Bill > S04103

This bill introduces several tax-related provisions targeting young workers and students in New York State, set to take effect in 2026 and expire in 2031. First, it creates a new earned income tax credit specifically for youth workers aged 17 to the minimum federal earned income tax credit age, who are not claimed as dependents and do not have children. The credit will be calculated as 1.3 times the federal earned income tax credit amount. Second, the bill increases the standard deduction for unmarried residents between 18 and 24 years old to $10,000, provided they are not claimed as dependents and do not have a zero federal exemption amount. Third, starting in 2026, the bill allows residents to deduct student loan interest on their state taxes, following the federal Internal Revenue Code guidelines for qualified education loans. The bill requires the tax commissioner to submit annual reports to state legislative leaders detailing the number and average amounts of credits granted, broken down by county. These provisions are designed to provide financial support to young workers and students by reducing their tax burden and potentially increasing their take-home income.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S4103