Bill Text: NY S04576 | 2013-2014 | General Assembly | Amended
Bill Title: Provides tax credit for allowable college expenses.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2014-03-07 - PRINT NUMBER 4576A [S04576 Detail]
Download: New_York-2013-S04576-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4576--A
2013-2014 Regular Sessions
I N S E N A T E
April 11, 2013
___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to providing a tax credit for
allowable college expenses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subsections (yy) and (zz) of section 606 of the tax law, as
2 relettered by section 5 of part H of chapter 1 of the laws of 2003, are
3 relettered subsections (yyy) and (zzz) and a new subsection (u) is added
4 to read as follows:
5 (U) STAY IN NEW YORK CREDIT. (1) GENERAL. (A) A RESIDENT TAXPAYER
6 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
7 ALLOWABLE COLLEGE EXPENSES. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO
8 TWENTY-FIVE PERCENT OF ALLOWABLE COLLEGE EXPENSES, CAPPED AT THREE THOU-
9 SAND DOLLARS. THE CREDIT SHALL BE ALLOWED ONLY IN THE FIRST TAXABLE YEAR
10 SUBSEQUENT TO THE TAXPAYER'S COMPLETION OF A COURSE OF STUDY LEADING TO
11 THE GRANTING OF A BACCALAUREATE DEGREE AND IN EACH OF THE NEXT THREE
12 TAXABLE YEARS.
13 (B) IN ORDER TO QUALIFY FOR THE CREDIT, THE ELIGIBLE TAXPAYER SHALL:
14 (I) HAVE COMPLETED THE COURSE OF STUDY LEADING TO THE GRANTING OF A
15 BACCALAUREATE DEGREE FROM AN INSTITUTION OF HIGHER EDUCATION WITHIN FOUR
16 YEARS FROM THE COMMENCEMENT OF SUCH COURSE OF STUDY. PROVIDED, HOWEVER,
17 IF THE ELIGIBLE TAXPAYER WAS EMPLOYED IN EXCESS OF THREE HUNDRED HOURS
18 PER SEMESTER, THE ELIGIBLE TAXPAYER SHALL HAVE COMPLETED THE COURSE OF
19 STUDY LEADING TO THE GRANTING OF A BACCALAUREATE DEGREE WITHIN FIVE
20 YEARS FROM THE COMMENCEMENT OF SUCH COURSE OF STUDY;
21 (II) BE EMPLOYED FULL-TIME WITHIN THE STATE; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09565-02-4
