senate Bill S4094A

Includes the tuition required for enrollment or attendance in a course of graduate study within the college tuition credit

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 17 / Mar / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Jan / 2012
    • PRINT NUMBER 4094A

Summary

Includes the tuition required for enrollment or attendance in a course of study leading to the granting of a post baccalaureate or other graduate degree within the definition of "qualified college tuition expenses" for the purposes of qualifying for the college tuition credit.

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Bill Details

Versions:
S4094
S4094A
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: A4427
2007-2008: A2183

Sponsor Memo

BILL NUMBER:S4094A

TITLE OF BILL:
An act
to amend the tax law, in relation to including the tuition of graduate
students within the college tuition credit

PURPOSE OR GENERAL IDEA OF BILL:
Tax tuition credit for graduate students.

SUMMARY OF SPECIFIC PROVISIONS:
Subparagraph (c) of paragraph two of subsection (t) of section 606 of
the tax law is amended to provide a tax credit for students enrolled
in a graduate program.

JUSTIFICATION:
Current law provides for a college tuition tax credit to students
enrolled or attending an institution of higher education, whether
full or part-time. An institution of higher education is defined in
the statute as any institution of higher education or business,
trade, technical, or other occupational school recognized and
approved by an accrediting agency. Tuition payments required for
enrollment or attendance in course of study leading to a
post-baccalaureate or other graduate degree are specifically exempted
from the tax credit.

The maximum amount of qualified tuition expenses allowed for each
eligible student is $10,000. If the total qualified tuition expenses
are more than $5,000, the credit for 2004 is four-percent of the
qualified tuition expenses up to $10,000 per student. Therefore, the
maximum tuition credit allowed for 2004 would be $400 per student. If
the total qualified tuition expenses are less than $5,000, the credit
is equal to the lesser of the total qualified college tuition
expenses or $200. The student is therefore not credited back the
entire amount of tuition but at most only $400 per student.

Logically, the college tuition tax credit should be extended to cover
qualified graduate tuition expenses as well. Total graduate
enrollment has generally increased in the past three decades. College
costs continue to rise, outpacing the rate of inflation. The
percentage of undergraduates who have borrowed and the average total
amount borrowed has consistently increased. Individuals often incur
enormous debt to earn a college education with no guarantee of job
placement. During slow economic times, businesses are not hiring and
college graduates unable to find jobs are choosing to attend graduate
school, thus, taking on additional debt burdens.

The graduate college tax credit will help those who need the tax
credit most.
New York State graduate students, who often have greater debt burdens
then
undergraduate students, will be able to obtain a graduate degree
without mortgaging their future. Those with graduate degrees
potentially will earn more money and collectively better this state
and country. Therefore, the college tuition tax credit should be
expanded to graduate college tuition.


PRIOR LEGISLATIVE HISTORY:
S.2435 of 2007/08
S.4094 of 2011/12

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on or after
January 1, 2013.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4094--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 17, 2011
                               ___________

Introduced  by  Sen.  SMITH  -- 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 including the tuition of
  graduate students within the college tuition credit

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraph  (C)  of  paragraph  2  of subsection (t) of
section 606 of the tax law, as amended by section 1 of part N of chapter
85 of the laws of 2002, is amended to read as follows:
  (C) The term "qualified  college  tuition  expenses"  shall  mean  the
tuition required for the enrollment or attendance of an eligible student
at  an  institution  of  higher  education.  Provided,  however, tuition
payments made pursuant to the receipt of any scholarships  or  financial
aid[,  or  tuition  required for enrollment or attendance in a course of
study leading to the granting of a post baccalaureate or other  graduate
degree,]  shall  be  excluded  from the definition of "qualified college
tuition expenses".
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2013.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10264-02-2

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