Bill > A03333

This bill amends the New York state tax law to allow taxpayers to deduct student loan interest from their federal adjusted gross income, specifically by referencing the federal tax code provision at 26 USC § 221. The deduction would apply to interest paid on qualified education loans during the taxable year. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1, 2026. By incorporating the federal statute's definition, the bill enables New York state taxpayers to claim a tax deduction for student loan interest payments, which can help reduce their overall state tax liability and provide some financial relief for those repaying educational loans. This provision aligns state tax law with existing federal tax provisions designed to ease the financial burden of student loan repayment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3333