S. 4576--A 2
1 (III) HAVE COMPLETED TWENTY HOURS OF COMMUNITY SERVICE PER SEMESTER OF
2 ENROLLMENT IN AN INSTITUTION OF HIGHER EDUCATION. PROVIDED, HOWEVER, FOR
3 THOSE ELIGIBLE TAXPAYERS WHO HAVE BEEN GRANTED DEGREES WITHIN THREE
4 YEARS OF THE EFFECTIVE DATE OF THIS SUBSECTION, SUCH TAXPAYERS SHALL
5 COMPLETE THE COMMUNITY SERVICE WITHIN THE FIRST TAXABLE YEAR IN WHICH
6 THE CREDIT IS CLAIMED.
7 (C) FOR ELIGIBLE TAXPAYERS WHO ENROLL IN A COURSE OF STUDY LEADING TO
8 THE GRANTING OF A POST BACCALAUREATE OR OTHER GRADUATE DEGREE IMMEDIATE-
9 LY FOLLOWING THE RECEIPT OF A BACCALAUREATE DEGREE, THE CREDIT SHALL BE
10 ALLOWED IN THE FIRST TAXABLE YEAR SUBSEQUENT TO THE TAXPAYER'S
11 COMPLETION OF SUCH DEGREE OR WHEN SUCH TAXPAYER CEASES TO BE ENROLLED IN
12 SUCH COURSE OF STUDY AND IN EACH OF THE NEXT THREE TAXABLE YEARS
13 PROVIDED ALL OTHER QUALIFICATIONS OF THIS SUBSECTION ARE MET.
14 (2) ALLOWABLE AND QUALIFIED COLLEGE EXPENSES. FOR THE PURPOSES OF THIS
15 CREDIT:
16 (A) THE TERM "ALLOWABLE COLLEGE EXPENSES" SHALL MEAN THE TOTAL AMOUNT
17 OF QUALIFIED COLLEGE EXPENSES INCURRED BY THE TAXPAYER DURING THE
18 TAXPAYER'S ENROLLMENT IN A COURSE OF STUDY LEADING TO THE GRANTING OF A
19 BACCALAUREATE DEGREE FROM AN INSTITUTION OF HIGHER EDUCATION.
20 (B) THE TERM "QUALIFIED COLLEGE EXPENSES" SHALL MEAN THE TUITION
21 REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF THE TAXPAYER AT AN INSTITU-
22 TION OF HIGHER EDUCATION. PROVIDED, HOWEVER, TUITION PAYMENTS MADE
23 PURSUANT TO THE RECEIPT OF ANY SCHOLARSHIPS OR FINANCIAL AID SHALL BE
24 EXCLUDED FROM THE DEFINITION OF "QUALIFIED COLLEGE EXPENSES".
25 (3) INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
26 THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
27 HIGHER EDUCATION LOCATED IN THE STATE, RECOGNIZED AND APPROVED BY THE
28 REGENTS, OR ANY SUCCESSOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE
29 OF NEW YORK OR ACCREDITED BY A NATIONALLY RECOGNIZED ACCREDITING AGENCY
30 OR ASSOCIATION ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGAN-
31 IZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK, WHICH PROVIDES A
32 COURSE OF STUDY LEADING TO THE GRANTING OF A POST-SECONDARY DEGREE,
33 CERTIFICATE OR DIPLOMA.
34 (4) REFUNDABILITY. THE CREDIT UNDER THIS SUBSECTION SHALL BE ALLOWED
35 AGAINST THE TAXES IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR REDUCED
36 BY THE CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX
37 AS SO REDUCED, THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO
38 A CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT
39 INTEREST, THE AMOUNT OF SUCH EXCESS.
40 S 2. Subparagraph (A) of paragraph 2 of subsection (t) of section 606
41 of the tax law, as amended by section 1 of part N of chapter 85 of the
42 laws of 2002, is amended to read as follows:
