Senate BillIntroducedTAX
S 4018: Allows taxpayers to subtract interest paid on an education loan and education debt from federal adjusted gross income.
What S 4018 does, verified January 8, 2026
The proposed law aims to modify the tax law in New York state to reduce federal adjusted gross income. It introduces a new paragraph to Section 612 of the tax law, which allows taxpayers to deduct interest paid on qualified education loans and education debt. The law defines "educational debt" as loans obtained through state, federal, or commercial lenders for undergraduate student enrollment, with expenses related to tuition and other costs directly tied to that enrollment. Taxpayers can deduct interest paid on these loans, but not the same expenses under this provision and the standard deduction. The law takes effect immediately and applies to tax years starting on January 1, 2025.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: REFERRED TO BUDGET AND REVENUE (2026-01-07)Alert me
Author and sponsors
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| Jan. 07, 2026 | REFERRED TO BUDGET AND REVENUE |
| Jan. 31, 2025 | REFERRED TO BUDGET AND REVENUE |
Latest bill textIntroduced version, January 31, 2025 · 363 words
STATE OF NEW YORK ________________________________________________________________________ 4018 2025-2026 Regular Sessions IN SENATE January 31, 2025 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to modifications reducing federal adjusted gross income 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) an amount equal to the interest paid by the taxpayer during 4 the taxable year on any qualified education loan to the extent such 5 interest is deductible in accordance with 26 U.S.C § 221 for federal tax 6 purposes; and (B) an amount equal to the amount of interest payments 7 paid by the taxpayer on education debt during the taxable year. For the 8 purposes of subparagraph (B), the term "educational debt" shall mean any 9 loan which was or is administered by the financial aid office of a two- 10 year or four-year college at which the taxpayer, or a dependent of such 11 taxpayer, was enrolled as an undergraduate student and which loan has 12 been secured through a state student loan program, a federal student 13 loan program or a commercial lender and which loan was obtained and 14 expended solely for the purposes of paying tuition and other expenses 15 directly related to such undergraduate student enrollment. A taxpayer 16 shall not be eligible for a deduction for the same expenses under 17 subparagraph (A) and subparagraph (B) of this paragraph. 18 § 2. This act shall take effect immediately and shall be deemed to 19 have been in full force and effect on and after January first of the 20 calendar year in which it takes effect, and shall apply to the tax year 21 commencing on and after such date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07582-01-5
Text of S 4018 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions