Bill > A01245

This bill amends the New York State tax law to create a new personal income tax deduction for student loan payments. Specifically, the bill allows taxpayers to deduct up to $5,000 in student loan payments from their state income taxes, with certain conditions. The deduction applies only to qualified education loans as defined by the Internal Revenue Code, and is available to an "eligible borrower," which means a taxpayer who has incurred student loan debt for themselves, their spouse, or their dependents. The deduction is limited to payments that are not already deductible on federal tax returns and have not been reimbursed. The new tax provision will take effect for taxable years beginning on or after January 1, 2026, providing tax relief to New York residents struggling with student loan debt by reducing their state tax liability.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1245