43 (A) The term "allowable college tuition expenses" shall mean the
44 amount of qualified college tuition expenses of eligible students paid
45 by the taxpayer during the taxable year[,]. THE AMOUNT OF QUALIFIED
46 COLLEGE TUITION EXPENSES SHALL BE limited [to] AS FOLLOWS: FOR TAXABLE
47 YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND FIFTEEN, ten
48 thousand dollars for each such student; FOR TAXABLE YEARS BEGINNING IN
49 TWO THOUSAND FIFTEEN, TWELVE THOUSAND DOLLARS FOR EACH STUDENT; FOR
50 TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN, FOURTEEN THOUSAND
51 DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND
52 SEVENTEEN, SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS
53 BEGINNING IN TWO THOUSAND EIGHTEEN, EIGHTEEN THOUSAND DOLLARS FOR EACH
54 STUDENT; AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHTEEN,
55 TWENTY THOUSAND DOLLARS PER STUDENT;
S. 4576--A 3
1 S 3. 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.]
12 THE AMOUNT OF THE CREDIT SHALL BE DETERMINED IN ACCORDANCE WITH THE
13 FOLLOWING SCHEDULES:
14 (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO
15 THOUSAND FIFTEEN:
16 IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
17 EXPENSES ARE:
18 LESS THAN FIVE THOUSAND DOLLARS THE APPLICABLE PERCENTAGE OF THE
19 LESSER OF ALLOWABLE COLLEGE TUITION
20 EXPENSES OR TWO HUNDRED DOLLARS
21 FIVE THOUSAND DOLLARS OR MORE THE APPLICABLE PERCENTAGE OF
22 ALLOWABLE COLLEGE TUITION EXPENSES
23 MULTIPLIED BY FOUR PERCENT
24 (B) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FIFTEEN:
25 IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
26 EXPENSES ARE:
27 LESS THAN SIX THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
28 TUITION EXPENSES OR TWO HUNDRED
29 FORTY DOLLARS
30 SIX THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
31 EXPENSES MULTIPLIED BY FOUR PERCENT
32 (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN:
33 IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
34 EXPENSES ARE:
35 LESS THAN SEVEN THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
36 TUITION EXPENSES OR TWO HUNDRED
37 EIGHTY DOLLARS
38 SEVEN THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
39 EXPENSES MULTIPLIED BY FOUR PERCENT
40 (D) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN:
41 IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
42 EXPENSES ARE:
43 LESS THAN EIGHT THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
44 TUITION EXPENSES OR THREE HUNDRED
45 TWENTY DOLLARS
46 EIGHT THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
47 EXPENSES MULTIPLIED BY FOUR PERCENT
48 (E) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND EIGHTEEN:
49 IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
50 EXPENSES ARE:
51 LESS THAN NINE THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
52 TUITION EXPENSES OR THREE HUNDRED
53 SIXTY DOLLARS
54 NINE THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
55 EXPENSES MULTIPLIED BY FOUR PERCENT
56 (F) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHTEEN:
S. 4576--A 4
1 IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
2 EXPENSES ARE:
3 LESS THAN TEN THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
4 TUITION EXPENSES OR FOUR HUNDRED
5 DOLLARS
6 TEN THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
7 EXPENSES MULTIPLIED BY FOUR PERCENT
8 Such applicable percentage shall be twenty-five percent for taxable
9 years beginning in two thousand one, fifty percent for taxable years
10 beginning in two thousand two, seventy-five percent for taxable years
11 beginning in two thousand three and one hundred percent for taxable
12 years beginning after two thousand three.
13 S 4. Subsection (t) of section 606 of the tax law is amended by adding
14 a new paragraph 4-a to read as follows:
15 (4-A) INFLATION ADJUSTMENT. (A) FOR TAXABLE YEARS BEGINNING IN OR
16 AFTER TWO THOUSAND NINETEEN, THE DOLLAR AMOUNTS IN SUBPARAGRAPH (A) OF
17 PARAGRAPH TWO AND PARAGRAPH FOUR OF THIS SUBSECTION SHALL BE MULTIPLIED
18 BY ONE PLUS THE INFLATION ADJUSTMENT.
19 (B) THE INFLATION ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE THE
20 PERCENTAGE, IF ANY, BY WHICH THE HIGHER EDUCATION PRICE INDEX FOR THE
21 ACADEMIC FISCAL YEAR ENDING IN THE IMMEDIATELY PRECEDING TAXABLE YEAR
22 EXCEEDS THE HIGHER EDUCATION PRICE INDEX FOR THE ACADEMIC FISCAL YEAR
23 ENDING JUNE, TWO THOUSAND EIGHTEEN. FOR THE PURPOSES OF THIS PARAGRAPH,
24 THE HIGHER EDUCATION PRICE INDEX MEANS THE HIGHER EDUCATION PRICE INDEX
25 PUBLISHED BY THE COMMONFUND INSTITUTE.
26 (C) IF THE PRODUCT OF THE AMOUNTS IN SUBPARAGRAPHS (A) AND (B) OF THIS
27 PARAGRAPH IS NOT A MULTIPLE OF FIVE DOLLARS, SUCH INCREASE SHALL BE
28 ROUNDED TO THE NEXT MULTIPLE OF FIVE DOLLARS.
29 S 5. This act shall take effect immediately and shall apply to taxable
30 years beginning on or after January 1, 2015; provided, however, that
31 section one of this act shall apply to taxable years beginning on or
32 after January 1, 2016.
