Bill Text: NY A10354 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts Retain-NY by implementing tuition tax credits and increasing the amount of an allowable deduction.
Spectrum: Strong Partisan Bill (Republican 16-1)
Status: (Introduced - Dead) 2012-05-24 - referred to ways and means [A10354 Detail]
Download: New_York-2011-A10354-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
10354
I N A S S E M B L Y
May 24, 2012
___________
Introduced by M. of A. KOLB -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to a tuition tax credit and
increasing the amount of an allowable deduction (Part A); and to amend
the tax law, in relation to reducing income by the amount of interest
paid for student loans (Part B)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. This act enacts into law components of legislation relating
2 to Retain-NY. Each component is wholly contained within a Part identi-
3 fied as Parts A through B. The effective date for each particular
4 provision contained within such Part is set forth in the last section of
5 such Part. Any provision in any section contained within a Part, includ-
6 ing the effective date of the Part, which makes reference to a section
7 "of this act", when used in connection with that particular component,
8 shall be deemed to mean and refer to the corresponding section of the
9 Part in which it is found. Section three of this act sets forth the
10 general effective date of this act.
11 PART A
12 Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of
13 section 606 of the tax law, as amended by section 1 of part N of chapter
14 85 of the laws of 2002, is amended to read as follows:
15 (A) The term "allowable college tuition expenses" shall mean the
16 amount of qualified college tuition expenses of eligible students paid
17 by the taxpayer during the taxable year[,]. THE AMOUNT OF QUALIFIED
18 COLLEGE TUITION EXPENSES SHALL BE limited [to] AS FOLLOWS: FOR TAXABLE
19 YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND TWELVE, ten
20 thousand dollars for each such student, FOR TAXABLE YEARS BEGINNING IN
21 OR AFTER TWO THOUSAND TWELVE, THIRTEEN THOUSAND EIGHT HUNDRED DOLLARS
22 FOR EACH SUCH STUDENT;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15925-01-2
A. 10354 2
1 S 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as
2 added by section 1 of part DD of chapter 63 of the laws of 2000, is
3 amended to read as follows:
4 (4) Amount of credit. [If allowable college tuition expenses are less
5 than five thousand dollars, the amount of the credit provided under this
6 subsection shall be equal to the applicable percentage of the lesser of
7 allowable college tuition expenses or two hundred dollars. If allowable
8 college tuition expenses are five thousand dollars or more, the amount
9 of the credit provided under this subsection shall be equal to the
10 applicable percentage of the allowable college tuition expenses multi-
11 plied by four percent.] THE AMOUNT OF THE CREDIT SHALL BE DETERMINED IN
12 ACCORDANCE WITH THE FOLLOWING SCHEDULES:
13 (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO
14 THOUSAND TWELVE:
15 IF ALLOWABLE COLLEGE TUITION
16 EXPENSES ARE: THE TAX CREDIT IS EQUAL TO:
17 LESS THAN FIVE THOUSAND DOLLARS THE APPLICABLE PERCENTAGE OF THE
18 LESSER OF ALLOWABLE COLLEGE
19 TUITION EXPENSES OR TWO HUNDRED
20 DOLLARS
21 FIVE THOUSAND DOLLARS OR MORE THE APPLICABLE PERCENTAGE
22 OF ALLOWABLE COLLEGE TUITION
23 EXPENSES MULTIPLIED BY FOUR PERCENT
24 (B) FOR TAXABLE YEARS BEGINNING IN OR AFTER TWO THOUSAND TWELVE:
25 IF ALLOWABLE COLLEGE TUITION
26 EXPENSES ARE: THE TAX CREDIT IS EQUAL TO:
27 LESS THAN SIX THOUSAND NINE THE LESSER OF ALLOWABLE COLLEGE
28 HUNDRED DOLLARS TUITION EXPENSES OR TWO HUNDRED
29 SEVENTY-FIVE DOLLARS
30 SIX THOUSAND NINE HUNDRED THE ALLOWABLE COLLEGE TUITION
31 DOLLARS OR MORE EXPENSES MULTIPLIED BY FOUR PERCENT
32 Such applicable percentage shall be twenty-five percent for taxable
33 years beginning in two thousand one, fifty percent for taxable years
34 beginning in two thousand two, seventy-five percent for taxable years
35 beginning in two thousand three and one hundred percent for taxable
36 years beginning after two thousand three.
