Bill > S01674

This bill creates a tax credit for employers who help reduce their employees' higher education loan debt by allowing employers to claim a tax credit equal to the amount they pay towards an employee's qualifying education loan. Specifically, the bill defines a "higher education loan" as any education loan debt owed to federal or New York state government or other institutions related to an undergraduate program of study. The tax credit is capped at $10,000 per employee and can be applied against taxes for corporations, personal income, and other business taxes. If the credit amount exceeds the total tax owed in a given year, the excess can be treated as an overpayment and potentially carried forward or refunded, though no interest will be paid on these overpayments. The bill aims to provide a financial incentive for employers to assist employees in managing their student loan debt, which could help attract and retain talent while providing meaningful financial support to workers. The tax credit will take effect for taxable years beginning on or after January 1st following the bill's enactment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1674