Bill Text: NY S05010 | 2017-2018 | General Assembly | Amended

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Bill Title: Establishes the helping open opportunities to learn tax credit for qualified primary and secondary tuition expenses.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S05010 Detail]

Download: New_York-2017-S05010-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         5010--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                      March 6, 2017
                                       ___________
        Introduced  by  Sens. GOLDEN, SAVINO, FELDER, PHILLIPS -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Investigations and Government Operations -- committee discharged, bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee
        AN ACT to amend the tax law, in relation  to  establishing  the  helping
          open opportunities to learn tax credit
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (jjj) to read as follows:
     3    (jjj)  Helping  open opportunities to learn tax credit. (1) General. A
     4  resident low and middle income taxpayer shall be allowed a credit, to be
     5  computed as provided in paragraph three of this subsection, against  the
     6  tax  imposed  by  this  article  for  the qualified primary or secondary
     7  education tuition expenses paid by the taxpayer during the taxable year.
     8    (2) Definitions. For purposes of this subsection, the following  terms
     9  shall have the following meanings:
    10    (A)  "Resident  low  and middle income taxpayer" shall mean a taxpayer
    11  who is a full-year resident of this  state  and  whose  federal  taxable
    12  income  is  equal  to  or  less than seven hundred twenty percent of the
    13  federal poverty guidelines, as promulgated annually by the United States
    14  department of health and human services, for the taxable year for  which
    15  this credit is claimed.
    16    (B)  "Qualified primary or secondary education tuition expenses" shall
    17  mean the tuition required for the enrollment or attendance of an  eligi-
    18  ble student at a public or nonpublic school. Provided, however, that any
    19  tuition  payments made for such eligible student pursuant to the receipt
    20  of financial aid or one or more scholarships shall be excluded from  the
    21  definition of the term "qualified primary or secondary education tuition
    22  expenses" for such eligible student.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10291-02-7
        S. 5010--A                          2
     1    (C)  "Eligible  student" shall mean any dependent of the taxpayer with
     2  respect to whom the taxpayer is allowed an exemption under  section  six
     3  hundred sixteen of this article for the taxable year who is enrolled in,
     4  and  for whom qualified primary and secondary education tuition expenses
     5  have been paid for, kindergarten or grade one through twelve in a quali-
     6  fied school.
     7    (D)  "Nonpublic  school"  means  any  not-for-profit  pre-kindergarten
     8  program  or  elementary,  secondary  sectarian  or  nonsectarian  school
     9  located  in  this  state,  other than a public school, that is providing
    10  instruction at one or more locations to a  student  in  accordance  with
    11  subdivision two of section thirty-two hundred four of the education law.
    12    (E)  "Public  school" means any free elementary or secondary school in
    13  this state guaranteed by article eleven of the constitution  or  charter
    14  school authorized by article fifty-six of the education law.
    15    (3)  Amount  of  credit.  The amount of credit that a resident low and
    16  middle income taxpayer may claim for the qualified primary or  secondary
    17  education  tuition  expenses  paid for each eligible student shall equal
    18  the lesser of twelve percent of the total per pupil state public  school
    19  expenditures  or  fifteen  percent of the qualified primary or secondary
    20  education tuition expenses paid by the taxpayer during the taxable  year
    21  for  such  eligible  student. The total state public school expenditures
    22  shall equal the school aid, as reported  in  the  state  enacted  budget
    23  financial  plan  for  the  taxable  year in which the school year began,
    24  divided by the total number of students  enrolled  in  kindergarten  and
    25  grades  one  through twelve at public schools in this state as published
    26  by the department of education for such taxable year.
    27    (4) Application of credit. If the amount of the credit  allowed  under
    28  this subsection for any taxable year shall exceed the taxpayer's tax for
    29  such  year,  the  excess shall be treated as an overpayment of tax to be
    30  credited or refunded in accordance with the provisions  of  section  six
    31  hundred  eighty-six of this article, provided, however, that no interest
    32  shall be paid thereon.
    33    (5) Husband and wife. In the case of a husband and  wife  who  file  a
    34  joint  federal  return, but who are required to determine their New York
    35  taxes separately, the credit allowed pursuant to this subsection may  be
    36  applied  against  the  tax  imposed of either or divided between them as
    37  they may elect.
    38    § 2. This act shall take effect immediately and shall apply to taxable
    39  years beginning after December 31, 2018.