contribution, with a maximum of $5,000 annually per employee. The accounts will be managed by the state comptroller and higher education services corporation, and will have strict rules about their use. If an employee withdraws money from the account for purposes other than student loan repayment, they will be subject to a 10% penalty. The bill also provides tax deductions for employers who establish these accounts, with a total statewide tax expenditure cap of $70 million. The tax deductions will be suspended once this threshold is reached. The law would take effect 60 days after becoming law and would apply to taxable years starting on or after that date. The bill aims to provide a new mechanism for employers to help employees manage and reduce their student loan debt.

Education

https://www.nysenate.gov/legislation/bills/2025/S1125