37 S 3. Subsection (t) of section 606 of the tax law is amended by adding
38 a new paragraph 4-a to read as follows:
39 (4-A) INFLATION ADJUSTMENT. (A) FOR TAXABLE YEARS BEGINNING IN OR
40 AFTER TWO THOUSAND THIRTEEN, THE DOLLAR AMOUNTS IN SUBPARAGRAPH (A) OF
41 PARAGRAPH TWO AND PARAGRAPH FOUR OF THIS SUBSECTION SHALL BE MULTIPLIED
42 BY ONE PLUS THE INFLATION ADJUSTMENT.
43 (B) THE INFLATION ADJUSTMENT FOR ANY TAX YEAR SHALL BE THE PERCENTAGE,
44 IF ANY, BY WHICH THE HIGHER EDUCATION PRICE INDEX FOR THE ACADEMIC
45 FISCAL YEAR ENDING IN THE IMMEDIATELY PRECEDING TAX YEAR EXCEEDS THE
46 HIGHER EDUCATION PRICE INDEX FOR THE ACADEMIC FISCAL YEAR ENDING JUNE
47 TWO THOUSAND TWELVE. FOR THE PURPOSES OF THIS PARAGRAPH, THE HIGHER
48 EDUCATION PRICE INDEX MEANS THE HIGHER EDUCATION PRICE INDEX PUBLISHED
49 BY THE COMMON FUND INSTITUTE.
50 (C) IF THE PRODUCT OF THE AMOUNTS IN SUBPARAGRAPH (A) AND SUBPARAGRAPH
51 (B) OF THIS PARAGRAPH IS NOT A MULTIPLE OF FIVE DOLLARS, SUCH INCREASE
52 SHALL BE ROUNDED TO THE NEXT MULTIPLE OF FIVE DOLLARS.
53 S 4. This act shall take effect immediately.
A. 10354 3
1 PART B
2 Section 1. Subsection (c) of section 612 of the tax law is amended by
3 adding a new paragraph 39 to read as follows:
4 (39) FOR TAX YEARS COMMENCING AFTER DECEMBER FIRST, TWO THOUSAND
5 TWELVE, FOR TAXPAYERS, ALL INTEREST PAID ON STUDENT LOANS. FOR PURPOSES
6 OF THIS PARAGRAPH "STUDENT LOAN" MEANS A LOAN TO A STUDENT FROM A LENDER
7 TO HELP PAY FOR THE COST OF POST-SECONDARY EDUCATION AT A POST-SECONDARY
8 SCHOOL. FOR PURPOSES OF THIS PARAGRAPH "LENDER" MEANS A BANK, SAVINGS
9 AND LOAN ASSOCIATION, CREDIT UNION, PENSION FUND, INSURANCE COMPANY,
10 SCHOOL, OR STATE LENDING AGENCY.
11 S 2. This act shall take effect immediately.
12 S 2. Severability. If any clause, sentence, paragraph, section or part
13 of this act shall be adjudged by any court of competent jurisdiction to
14 be invalid and after exhaustion of all further judicial review, the
15 judgment shall not affect, impair, or invalidate the remainder thereof,
16 but shall be confined in its operation to the clause, sentence, para-
17 graph, section or part of this act directly involved in the controversy
18 in which the judgment shall have been rendered.
19 S 3. This act shall take effect immediately provided, however, that
20 the applicable effective date of Parts A through B of this act shall be
21 as specifically set forth in the last section of such Parts.
