Bill Text: NY A05345 | 2021-2022 | General Assembly | Introduced
Bill Title: Creates a tax credit for businesses that develop a "college to work" program, paying the tuition of individuals in exchange for the individual committing to work for the business after the individual's graduation from an institution of higher learning; provides the tax credit shall be for twenty-five percent of the individual's tuition expenses not to exceed five thousand dollars.
Spectrum: Partisan Bill (Republican 12-0)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A05345 Detail]
Download: New_York-2021-A05345-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5345 2021-2022 Regular Sessions IN ASSEMBLY February 12, 2021 ___________ Introduced by M. of A. ANGELINO -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to establishing a credit for developing a college to work program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 55 to read as follows: 3 55. Credit for college to work program. (a) Allowance of credit. A 4 taxpayer shall be allowed a credit, to be computed as hereinafter 5 provided, against the tax imposed by this article, based upon its 6 payment of tuition to an institution of higher education on behalf of an 7 individual in exchange for the individual agreeing to work for the 8 taxpayer for a number of years, as set forth in a written agreement 9 between the taxpayer and the individual. 10 (b) Tuition. For the purposes of this credit, the term "tuition" shall 11 mean the tuition and fees paid for the enrollment and attendance of an 12 individual at an institution of higher education, as well as monies paid 13 for textbooks in connection with attendance at an institution of higher 14 education. Provided, however, any amounts which have been paid for or 15 reimbursed by any other scholarships or financial aid, or tuition 16 required for enrollment or attendance in a course of study leading to 17 the granting of a post baccalaureate or other graduate degree, shall be 18 excluded from the definition of "tuition". 19 (c) Institution of higher education. For the purposes of this credit, 20 the term "institution of higher education" shall mean any institution of 21 higher education, recognized and approved by the regents, or any succes- 22 sor organization, of the university of the state of New York or accred- 23 ited by a nationally recognized accrediting agency or association 24 accepted as such by the regents, or any successor organization, of the 25 university of the state of New York, which provides a course of study EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09142-01-1A. 5345 2 1 leading to the granting of a post-secondary degree, certificate or 2 diploma. 3 (d) Qualified individual. For purposes of this credit, the term "qual- 4 ified individual" shall mean any individual who is not a spouse, child 5 or dependent of the taxpayer or any individual who is not a spouse, 6 child or dependent of any officer or employee of the taxpayer. 7 (e) Written agreement. For purposes of this credit, the term "written 8 agreement" shall mean a document signed and dated by both the taxpayer 9 and the qualified individual which contains provisions including but not 10 limited to the minimum salary which the taxpayer will pay to the quali- 11 fied individual upon completion of the individual's degree; the required 12 duration of employment upon completion of the individual's degree; and 13 the parties' respective responsibilities in the event that the taxpayer 14 ceases operations or later decides not to offer employment to the indi- 15 vidual upon completion of his/her degree or in the event that the quali- 16 fied individual fails to complete the degree or to work for the taxpayer 17 for the agreed upon term. 18 (f) Amount of credit. Notwithstanding the provisions of any other law, 19 a taxpayer which provides for the payment of an individual's tuition 20 under the college to work program established by this subdivision, shall 21 be allowed a credit against the tax imposed by this article, to the 22 extent of twenty-five percent of monies paid for each individual's 23 tuition, but such credit shall not exceed five thousand dollars for one 24 year for each such qualified individual. 25 (g) Carryover. The credit allowed under this subdivision for any taxa- 26 ble year shall not reduce the tax due for such year to less than the 27 amount prescribed in paragraph (d) of subdivision one of section two 28 hundred ten of this article. Provided, however, if the amount of credit 29 allowable under this subdivision for any taxable year reduces the tax to 30 such amount, any amount of credit not deductible in such taxable year 31 may be carried over to the following year or years, and may be deducted 32 from the taxpayer's tax for such year or years. 33 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 34 of the tax law is amended by adding a new clause (xlvi) to read as 35 follows: 36 (xlvi) College to work program Amount of credit under 37 credit under subsection (s-1) subdivision fifty-five 38 of section two hundred ten-B 39 § 3. Section 606 of the tax law is amended by adding a new subsection 40 (s-1) to read as follows: 41 (s-1) Credit for college to work program. (1) Allowance of credit. A 42 taxpayer shall be allowed a credit, to be computed as hereinafter 43 provided, against the tax imposed by this article, based upon such 44 taxpayer's payment of tuition to an institution of higher education on 45 behalf of an individual in exchange for the individual agreeing to work 46 for the taxpayer for a number of years, as set forth in a written agree- 47 ment between the taxpayer and the individual. 48 (2) Tuition. For the purposes of this credit, the term "tuition" shall 49 mean the tuition and fees paid for the enrollment and attendance of an 50 individual at an institution of higher education, as well as monies paid 51 for textbooks in connection with attendance at an institution of higher 52 education. Provided, however, any amounts which have been paid for or 53 reimbursed by any other scholarships or financial aid, or tuition 54 required for enrollment or attendance in a course of study leading toA. 5345 3 1 the granting of a post baccalaureate or other graduate degree, shall be 2 excluded from the definition of "tuition". 3 (3) Institution of higher education. For the purposes of this credit, 4 the term "institution of higher education" shall mean any institution of 5 higher education, recognized and approved by the regents, or any succes- 6 sor organization, of the university of the state of New York or accred- 7 ited by a nationally recognized accrediting agency or association 8 accepted as such by the regents, or any successor organization, of the 9 university of the state of New York, which provides a course of study 10 leading to the granting of a post-secondary degree, certificate or 11 diploma. 12 (4) Qualified individual. For purposes of this credit, the term "qual- 13 ified individual" shall mean any individual who is not a spouse, child 14 or dependent of the taxpayer or any individual who is not a spouse, 15 child or dependent of any officer or employee of the taxpayer. 16 (5) Written agreement. For purposes of this credit, the term "written 17 agreement" shall mean a document signed and dated by both the taxpayer 18 and the qualified individual which contains provisions including but not 19 limited to the minimum salary which the taxpayer will pay to the quali- 20 fied individual upon completion of the individual's degree; the required 21 duration of employment upon completion of the individual's degree; and 22 the parties' respective responsibilities in the event that the taxpayer 23 ceases operations or later decides not to offer employment to the indi- 24 vidual upon completion of his/her degree or in the event that the quali- 25 fied individual fails to complete the degree or to work for the taxpayer 26 for the agreed upon term. 27 (6) Amount of credit. Notwithstanding the provisions of any other law, 28 a taxpayer who provides for the payment of an individual's tuition under 29 the college to work program established by this subsection, shall be 30 allowed a credit against the tax imposed by this article, to the extent 31 of twenty-five percent of monies paid for each individual's tuition, but 32 such credit shall not exceed five thousand dollars for one year for each 33 such qualified individual. 34 (7) Carryover. If the amount of credit allowable under this subsection 35 for any taxable year shall exceed the taxpayer's tax amount, any amount 36 of the excess may be carried over to the following year or years, and 37 may be deducted from the taxpayer's tax for such year or years. 38 § 4. This act shall take effect immediately and shall apply to all 39 taxable years commencing after January 1, 2020.
