Bill > A09207

This bill makes two key changes to New York state tax law to provide financial relief for families with college expenses. Part A increases and modifies the existing college tuition tax credit by raising the maximum allowable college tuition expenses from $10,000 to $15,000 per student starting in 2025, and adjusting the tax credit calculation accordingly. Additionally, it introduces an annual inflation adjustment mechanism for these amounts beginning in 2026, which will use the Higher Education Price Index to ensure the credit keeps pace with rising education costs. Part B creates a new tax deduction for student loan interest, allowing eligible borrowers to reduce their taxable income by the amount of interest paid on qualified student loans for themselves, their spouse, or dependents, starting in 2025. The bill defines specific terms like "student loans" (qualified education loans from approved lenders) and "eligible borrowers" to clarify who can benefit from these provisions. The changes aim to provide financial support to students and families by making higher education expenses more affordable through targeted tax relief.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A9207