A 8442: 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 8442 2025-2026 Regular Sessions  IN ASSEMBLY May 16, 2025 ___________ Introduced by M. of A. SIMONE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a reduction of certain taxpayer's federal adjusted gross income, for state personal income tax purposes, for student loan interest payments made by the taxpayer The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsection (c) of section 612 of the tax law is amended by 2 adding a new paragraph 48 to read as follows: 3 (48)(A) (i) For a taxpayer who files singly or as the head of a house- 4 hold with a federal adjusted income, without the deduction of any inter- 5 est paid on student loans, of not less than sixty-five thousand dollars 6 nor more than eighty thousand dollars, the difference between the inter- 7 est paid on student loans by the taxpayer, in an amount not to exceed 8 two thousand five hundred dollars, and the amount of such interest 9 deducted by such taxpayer to calculate their federal adjusted gross 10 income; and 11 (ii) For a taxpayer who files singly or as the head of a household 12 with a federal adjusted gross income of not less than eighty thousand 13 dollars, nor more than one hundred twenty-five thousand dollars, inter- 14 est, in an amount not to exceed two thousand five hundred dollars, paid 15 on indebtedness incurred from a student loan; and 16 (iii) For married taxpayers filing jointly with a federal adjusted 17 gross income, without the deduction of any interest paid on student 18 loans, of not less than one hundred thirty thousand dollars, nor more 19 than one hundred sixty thousand dollars, the difference between the 20 interest paid on student loans by the taxpayers, in an amount not to 21 exceed two thousand five hundred dollars, and the amount of such inter- 22 est deducted by such taxpayers to calculate their federal adjusted gross 23 income; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02310-01-5 
 A. 8442 2 1 (iv) For married taxpayers filing jointly with a federal adjusted 2 gross income of not less than one hundred sixty thousand dollars, nor 3 more than two hundred fifty thousand dollars, interest, in an amount not 4 to exceed two thousand five hundred dollars, paid on indebtedness 5 incurred from a student loan. 6 (B) For the purposes of this paragraph, "student loan" shall have the 7 same meaning as ascribed to such term by subparagraph (B) of paragraph 8 forty-two of this subsection, as added by chapter four hundred fifty-six 9 of the laws of two thousand seventeen. 10 § 2. This act shall take effect immediately, and shall apply to the 11 taxable year in which it shall take effect and to all subsequent taxable 12 years.