A9207 — Enacts Retain-NY by implementing tuition tax credits and increasing the amount of an allowable deduction

Summary

Relates to a tuition tax credit; increases the amount of an allowable deduction (Part A); reduces income by the amount of interest paid for student loans (Part B).

Bill Text

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Compared against the New York Consolidated Laws as published AI-generated reading aid — verify against the official bill.

This bill amends 2 section(s) of the New York Consolidated Laws: Section 606 of the tax law; Section 612 of the tax law.

• Section 606 of the tax law

  , to If allowable college tuition expenses are less than five thousand dollars, the amount of the credit provided under this subsection shall be equal to the applicable percentage of the lesser of allowable college tuition expenses or two hundred dollars. If allowable college tuition expenses are five thousand dollars or more, the amount of the credit provided under this subsection shall be equal to the applicable percentage of the allowable college tuition expenses multi- plied by four percent. → . The amount of qualified college tuition expenses shall be as follows: for taxable italics years beginning after two thousand and before two thousand twenty-five, , for taxable years beginning in or after two thousand twenty-five, fifteen thousand dollars for each such student The amount of the credit shall be determined in accordance with the following schedules: (A) For taxable years beginning after two thousand and before two thousand twenty-five: If allowable college tuition expenses are: The tax credit is equal to: Less than five thousand dollars the applicable percentage of the lesser of allowable college tuition expenses or two hundred dollars Five thousand dollars or more the applicable percentage of allowable college tuition expenses multiplied by four percent (B) For taxable years beginning in or after two thousand twenty-five: If allowable college tuition expenses are: The tax credit is equal to: Less than seven thousand five the lesser of allowable college hundred dollars tuition expenses or two hundred ninety-five dollars Seven thousand five hundred the allowable college tuition dollars or more expenses multiplied by four percent (4-a) Inflation adjustment. (A) For taxable years beginning in or after two thousand twenty-six, the dollar amounts in subparagraph (A) of paragraph two and paragraph four of this subsection shall be multiplied by one plus the inflation adjustment. (B) The inflation adjustment for any tax year shall be the greater of: (i) two one-hundredths; or (ii) the higher education price index for the academic fiscal year in the immediately preceding tax year, with the result expressed as a decimal to four places. For the purposes of this paragraph, the higher education price index means the higher education price index published by the Common Fund Institute. (C) If the product of the amounts in subparagraph (A) and subparagraph (B) of this paragraph is not a multiple of five dollars, such increase shall be rounded to the next multiple of five dollars.

  amended

• Section 612 of the tax law

  (48) For tax years commencing after December first, two thousand twen- ty-five, for eligible borrowers, all interest paid on student loans to the extent not deductible in determining federal adjusted gross income and not reimbursed. For the purposes of this paragraph, the following terms have the following meanings: (i) "student loans" means any indebtedness incurred by the taxpayer solely for any qualified education loan defined by section 221(d) of the Internal Revenue Code from a lender. (ii) "eligible borrower" shall mean a taxpayer who has incurred indebtedness on student loans as defined in subparagraph (i) of this paragraph on behalf of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer at the time the indebtedness was incurred. (iii) "lender" means a bank, savings and loan association, credit union, pension fund, insurance company, school, or state lending agency.

  amended

Action History

1. January 07, 2026

   REFERRED TO WAYS AND MEANS

2. November 03, 2025

   REFERRED TO WAYS AND MEANS

Sponsors

• William A. Barclay · Primary

Subjects