STATE OF NEW YORK ________________________________________________________________________ 2062 2019-2020 Regular Sessions IN ASSEMBLY January 22, 2019 ___________ Introduced by M. of A. ROZIC, COLTON, CUSICK, GOTTFRIED, MOSLEY, OTIS, STIRPE, BLAKE -- Multi-Sponsored by -- M. of A. ABBATE, ARROYO, COOK, RAIA, RIVERA -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing the college preparation tax credit act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "college 2 preparation tax credit act". 3 § 2. Section 606 of the tax law is amended by adding a new subsection 4 (jjj) to read as follows: 5 (jjj) College preparation expense credit. (1) A resident taxpayer 6 shall be allowed a credit against the tax imposed by this article for 7 allowable college preparation expenses. Each taxable year, a credit of 8 up to five hundred dollars per child shall be allowed for qualified 9 college preparation expenses paid or incurred by the taxpayer during 10 such taxable year. No credit shall be allowed for any expenses paid or 11 incurred during the taxable year with respect to any individual for whom 12 an election is not in effect under this subsection for such taxable 13 year. An election may not be made for any taxable year if such an 14 election is in effect with respect to such individual for any three 15 prior taxable years. 16 (2) Qualified college preparation expenses. For purposes of this 17 subsection, the term "qualified college preparation expenses" means 18 amounts paid or incurred for: 19 (a) fees required for taking any advanced placement or international 20 baccalaureate exam; 21 (b) fees required for taking the SAT, the ACT, or any SAT subject 22 test; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00801-01-9A. 2062 2 1 (c) expenses related to preparation including tutorial services and 2 preparation classes for any exam described in subparagraph (a) or (b) of 3 this paragraph; 4 (d) fees and expenses related to applications for admission to pursue 5 a postsecondary course of study at an eligible educational institution; 6 and 7 (e) such other similar expenses and fees as the commissioner may by 8 regulation prescribe. 9 (3) Treatment of expenses paid by dependent. If a deduction under this 10 subsection with respect to an individual is allowed to another taxpayer 11 for a taxable year beginning in the calendar year in which such individ- 12 ual's taxable year begins: 13 (a) no credit shall be allowed under paragraph one of this subsection 14 to such individual for such individual's taxable year; and 15 (b) qualified college preparation expenses paid by such individual 16 during such individual's taxable year shall be treated for purposes of 17 this subsection as paid by such other taxpayer. 18 § 3. This act shall take effect immediately.