Bill > S01821

This bill establishes a new state personal income tax deduction for student loan interest payments, specifically targeting individual taxpayers and married couples within certain income ranges. For single filers or heads of household with federal adjusted gross incomes between $65,000-$80,000, the bill allows a deduction of the difference between student loan interest paid and the amount already deducted for federal tax purposes, up to $2,500. For single filers or heads of household with incomes between $80,000-$125,000, the bill permits a deduction of up to $2,500 in student loan interest. Similarly, for married couples filing jointly, the bill provides a comparable deduction for those with incomes between $130,000-$160,000 and $160,000-$250,000, respectively. The bill references a previous definition of "student loan" from a 2017 law and will take effect immediately, applying to the current and all subsequent tax years. The purpose of this legislation is to provide tax relief for middle-income individuals and families by reducing their state tax burden related to student loan repayment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1821