Establishes a personal income tax deduction for the interest paid on student loans by individual taxpayers having a federal adjusted income of between $65,000 and $125,000, and married taxpayers filing jointly having a federal adjusted income of between $130,000 and $250,000.
S01821 would amend New York’s Tax Law to create a state personal income tax deduction related to student loan interest. The bill allows eligible taxpayers to reduce their New York taxable income by the amount of student loan interest paid, subject to a cap of $2,500, with the deduction structured differently depending on filing status and income range. It applies to single and head-of-household filers with federal adjusted gross income between $65,000 and $125,000, and to married joint filers with federal adjusted gross income between $130,000 and $250,000.
The deduction is tied to student loan interest already used, or eligible to be used, in calculating federal adjusted gross income, and it references the existing statutory definition of “student loan” in the Tax Law. The measure would take effect immediately and apply to the taxable year in which it becomes law and all later taxable years, thereby creating an ongoing state tax benefit for qualifying borrowers.
The bill would modify section 612 of the Tax Law by adding a new personal income tax subtraction for student loan interest, reducing state taxable income for eligible taxpayers. It would primarily affect middle- and upper-middle-income New York residents with qualifying student debt, while leaving lower-income taxpayers outside the specified income bands and taxpayers without student loan interest unaffected. The bill would not change federal tax law, but it would interact with federal adjusted gross income and existing federal treatment of student loan interest.
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a targeted tax-relief proposal aimed at easing the burden of student debt. The structure of the bill suggests a generally supportive policy approach toward borrowers, especially those in the specified income ranges who are still repaying loans. No opposition or formal vote history is available in the provided context, so there is no documented legislative sentiment beyond the bill’s apparent pro-relief intent.
The main policy questions likely concern the income thresholds, the $2,500 cap, and whether the deduction should be available to higher-income households up to $250,000 for joint filers. Supporters would likely view the bill as a practical way to assist borrowers and encourage repayment, while critics could argue that the benefit is too narrow, too generous to higher earners, or duplicative of existing federal tax treatment. Because no committee transcript or vote record is provided, no specific lawmakers or stakeholder groups are identified as having raised these concerns.